Smart Infrastructure Market Size, Share & Trends Analysis growing at a compound annual growth rate (CAGR) of 20.5% from 2024 to 2030
The global smart infrastructure market size was estimated at USD 372.95 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 20.5% from 2024 to 2030. The considerable growth of the smart infrastructure market can be attributed to increasing public and private investments in smart city projects, supportive government initiatives for digitalization, and shifting focus of various end-user companies toward improving their consumer experience.
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Smart infrastructure collects valuable information using connected devices, cameras, and sensors to assist urban planners, transport department officials, and city leaders, among others, to provide countless benefits to citizens or end-users, thus supporting smart infrastructure market growth. Companies operating in this market, such as Siemens, Honeywell International Inc., and International Business Machines Corporation, are notably investing in developing smart infrastructure solutions, creating robust opportunities for the smart infrastructure industry.
For instance, in November 2023, VMware announced a collaboration with International Business Machines Corporation (IBM) to integrate IBM Watsonx data and Artificial Intelligence (AI) on Red Hat OpenShift and VMware Private AI platform. This will enable their clients to improve operational efficiency of their AI-powered infrastructure and cloud platform.
Shifting focus of governments of various countries such as China, India, Germany, Brazil, and South Africa towards smart cities to elevate living standards of citizens is creating a positive outlook for smart infrastructure market. Governments in these countries are launching various smart city projects, which are anticipated to fuel market growth. For instance, in April 2022, the Government of Mpumalanga province in South Africa announced the transformation of Nkosi city, which is located near the Kruger National Park, into a smart city. The project is valued at around USD 5.24 billion and has received all government approvals.
Furthermore, various governments are organizing smart city exhibitions, which is propelling market growth. For instance, in October 2023, the Government of New York organized Smart City Expo USA 2023 in partnership with National League of Cities (NLC) and the African American Mayors Association (AAMA). The event was held at Pier 36 NYC, New York, and visited by various key market players who presented their latest technology-equipped smart infrastructure solutions, demos, and workshops, among others.
Market Concentration & Characteristics
The growth of market is very high and pace is accelerating. The smart infrastructure market is characterized by a high degree of innovation owing to rapid advancements in various technologies such as Artificial Intelligence (AI), Machine Learning (ML), big data analytics, cybersecurity, and Blockchain, among others. Further, emerging AI and cloud platforms are disrupting the current market and creating new opportunities for market stakeholders.
The market is also witnessing a high level of merger and acquisition (M&A) activity by key players. These players are focusing on acquiring technology providers to optimize their research & development (R&D) costs and expand their business presence into untapped markets.
The market is also subject to rules and regulations set by international, regional, and country-level regulatory bodies. The regulations for the next generation of emerging technologies are becoming stringent owing to rising privacy violations and manipulation in application algorithms. Owing to this, rules & regulations can significantly influence the development of the smart infrastructure market.
