United States Smart City Industry Research Report to 2032

U.S. Smart City Market

U.S. Smart City Market Research Report: By Component (Hardware, Software, Service), By Sales Channel (OEM, Aftermarket), and By Application (Utility, Transport, Government, Residential, Smart Education, Smart Healthcare, Others) - Forecast to 2035.

US Smart City Market Overview:

As per MRFR analysis, the US Smart City Market Size was estimated at 450 (USD Million) in 2023. The US Smart City Market Industry is expected to grow from 533.25(USD Million) in 2024 to 3,189.05 (USD Million) by 2035. The US Smart City Market CAGR (growth rate) is expected to be around 17.655% during the forecast period (2025 - 2035).

Key US Smart City Market Trends Highlighted

The growing need for sustainability and urban efficiency is driving notable industry developments in the US smart city market. Efforts to incorporate technology and improve infrastructure are becoming increasingly important as cities expand. The significance of creative mobility solutions, incorporating cutting-edge technology into traffic management systems, and lowering carbon footprints has been highlighted by initiatives like the Department of mobility's Smart City Challenge. As cities look to solve environmental issues and enhance the quality of life for their citizens, this shift is a major market driver. The advancement of smart grid technology, which may optimize energy use and save waste, presents opportunities. Furthermore, the development of 5G technology opens up new possibilities for innovation by improving connection for Internet of Things (IoT) devices that gather and process data that is essential for municipal administration. In order to finance smart city projects, local governments are increasingly considering public-private partnerships, which promote industry cooperation and innovation. The use of smart infrastructure, such as intelligent waste management systems and intelligent street lighting, has increased recently. Data analytics and video surveillance technologies are also being used by US cities to improve public safety. Smart technology integration in sectors like public transit and healthcare is becoming increasingly crucial as urban populations continue to rise.

This trend points to a future where cities leverage technology not just for efficiency but also for resilience against challenges such as climate change and population density. The ongoing push towards digital equity ensures that even underserved communities have access to these advancements, highlighting the commitment to inclusivity in the evolution of smart cities in the US.

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 Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Smart City Market Drivers

Growing Urbanization and Population Density

The rapid urbanization rate in the US is a significant driver for the US Smart City Market Industry. As per the U.S. Census Bureau, over 82% of the total US population resided in urban areas as of 2021, with projections suggesting that this could rise to approximately 87% by 2030. This increase in urban population leads to heightened demands for efficient resource management, improved public services, and enhanced infrastructure, all of which can be effectively managed through smart city initiatives.Cities like San Francisco and New York have already begun implementing smart technologies such as IoT-based traffic management systems and smart waste management, reflecting a clear trend toward adopting smart solutions. The growth in urban density necessitates sustainable solutions, which directly correlates with market expansion in the US Smart City Market Industry, as stakeholders such as local governments and tech companies increasingly prioritize investments in smart city technologies.

Government Initiatives and Funding

Government policies play a crucial role in the expansion of the US Smart City Market Industry. Recent initiatives by the Biden administration have committed substantial investments toward infrastructure improvements and technology upgrades. The Bipartisan Infrastructure Law, amounting to $1.2 trillion, includes funding specifically allocated for projects aimed at transforming urban centers into smart cities. For instance, initiatives for smart grid technology in cities like Los Angeles reflect a trend toward modernization.With financial backing from the federal and state governments for smart technologies, cities are motivated to adopt innovative solutions, thereby propelling growth in the sector. This government-public-private partnership framework fosters an environment conducive to deploying smart city technologies.

Increased Focus on Sustainability and Energy Efficiency

Sustainability is becoming a central tenet in the development of urban environments within the US. The Environmental Protection Agency (EPA) reports that energy consumption in US cities accounts for roughly 66% of total greenhouse gas emissions. This has prompted cities like Seattle and Boston to explore innovative smart city solutions aimed at reducing emissions and promoting energy efficiency. Technologies such as smart meters and energy management systems are being deployed to optimize energy use in real-time, enabling cities to better track their consumption patterns and reduce waste.With the growing emphasis on sustainability, the demand for smart city innovations that facilitate energy-efficient solutions is likely to boost the US Smart City Market Industry considerably.

Advancements in Information and Communication Technology (ICT)

The rise of advanced ICT is transforming the landscape of urban connectivity and automation, significantly affecting the US Smart City Market Industry. According to the Federal Communications Commission, broadband access has improved, with approximately 93% of urban residents having access to high-speed internet as of recent reports. This improvement facilitates the integration of smart technologies, such as connected sensors and analytics platforms, enhancing urban management.Cities like Chicago have leveraged these advancements to implement smart traffic systems and public safety measures. As ICT continues to evolve, it paves the way for further innovations in smart city applications, subsequently driving market growth.

US Smart City Market Segment Insights:

Smart City Market Component Insights

The US Smart City Market, particularly focusing on the Component segment, presents a dynamic landscape characterized by an array of technological advancements and infrastructural investments. Comprising various elements like hardware, software, and services, this segment is pivotal in the overall development of smart cities. Hardware plays an essential role in the deployment of IoT devices, sensors, and other equipment, which are critical for infrastructure monitoring and data collection. The significance of the software is seen in its ability to enhance operational efficiency, data analytics, and user engagement, enabling a seamless experience between city services and residents.Meanwhile, services encompass the support and solutions essential for the maintenance and integration of these technologies, further driving the US Smart City Market evolution. Trends such as urbanization, sustainability initiatives, and government funding are catalyzing growth in these areas, reflecting a broader commitment to enhancing urban living through smarter solutions. As cities across the US continue to prioritize digital transformation, the Component segment stands out as a key driver of innovation and development, fostering improved resource management and citizen engagement while addressing the challenges of urban infrastructure.With the market driven by continuous advancements and the growing demand for efficient service delivery, the Component sector is poised to play a significant role in shaping the future of urban areas. This evolving landscape not only highlights the complexity of the US Smart City Market but underscores the potential for substantial growth as cities strive to leverage technology for smarter, more resilient urban environments.

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Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Smart City Market Sales Channel Insights

The US Smart City Market has been significantly influenced by its Sales Channel dynamics, specifically through Original Equipment Manufacturers (OEMs) and the Aftermarket segment. OEMs play a crucial role in this space as they are responsible for the initial design, production, and distribution of smart city technologies, which are essential for infrastructure development and city management. This segment benefits from advancements in IoT, AI, and other emerging technologies that enhance urban living by improving transportation, public safety, and resource management.On the other hand, the Aftermarket segment is vital for maintaining, upgrading, and integrating existing smart city systems, reflecting a growing trend toward sustainable development and smart upgrades in urban environments. The aftermarket supports the longevity and efficiency of smart city solutions, aligning with the increased emphasis on resilience and adaptability in urban planning. Together, OEM contributors and aftermarket services create a balanced ecosystem that reinforces the overall growth trends in the US Smart City Market, ensuring its advancement toward more intelligent and responsive urban environments.The demand for integrated solutions and ongoing maintenance promotes a cycle of innovation and service that drives the market forward.

Smart City Market Application Insights

The Application segment of the US Smart City Market plays a pivotal role in driving urban transformation, integrating technology to enhance city living. The market showcases a diverse range of applications, including Utility, Transport, Government, Residential, Smart Education, Smart Healthcare, and Others, each contributing uniquely to urban efficiency and quality of life. Utility applications focus on energy management and water supply systems, facilitating sustainable resource use and enhancing reliability. Meanwhile, Transport innovations emphasize smart traffic management and public transportation systems, improving mobility and reducing congestion in urban landscapes.The Government sector leverages smart technologies to streamline public services and enhance citizen engagement, promoting transparency and efficiency. In Residential applications, smart home technologies are becoming increasingly significant as they enable residents to manage energy use and security effectively. Smart Education fosters enhanced learning experiences, particularly through technology-integrated classrooms, while Smart Healthcare employs telemedicine and remote monitoring solutions to optimize patient care. Overall, the US Smart City Market is characterized by robust growth dynamics influenced by modern needs and environmental considerations, pointing toward a promising future in city management.

US Smart City Market Key Players and Competitive Insights:

The competitive landscape of the US Smart City Market is characterized by a dynamic mix of established technology companies, innovative startups, and public-private partnerships dedicated to creating sustainable urban ecosystems. Rapid urbanization and the growing demand for efficient resource management have fueled competition among these entities, leading to significant investments in smart infrastructure and technologies. The focus on enhancing citizen services, improving public safety, and optimizing energy consumption drives innovation, thus engaging a broad spectrum of stakeholders from municipal governments to private enterprises. The competitive insights reveal how companies leverage advanced data analytics, IoT technologies, and unified communication systems to outpace rivals while providing scalable solutions tailored to the unique needs of urban environments across the United States.Oracle has established a strong presence in the US Smart City Market, showcasing its excellence in data management and cloud computing solutions aimed at enhancing urban services. The company's robust offerings facilitate effective data integration and analytics, enabling cities to draw meaningful insights from vast data sets. Oracle's strengths lie in its ability to provide integrated technologies that enhance smart governance, transportation, and energy management. By partnering with local governments and organizations, Oracle proactively addresses various urban challenges, thus enhancing public services and operational efficiency. Its cloud-based solutions promote scalability and flexibility, allowing cities to adapt rapidly to changing demands and trends, solidifying Oracle's role as a leader in the smart city framework.Schneider Electric operates with a strong focus on energy management and automation within the US Smart City Market, aiming to deliver innovative solutions that promote sustainability and efficiency in urban settings. The company's key services include energy optimization, smart grid technology, and integrated building management systems. Schneider Electric's strengths lie in its commitment to providing end-to-end solutions that cater to a smart city's energy demands while reducing carbon footprints. The company has made significant strides through strategic partnerships and acquisitions, enabling it to incorporate advanced technologies into its service offerings. Their expertise not only enhances energy resilience but also improves operational efficiency across sectors such as transportation and public infrastructure. With a solid market presence, Schneider Electric continuously invests in research and development to stay ahead of emerging trends, ensuring it remains a vital player in shaping the future of smart cities in the United States.

Key Companies in the US Smart City Market Include:

Oracle

Schneider Electric

Accenture

Motorola Solutions

Honeywell

SAP

General Electric

AT and T

IBM

Philips Lighting

Intel

Verizon

Microsoft

Cisco Systems

Siemens

US Smart City Market Industry Developments

Recent developments in the US Smart City Market have showcased significant strides in technology integration and public-private partnerships. Notably, Oracle and Accenture have collaborated to enhance municipal services through innovative cloud solutions aimed at improving citizen engagement. In August 2023, Schneider Electric expanded its market presence by launching advanced energy management solutions tailored for smart infrastructure. Additionally, Motorola Solutions has been increasingly focusing on leveraging AI for public safety enhancements across various cities. On the mergers and acquisitions front, Honeywell announced its acquisition of a leading IoT security firm in September 2023, strengthening its portfolio in urban safety technologies. The market valuation for smart city technologies has seen growth, with a particular emphasis on sustainable urban development initiatives backed by the US government's infrastructure investments. Over the last couple of years, Philips Lighting has also played a pivotal role by implementing smart lighting systems in multiple cities, contributing to energy efficiency and reduced operational costs. IBM's focus on data analytics continues to drive insights into urban planning, fostering better decision-making. Overall, these companies are actively shaping the smart city narrative in the United States, responding to the growing need for resilient and efficient urban environments.

US Smart City Market Segmentation Insights

Smart City MarketComponentOutlook

Hardware

Software

Service

Smart City MarketSales ChannelOutlook

OEM

Aftermarket

Smart City MarketApplicationOutlook

Utility

Transport

Government

Residential

Smart Education

Smart Healthcare

Others