Global Smart Infrastructure Market Overview
As per MRFR analysis, the Smart Infrastructure Market Size was estimated at 98.07 (USD Billion) in 2023. The Smart Infrastructure Market Industry is expected to grow from 101.64(USD Billion) in 2024 to 150.7 (USD Billion) by 2035. The Smart Infrastructure Market CAGR (growth rate) is expected to be around 3.64% during the forecast period (2025 - 2035).
Key Smart Infrastructure Market Trends Highlighted
The Smart Infrastructure Market is witnessing substantial growth driven by the increasing demand for sustainable and efficient energy solutions across various sectors. Key market drivers include the push for smart city initiatives, where governments worldwide are adopting advanced technologies to improve urban living conditions. This shift is fueled by the need for better resource management, reduced operational costs, and enhanced energy efficiency. Governments are investing in digital infrastructure, creating opportunities for integrating IoT, artificial intelligence, and data analytics into urban planning. Recent trends indicate a heightened focus on renewable energy sources and smart grid technologies as part of a broader effort to combat climate change.
Through initiatives such as the United Nations’ Sustainable Development Goals, stakeholders are prompted to create resilient infrastructure that can adapt to future environmental challenges. Moreover, advancements in communication technologies are enabling real-time data collection and analysis, which is critical for optimizing infrastructure performance. Opportunities to be explored involve partnerships between public and private sectors, fostering innovation in smart infrastructure deployments.
With an increasing number of stakeholders, including tech companies and traditional builders, collaborating on projects, the potential for enhancing urban infrastructure through smart solutions is significant.The rise in demand for automated systems that promote sustainability offers a pathway for new business models and services in the market. Overall, the Smart Infrastructure Market is positioned for transformative growth, reflecting an ongoing commitment to advancing urban resilience and sustainability.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Smart Infrastructure Market Drivers
Government Initiatives and Investments in Smart Infrastructure
As a result of governments' growing recognition of the value of smart infrastructure, significant investments and initiatives are being made with the goal of improving sustainability and efficiency. For example, nations are spending large amounts of their money on creating smart cities, which use smart infrastructure ideas to maximize energy use and urban mobility. Nearly 68% of the world's population is predicted to reside in cities by 2050, according to the UN's World Urbanization Prospects report, necessitating the urgent need for smart infrastructure solutions. With companies like Siemens AG and Cisco Systems, Inc. setting the standard for the deployment of smart technology solutions, this trend has resulted in a large number of public-private collaborations, which in turn has stimulated the Smart Infrastructure Market industry.
Governments are developing laws in some areas to encourage the use of smart infrastructure, which is expected to generate a multibillion-dollar industry.
Technological Advancements Driving Smart Infrastructure Solutions
Rapid advancements in technology, such as the Internet of Things (IoT), artificial intelligence, and big data analytics, are driving the growth of the Smart Infrastructure Market Industry. These technologies facilitate enhanced real-time data monitoring and analysis, which help to optimize asset performance and enhance decision-making. According to a report by the International Data Corporation, worldwide spending on augmented and virtual reality technologies is expected to reach $198 billion by 2025, illustrating the growing trend toward the integration of advanced technologies in infrastructure systems.
Companies like IBM and Schneider Electric are at the forefront of these innovations, creating solutions that contribute to increasing operational efficiency and reducing costs in urban management.
Rising Demand for Sustainable and Resilient Infrastructure
The increasing awareness of environmental sustainability is a significant driver of the Smart Infrastructure Market Industry. With climate change leading to more frequent and severe weather events, there is a growing need for resilient infrastructure that can withstand these challenges. According to the Global Climate Change Adaptation Strategy, $180 billion is needed annually to address climate risks, emphasizing the shift toward sustainable solutions.Organizations, such as the World Economic Forum, have identified sustainable infrastructure as essential for supporting both economic growth and environmental preservation.
This has led to the implementation of green building standards and regulations, nudging stakeholders toward investing in smart infrastructure solutions that are energy-efficient and environmentally friendly, resulting in increased market growth.
Smart Infrastructure Market Segment Insights
Smart Infrastructure Market Technology Insights
The Smart Infrastructure Market, focusing on the Technology segment, showcases a robust landscape characterized by rapid advancements and increasing investments. In 2024, the total valuation in this segment is valued at 101.64 USD Billion, reflecting a broad adoption of innovative solutions that enhance operational efficiencies across various sectors. Among the key areas of focus, the Internet of Things (IoT) commands significant attention, with a valuation of 25.5 USD Billion in 2024, and is anticipated to grow to 37.1 USD Billion by 2035.This growth is driven by the increasing interconnectivity of devices, enabling real-time data collection and analysis that enhances decision-making processes.
Furthermore, the Artificial Intelligence (AI) sector is poised for substantial growth, starting at 20.0 USD Billion in 2024 and forecasted to reach 30.0 USD Billion by 2035. AI technologies are crucial in automating processes and analyzing vast datasets, making them a vital component in optimizing infrastructure management. Big Data Analytics, valued at 18.0 USD Billion in 2024 and expected to rise to 25.5 USD Billion by 2035, plays a pivotal role in transforming raw data into actionable insights, fueling smarter infrastructure development.Additionally, Cloud Computing is established as a major player within the market; it is valued at 30.0 USD Billion in 2024 and is projected to escalate to 43.0 USD Billion by 2035, which underlines its significance in facilitating scalable and flexible infrastructure solutions essential for data storage and management.
Lastly, Blockchain technology, while relatively newer in this landscape, is gaining traction, with a valuation of 8.14 USD Billion in 2024 and expected growth to 15.1 USD Billion by 2035. Its intrinsic ability to enhance security and transparency in transactions makes it increasingly attractive for smart infrastructure applications.The interplay of these technological advancements underscores their collective importance in driving innovations within the Smart Infrastructure Market, positioning them as key enablers of efficiency, security, and growth in the face of evolving market demands.
As technological frameworks continue to evolve, these segments not only dominate market value but also substantiate the infrastructural robustness needed to support global economic transformations.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Smart Infrastructure Market Application Insights
The Smart Infrastructure Market is witnessing substantial growth, with revenue is valued at 101.64 USD Billion in 2024. This expansion is driven by a variety of applications, including Smart Transportation, Smart Energy, Smart Buildings, Smart Water Management, and Smart Grid systems. Smart Transportation focuses on enhancing mobility and reducing congestion in urban areas, addressing increasing urbanization and the need for efficient travel solutions. Meanwhile, Smart Energy plays a significant role in optimizing energy consumption and incorporating renewable energy sources, reflecting the global shift towards sustainability.
Smart Buildings contribute to energy efficiency and improved occupant comfort, making workplaces and homes more versatile and environmentally friendly. Furthermore, Smart Water Management is essential in addressing water scarcity and improving resource conservation, highlighting the increasing importance of sustainable practices in global water use. Lastly, the Smart Grid enhances the reliability and efficiency of power distribution networks, making it a critical component in modern energy infrastructure.
Collectively, these applications not only represent a major part of the market but also drive innovation and respond to contemporary global challenges in urbanization, environmental sustainability, and resource management.
Smart Infrastructure Market End Use Insights
The Smart Infrastructure Market is valued at approximately 101.64 USD Billion in 2024, showcasing significant growth within various end use segments such as Commercial, Residential, Industrial, and Government. These segments play a crucial role in the overall market landscape, with the Commercial sector leading in the adoption of smart technologies to enhance operational efficiency and reduce energy consumption. Residential sectors are increasingly integrating smart systems to improve convenience and security, driven by consumer demand for connectivity.The Industrial segment focuses on automation and smart manufacturing processes, fostering innovation and operational excellence.
Meanwhile, Government applications are centered around smart cities and urban development initiatives, addressing infrastructure challenges and improving public services. With the projected growth trajectory, the Smart Infrastructure Market exhibits opportunities for advancements in technology and investment in sustainable practices. The market growth reflects a growing recognition of the need for efficient infrastructure solutions globally, driven by urbanization trends and the increasing emphasis on sustainability.
Smart Infrastructure Market Infrastructure Type Insights
The Smart Infrastructure Market focuses significantly on the Infrastructure Type segment, which encompasses various essential components such as Telecommunication Infrastructure, Road Infrastructure, Energy Infrastructure, and Water Infrastructure. In 2024, the overall market is valued at 101.64 billion USD, showing robust growth leading to an expected value of 150.7 billion USD by 2035. The Telecommunication Infrastructure is crucial in supporting high-speed data transfers and enhancing connectivity, which is pivotal in today’s digital age.Road Infrastructure plays a vital role in facilitating transportation efficiency and traffic management, contributing to reduced congestion and enhanced safety.
Energy Infrastructure is indispensable as it supports the transition to renewable sources, aligning with global sustainability goals. Water Infrastructure is increasingly significant in ensuring efficient water management and distribution, addressing the challenges posed by urbanization and climate change. As urbanization accelerates globally, investment in these various infrastructure types is seen as a driving force for market growth, while technological advancements and government initiatives further catalyze the development of smart solutions within these segments.
Smart Infrastructure Market Regional Insights
The Smart Infrastructure Market is evolving rapidly across regional segments, with a valuation of 101.64 billion USD in 2024 and growth continuing through to 150.7 billion USD by 2035. North America leads this market, valued at 30.45 billion USD in 2024, and is expected to grow to 45.67 billion USD by 2035, showcasing its importance in advanced smart technology integration and infrastructure development. Europe follows closely with a market value of 28.13 billion USD in 2024, expanding to 40.32 billion USD, driven by increasing investments in renewable energy and urbanization.The Asia-Pacific (APAC) region is critical as well, with a valuation of 25.5 billion USD in 2024 and a forecast of 36.5 billion USD by 2035, fueled by rapid urban growth and infrastructure modernization initiatives.
South America, valued at 10.2 billion USD in 2024 and projected to reach 13 billion USD, reflects emerging trends in smart city developments, while the Middle East and Africa (MEA) starts at a smaller share of 7.36 billion USD in 2024 but expects to see a decline to 5.21 billion USD, indicating unique challenges in energy requirements and infrastructural hurdles.Each region's development contributes significantly to the Smart Infrastructure Market revenue, driving interconnected systems and sustainable practices that respond to global challenges.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Smart Infrastructure Market Key Players and Competitive Insights
The Smart Infrastructure Market is undergoing a tremendous transformation driven by advancements in technology and the growing need for energy efficiency and sustainable solutions. As urbanization increases and infrastructure demands grow, companies in this sector are increasingly focused on developing intelligent systems that enhance operational efficiency, improve resource management, and facilitate real-time data utilization. The competitive landscape is characterized by a range of players that are innovating and strategizing to capture market share through new product introductions, partnerships, mergers, and acquisitions. Key trends such as the Internet of Things (IoT), automation, and smart grids are redefining the sector, prompting stakeholders to adopt new business models to meet the needs of evolving infrastructure requirements.
ABB is a prominent player in the Smart Infrastructure Market, recognized for its extensive portfolio of solutions that encompass electrification, automation, and digitalization. The company’s strengths lie in its strong brand reputation, deep technological expertise, and commitment to sustainability. ABB's comprehensive product offerings include smart buildings, energy management systems, and advanced automation solutions that effectively address the needs of modern infrastructure. Additionally, ABB's global presence allows it to capitalize on emerging market opportunities while leveraging its established customer relationships across various industries, from utilities to transportation.
This global footprint not only enhances the company’s market penetration but also positions it as a trusted partner in delivering smart infrastructure solutions worldwide.IBM also plays a significant role in the Smart Infrastructure Market, known for its innovative approach to integrating advanced technologies like AI, cloud computing, and blockchain into smart infrastructure solutions.
IBM's key products and services range from smart grid technologies to cognitive building, encompassing a wide range of applications that enhance infrastructure efficiency. The company possesses a notable strength in data analytics, which empowers clients to optimize their operations and make informed decisions based on actionable insights. IBM has been actively involved in strategic collaborations and mergers that enhance its capabilities in smart infrastructure, enabling it to provide comprehensive digital solutions to businesses around the globe.
Its long-standing reputation and expertise in technology services further solidify its position as a leading contributor to the global smart infrastructure landscape.
Key Companies in the Smart Infrastructure Market Include:
- ABB
- IBM
- Rockwell Automation
- Oracle
- Johnson Controls
- Schneider Electric
- Microsoft
- Cisco Systems
- Samsung Electronics
- Honeywell
- LG Electronics
- Hitachi
- Siemens
- Emerson Electric
- General Electric
Smart Infrastructure Market Industry Developments
Recent developments in the Smart Infrastructure Market have been marked by significant advancements in technology and strategic partnerships among major companies. ABB and Siemens have been leading initiatives to integrate Artificial Intelligence and Internet of Things technologies into their infrastructure solutions, enhancing operational efficiency and sustainability.
Furthermore, in September 2023, Rockwell Automation announced an acquisition of a software firm to expand its capabilities in smart manufacturing, highlighting the push for digital transformation. Similarly, in October 2023, Johnson Controls unveiled a collaboration with Microsoft aimed at improving energy management through smart building technologies.
The market continues to see growth, with predictions forecasting a valuation increase driven by heightened demand for automation and energy-efficient solutions. In recent years, notable events include Schneider Electric's acquisition of a data analytics firm in July 2022 to bolster its smart grid offerings and Cisco Systems launching various smart city projects across global regions, emphasizing the shift toward integrated infrastructure solutions.
The investments and partnerships forged by these companies are shaping the landscape, reflecting a collective move towards smarter and more resilient infrastructure systems on a global scale.
Smart Infrastructure Market Segmentation Insights
-
Smart Infrastructure Market Technology Outlook
- Internet of Things
- Artificial Intelligence
- Big Data Analytics
- Cloud Computing
- Blockchain
-
Smart Infrastructure Market Application Outlook
- Smart Transportation
- Smart Energy
- Smart Buildings
- Smart Water Management
- Smart Grid
-
Smart Infrastructure Market End Use Outlook
- Commercial
- Residential
- Industrial
- Government
-
Smart Infrastructure Market Infrastructure Type Outlook
- Telecommunication Infrastructure
- Road Infrastructure
- Energy Infrastructure
- Water Infrastructure
-
Smart Infrastructure Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2023 |
98.07(USD Billion) |
| MARKET SIZE 2024 |
101.64(USD Billion) |
| MARKET SIZE 2035 |
150.7(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
3.64% (2025 - 2035) |
| REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR |
2024 |
| MARKET FORECAST PERIOD |
2025 - 2035 |
| HISTORICAL DATA |
2019 - 2024 |
| MARKET FORECAST UNITS |
USD Billion |
| KEY COMPANIES PROFILED |
ABB, IBM, Rockwell Automation, Oracle, Johnson Controls, Schneider Electric, Microsoft, Cisco Systems, Samsung Electronics, Honeywell, LG Electronics, Hitachi, Siemens, Emerson Electric, General Electric |
| SEGMENTS COVERED |
Technology, Application, End Use, Infrastructure Type, Regional |
| KEY MARKET OPPORTUNITIES |
Energy-efficient building solutions, IoT integration for infrastructure, Smart transportation systems adoption, Urbanization driving smart city initiatives, Enhanced data analytics for infrastructure management |
| KEY MARKET DYNAMICS |
Urbanization trends driving demand, Government initiatives for sustainability, Advancements in IoT technology, Investment in renewable energy solutions, Rising need for efficient resource management |
| COUNTRIES COVERED |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Smart Infrastructure Market is expected to be valued at 101.64 USD Billion in 2024.
In 2035, the Global Smart Infrastructure Market is projected to reach a value of 150.7 USD Billion.
The Global Smart Infrastructure Market is anticipated to grow at a CAGR of 3.64% from 2025 to 2035.
North America is expected to hold the largest market share in 2024, valued at 30.45 USD Billion.
By 2035, the market size for Europe is projected to be 40.32 USD Billion.
In 2024, the Cloud Computing segment is valued the highest at 30.0 USD Billion.
The APAC region is anticipated to grow from a market size of 25.5 USD Billion in 2024 to 36.5 USD Billion in 2035.
Major players in the market include ABB, IBM, Schneider Electric, and Microsoft, among others.
The market size for Artificial Intelligence in 2035 is expected to reach 30.0 USD Billion.
Key emerging trends include the growth of Internet of Things and Big Data Analytics, which are driving market expansion.
