1 March 2017 -- Singapore -- A recently released report by Persistence Market Research determined that the worldwide smart cities market will grow from its current $622 billion passing the $1 trillion market in 2019 to eventually reach $3.48 trillion by 2026.

The report “Smart Cities Market: Global Industry Analysis and Forecast 2016-2026” predicts that global urbanisation will fuel smart cities market growth by nearly 19% over the next 10 years and concludes that smart city market growth will be driven by governments investing in technology to better manage ever increasing urbanisation.

“Backed by favourable government initiatives, brisk urbanisation will continue to popularise the concept of smart cities worldwide,” said the report.

Other key drivers include the need for cities to improve energy infrastructure and to more efficiently deal with vehicle-related challenges.

“Smart energy segment accounted for the largest revenue share and was valued in excess of $100 billion in 2015,” the report said. “Deployment of a large number of smart grid technologies across various countries such as China, Germany, India, and Spain is a major factor responsible for the dominance of the smart energy segment during the first half of the forecast period”

Researchers determined that smart energy investments would be surpassed by the smart security segment towards the end of the coming decade.

“The smart security segment is expected to overtake this segment by 2026 end, accounting for 4% of the global revenue share,” the report concluded. “Adoption of smart security technologies such as network security systems, cyber security systems, IP surveillance cameras, and wireless alarms for public safety is expected to drive the growth of the smart security segment over the forecast period.”

A third major area of smart city growth will continue to be the smart building segment.

“Owing to growing inclination toward eco-friendly construction technology, the smart building is estimated to register over 15% market value share in 2026, crossing $520 billion,” said the report. “In terms of Y-o-Y growth, smart security and smart building segments will dominate over others, with the respective Y-o-Y growth rates of over 23% and over 20% in 2017 over 2016.”

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