IDC: 2018 smart city technology spending will reach $28.3 billion

“Since the first discovery and record of the birth of a smart city by IDC since 2006, we are proud to launch the Global Smart City Tracking and Spending Guide. This study spans 41 categories of use cases covering a comprehensive compilation of global smart city projects. This is expected to help technology buyers and market suppliers better understand broad trends, niche opportunities, and best practices for regional and global smart city projects,” said Gerald Wang, head of public sector at IDC Asia Pacific. .

Wang added: "It is important to invest the Asia Pacific Smart City focused on intelligent transportation, data-driven public safety as well as energy and infrastructure, although a deeper dive show one, two, different priorities and third tier cities in the region."

Intelligent transportation and fixed-conventional monitoring have the greatest impetus from government departments to serve transportation and safer cities. These two use cases accounted for more than 36% of the total expenditure during the entire forecast period (2017-21). However, during the forecast period (2017-21), visual sensing and loaded vehicle networking (V2X) connectivity and wearable device (Fitbit/smart glasses) use cases will be compounded at a compound annual growth rate of 45% and 43.3%, respectively. Abnormal growth.

Services accounted for the highest expenditure, accounting for 32.5% of total expenditure in 2017, and the trend may show a linear growth, with a five-year compound annual growth rate (2017-2021) of 21.2% and a total of $16.7 billion by 2021. Hardware is the second largest technology group, spending $31.7 billion in 2017, followed by software (18.0%) and connectivity (17.8%). Throughout the forecast period, software is expected to grow at the fastest rate, with a compound annual growth rate of 17.7% for five years and $8.3 billion for 2021. Among all four technology groups, national/local government and transportation are the two leading industries that use the most video surveillance and intelligent transportation use cases. These use cases have attracted significant investment from all countries in APeJ.

Fixed video surveillance will become a leading use case in China, accounting for 21.1% of the cloud service penetration rate in the telecommunications industry. China plans to transform its 500 cities into smart cities, 290 of which have launched smart city pilot projects that have been supported by agreements with IT companies and other major Chinese telecommunications companies (Ant Financial and Tencent). Other countries such as Singapore, South Korea and India are other countries in the Smart Smart Cities initiative.

“With the rapid influx of APeJ population into urban areas, all governments provide enough fresh water, universal access to clean energy, the ability to travel effectively from one place to another, and a sense of security that are smart cities to remain competitive and The commitment that citizens must fulfill to provide a decent quality of life,” said Ashutosh Bisht, IDC Asia Pacific Research Manager.

IDC's Global Half-Year Smart City Expenditure Guide quantifies the expected technology opportunities from smart city initiatives at a regional and global level. Expenditure data applies to nine regions, with a focus on 15 use cases for five strategic priorities and the market size of the overall smart city. The Expenditure Guide is designed to provide IT vendors with insight into this fast-growing market and how the market has evolved over the five-year forecast period.