European Investments in Technologies Enabling Smart City Initiatives to Reach $19 Billion in 2018

Reading time ( words)

European spending on smart city initiative related technologies is expected to reach $19 billion in 2018, according to International Data Corporation (IDC). In the first release of the Worldwide Semiannual Smart Cities Spending Guide, IDC provides a detailed look at the technology investments associated with a range of smart city priorities and use cases. With European smart city initiatives going beyond early stage and isolated pilots, IDC expects spending to accelerate over the 2017–2021 forecast period, growing to $31 billion in 2021.

"European cities face significant forces for change — urbanization, collaboration, and the democratization of public services, to name a few. In response, cities are becoming increasingly smart; they are adopting innovative technology solutions and redesigning business and service delivery models to take a more user-centric approach, while allowing users to have greater input into how their city works," said Chris Pennell, research director in IDC ' s Government Insights Europe group. "In turn this is helping to drive expenditure across a range of use cases. IDC's Worldwide Semiannual Smart Cities Spending Guide enables vendors and funding bodies to understand which use cases are driving growth today and tomorrow."

Smart cities attain digital transformation in an urban ecosystem to meet environmental, financial, and social outcomes. In IDC's view, a smart city begins to be developed when multiple smart initiatives are coordinated to leverage technology investments across an entire city, use common platforms to decrease service time/maintenance costs, share data across systems, and tie IT investments clearly to smart missions. Smart city programs are enabled by 3rd Platform technologies, and emerging technologies are accelerated in the city ecosystem to deliver innovative solutions in very specific areas.

On a geographic basis, Western European countries represent more than 90% of European spending, expected to reach $16.9 billion in 2018. On the other side, Central and Eastern European countries will grow at a slightly faster pace when compared with Western Europe, with an expected 2017–2021 compound annual growth rate (CAGR) of 21.1%.

In Europe, intelligent traffic and transit forms a bulk of the spending, as cities are prioritizing transport as one of their main smart city focus domains. Among other more prominent use cases are smart city platforms and environmental protection related use cases. Western Europe, in comparison with Central and Eastern Europe, is focusing more on non-revenue water management, while in CEE there is a focus on fixed surveillance and smart outdoor lightning.

"For each region IDC has identified spending patterns and stakeholder priorities in order to size the global smart city market," said Jan Alexa, senior research analyst for IDC Government Insights. "In Europe we see the steep acceleration of the smart city market and estimate that between 2016 and 2021 the market will more than double in size."

IDC's Worldwide Semiannual Smart Cities Spending Guide  quantifies the expected technology opportunity around smart city initiatives from a regional and worldwide level. Spending data is available for nine regions with a focus on 15 use cases across five strategic priorities, as well as the overall smart city market size. The spending guide is designed to provide IT vendors with insights into this rapidly growing market and how the market will develop over the five-year forecast period.

About IDC Spending Guides

IDC's Spending Guides provide detail on key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight help IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading media, data, and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please click here.



Suggested Items

Telecom (Compute and Storage) Infrastructure Market to Reach $16.35B in 2022

09/03/2018 | IDC
A new forecast from IDC sizes the market for compute and storage infrastructure for Telecoms at nearly $10.81 billion in 2017. However, as Telecoms aggressively build out their infrastructure, IDC projects this market to see a healthy five-year compound annual growth rate (CAGR) of 6.2% with purchases totaling $16.35 billion in 2022.

Flights Show Promising Technologies from Industry and Academic Partnerships

02/06/2018 | NASA
The technologies ranged from proposed new space suits to cryogenic propellant research, with implications for future NASA space missions as well as other research efforts.

Improving Military Communications with Digital Phased-Arrays at Millimeter Wave

01/26/2018 | DARPA
There is increasing interest in making broader use of the millimeter wave frequency band for communications on small mobile platforms where narrow antenna beams from small radiating apertures provide enhanced communication security.

Copyright © 2019 I-Connect007. All rights reserved.