Smart Infrastructure Market Research Reports

"Building Smarter Cities: Evolution and Impact of Smart Infrastructure Technologies (2024 Market Size: USD 373.6 billion)"!

Smart Infrastructure Industry Overview

The smart infrastructure market is undergoing substantial growth and transformation, which is being driven by the growing demand for sustainable urban development and technological advancements. The global smart infrastructure market size is 373.6 billion in 2024 and will be USD 1762.6 billion in 2031, with a CAGR 21.4%. Urbanization, government initiatives, and the integration of Internet of Things (IoT) technologies are among the numerous factors that contribute to this rapid growth.

The growing urban population is one of the primary factors driving the smart infrastructure market. By 2024, 60% of the global population will reside in urban areas, which will require the creation of more efficient and intelligent infrastructure to ensure sustainability and resource management. Over 1,000 smart city pilot projects are presently underway globally, and smart cities are a critical element of this trend. Asia's investment in smart buildings and energy management, Europe's emphasis on smart transportation systems, and the United States' smart grid initiatives are among the most notable examples. IoT is essential in the smart infrastructure market in terms of technology. As per our research analyst, by 2024 there will be more than 50 billion connected devices worldwide, a significant number of which will be essential for smart infrastructure applications. These devices enable the more efficient administration of infrastructure systems, including energy, water, and transportation, by facilitating real-time data collection and analysis.

The energy market is a substantial beneficiary of the advancements in digital infrastructure. Smart grids, which employ digital communication technology to detect and respond to local changes in usage, will save up to USD 200 billion globally in 2024 as a result of enhanced efficiency and reduced energy waste. Another critical aspect is the integration of renewable energy, which is facilitated by smart infrastructure, which facilitates the efficient administration and distribution of energy from sources such as solar and wind.

Top Countries Contributing in Smart Infrastructure Market

United States (2024 Market Size: USD 35 billion)

According to cognitive market research, the United States smart infrastructure market share is 25% of the total revenue generated and its market size is USD 35 billion in 2024. In 2023 the US smart infrastructure was valued at USD 28 billion in 2023. Energy, transportation, and smart structures are the primary sectors that employ smart infrastructure. The installation of more than 80 million smart meters nationwide by 2024 is a significant factor in the adoption of smart grid technology. Smart transportation initiatives, including autonomous vehicles and intelligent transportation systems (ITS), will reduce traffic congestion by 15% and reduce greenhouse gas emissions by 10%. The United States government has allocated over USD 1 billion to smart city initiatives through a variety of federal programs. Key cities such as Chicago, San Francisco, and New York are pioneering the implementation of smart infrastructure solutions, with an emphasis on public safety improvements, traffic management, and energy efficiency. Additionally, the United States is home to a plethora of tech giants and startups that are instrumental in the advancement and expansion of smart infrastructure. These companies are propelling innovation in the fields of IoT, AI, and big data analytics.

China (2024 Market Size: USD 32 billion)

The smart infrastructure market in China was valued at USD 25 billion in 2023. The China smart infrastructure market share is 23% of the global market and its market size is USD 32 billion in 2024. Smart grids, smart transportation, and smart structures comprise the most significant sectors. The deployment of smart infrastructure has been expedited by the government's Smart City Pilot Program and the country's rapid urbanization. China intends to implement more than 500 million smart meters and substantially enhance its smart grid capabilities in 2024. The integration of ITS and the development of smart logistics hubs will improve urban mobility and reduce traffic congestion by 20% through smart transportation initiatives. Shanghai, Beijing, and Shenzhen are among the cities that are at the vanguard of these developments. Furthermore, the government of China has prioritized the development of AI and IoT technologies in order to stimulate economic growth and technological advancement. Consequently, China has made substantial investments in these fields. Significant smart infrastructure initiatives are also included in the Belt and Road Initiative, which further enhances China's influence in smart infrastructure market.

Germany (2024 Market Size: USD 16 billion)

According to cognitive market research, the Germany's smart infrastructure market share is 11% of the total revenue generated and its market size is USD 16 billion in 2024. In 2023, the smart infrastructure market in Germany was valued at 12 billion. Transportation, smart energy, and smart cities comprise the principal markets. The country's significant emphasis on energy efficiency and renewable energy has resulted in the widespread adoption of smart grid technologies. As per our research analyst, by 2024  more than 40 million smart meters will have been implemented. Smart transportation systems, which encompass electric vehicle (EV) infrastructure and intelligent transportation systems (ITS), are a significant emphasis, with the objective of reducing emissions and urban congestion. Smart city initiatives are being spearheaded by cities such as Berlin, Hamburg, and Munich, which are integrating sophisticated data analytics, IoT, and AI to improve urban living. The German government's dedication to the Energiewende (energy transition) is a substantial factor in the growth of smart infrastructure investments, as it has allocated a substantial amount of funding to support research and development in this field. Furthermore, the manufacturing market in Germany is becoming more robust and is incorporating clever technologies to improve productivity and efficiency.

Japan (2024 Market Size: USD 13 billion)

The smart infrastructure market in Japan was valued at USD 10 billion in 2023 and will be USD 13 billion by 2024. Smart energy, smart transportation, and disaster management systems comprise significant markets. Japan holds a significant market share of 9%. The nation is a pioneer in the development of smart grid technology, having implemented a comprehensive network of energy management systems and smart meters to enhance energy efficiency and reliability. Japan intends to install more than 30 million digital meters in 2024. Urban traffic congestion is reduced by 18%, and public transportation efficacy will be improved through the implementation of smart transportation initiatives, including automated transit systems and ITS. Cities such as Tokyo, Osaka, and Yokohama are at the forefront of the implementation of smart city solutions, with a particular emphasis on disaster resilience and sustainability. Japan's government has implemented numerous initiatives to promote the advancement of smart infrastructure, such as the Society 5.0 initiative. This initiative is designed to establish a super-smart society by integrating advanced technologies such as IoT, AI, and robotics across a variety of markets.

South Korea (2024 Market Size: USD 12 billion)

According to cognitive market research the South Korea smart infrastructure market size was USD 9 billion and will be USD 12 billion in 2024. Transportation, smart energy, and smart structures are among the most significant markets. South Korea smart infrastructure market holds 8% of the global market share. The nation has made substantial progress in the deployment of smart grids, with an installation of more than 20 million smart meters by 2024. The objective of smart transportation systems, which encompasses connected vehicle technologies and intelligent transportation systems (ITS), is to enhance road safety and reduce traffic congestion by 15%. Seoul, Busan, and Incheon are among the cities that are at the forefront of smart city developments, utilizing sophisticated technologies to improve urban living and sustainability. The South Korean government has made substantial investments in smart infrastructure, including the Smart City National Strategic Project, which is designed to establish model smart cities that exhibit innovative solutions. Furthermore, the robust technology sector in South Korea, particularly in the fields of ICT and electronics, is instrumental in the advancement of smart infrastructure.

United Kingdom (2024 Market Size: USD 11 billion)

The United Kingdom smart infrastructure market holds a market share of 7% of the total revenue generated and its market size is USD 11 billion in 2024. The United Kingdom smart infrastructure market size was valued at USD 8 billion in 2023. The primary sectors are transportation, urban management systems, and digital energy. The nation's dedication to reducing carbon emissions and improving energy efficiency has resulted in the widespread implementation of smart grid technologies, with more than 15 million smart meters implemented by 2024. The smart transportation initiatives, such as EV infrastructure and ITS, will alleviate urban traffic congestion by 12% and facilitate the transition to cleaner transportation. London, Manchester, and Birmingham are pioneering smart city initiatives that prioritize sustainability, public safety, and digital connectivity. The Industrial Strategy Challenge Fund, which provides funding for innovative projects, is one of the numerous initiatives that the UK government has implemented to support the development of smart infrastructure. Furthermore, the smart infrastructure market's expansion is significantly influenced by the United Kingdom's robust research and development capabilities in artificial intelligence (AI), data analytics, and the Internet of Things (IoT).

France (2024 Market Size: USD 9 billion)

According to cognitive market research, the smart infrastructure market in France was valued at USD 7 billion in 2023 and will be USD 9 billion in 2024. Transportation, urban administration, and smart energy comprise critical sectors. France holds 6% of the global market. The country's emphasis on renewable energy integration and energy efficiency has promoted the adoption of smart grid technologies, with an installation of over 12 million smart meters in 2024. The objective of smart transportation systems, which encompasses intelligent transportation systems (ITS) and smart parking solutions, is to enhance mobility and reduce urban traffic congestion by 10%. Paris, Lyon, and Nice are among the cities that are at the forefront of the implementation of smart city projects. These projects integrate IoT, AI, and data analytics to improve the quality of life and sustainability in urban areas. The "Smart and Sustainable Cities" program, which offers funding and resources to innovative projects, is one of the numerous initiatives that the French government has implemented to promote the development of smart infrastructure. The robust engineering and technology sectors of France are also significant contributors to the advancement of digital infrastructure.

Singapore (2024 Market Size: USD 8 billion)

The smart infrastructure market in Singapore was valued at USD 6 billion in 2023 and will be USD 8 billion in 2024. The three primary sectors are urban management, transportation, and digital energy. Singapore holds 5% of the global market share. The city-state's dedication to transforming into a smart nation has resulted in substantial investments in smart grid technologies, with an objective of installing more than 2 million smart meters in 2024. The objective of smart transportation initiatives, which encompass autonomous vehicles and intelligent transportation systems (ITS), is to enhance the efficacy of public transportation and reduce traffic congestion by 20%. Singapore's Smart Nation initiative is a critical factor in the development of smart infrastructure, with a particular emphasis on the incorporation of IoT, AI, and data analytics to improve urban living. The government has implemented a variety of initiatives to assist with smart city initiatives, including the Smart Urban Mobility project, which is designed to create intelligent transportation solutions. Furthermore, Singapore's leadership in the smart infrastructure market is bolstered by its strategic location as a global business center and robust technology sector.

Netherlands (2024 Market Size: USD 

According to cognitive market research, the Netherlands smart infrastructure market size was USD 5 billion in 2023 and will be USD 7 billion by 2024. Transportation, water management, and efficient energy are among the most significant sectors. Netherland holds 4% of the global market share. The country's emphasis on energy efficiency and sustainability has propelled the adoption of smart grid technologies, with an installation of over 10 million smart meters in 2024. The objective of smart transportation systems, which encompasses intelligent transportation systems (ITS) and smart mobility solutions, is to reduce urban traffic congestion by 15% and improve public transportation. Amsterdam, Rotterdam, and Utrecht are pioneering smart city initiatives that prioritize sustainability, digital connectivity, and effective resource management. The Dutch government has implemented numerous initiatives to promote the advancement of smart infrastructure, including the "Digital Delta" program, which emphasizes the integration of advanced technologies for water management. Furthermore, the Netherlands' innovative urban planning and robust technology sector are essential for advancing digital infrastructure.

Canada (2024 Market Size: USD 6 billion)

In 2023, the smart infrastructure market in Canada was valued at USD 4 billion and will be USD 6 billion in 2024. The three primary sectors are urban management, transportation, and digital energy. Canada holds a 3% of the global market share. Significant investments in smart grid technologies have resulted from the nation's emphasis on energy efficiency and sustainability. In 2024, more than 8 million smart meters will have been installed. The objective of smart transportation initiatives, which encompasses EV infrastructure and ITS, is to facilitate the transition to greener transportation and reduce urban traffic congestion by 10%. Toronto, Vancouver, and Montreal are pioneering smart city initiatives that prioritize sustainability, public safety, and digital connectivity. The Canadian government has implemented a variety of initiatives to promote the development of smart infrastructure, including the Smart Cities Challenge, which supports innovative projects by providing financial support.

PESTEL Analysis of Smart Infrastructure Market

Political

The smart infrastructure market is greatly affected by the political climate. The need to update infrastructure to make it more efficient, sustainable, and resilient is being recognized by governments around the globe. Policies, subsidies, and investments that benefit from this governmental backing are common. Key examples of political initiatives that attempt to support the development of smart infrastructure are the Green Deal in the European Union and the Infrastructure Investment and Jobs Act in the United States. The market is shaped in large part by regulatory frameworks as well. To make sure that smart infrastructure technologies are secure, private, and able to communicate with one another, governments are passing laws and creating standards. An example of legislation that impacts data collection, storage, and usage in smart infrastructure systems is the General Data Protection legislation (GDPR) in Europe. Companies working in this field must comply with such regulations. Additionally crucial are political stability and the efficiency with which the government executes infrastructure projects. Smart infrastructure investments are more likely to flow to countries with strong administrative systems and relatively stable governments. In contrast, the uncertainties and dangers associated with political instability might impede the advancement of infrastructure projects.

Economical

A key factor in the expansion and longevity of the smart infrastructure industry is the state of the economy. In 2024, the worldwide smart infrastructure industry is grown from its 2023 valuation of around USD 110 billion to a whopping USD 160 billion. The necessity for robust infrastructure to sustain economic operations, the desire for more efficient use of energy, and the spread of metropolitan areas are the primary factors propelling this expansion. Government investment and economic policies have a major impact on the growth of the industry. In order to increase economic growth and competitiveness, governments are pouring a lot of money into modernizing infrastructure. As an example, the Infrastructure Investment and Jobs Act of the United States government set aside more than a trillion dollars for various infrastructure initiatives, including smart infrastructure. Opportunities for firms are created, and markets are expanded through these investments. Smart infrastructure has huge potential financial benefits. The operational efficiency, cost-effectiveness, and quality of life for citizens are all improved by these systems. As an example, smart grids maximize efficiency in power distribution, which in turn decreases power losses and power bills. Intelligent transportation systems have a positive impact on both the economy and the environment by enhancing traffic flow and decreasing fuel consumption.

Social

The smart infrastructure industry is very susceptible to social influences, which shape both the need for and progress in smart technology. One important factor is urbanization, which is causing more and more people to relocate to urban areas and thereby necessitating better, more long-term infrastructure solutions. There will be a greater need for smart city solutions like smart grids, energy-efficient buildings, and intelligent transportation systems by 2050 when predictions indicate that over 70% of the global population will live in cities. The success and widespread use of smart infrastructure technologies depend on the level of public understanding and support for these concepts. Infrastructure initiatives that improve sustainability and quality of life are gaining momentum as people become more aware of environmental challenges and the advantages of smart technologies. In areas where water is limited, for instance, smart water management solutions that cut down on waste and make supplies more reliable are becoming increasingly popular. The industry is also affected by the workforce's degree of education and skill. Skilled workers with knowledge of engineering, data science, and IT are necessary for the creation, deployment, and upkeep of smart infrastructure. In order to foster the expansion of the smart infrastructure market, nations should prioritize STEM (science, technology, engineering, and mathematics) education and have robust educational institutions overall.

Technological

The smart infrastructure market relies on technological breakthroughs to support innovation and create efficient and intelligent systems. The way infrastructure is planned, maintained, and operated is being revolutionized by the integration of sophisticated technologies like the Internet of Things (IoT), artificial intelligence (AI), big data analytics, and 5G connectivity. An essential component of smart infrastructure, the Internet of Things (IoT) allows for the interconnection and communication of different systems and objects. Data on infrastructure performance, environmental factors, and user behavior is collected in real time by sensors and devices connected to the Internet of Things. In order to optimize operations, enhance efficiency, and improve decision-making, this data is subsequently evaluated. To better control energy distribution, smart grids use IoT. This helps to decrease outages and increase reliability. With the use of AI and ML, predictive analytics and automated decision-making capabilities are revolutionizing infrastructure management. Algorithms powered by artificial intelligence sift through mountains of data in search of trends, maintenance requirements forecasts, and ways to better allocate resources. Through the use of real-time route suggestions and dynamic signal adjustments, AI-driven traffic management systems can alleviate traffic congestion and improve traffic flow in the transportation market.

Environmental

With the growing importance of sustainability and resource efficiency in light of climate change and environmental deterioration, environmental concerns have taken center stage in the smart infrastructure industry. Reducing environmental consequences and promoting sustainable urbanization are driving forces behind the development and application of smart infrastructure technology. Reducing emissions of greenhouse gases is one of the main environmental advantages of smart infrastructure. One example is smart grids, which improve energy efficiency by minimizing losses and optimizing energy delivery. Power generation results in reduced carbon emissions as a result of this. Further reductions in fossil fuel use and overall carbon footprints can be achieved by the incorporation of renewable energy sources like solar and wind power into smart grids. Smart infrastructure technology can also have a major influence on water management, another important issue. Internet of Things (IoT) sensors and data analytics enable smart water systems to track water use, identify leaks, and control distribution efficiently. In the long run, this helps guarantee a steady supply of potable water by lowering water waste and saving water resources.

Legal

Regulations, standards, and policies control the creation, implementation, and maintenance of smart technologies; a complicated and multi-faceted legal framework surrounds these forms of infrastructure. The responsible, secure, and moral application of smart infrastructure technology relies heavily on legal considerations. Data protection and privacy are one of the main legal considerations in the smart infrastructure business. Technologies that are part of smart infrastructure, such as data analytics platforms and Internet of Things sensors, gather and handle massive volumes of data. Strong standards for data gathering, storage, and use have been established by regulations like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the US. The public's confidence in smart infrastructure systems and the protection of individuals' privacy depend on strict adherence to these rules. A further essential issue in the realm of law is cybersecurity. Cyberattacks are becoming more common as smart infrastructure systems are becoming more linked and dependent on digital technology. The National Institute of Standards and Technology (NIST) Cybersecurity Framework is one example of a legal framework and standard that provides recommendations for protecting smart infrastructure from cyberattacks. To safeguard vital infrastructure and confidential information from cyberattacks and breaches, businesses must establish stringent cybersecurity policies.

Key players of Smart Infrastructure Market

siemens AG

In 2023, Siemens AG reported a revenue of USD 15 billion from its digital infrastructure market and this figure will rise to USD 18 billion in 2024. In 2023, the company allocated USD 1.2 billion to research and development (R&D) for digital infrastructure and this figure will increase to USD 1.3 billion in 2024. Siemens is a multinational industrial corporation that operates in a variety of markets, including Smart Infrastructure, Mobility, Healthcare, and Digital Industries. The Smart Infrastructure segment is dedicated to the development of intelligent infrastructure solutions, building technologies, and energy distribution, all of which are essential for the modernization and improvement of urban environments. Siemens' Smart Infrastructure division is renowned for its comprehensive solutions, which integrate energy systems, building automation, and data analytics to establish smart infrastructures and buildings. Siemens' extensive capacity and influence in this field are reflected in its 15% share of the global smart infrastructure market. The company's commitment to sustainability and digital transformation, in addition to its extensive portfolio of innovative products and solutions, underpins its robust market presence.

IBM Corporation

The smart infrastructure market of IBM Corporation generated USD 10 billion in revenue in 2023 and this figure will increase to USD 12 billion in 2024. In 2023, the company's R&D investment in smart infrastructure was USD 900 million, and this figure will rise to USD 950 million in 2024. Cloud & Cognitive Software, Global Business Services, and Global Technology Services comprise IBM's principal business segments. The smart infrastructure market is predominantly a component of the Cloud & Cognitive Software segment, which employs data analytics, artificial intelligence (AI), and the Internet of Things (IoT) to provide innovative infrastructure solutions. IBM's substantial capacity and industry scale are evident in its 12% share of the global smart infrastructure market. IBM's smart infrastructure solutions are designed to enhance urban mobility, optimize energy management, and enhance public safety by integrating sophisticated technologies. The company's extensive experience in the development and deployment of smart solutions, in conjunction with its robust presence in the technology market, establishes it as a critical actor in the smart infrastructure market.

Schneider Electric

Schneider Electric's revenue from its smart infrastructure market was USD 8 billion in 2023, and this figure will rise to USD 9.5 billion in 2024. In 2023, the company allocated USD 700 million to research and development (R&D) for digital infrastructure and will increase to USD 750 million in 2024. Energy Management and Industrial Automation comprise Schneider Electric's principal business segments. The Energy Management segment, which emphasizes sustainable infrastructure solutions, building automation, and energy efficiency, comprises the smart infrastructure market. Schneider Electric's substantial capacity and industry scale are evident in its 10% share of the global smart infrastructure market. The company's smart infrastructure solutions are intended to enhance the performance of buildings, increase energy efficiency, and facilitate the integration of renewable energy sources. Schneider Electric's comprehensive portfolio encompasses smart grid technologies, energy management systems, and building automation solutions that assist customers in optimizing their energy consumption and mitigating their environmental impact.

Cisco Systems, Inc.

According to reports, Cisco Systems, Inc.'s revenue from its smart infrastructure market will increase to USD 7 billion in 2024 from USD 6 billion in 2023. In 2023, the company's R&D investment in smart infrastructure was USD 600 million, and this figure will rise to USD 650 million in 2024. Networking, Security, Collaboration, and the Internet of Things (IoT) comprise Cisco's primary business segments. The smart infrastructure market is predominantly comprised of the IoT and Networking segments, which concentrate on data management, security, and connectivity. Cisco's substantial capacity and industry scale are evident in its 8% share of the global smart infrastructure market. Cisco's smart infrastructure solutions are intended to facilitate secure and intelligent connectivity in urban environments by incorporating data analytics and IoT devices to enhance infrastructure management. The company's extensive portfolio of smart solutions, in conjunction with its robust presence in the networking and technology sectors, establishes it as a critical participant in the smart infrastructure market.

General Electric (GE)

General Electric (GE) generated USD 5 billion in revenue from its smart infrastructure market in 2023, and this figure will rise to USD 6 billion in 2024. In 2023, the company allocated USD 500 million to research and development (R&D) for digital infrastructure. These investments will increase to USD 550 million in 2024. Power, Renewable Energy, Aviation, and Healthcare comprise GE's principal business segments. The Power and Renewable Energy segments are the primary focus of the smart infrastructure market, which is primarily concerned with sustainable infrastructure solutions, energy management, and smart grids. GE's substantial capacity and industry scale are evident in its 6% share of the global smart infrastructure market. GE's smart infrastructure solutions are intended to enhance grid reliability, increase energy efficiency, and facilitate the integration of renewable energy sources. Smart grid technologies, energy management systems, and renewable energy solutions comprise the company's exhaustive portfolio, which enables customers to optimize their energy consumption and mitigate their environmental impact. The growth of GE in the smart infrastructure sector is primarily driven by its dedication to sustainability and its strong emphasis on innovation.

Recent developments in Smart Infrastructure Market

• In September 2023, Huawei Technologies Co., Ltd. introduced smart infrastructure solutions, including the AI Computing DCN Switch Series CloudEngine XH and Intelligent DC OptiX, an ultra-broadband solution, to assist enterprises in digitizing their business operations. (Source: https://www.huawei.com/en/news/2023/9/intelligentfor-ictservices)
• August 2023: Honeywell International Inc. announced in August 2023 that it would be supplying its City Suite Software for a smart city project managed by Atlanta BeltLine. The project involves the redevelopment of 22 miles of railroad in the city. The software will assist smart city developers in presenting data from multiple points throughout the entire region in a single, unified view.

Conclusion

Due to new technologies and the pressing need for environmentally responsible city planning, the smart infrastructure industry is booming.  The worldwide smart infrastructure market size is USD 373.6 billion in 2024 and will be USD 1762.6 billion in 2031, with a CAGR of 21.4%. Leading this expansion with substantial revenues and investments in research and development are major businesses like General Electric, IBM Corporation, Schneider Electric, Cisco Systems, and Siemens AG.

With an increase to USD 18 billion in 2024 and an investment of USD 1.3 billion in research and development, Siemens AG, for example, reported USD 15 billion in income from smart infrastructure in 2023. This segment generated USD 10 billion in revenue for IBM Corporation in 2023, and the company expects that number to rise to USD 12 billion in 2024, with USD 950 million set aside for research and development. After investing USD 750 million in research and development, Schneider Electric expects its smart infrastructure revenue USD 8 billion in 2023 and will increase to USD 9.5 billion in 2024. With USD 6 billion and USd 5 billion in sales in 2023 and 2024, respectively, Cisco Systems and General Electric also demonstrated substantial contributions. Energy, transportation, and smart buildings are the main areas that smart infrastructure helps. With a 25% share and a 23% share, respectively, the US and China are the market leaders, followed by Germany, South Korea, Japan, and the US. Smart grid technology, smart transportation systems, and energy-efficient building solutions are being implemented in these countries.