Asia-Pacific is anticipated to be the fastest growing in smart energy and more than 50 per cent of Asian smart cities will be in China
The market for smart cities is projected to exceed $2 trillion by 2025 with artificial intelligence (AI) forming a key cornerstone of the growth, a new report suggests.
According to business consulting and market research firm Frost & Sullivan, next to AI, robotics, distributed energy generation, and personalised healthcare will be among technologies that will drive growth, efficiency, connectivity, and urbanisation
More than four fifths of the population in developed countries are expected to live in cities by 2050 making it an ideal time to seize the huge business opportunities it presents. The creation of smart cities enables a smooth transition to urbanisation, with technological advances helping municipalities optimise resources for maximum value to the population, whether that value is financial, savings in time, or improvement in quality of life, the report states.
“Artificial Intelligence has been the most funded technology innovation space in the past two years, with large investments coming from independent and corporate venture capital companies,” said Jillian Walker, visionary innovation principal consultant at Frost & Sullivan.
AI plays a key role in smart cities in the areas of smart parking, smart mobility, the smart grid, adaptive signal control, and waste management. Corporations, such as Google, IBM, and Microsoft, remain key tech innovators and the primary drivers of AI adoption.
Other significant findings include:
“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,” added Vijay Narayanan, visionary innovation senior research analyst at Frost & Sullivan.
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