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Smart City ICT Infrastructure Market Revenue Outlook: What CAGR Is Expected Through 2030?
The smart city ICT infrastructure market has experienced significant expansion in its size over recent years. This market is projected to expand from $2018.36 billion in 2025 to $2442.06 billion in 2026, achieving a compound annual growth rate (CAGR) of 21.0%. Factors contributing to its historical development include urban population growth, the implementation of early smart city pilot programs, the broadening of broadband infrastructure, government-led digitization efforts, and the increasing adoption of IoT sensors.
The smart city ICT infrastructure market size is anticipated to experience substantial growth over the upcoming years. It is projected to expand to $5163.98 billion by 2030, achieving a compound annual growth rate (CAGR) of 20.6%. This expansion during the forecast period is driven by investments in smart governance, the broadening of connected infrastructure, the necessity for data-driven urban planning, city platforms with a focus on cybersecurity, and objectives related to sustainable urban development. Significant trends anticipated in this period encompass integrated urban data platforms, real-time city monitoring systems, AI-powered urban analytics, cloud-based city infrastructure, and interconnected public services.
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Smart City ICT Infrastructure Market Expansion Drivers: What Is Shaping Future Growth?
The projected growth of the smart city ICT infrastructure market is anticipated to be propelled by the increasing uptake of digital solutions. Digital solutions are defined as technology-driven systems, platforms, and tools that leverage software, data, and connectivity to streamline operations, enhance user experiences, and foster innovation across various sectors. The rising adoption of these solutions is due to their ability to facilitate automation, real-time data access, and improved resource management, all contributing to more seamless and efficient operations. Smart city information and communication technology (ICT) Infrastructure provides essential connectivity, real-time data processing, and integrated platforms vital for the smooth deployment and scalability of digital solutions throughout urban environments. For instance, in December 2023, according to the European Commission (EC), the Belgium-based executive body of the European Union (EU), the adoption of cloud-based solutions in 2023 in the European Union saw an increase of 4.2 percentage points, with 45.2% of enterprises purchasing cloud computing services, indicating a notable rise compared to 2021. Therefore, the expanding adoption of digital solutions drives the smart city ICT infrastructure market.
Smart City ICT Infrastructure Market Segmentation: How Is The Market Structured Across Key Categories?
The smart city ict infrastructure market covered in this report is segmented –
1) By Type: Smart Grid, Smart Building, Smart Water Network, Smart Healthcare, Smart Education, Smart Security, Smart Transport
2) By Components: Hardware, Software, Services
3) By Deployment Type: On-Premises, Cloud-Based, Hybrid Solutions
4) By Technology: Internet Of Things, Artificial Intelligence, Big Data Analytics, Cloud Computing
5) By Application: Communications Industry, Transportation Industry, Express Industry, Government, Education, Other Applications
Subsegments:
1) By Smart Grid: Advanced Metering Infrastructure (AMI), Distribution Management System (DMS), Energy Management Systems (EMS), Demand Response, Supervisory Control And Data Acquisition (SCADA)
2) By Smart Building: Building Automation Systems, Energy Management Systems, Smart Lighting, HVAC Control, Security And Access Control Systems
3) By Smart Water Network: Smart Meters, Leak Detection Systems, Pressure Management, Water Quality Monitoring, Advanced Analytics
4) By Smart Healthcare: Remote Patient Monitoring, Electronic Health Records (EHR), Telemedicine, Health Information Systems, Smart Medical Devices
5) By Smart Education: Virtual Classrooms, Learning Management Systems (LMS), Interactive Whiteboards, Smart Content, Student Information Systems
6) By Smart Security: Video Surveillance, Biometric Access Control, Emergency Response Systems, Cybersecurity Solutions, Intrusion Detection Systems
7) By Smart Transport: Intelligent Transportation Systems (ITS), Traffic Management Systems, Smart Parking, Connected Vehicles, Public Transit Management
#Smart City ICT Infrastructure Market Growth Trends: What Is Influencing The Future Outlook?
Leading companies within the smart city ICT infrastructure market are increasingly focusing on the integration of IoT, specifically low-power network technologies designed to enhance urban connectivity and automation. These innovations facilitate the efficient management of smart city infrastructure, thereby minimizing manual intervention and boosting overall operational efficiency. For instance, in February 2024, British Telecommunications plc, a telecommunications provider based in the UK, introduced a nationwide Narrowband Internet of Things (NB-IoT) network to support the advancement and expansion of smart city initiatives across the country. This low-power, wide-area network covers 97% of the United Kingdom population and is specifically engineered to connect assets with low data demands, such as street lighting and underground water sensors, enabling automation, extended battery life, and cost-effective operations. The network is anticipated to significantly improve efficiency across various sectors by allowing real-time monitoring, reducing the need for manual input, and establishing a digital foundation for widespread Internet of Things (IoT) deployments in smart cities and beyond.
Smart City ICT Infrastructure Market Competitive Landscape And Leading Companies
Major companies operating in the smart city ict infrastructure market are Microsoft Corporation, Verizon Communications, AT&T Inc., Deutsche Telekom AG, Huawei Technologies Co. Ltd., Siemens AG, Hitachi Ltd., Accenture, International Business Machines Corporation (IBM), Cisco Systems Inc., Vodafone Group Plc., Oracle Corporation, Telefonica SA, Schneider Electric, Honeywell International Inc., ABB Group, Tata Consultancy Services (TCS)?, Telefonaktiebolaget LM Ericsson, Nokia Corp., NTT Communications
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Smart City ICT Infrastructure Market Geographic Distribution And Regional Opportunities
North America was the largest region in the smart city ICT infrastructure market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart city ict infrastructure market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.