The global Smart Cities spending guide study estimates that global investment in Smart Cities increased by 18.9% compared to the previous year
International Data Corporation (IDC), a benchmark company dedicated to market research, has launched a predictive study on how the Smart Cities sector will behave, predicting an upward trend in investment which will reach €114 billion this year, an increase of 18.9% compared to 2019.
The Top 100 cities investing in smart initiatives accounted for 29% of total spending around the world, with Tokyo, London, Singapore and New York leading the way with $1 billion in 2020, although the report points to smaller towns as a dispersed market where, on average, one-year, million-dollar projects will be developed.
From a regional perspective, the United States, Western Europe, and China will account for nearly 70% of global spending on Smart Cities, while Latin America and Japan will be the fastest-growing proponents of new start-up investments in many cities.
This report, available on the IDC website, has taken up to 180 cities located in the following regions as the basis for study: the United States, Canada, Japan, Western, Central and Eastern Europe, the Middle East and Africa, Latin America, China and the Asia-Pacific region, using the following technological categories as its point of study:
Smart Grids, spearheading “smart” investments
According to the technology newspaper GCN, Smart Grids will account for a third of investment in Smart Cities. Data-based public safety and smart transport accounted for about 18% and 14% of total spending, respectively. The electricity market is undergoing a complete revolution thanks to two main factors: the consolidation of renewable energy sources for power generation, and the need to provide a remote-controlled smart grid to ensure proper management.