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#IoT in Smart Cities Market Forecast: Value Set To Climb From $329.41 Billion To $742.23 Billion#_x000D_
The market size for IoT in smart cities has experienced substantial growth in recent years. This market is anticipated to expand from $269.36 billion in 2025 to $329.41 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 22.3%. Key drivers for this historical expansion include the increase in urban populations, governmental initiatives for smart cities, the initial deployment of smart lighting systems, the necessity for efficient public services, and the escalating energy consumption within cities._x000D_
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The iot in smart cities market size is projected to experience rapid growth over the next few years. This market is set to expand to $742.23 billion in 2030 at a compound annual growth rate (CAGR) of 22.5%. Contributing to this expansion during the forecast period are factors such as increased smart city investments, the integration of AI-driven city analytics, the growth of connected transportation systems, a heightened focus on sustainability goals, and the adoption of city-wide data platforms. Significant trends expected in the forecast period include smart infrastructure management, connected urban services, real-time city monitoring, intelligent energy management, and smart public safety systems._x000D_
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#IoT in Smart Cities Market Growth Drivers: What’s Behind The Acceleration?#_x000D_
The increasing deployment of 5G technology is anticipated to advance the expansion of the IoT in the smart cities market in the future. As the fifth generation of cellular technology, 5G aims to provide faster, smoother, and more adaptable wireless services. It is poised to be a crucial enabler for IoT in smart cities, offering a framework to connect a vast array of sensors and actuators while ensuring stringent energy efficiency and robust data transmission. Consequently, the expanding implementation of 5G technology will drive the development of the IoT in the smart cities market. For example, data from the Global Mobile Suppliers Association (GSA), a UK-based nonprofit organization in the mobile communications sector, revealed in March 2023 that 5G subscribers reached 1.15 billion by the end of 2022, marking an increase of over 530 million from 619 million in the previous year. This represents an 85.9% year-on-year growth. Currently, 5G subscriptions constitute 10.7% of all global mobile subscriptions, with projections indicating a rise to 16% by the end of 2023, encompassing 1.77 billion subscribers. Therefore, the increasing deployment of 5G technology is set to significantly boost the IoT in the smart cities market._x000D_
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#IoT in Smart Cities Market Breakdown By Product Type And Application#_x000D_
The iot in smart cities market covered in this report is segmented – _x000D_
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1) By Component: Solutions, Services_x000D_
2) By Technology: Bluetooth, Cellular Network, RFID, Other Technologies_x000D_
3) By Application: Smart Building, Smart Healthcare, Smart Energy, Smart Transportation, Public Safety, Smart Infrastructure, Other Applications_x000D_
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Subsegments:_x000D_
1) By Solutions: Smart Lighting Solutions, Smart Waste Management Solutions, Smart Transportation Solutions, Smart Water Management Solutions, Smart Energy Management Solutions, Smart Parking Solutions, Smart Environmental Monitoring Solutions_x000D_
2) By Services: Consulting Services, System Integration Services, Maintenance And Support Services, Managed Services, Data Analytics Services, Training And Education Services_x000D_
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#IoT in Smart Cities Market Trends: What’s Defining The Industry’s Next Phase?#_x000D_
Major companies operating in the IoT in the smart cities market are developing new business platforms aimed at digital transformation to gain a competitive advantage. Digital transformation refers to the process of leveraging digital technologies to fundamentally change and enhance various aspects of business operations, strategies, and customer experiences. For instance, in July 2025, Vodafone España, a Spain-based telecommunications company, announced the launch of its own IoT platform designed to serve enterprises and public administrations. The platform is engineered to enable smart-city and public-service applications, including city management, logistics, water-cycle management, tele-assistance, and emergency services. Vodafone’s IoT platform utilizes its extensive NB-IoT network, which already connects over 9.3 million devices, offering high scalability, low latency, and energy-efficient connectivity._x000D_
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#IoT in Smart Cities Market Company Landscape And Competitive Strategy#_x000D_
Major companies operating in the iot in smart cities market are Cisco Systems Inc.; Intel Corporation; The International Business Machines Corporation (IBM); Huawei Technologies Co. Ltd.; Tech Mahindra Limited; Microsoft Corporation; Honeywell International Inc.; Bosch Global Software Technologies Private Limited; Siemens Incorporation; PTC Inc.; ARM Inc.; Schneider Electric SE; Deutsche Telekom AG; Hitachi Ltd.; SAP SE; Dell Technologies Inc.; Samsung SDS Co. Ltd.; Hewlett Packard Enterprise Company LP; Toshiba Corporation; Panasonic Corporation; Sony Corporation; LG Electronics Inc.; Philips Lighting Holding B.V.; Osram Licht AG; Cree Inc.; Acuity Brands Inc.; General Electric Company; Verizon Communications Inc.; AT&T Inc.; Johnson Controls International plc _x000D_
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#IoT in Smart Cities Market Regional Analysis And Top Geography#_x000D_
Asia-Pacific was the largest region in the IoT in smart cities market in 2025. The regions covered in the iot in smart cities market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa._x000D_
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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.
