North American Smart Cities IT Market to See 16.3% Annual Growth Through 2023
WELLESLEY, Mass., December 7, 2018 (Newswire.com) - Demand for energy efficiency and management is increasing growth of the smart cities technologies market in North America, according to a report by BCC Research.
The industry expects to see a compound annual growth rate (CAGR) of 16.3 percent through 2023, when it is expected to reach nearly $419 million, according to the report Smart City Technologies: North American IT Markets.
- Energy management will lead the market by size with an estimated 2023 value of $139 million, followed by water management at $127 million.
- Sensors will lead the market by type with an estimated 2023 value of $121.5 million, followed by communications and software at $96.4 million each.
- For water management, sensors will lead the market by growth with a CAGR of 22.9 percent, followed by software at 21.3 percent.
“Smart cities have emerged as urban ecosystems that integrate digital technology, knowledge and assets to become more responsive to users, improve city services and make cities more loveable,” the report notes. “The North American region will be the fastest growing region for smart city technologies as compared to other regions of the world including the Asia-Pacific, Europe and more. Rapidly growing urbanization, increasing need of efficiency from public sector and mobility are some of the factors driving the need for smart cities.”
Market Challenges Include Energy and Water Management
Although generally robust, several factors are limiting the market, the report notes. Gaps in energy management are present and manufacturers are not yet making smart appliances on the basis of their cost reductions or energy savings. Meanwhile, several barriers need to be overcome before smart water management can be implemented. These barriers include sector fragmentation, slow technology adoption and a lack of holistic vision.
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Source: BCC Research
Categories: Information Technology