Wednesday, September 17, 2025
23.8 C
Lagos

Smart Cities Initiatives Targets $124bn Investment in 2020

 

 

A new forecast from the International Data Corporation (IDCWorldwide Smart Cities Spending Guide shows global spending on smart cities initiatives will total nearly $124 billion this year, an increase of 18.9% over 2019.

The top 100 cities investing in smart initiatives in 2019 represented around 29% of global spending, and while growth will be sustained among the top spenders in the short term, the market is quite dispersed across midsize and small cities investing in relatively small projects.

“This new release of IDC’s Worldwide Smart Cities Spending Guide brings further expansion of our forecasts into smart ecosystems with the addition of smart ports alongside smart stadiums and campus,” said Serena Da Rold, program manager in IDC’s Customer Insights & Analysis group.

“The Spending Guide also provides spending data for more than 200 cities and shows that fewer than 80 cities are investing over $100 million per year. At the same time, around 70% of the opportunity lies within cities that are spending $1 million or less per year. There is a great opportunity for providers of smart city solutions who are able to leverage the experience gained from larger projects to offer affordable smart initiatives for small and medium sized cities.”

In 2019, use cases related to resilient energy and infrastructure represented over one third of the opportunity, driven mainly by smart grids. Data-driven public safety and intelligent transportation represented around 18% and 14% of overall spending respectively.

Looking at the largest use cases, smart grids (electricity and gas combined) still attract the largest share of investments, although their relative importance will decrease over time as the market matures and other use cases become mainstream.

Fixed visual surveillance, advanced public transportation, intelligent traffic management, and connected back office follow, and these five use cases together currently represent over half of the opportunity. The use cases that will see the fastest spending growth over the five-year forecast are vehicle-to-everything (V2X) connectivity, digital twin, and officer wearables.

Singapore will remain the top investor in smart cities initiatives. Tokyo will be the second largest spender in 2020, driven by investments for the Summer Olympics, followed by New York City and London. These four cities will each see smart city spending of more than $1 billion in 2020.

On a regional basis, the United States, Western Europe, and China will account for more than 70% of global smart cities spending throughout the forecast. Latin America and Japan will experience the fastest growth in smart cities spending in 2020.

spot_img
spot_img

Hot this week

Designing the Future: Arc Christian Benimana, Prof Taibat Lawanson to Headline Ecobank Design and Build 2025

Ecobank Nigeria has announced that celebrated architect Arc. Christian...

Sovereign Trust Insurance Wins Enactus Catalyst Award

From L-R: Victor Akinfala, Head Partnerships & Special Projects,...

SEC DG: Commission Considering Gradual Implementation of ISSB Standards

The Director General of the Securities and Exchange Commission...

Universal Insurance MD/CEO, Jeff Duru, Bags CIBN Associate Membership

  Dr. Jeff Duru Managing Director/CEO Universal Insurance Plc The Managing Director/CEO of...

Sterling One Foundation CEO, Olapeju Ibekwe, Joins Board of UN Global Compact Network Nigeria Ahead of UNGA 80

    Olapeju Ibekwe, Chief Executive Officer of Sterling One Foundation,...

Topics

Carbon Unveils $100,000 Fund for Startups in Nigeria, Others

  Carbon has set up a $100,000 Pan-African fund to...

Gas to Play Significant Role in Africa’s Energy Mix, says NLNG’s MD

Dr. Philip Mshelbila Managing Director and Chief Executive Officer Nigeria LNG...

IATA: Time to Prepare for COVID-19 Vaccine Air Transport is Now

The International Air Transport Association (IATA) urged governments to...

‘SMEs Must Reinvent to Remain Competitive’ – Heritage Bank CEO, Sekibo

  Mr. Ifie Sekibo Managing Director/CEO Heritage Bank Limited Mr. Ifie Sekibo, Managing...

Fidelity Bank to Hold 3rd Edition of FITCC in Atlanta, USA Sept 2025

Leading African financial institution, Fidelity Bank Plc, is set...

NNPC Projects Fuel Price of N950 Per Litre for Lagos, N1, 019 for Borno

The NNPC Limited has released estimated prices of Premium...

Invitation to Business Journal 2nd Annual Lecture/Awards 2019

The Board, Management & Staff of Business Journal (print...
spot_img

Related Articles

Popular Categories

spot_imgspot_img