Smart city platforms market expected to show strong growth

Future Market Insights projects the smart city platforms market will grow to more than $400 billion by 2032.

By Future Market Insights August 28, 2023

Smart city insights

  • Global smart city platform Market is expected to reach a market size of $446.7 billion by 2022.
  • The platform segment is expected to have the highest CAGR of 9.3% during the forecast period.
  • The United States is projected to remain the dominant market with an absolute dollar growth opportunity of $84.9 billion during 2022 – 2032.

The smart city platforms market is expected to grow at a CAGR of 10% between 2022 and 2032, with revenues estimated at $156.1 billion in 2021. The market is expected to be worth $446.7 billion by the end of 2032.

Enterprise resource planning (ERP) is critical for streamlining processes and improving corporate operations across industries. The Internet of Things (IoT) and large data influxes are already causing havoc in the ERP environment, opening up new avenues for continuous improvement and process automation. Because of the dizzying pace of technology, today’s ERP environment is extremely complicated.

A small-scale ERP deployment typically takes three months to complete, but a larger-scale project can take up to two years. Meanwhile, significant technological advances may occur in parallel with the two-year deployment. The introduction of lower-cost cloud computing and software-as-a-service (SAAS) has complicated the marketing of ERP software.

Integration and deployment of smart city platform solutions with ERP solutions is a difficult task that must be done in stages. The outdated ERP solutions are insufficient for independent operation and meeting customer needs. Furthermore, businesses are hesitant to transition to an Integrated Workplace Management System (IWMS) or Computerized Smart City Platforms (CAFM) technology.

Larger businesses would prefer traditional ERP technology. Furthermore, smart city platform solutions should not be used as stand-alone solutions in the digital architecture of the facility. Combining smart city platforms with ERP systems is frequently required. In addition, integrating smart city platform solutions and services with ERP systems is a difficult process that must be completed in stages.

“The surge in venture capital investments by major corporations will benefit the Smart City Platform industry trends in the coming years,” comments a Future Market Insights analyst.

Competitive analysis

The research discusses key trends in the smart city platform industry as well as inorganic and organic growth methods. Various firms are focusing on organic growth strategies such as product approvals, and new product releases. The strategy noted in the sector included mergers and acquisitions, partnerships, and collaborations. These measures have paved the way for market players to grow their businesses and strengthen their distribution networks.

Some of the recent developments in the smart city platform market include:

  • In October 2021, Siemens took over Wattsense, a French start-up company. Siemens gained the ability to assist businesses throughout Europe in complying with the Energy Performance of Buildings Directive due to this purchase (EPBD). This regulation requires tertiary sector buildings to include control and automation technologies that improve energy efficiency and reduce CO2 emissions.

  • In June 2021, Microsoft and Mejo collaborated with Palantir and Sompo Holdings. The firms hoped to facilitate innovative capabilities of connected car data throughout the world through this partnership. Furthermore, the collaboration would help Wejo’s goal of building vendor-agnostic industry rules in connected car data, as well as applications across numerous industries such as fleet, insurance, smart city, payments, and mobility, among others.

  • In March 2021, Hitachi acquired GlobalLogic, a US-based product engineering services firm. Through this takeover, the firm aimed to expand its key segments, namely IT, Energy, Industry, Mobility, Smart Life, and Astemo.

– Future Market Insights is a CFE Media and Technology content partner.