Smart city IoT tech growth is expected to continue to rise quickly, with 11% growth anticipated in the next 8 years.
Building a slide deck, pitch, or presentation? Here are the big takeaways:
- Smart city IoT tech is expected to grow from $25 billion in 2017 to $62 billion in 2026 -- ABI Research, 2018
- Fastest growing smart city IoT verticals include EV charging stations and micro-grids, smart waste management and environmental sensors -- ABI Research, 2018
The trend toward smart city IoT tech growth will continue, with 12 key technologies and verticals increasing from $25 billion to $62 billion from 2017 to 2016, according to a new report from ABI Research.
SEE: Internet of Things policy (Tech Pro Research)
The transformative technologies that are the fastest growing are electric vehicle charging stations, micro-grids, smart waste management, environmental sensors, smart parking and smart street lighting. And then smart meters and video surveillance represent the largest revenue opportunities.
"Interest in and focus on smart cities has skyrocketed in 2017, with a very large number of vendors from across the value chain repositioning and optimizing their IoT portfolios to take advantage of this beckoning opportunity," says Dominique Bonte, vice president at ABI Research.
Bonte said the smart cities segment offers the perfect environment for suppliers to offer horizontal IoT platform solutions and addresses a recent trend toward more holistic, cross vertical approaches.
The higher on the value chain, the higher the revenue potential for vendors, according to ABI Research. This includes applications and services, analytics and AI, and security. Connectivity, sensor and device management, and professional services are lower on the value chain for revenue as the market moves toward platformization and commoditization.
Key smart city IoT solutions and platforms include Cisco's Kinetic for Cities, InterDigital's Chordant, PTC's ThingWorx, Microsoft's CityNext, Huawei's OceanConnect, Nokia's Impact, NVIDIA's Metropolis, Verizon's NetSense (Sensity), Siemens' MindSphere, IBM's Watson IoT, SAP's Leonardo, and Amazon's AWS IoT platform.
However, if vendors want to increase their revenue from these smart cities offerings, they'll need to address specific challenges faced by the target cities, the report said.
"Critical success factors include flexible, extensible 'as a service' aka 'pay as you grow' offers, financing and ecosystem support, standards-based interoperability, and guaranteed technology lifecycle management," the report said. "Simply applying a thin layer of marketing veneer on top of an otherwise generic IoT platform will not allow vendors to cut to the chase."
- 3 smart cities that raised the bar: A panel discussion (TechRepublic)
- 15 hot tech jobs for smart cities in 2018 and beyond (TechRepublic)
- Smart cities: The smart person's guide (TechRepublic)
- 60% of Americans want to live in a smart city (TechRepublic)
- IT jobs in 2020: A leader's guide (free PDF) (ZDNet/TechRepublic special report)