Smart City ICT Infrastructure Market Size, Share and Trends 2025 to 2034

Smart City ICT Infrastructure Market (By Component: Hardware / Infrastructure, Software, Services; By Technology: Internet of Things, Artificial Intelligence/ Machine Learning, Big Data & Analytics, Cloud & Edge Computing, 5G / Next-Generation Networking, Geographic Information Systems; By Application / Use Case: Smart Governance & Administration, Smart Transportation & Mobility, Smart Buildings & Infrastructure, Public Safety & Security, Healthcare & Education, Others; By End User: Government & Municipal Authorities, Public Safety & Law Enforcement Agencies, Transportation & Utility Companies, Healthcare Institutions & Hospitals, Educational Institutions, Commercial Enterprises / Smart Buildings, Technology Providers / System Integrators; By Deployment Mode: Cloud-Based / SaaS, On-Premises / Private Data Centers, Hybrid) - Global Industry Analysis, Size, Trends, Leading Companies, Regional Outlook, and Forecast 2025 to 2034

Last Updated : 29 Oct 2025  |  Report Code : 7034  |  Category : ICT   |  Format : PDF / PPT / Excel

List of Contents

  • Last Updated : 29 Oct 2025
  • Report Code : 7034
  • Category : ICT

What is Smart City ICT Infrastructure Market Size?

The global smart city ICT infrastructure market size is calculated at USD 170.67 billion in 2025 and is predicted to increase from USD 190.16 billion in 2026 to approximately USD 451.68 billion by 2034, expanding at a CAGR of 11.42% from 2025 to 2034. The market plays a crucial role in shaping modern urban environments by integrating advanced information and communication technologies. These infrastructures enable cities to operate more efficiently, enhance sustainability, and improve the quality of life for residents. As cities continue to evolve, this market remains a key driver of innovation and urban development.

Smart City ICT Infrastructure Market Size 2025 to 2034

Market Highlights

  • By region, North America dominated the market, holding largest share of 40% in the market during 2024.
  • By region, Asia Pacific is expected to expand at the fastest CAGR of 16.50% between 2025 and 2034.
  • By component, the hardware/infrastructure segment contributed the biggest market share of 45% in 2024.
  • By component, software is expected to grow at a remarkable CAGR of 16% between 2025 and 2034.
  • By technology, the internet of things segment held the major market share of  35% in 2024.
  • By technology, artificial intelligence (AI) / machine learning (ML) is projected to grow at a remarkable CAGR of 17.50% between 2025 and 2034.
  • By application, the smart transportation & mobility segment captured the highest market share of 30% in 2024.
  • By application, the smart energy and utilities segment is growing at a remarkable CAGR of 16.8% between 2025 and 2034.
  • By end-user, the government and municipal authorities segment held the largest market share of 38% in 2024.
  • By end-user, transportation & utility companies segment is expanding at a strong of 17% CAGR between 2025 and 2034.
  • By deployment, the cloud-based Saas segment accounted for the largest market share of 42% in 2024.
  • By deployment, the hybrid segment is set to grow at a remarkable 16.50% CAGR between 2025 and 2034.

Market Size and Forecast

  • Market Size in 2025: USD 170.67 Billion
  • Market Size in 2026: USD 190.16 Billion
  • Forecasted Market Size by 2034: USD 451.68 Billion
  • CAGR (2025-2034): 11.42%
  • Largest Market in 2024: North America
  • Fastest Growing Market: Asia Pacific

What Is the Smart City ICT Infrastructure?

The market growth of smart city ICT infrastructure is accelerating as nations prioritize digital transformation in urban development. Global investments are being funneled into building resilient, interoperable systems that connect utilities, transport, governance, and citizens through a single digital framework. The market is expected to maintain an upward trajectory, bolstered by the rise in public-private partnerships and government-led smart mission programs. Sustainability has emerged as a guiding principle, with technologies designed to reduce energy consumption and optimize resource use. Major investors, including multinational tech conglomerates and venture capital funds, are injecting capital into start-ups that specialize in urban AI solutions, IoT sensors, and edge computing. The startup economy is flourishing as innovators explore urban data monetization and AI-driven citizen engagement tools. Ultimately, the market reflects a profound technological shift from isolated infrastructure systems to a synchronized, intelligent ecosystem that anticipates and adapts to human needs.

This market growth is being propelled by a global shift toward connected governance and sustainable urban living. Smart grids, intelligent transportation, advanced surveillance, and cloud-integrated civic services are reshaping the urban landscape into a nexus of data-driven efficiency. The deployment of IoT networks, AI-enabled analytics, and 5G connectivity has become the cornerstone of modern city planning. As municipalities and private entities increasingly collaborate, the market is evolving into a hub of innovation and sustainability. In essence, the smart city ICT infrastructure market stands at the confluence of technological ingenuity and civic transformation, poised to redefine how societies function and flourish.

Smart City ICT Infrastructure Market Outlook

  • Industry Growth Overview: The industry’s growth is being propelled by escalating urban migration and the consequent demand for intelligent resource management. With over half of the world’s population now residing in urban regions, governments are embracing ICT as a solution to congestion, pollution, and infrastructure fatigue. The adoption of 5G networks and AI-driven analytics has revolutionized how cities monitor traffic, manage utilities, and respond to emergencies. Moreover, the expansion of public-private partnerships is ensuring continuous capital inflow and innovation exchange. This growth is not merely quantitative but qualitative, reshaping governance, empowering citizens, and redefining the economic logic of modern cities. The industry’s expansion represents not just the rise of connected infrastructure but the evolution of cities into living, learning ecosystems.
  • Sustainability Trends: Sustainability lies at the philosophical and functional heart of the smart city revolution. The new generation of ICT infrastructure prioritizes renewable energy integration, efficient waste management, and carbon-neutral urban mobility. Smart grids, green data centers, and AI-based energy optimization are becoming the hallmarks of future-ready cities. These systems not only reduce emissions but also cultivate ecological mindfulness among citizens. Furthermore, digital twins are being employed to simulate city operations, enabling authorities to plan for low-impact urban growth. The shift from reactive governance to proactive sustainability management represents a defining evolution where technology becomes the custodian of environmental balance.
  • Major Investors: The Smart City ICT Infrastructure landscape has become a magnet for strategic investors seeking both long-term stability and technological influence. Leading infrastructure developers, telecom operators, and digital conglomerates are aligning their portfolios toward smart city innovations. Institutional investors are particularly drawn to projects involving AI-integrated surveillance, digital governance systems, and smart energy grids areas with demonstrable ROI and societal impact. Private equity funds are partnering with municipalities to develop scalable smart urban models. These capital flows are not merely financial transactions but strategic endorsements of a future where data and infrastructure coalesce into a unified civic experience.
  • Startup Economy: The startup ecosystem within the smart city ICT infrastructure market is burgeoning with creativity, agility, and purpose. Emerging ventures are addressing micro-challenges ranging from sensor-driven water management to AI-powered traffic optimization. Startups serve as the experimental laboratories of urban innovation, often complementing the efforts of larger corporations with specialized, flexible solutions. The infusion of venture capital into smart city tech has democratized innovation, empowering small teams to contribute meaningfully to large-scale transformations. This dynamic startup economy reflects a broader paradigm shift: that the future of cities will not be built solely by governments or giants, but by a symphony of innovators harmonizing technology with humanity.
  • Expansion of 5G-enabled urban connectivity platforms.
  • Rising adoption of digital twins for infrastructure planning.
  • Integration of AI for traffic, energy, and water management.
  • Growing emphasis on cybersecurity and data integrity.
  • Deployment of edge computing for real-time analytics.
  • Emergence of blockchain-based smart governance models.

Market Scope

Report Coverage Details
Market Size in 2025 USD 170.67 Billion
Market Size in 2026 USD 190.16 Billion
Market Size by 2034 USD 451.68 Billion
Market Growth Rate from 2025 to 2034 CAGR of 11.42%
Dominating Region North America
Fastest Growing Region Asia Pacific
Base Year 2024
Forecast Period 2025 to 2034
Segments Covered Component, Technology, Application / Use Case, End User, Deployment Mode, and Region
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Segment Insights

Component Insights

Why Hardware / Infrastructure Is Dominating the Smart City ICT Infrastructure Market?

The hardware/infrastructure is dominating the smart city ICT infrastructure market by holding a share of 45%, with hardware components ranging from smart sensors, surveillance systems, data centers, and communication towers from the tangible foundation of connectivity. It is driven by large-scale public infrastructure projects and 5G network rollouts. Governments and technology integrators are investing heavily in sensor grids, intelligent transport systems, and IoT-enabled street lighting. The dominance of hardware reflects the industry’s ongoing phase of foundational build-up, ensuring the scaffolding upon which future software ecosystems will flourish.

The sector's dominance is not merely due to its cost intensity but its strategic indispensability. Infrastructure acts as the enabler for software ecosystems to flourish, linking public services, utilities, and emergency response systems. The rising deployment of 5G towers, automated surveillance networks, and smart grids highlights how deeply hardware is intertwined with city functionality. As urban populations soar, physical infrastructure must evolve to be intelligent, modular, and energy-efficient. Hence, hardware remains the nucleus of smart city ICT evolution, steady, tangible, and indispensable.

The software and platforms are the fastest-growing in the smart city ICT infrastructure market and are expected to grow at a 16% CAGR. With rapid advancements in cloud computing, AI, and digital integration, software solutions are evolving into command centers orchestrating entire urban networks. They enable predictive maintenance, traffic optimization, and data-driven decision-making, ensuring that cities operate not reactively but proactively. Governments and enterprises are increasingly migrating to platform-based models for scalability and interoperability. This surge reflects a paradigm shift from static infrastructure to dynamic intelligence.

The segment’s rapid expansion is fuelled by demand for real-time analytics, cybersecurity, and cross-platform data harmonization. Software solutions transform raw data into actionable insights, guiding city planners, improving public safety, and minimizing operational inefficiencies. As open-source ecosystems and cloud-native architectures mature, the software segment will continue outpacing others in adaptability and innovation. The coming decade promises a transition toward fully integrated digital governance platforms, where decision-making becomes as seamless as the data streams they rely on.

Technology Insights

Why the Internet of Things Is Dominating the Smart City ICT Infrastructure Market?

The internet of things is dominating the smart city ICT infrastructure market by holding a share of 35%, weaving together millions of interconnected devices into a symphony of seamless communication. Its dominance is attributed to its universal applicability spanning waste management, transport optimization, public safety, and utility automation. IoT sensors collect and relay real-time data, creating an urban nervous system that constantly senses and responds. The proliferation of 5G networks and low-latency connectivity has further strengthened IoT’s position as the primary driver of smart urban ecosystems. Cities are now embedding IoT into every function, from smart lighting to water conservation systems.

Its dominance reflects more than convenience; it represents evolution in urban consciousness. IoT empowers cities to monitor their heartbeat, anticipate disruptions, and optimize sustainability. The integration of IoT with AI and edge computing has ushered in a new era of precision governance. With growing emphasis on citizen well-being, IoT continues to be the technological pulse that makes cities more aware, connected, and intelligent.

The artificial intelligence (AI) / machine learning (ML) is are fastest growing in the smart city ICT infrastructure market with an expected CAGR of 17.50%, driving automation, foresight, and intelligent governance. Their swift ascent in the smart city ecosystem is driven by their ability to analyze complex datasets and generate predictive insights. AI transforms city management from reactive problem-solving to anticipatory strategy. It enhances security through facial recognition, optimizes traffic flow via adaptive algorithms, and ensures resource efficiency through data modeling. AI-driven platforms now empower municipalities to forecast energy demand and pre-empt equipment failures, ensuring uninterrupted service delivery.

Machine Learning’s contribution extends beyond efficiency; it imbues cities with learning capacity. As AI systems continuously refine themselves, cities grow smarter with each byte of data collected. This self-evolving intelligence is what makes AI the most transformative and fastest-growing technological segment. The synergy between AI, IoT, and cloud infrastructure marks the dawn of a sentient urban environment, where technology not only responds but also learns, predicts, and protects.

Application Insights

Why Smart Transportation & Mobility Is Dominating the Smart City ICT Infrastructure Market?

Smart transportation and mobility are dominating the smart city ICT infrastructure market by holding a share of 30%. Its dominance arises from an urgent global need to tackle congestion, pollution, and inefficiency. Connected vehicles, AI-driven traffic signals, and intelligent parking systems form the foundation of seamless commuting experiences. Real-time data analytics enhance route optimization and emergency response coordination, ensuring cities move in rhythm with their citizens’ needs. As electrification and autonomous mobility expand, transportation technology has evolved from infrastructure management to holistic mobility orchestration.

The significance of this segment lies not only in movement but in meaning mobility is freedom, and technology ensures that freedom is sustainable. Smart mobility projects represent civic efficiency and environmental stewardship in equal measure. Governments and private firms alike are investing in AI-integrated transport systems that reduce travel time while lowering emissions. Thus, smart transportation continues to dominate as both an infrastructural imperative and a societal promise.

The smart energy & utilities are the fastest growing in the smart city ICT infrastructure market with an expected growth rate of 16.8%. Its exponential growth stems from the escalating global demand for energy efficiency, carbon neutrality, and renewable integration. Smart grids, AI-powered distribution systems, and real-time monitoring are redefining how cities consume and conserve energy. Utilities are no longer mere service providers; they are intelligent ecosystems managing power with foresight and precision.

This segment’s rapid expansion mirrors a societal awakening toward ecological accountability. As urbanization intensifies, sustainable energy management becomes a civic necessity rather than an option. With AI optimizing grid loads and IoT sensors preventing energy leaks, the vision of a zero-waste city is coming into sharper focus. The smart energy segment, thus, stands not just as a growth area but as humanity’s most purposeful technological pursuit, one that lights the world responsibly.

End-User Insights

Why Are Government & Municipal Authorities Dominating the Smart City ICT Infrastructure Market?

The government & municipal authorities are dominating the smart city ICT infrastructure market by holding a share of 38%, due to large-scale policy frameworks and infrastructure investments. Governments define how technology integrates into everyday civic life. From e-governance systems to public safety networks, ICT deployment is often driven by municipal initiatives aimed at improving citizen experience. Public institutions continue to be the most influential end-users, ensuring inclusivity, accountability, and long-term sustainability.

This dominance also stems from their role as regulators and enablers. Governments are not just buyers of smart systems; they are visionaries shaping the urban digital paradigm. National missions for smart cities, digital identity platforms, and connected governance models exemplify this stewardship. The success of the smart city concept ultimately rests on the effectiveness of government collaboration with private and technological partners, making them the irreplaceable nucleus of the ecosystem.

The transportation & utility companies are the fastest growing in the smart city ICT infrastructure market by holding a share of 17%, emerging as dynamic catalysts in the smart city equation, driving innovation in energy, water, and mobility services. Their agility and technological adoption rate position them as the fastest-growing end-user group. These companies are integrating advanced analytics, IoT sensors, and automation to enhance service reliability and customer experience. The digitization of operational models has transformed utilities into proactive problem-solvers rather than passive providers.

Their rapid growth underscores the decentralization of urban innovation. While governments set the vision, it is the transport and utility sectors that execute it at ground level, ensuring every citizen experiences the benefits of digital governance tangibly. As sustainability becomes a commercial as well as social imperative, these companies are leading with intelligent infrastructure, green technologies, and precision management. They symbolize the operational soul of smart cities: efficient, responsive, and future-ready.

Deployment Mode Insights

Why Is the Cloud-Based/SaaS Segment Dominating the Market for Smart City ICT Infrastructure?

The cloud-based / SaaS is dominating the smart city ICT infrastructure market by holding a share of 42%, serving as the digital backbone that supports the agility and scalability of smart city operations. Cloud platforms allow seamless data sharing across departments, fostering interconnectivity and real-time decision-making. Their dominance arises from affordability, flexibility, and the ability to support cross-platform collaboration without infrastructural overhauls. Cities leveraging SaaS solutions can scale services faster, integrate new technologies effortlessly, and reduce maintenance overheads. Cloud ecosystems enable universal access, democratizing data across urban stakeholders.

The inherent scalability and interoperability of cloud solutions ensure their continued reign. Governments and enterprises alike prefer cloud-based systems for their cost-effectiveness and adaptability to evolving technologies such as AI and IoT. This dominance represents a paradigm shift in digital governance from hardware-centric systems to fluid, data-driven architectures. The cloud is not merely a platform; it is the atmosphere in which the entire smart city breathes.

Hybrids are the fastest growing in the smart city ICT infrastructure market by holding a share of 16.50%, seeking the perfect equilibrium between data sovereignty and flexibility. This model combines the reliability of on-premises systems with the scalability of cloud solutions. The rapid growth of this segment reflects an increasing preference for hybrid infrastructures that balance security, compliance, and innovation. Municipal authorities and enterprises adopting hybrid frameworks can safeguard sensitive information while leveraging the efficiency of cloud ecosystems.

The hybrid model’s appeal lies in its adaptability. It allows gradual digital transformation without disrupting legacy systems, a key advantage for developing urban regions. As data governance and cybersecurity become paramount, hybrid systems offer the ideal compromise between control and connectivity. This growth trajectory signifies the maturation of the smart city market, where technology choices are no longer binary but strategic, harmonizing both the terrestrial and the virtual.

Regional Insights

U.S. Smart City ICT Infrastructure Market Size and Growth 2025 to 2034

The U.S. smart city ICT infrastructure market size is exhibited at USD 51.88 billion in 2025 and is projected to be worth around USD 139.94 billion by 2034, growing at a CAGR of 11.63% from 2025 to 2034.

U.S. Smart City ICT Infrastructure Market Size 2025 to 2034

Why Is North America Leading the Smart City ICT Infrastructure Market?

North America dominates the global smart city ICT infrastructure market with a 40% share, powered by cutting-edge innovation ecosystems in the United States and Canada. Major cities like New York, Chicago, and Toronto have adopted AI-integrated traffic management and energy-efficient infrastructure. Federal initiatives such as the U.S. Smart Cities Challenge have galvanized local governments to adopt ICT-enabled governance. Investments in 5G, cybersecurity, and intelligent transportation systems have reached unprecedented levels. The presence of key technology providers ensures seamless R&D collaboration and rapid scalability. Additionally, sustainability mandates and the proliferation of EV infrastructure have strengthened North America’s market leadership.

Canadian Model in the Smart City ICT Infrastructure Market

In Canada, smart city frameworks emphasize citizen inclusivity, environmental balance, and data transparency as central pillars of urban transformation. The country’s approach combines technological progress with social equity, ensuring that innovation aligns with community needs and sustainability objectives. Projects like Toronto’s Quayside development embody this hybrid model of public–private collaboration, where advanced digital infrastructure, green building design, and citizen-focused services converge. Beyond Toronto, cities such as Vancouver and Montreal are investing in intelligent traffic management, renewable-powered grids, and open data ecosystems to foster participatory governance and reduce urban carbon footprints.

Across North America, strong regulatory frameworks support these developments, encouraging ethical data usage, resilient infrastructure planning, and interoperability among smart technologies. Governments are working closely with private enterprises and research institutions to accelerate innovation while maintaining accountability and inclusiveness. Tech-enabled sustainability goals, from energy-efficient mobility solutions to adaptive waste management,  have positioned the region as a benchmark for responsible digital urbanization. As these frameworks mature, North America continues to serve as a global prototype for integrating advanced technologies with human-centric urban planning, demonstrating how smart cities can achieve both economic competitiveness and environmental stewardship.

Smart City ICT Infrastructure Market Share, By Region, 2024 (%)

Why Is the Asia Pacific Leading the Charge in the Smart City ICT Infrastructure Market?

Asia Pacific stands as the fastest-growing region in the smart city ICT infrastructure market, with an expected CAGR of 18%, propelled by rapid urbanization and massive digital transformation initiatives. Countries like India, China, and Singapore are at the forefront, deploying AI-driven systems for governance, traffic control, and environmental management. The rise of government-backed missions such as India’s Smart Cities Mission and China’s New Infrastructure Plan has accelerated market expansion. The region’s diverse demographic and infrastructural dynamics create fertile ground for tailored ICT innovations. The increasing affordability of sensors and network technologies has enabled widespread adoption even in second-tier cities.

Singapore’s Model of City Growth

Singapore exemplifies the region’s progress with its ambitious “Smart Nation” initiative, which integrates data analytics, Internet of Things (IoT) networks, and artificial intelligence to enhance everyday life across transportation, healthcare, and housing. The city-state’s emphasis on seamless connectivity and data-driven governance has positioned it as a global leader in urban innovation. Smart traffic systems, digital health records, and intelligent energy grids are enabling real-time decision-making, improved service delivery, and reduced environmental impact.

Beyond Singapore, countries across the Asia Pacific, including South Korea, Japan, and Australia, are accelerating investments in digital infrastructure, renewable energy, and urban resilience. These initiatives reflect a broader regional vision of sustainability, inclusivity, and economic diversification. With megacities like Seoul, Tokyo, and Shanghai adopting smart mobility solutions and AI-assisted urban management, the region is redefining the parameters of urban intelligence. The Asia Pacific’s unique blend of technological agility, policy support, and citizen-focused innovation is transforming aspirations into tangible outcomes. As a result, the region is not only catching up with global smart city leaders but, in many aspects, setting the pace for future-ready, human-centric urban ecosystems.

Can European Heritage and High-Tech Coexist in Urban Evolution?

Europe has demonstrated notable growth in the smart city ICT infrastructure market, driven by strong policy alignment and a commitment to sustainable digitalization. The European Union’s Digital Europe and Green Deal initiatives have laid the foundation for harmonized ICT deployment across the continent. Countries like Germany, France, and the Netherlands are investing heavily in intelligent transport systems, renewable energy grids, and smart waste management. The integration of AI and IoT in historical cities like Paris and Berlin showcases Europe’s ability to blend heritage with innovation.

German Engineering Made Smarter

Germany stands out as a beacon of technological sophistication, leading Europe’s transition toward sustainable, data-driven cities. Guided by its Smart City Charter, the country emphasizes ethical, transparent, and responsible data use, ensuring that digital transformation aligns with democratic values and public trust. German cities like Berlin, Hamburg, and Munich are leveraging IoT infrastructure, renewable energy grids, and AI-based traffic management to optimize efficiency while maintaining social balance and inclusivity. This blend of precision engineering and civic responsibility underscores Germany’s reputation for combining innovation with accountability.

Across Europe, a broader commitment to privacy, citizen empowerment, and environmental stewardship gives the continent’s smart city market a distinctly human-centric identity. Collaborative initiatives under the European Union’s “Digital Europe” and “Green Deal” frameworks further promote cross-border innovation, interoperability, and climate resilience. The European model of digital urbanism, rooted in inclusivity, sustainability, and community engagement, continues to inspire global strategies for smart governance. By integrating advanced technology with ethical policymaking, Europe demonstrates how cities can grow more intelligent without compromising transparency, fairness, or the social fabric that sustains them.

Market Value Chain Analysis in Smart City ICT Infrastructure

  • Raw Material Sources: The core raw materials include semiconductor components, fiber optics, data storage units, and sustainable materials for IoT devices. These components are sourced through globalized supply networks emphasizing quality and scalability.
  • Technology Used: Advanced technologies such as AI, IoT, big data analytics, and 5G form the backbone of smart city infrastructure. Cloud computing and blockchain further augment security and efficiency in data exchange and storage.
  • Investment by Investors: Venture capital firms and global tech giants such as Cisco, IBM, and Siemens have made substantial investments in smart infrastructure solutions. These investments are driving innovation across sectors, including energy management, transportation, and urban analytics.
  • AI Advancements: Artificial intelligence has emerged as the cognitive core of smart city systems. It enables predictive analytics for energy use, traffic optimization, and security monitoring, creating cities that learn, adapt, and evolve in real time.

Top Smart City ICT Infrastructure Market Companies

  • Cisco Systems, Inc.: Cisco is a global leader in smart city ICT infrastructure, offering advanced networking, IoT, and cybersecurity solutions that connect city systems for real-time data exchange. Its Smart+Connected Communities initiative integrates sensors, cloud analytics, and automation to enhance urban efficiency, sustainability, and citizen engagement. Cisco’s scalable infrastructure underpins smart traffic, utilities, and security networks in cities worldwide.
  • Microsoft: Microsoft drives smart city transformation through its Azure cloud platform, enabling secure data integration, AI-driven analytics, and digital twin solutions for urban management. The company’s IoT and AI services support intelligent transport systems, smart grids, and urban planning. With global partnerships and sustainability initiatives, Microsoft plays a central role in digitalizing city infrastructure and governance.
  • International Business Machines Corporation (IBM): IBM pioneers intelligent infrastructure for smart cities through its Watson AI, hybrid cloud, and IoT platforms. Its Smart City Control Centers enable predictive analytics for traffic, energy, and public safety operations. IBM’s data-driven approach empowers cities to optimize resources, reduce emissions, and improve the quality of life through real-time decision-making.
  • Huawei Technologies Co., Ltd.: Huawei provides comprehensive smart city ICT frameworks combining 5G, cloud, and AI technologies. Its Intelligent City Operations Center (IOC) platform integrates data across city departments for seamless governance and public services. Huawei’s strong R&D and telecom expertise enable large-scale deployments in transportation, energy, and emergency response systems.
  • Honeywell International Inc.: Honeywell delivers integrated smart building and city solutions centered on automation, sustainability, and security. Its City Suite platform provides real-time visibility into energy usage, traffic flow, and safety infrastructure. With deep expertise in IoT and control systems, Honeywell helps cities reduce operational costs and achieve carbon-neutral goals.
  • Schneider Electric: Schneider Electric designs smart energy management and automation systems for sustainable city infrastructure. Its EcoStruxure platform integrates buildings, grids, and transportation with IoT-based control and analytics. The company focuses on enhancing energy efficiency, resilience, and environmental performance in urban environments.
  • Siemens: Siemens offers integrated smart city infrastructure solutions that connect mobility, energy, and building systems. Its MindSphere IoT platform enables data-driven urban management and predictive maintenance. Siemens’ technologies play a vital role in enabling decarbonized, digitally connected cities worldwide.
  • Hitachi, Ltd.: Hitachi provides data-driven infrastructure solutions combining IT and operational technology (OT) to support smart transportation, energy, and governance. Its Lumada platform uses AI and analytics to create efficient, citizen-centric urban systems.
  • General Electric: General Electric develops smart energy and infrastructure technologies that support connected cities through advanced grid management and IoT analytics. Its Predix platform enhances asset performance and operational efficiency in utilities and transport networks.
  • NEC Corporation: NEC specializes in AI, biometrics, and data management systems for smart city infrastructure. Its solutions strengthen public safety, traffic management, and city operations through integrated ICT platforms and advanced analytics.
  • UrbanFootprint, Inc.: UrbanFootprint offers urban intelligence software that leverages data analytics and modeling to help cities plan sustainable infrastructure and policies. Its tools support climate adaptation, resilience planning, and equitable urban growth.
  • Quantela, Inc.: Quantela provides smart city automation and data orchestration platforms designed to enhance urban services and public engagement. Its AI-powered solutions enable predictive management of city utilities, mobility, and civic infrastructure.

Recent Developments

  • In October 2025, e& UAE, the flagship telecom division of the global technology conglomerate e&, has unveiled a groundbreaking achievement with the world’s first successful demonstration of a 200G Passive Optical Network (PON) prototype at GITEX GLOBAL 2025. This milestone firmly establishes the company as a pioneer in next-generation connectivity and represents a transformative advancement in fixed network technology. The innovation underscores e& UAE’s unwavering commitment to providing ultra-fast, resilient, and future-ready connectivity for households, enterprises, and the expanding smart city ecosystem. (Source: https://www.zawya.com)
  • In October 2025, the Palakkad Industrial Smart City, a flagship initiative under the Kochi–Bengaluru Industrial Corridor, is set to see its entire infrastructure development executed in a single phase. The Kerala Industrial Corridor Development Corporation (KICDC) has already begun initial preparations for the project. A coordination meeting bringing together representatives from the Dilip Buildcon PSP Projects consortium and the National Industrial Corridor Development and Implementation Trust (NICDIT) is scheduled for next week. According to Industries Principal Secretary A.P.M. Mohammed Hanish, the development work is expected to commence by the end of this month or early next month, marking a major step toward transforming the region’s industrial landscape. (Source: https://www.thehindubusinessline.com)

Segments Covered in the Report

By Component

  • Hardware / Infrastructure
    • Sensors & IoT Devices
    • Network Equipment (Routers, Switches, Gateways)
    • Servers & Storage Systems
    • Edge Computing Devices
  • Software / Platforms
    • IoT Platforms & Device Managemnt Software
    • Data Analytics & Business Intelligence Software
    • Smart City Management Platforms
    • Cloud-Based / SaaS Platforms
  • Services
    • Consulting & System Integration
    • Managed Services
    • Maintenance & Support Services

By Technology

  • Internet of Things (IoT)
  • Artificial Intelligence (AI) / Machine Learning (ML)
  • Big Data & Analytics
  • Cloud & Edge Computing
  • 5G / Next-Generation Networking
  • Blockchain & Cybersecurity Solutions
  • Geographic Information Systems (GIS)

By Application / Use Case

  • Smart Governance & Administration
    • e-Government Services
    • Citizen Engagement Platforms
  • Smart Transportation & Mobility
    • Intelligent Traffic Management
    • Public Transport & Fleet Management
    • Smart Parking Solutions
  • Smart Energy & Utilities
    • Smart Grid & Energy Management
    • Water & Waste Management Systems
  • Smart Buildings & Infrastructure
    • Building Management Systems (BMS)
    • Smart Lighting & Streetlights
  • Public Safety & Security
    • Surveillance & CCTV Systems
    • Emergency Response Systems
  • Healthcare & Education
    • Telemedicine & Remote Monitoring
    • Smart Classrooms & e-Learning Platforms
  • Others
    • Environmental Monitoring
    • Smart Tourism & Hospitality
    • Urban Planning & Development

By End User

  • Government & Municipal Authorities
  • Public Safety & Law Enforcement Agencies
  • Transportation & Utility Companies
  • Healthcare Institutions & Hospitals
  • Educational Institutions
  • Commercial Enterprises / Smart Buildings
  • Technology Providers / System Integrators

By Deployment Mode

  • Cloud-Based / SaaS
  • On-Premises / Private Data Centers
  • Hybrid

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa

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Frequently Asked Questions

The smart city ICT infrastructure market size is expected to increase from USD 170.67 billion in 2025 to USD 451.68 billion by 2034.

The smart city ICT infrastructure market is expected to grow at a compound annual growth rate (CAGR) of around 11.42% from 2025 to 2034.

The major players in the smart city ICT infrastructure market include Cisco Systems, Inc, Microsoft, International Business Machines Corporation (IBM), Huawei Technologies Co., Ltd., Honeywell International Inc., Schneider Electric, Siemens, Hitachi, Ltd., General Electric, NEC Corporation, UrbanFootprint, Inc., and Quantela, Inc.

The driving factors of the smart city ICT infrastructure market are the integrating advanced information and communication technologies. These infrastructures enable cities to operate more efficiently, enhance sustainability, and improve the quality of life for residents. As cities continue to evolve, this market remains a key driver of innovation and urban development.

North America region will lead the global smart city ICT infrastructure market during the forecast period 2025 to 2034.

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