Smart city projects in China are expected to generate $320 billion for the nation’s economy by 2025, according to Frost & Sullivan.
China is expected to account for 50% of the smart cities in Asia, the research firm said in a new report. The global smart city market is expected to grow to over $2 trillion by 2025.
Asia-Pacific is also expected to be the fastest growing region in the smart energy – or distributed energy generation – space over this time.
Smart energy will be one of a number of key technologies that will be the technological cornerstones of smart cities in the future, with others including AI, robotics, advanced driver assistance systems and personalized healthcare.
AI will play a key role in smart cities in areas such as smart parking, smart mobility, smart energy grids, adaptive signal control and waste management, Frost & Sullivan said. Major corporations such as Google, IBM and Microsoft remain the primary drivers of AI adoption.
Smart city projects will meanwhile take on a more urgent imperative due to the projection that by 2050, over 80% of the population in developed countries and 60% in the developing world will live in cities.
Another key enabling technology for smart cities is the internet of things (IoT).
“Currently most smart city models provide solutions in silos and are not interconnected. The future is moving toward integrated solutions that connect all verticals within a single platform. IoT is already paving the way to allow for such solutions,” Frost & Sullivan visionary innovation senior research analyst Vijay Narayanan said.
