Frost & Sullivan report global smart cities to surpass $2 trillion by 2025
Smart cities are expected to create a market value of more than $2 trillion by 2025, according to a report by Frost & Sullivan. The growth of AI is a key driver of this market.
China, in particular, is expected to dominate the smart city market in Asia, as the report predicts more than 50 percent of Asian smart cities will be in China, and they will generate $320 billion by 2025.
The North American smart buildings market, consisting of the various sensors, systems and hardware, will reach $5.74 billion by 2020, and Europe will have the largest number of smart city project investments globally.
In Latin America, many cities including Mexico City and Buenos Aires are currently developing smart city initiatives. In Brazil, smart city projects will make up almost 20 percent of the $3.2 billion IoT market in the country by 2021, according to the report.
"Currently most smart city models provide solutions in silos and are not interconnected. The future is moving toward integrated solutions that connect all verticals within a single platform. IoT is already paving the way to allow for such solutions," Vijay Narayanan, visionary innovation senior research analyst, Frost and Sullivan, said in the release.