Market Overview

IDC Forecasts Smart Cities Spending to Reach $158 Billion in 2022, with Singapore, Tokyo, and New York City Among Top Spenders

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Smart City initiatives will attract technology investments of more than
$81 billion globally in 2018, and spending is set to grow to $158
billion in 2022, according to the new release of the International Data
Corporation (IDC)
Worldwide
Semiannual Smart Cities Spending Guide
. The Spending Guide provides
a detailed look at the technology investments associated with a range of
Smart Cities priorities, programs, and use cases.

"The new edition of IDC's Worldwide Smart Cities Spending Guide
represents a substantial stride towards gaining granular insight into
how cities around the world are transforming. We are now delivering
detailed sizing of 25 named use cases, as well as the first release of a
new database of spending at City level," said Serena
Da Rold
, program manager in IDC's Customer
Insights & Analysis
Group. "Intelligent transportation and
data-driven public safety remain the largest investment areas, but we
are also finding significant pockets of spending and growth in
back-office and platform-related use cases, which are less often
publicized but increasingly happening behind the scenes in cities around
the world."

The three largest use cases, which will attract nearly one quarter of
global Smart Cities spending in 2018, are fixed visual surveillance,
advanced public transit, and smart outdoor lighting. By 2022,
intelligent traffic management will overcome smart outdoor lighting in
third position, and the top three use cases will only account for one
fifth of total spending, as smaller and fast-growing use cases emerge
and reach critical mass. Officer wearables and vehicle to everything
(V2X) connectivity, in particular, will generate the fastest growth,
although they currently start from a small base in most regions. For
more detail on IDC's definition of the overall Smart Cities opportunity
and select use cases, please see IDC's
Worldwide Semiannual Smart Cities Spending Guide Taxonomy, 2H17

(IDC #US43443919).

On a geographic basis, the Asia/Pacific region, including China and
Japan, will account for nearly 42% of global spending in 2018, followed
by the Americas (33%), and Europe, Middle East and Africa (EMEA) (25%).
The United States is the largest country market for Smart City spending
(over $23 billion in 2018), followed by China. The three largest use
cases appear among the top five in terms of spending across all regions,
but other use cases that emerge among the largest current Smart Cities
investment areas include mobile video capture and recording in the
United States and Latin America, and digital permitting, licensing, and
inspection in the Middle East and Africa region.

Spending by the 53 Cities that are currently sized in IDC's database
accounts for around 15% of global Smart City spending, with Singapore,
Tokyo, New York City, London, and Shanghai leading the way in terms of
2018 investments.

"IDC expects to see strong, continued investment by the private and
public sector in urban areas and in Smart Cities and Communities
programs and projects," said Ruthbea
Yesner
, vice president of IDC's Smart
Cities and Communities
programs. "This also means that it is a more
competitive market. This spending guide offers solution suppliers the
ability to take a data-driven approach to developing products and
services, and understanding buyer trends."

IDC's Worldwide
Semiannual Smart Cities Spending Guide
quantifies the expected
technology opportunity around smart cities initiatives from a region and
worldwide level. Spending data is available for nine regions with a
focus on 25 use cases across five strategic priorities, as well as the
overall Smart Cities market size. Starting from the current release, the
spending guide offers a complementary Cities database, providing Smart
City 2018 spending for over 50 cities across nine regions. The spending
guide is designed to provide IT vendors with insights into this rapidly
growing market and how the market will develop over the five-year
forecast period.

About IDC Spending Guides
IDC's Spending Guides provide
detail on key technology markets from a regional, vertical industry, use
case, buyer, and technology perspective. The spending guides are
delivered via pivot table format or custom query tool, allowing the user
to easily extract meaningful information about each market by viewing
data trends and relationships.

About IDC
International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world's leading media, data and marketing services company that
activates and engages the most influential technology buyers. To learn
more about IDC, please visit www.idc.com.
Follow IDC on Twitter at @IDC
and LinkedIn.

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