The number of smart cities to quadruple
There will be at least 88 smart cities all over the world by 2025, based on the IHS definition of a smart city. Asia-Pacific will take over the lead in 2025. In all, Asia-Pacific will account for 32 smart cities of the total in nine years’ time, Europe will have 31, and the Americas will contribute 25.
City projects in the Americas are typically somewhat narrower in scope than those found in Europe. Unlike broad projects underway in cities like Vienna or Amsterdam, U.S. projects will often focus on a single functional area, such as mobility and transport.
Meanwhile, many of the budget issues facing government expenditures in the well-developed economies of Europe are not found to the same extent in the Asia-Pacific region. In effect, this has the potential to create more scope for investment in smart city projects in Asia-Pacific, where projects are sometimes based around creating new infrastructure, rather than replacing legacy systems.
Annual investment on smart city projects will go on to surpass $12 billion in 2025. ■