Latest News- AI In Smart Cities Market: Hardware is expected to lead the Component segment during 2025-2029

The AI In Smart Cities Market is being driven by Data privacy, security, and ethical concerns

The AI In Smart Cities Market is expected to grow at a CAGR of 30% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 109947.7 million. The global urbanization trend, characterized by an increasing population and expansion of urban centers, is placing immense pressure on limited resources and aging infrastructure in cities. This pressure is leading to interconnected challenges such as chronic traffic congestion, strained energy grids, inefficient waste management, and deteriorating water systems. Traditional management methods, which are often reactive and siloed, are insufficient to address the complexity and scale of these issues. Artificial Intelligence (AI) is emerging as a critical solution for smart cities, enabling proactive and integrated management of urban systems to enhance sustainability, resilience, and overall quality of life. Urban centers, as economic powerhouses, demand innovative and effective solutions to ensure their continued growth and vitality. AI in smart cities market is poised to grow significantly due to this pressing need. 

Get more information on AI In Smart Cities Market by requesting a sample report

Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Component
  • Hardware
  • Software
  • Services
• Deployment
  • Cloud
  • On-premises
• Technology
  • Machine learning
  • Computer vision
  • Edge AI
  • NLP
  • Others
• Application
  • Traffic management
  • Infrastructure management
  • Public safety and security
  • Environmental monitoring
  • Others
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Middle East and Africa
  • South America
    • Brazil

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Data privacy, security, and ethical concerns
• High implementation costs and complex return on investment justification
• System integration complexity and lack of interoperability standards

However, the market also witnesses some limitations, which are as follows:

• Proliferation of generative AI in urban applications
• Strategic shift to AI at edge
• Rise of comprehensive urban digital twins

Benefits of Buying Global AI In Smart Cities Market Research Report by Technavio

Rich Experience: 20+ years leading global market research, trusted insights across industries.

Unlock Business Potential with Technavio: Maximize ROI with Technavio's tailored market research: deep dives and actionable insights.

Your Guide to Market Success: Empower your business with Technavio's market research and future-proof your decisions.

Market Scope in AI In Smart Cities Market Research Report

Find out which segment is leading the market by accessing the free PDF report

Research Analysis Overview

In the realm of AI and smart cities, urban data platforms are pivotal, enabling efficient smart city governance through citizen-centric services, sustainable urban development, and open data initiatives. Ethical AI guidelines ensure data privacy regulations are met, while edge computing deployment and interoperability standards facilitate system integration. Performance monitoring tools, AI model training, and data security protocols ensure system reliability and data protection. City-wide sensor networks, smart city dashboards, and digital inclusion programs promote inclusivity and accessibility. Traffic flow optimization, energy consumption reduction, waste reduction strategies, and public transportation optimization contribute to environmental sustainability and economic development. Infrastructure modernization, social equity initiatives, and public health improvements complete the holistic approach to smart city development. Emergency notification systems, system integration strategies, and data security protocols ensure safety and security. Overall, AI plays a crucial role in enhancing city services, improving quality of life, and promoting sustainable development.

Market Research Overview

In the expanding IT software market, the smart city infrastructure sector represents a significant growth opportunity. This segment encompasses AI-powered traffic management solutions and predictive policing algorithms. The application software market, a subset of the IT software industry, focuses on developing specialized applications for businesses and consumers. According to Technavio, the global application software market size is determined by the consolidated revenue of companies providing various software applications, including cloud-based solutions, excluding those classified in the interactive home entertainment or systems software industries.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/