Smart Energy is the fastest growing market segment in Smart Cities, says Frost & Sullivan.
The market for Smart Energy is expected to make up 24 percent of the total global smart city market in 2025, growing at a CAGR of 28.7 percent from 2012-2025.
Globally smart cities market is expected to reach US$1.56 trillion by 2020. The growth is driven by large scale adoption of smart grids and intelligent energy solutions.
The research expects that over 26 global cities will become smart cities by 2025. Europe and North America will hold more than 50 percent share of them.
Other key parameters that are integral to smart city planning include smart building, smart mobility, smart healthcare, smart infrastructure, smart technology, smart governance and smart education, smart citizen.
Smart Buildings will make up 7 percent of the total global smart city market in 2025, growing at a CAGR of 4.1 percent from 2012-2025.
Smart Infrastructure will hold 11 percent of the total global smart city market in 2025, growing at a CAGR of 12 percent from 2012-2025. Key parameters of Smart Infrastructure include sensor networks as well as digital water and waste management.
In Australia, for example, 48 percent of all waste goes to landfill; in Sweden, that number is 1 percent.
Smart cities are crucial to address the rising migration challenges faced by administrations in developed regions and cities.
Meanwhile smart cities also transform administration. Governments of smart cities are transforming from a traditional model of a silo-based organization to a more collaborative, integrated service delivery model. Cities will collaborate with each other to drive smart city innovation by entering into partnerships with each other, says Ivan Fernandez, Industry Director for Frost & Sullivan Australia & New Zealand.
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“Technology and ecosystem convergence, collaboration and partnerships between stakeholders from different industries, such as energy and infrastructure, IT, telecoms and government will also expedite the delivery of integrated services,” Fernandez added.
Sydney, for example, will have around 1.3 million additional people by 2031. Twenty four percent of the city population takes public transport to work but only 20 percent can get to work in less than an hour. The cost of congestion in Sydney is over A$5.2 billion a year.”
Miniaturisation, wireless-enablement and interoperability of sensors are key industry drivers that have allowed sensors to be part of building management systems. In 2012, the global market for sensors used in building automation systems was US$1.75 billion. This is expected to rise to about US$2.7 billion in 2016.
The report urges that governments of cities should create a Smart City Stakeholder Group, encourage open collaboration and build digital infrastructure such as eServices and mHealth.
“The private sector on the other hand, should evaluate their role in the smart city market; build a ‘City as a Customer’ Strategy; identify potential partners, business models and consortiums; develop capabilities in data analytics and cloud-based services; and develop services as a business model,” said Fernandez.
According the report smart city planners should begin with the end in mind. “Tailor the technology solution to the DNA of the city; not the other way round,” Fernandez said.
Rajani Baburajan