Global smart city spending to reach $124bn in 2020: IDC

Global spending on smart city initiatives is set to reach nearly $124 billion this year as governments try to keep pace with and take advantage of new technologies, according to the International Data Corporation (IDC).

The figure represents an 18.9% increase over 2019, with more than one-third of spending related to energy and infrastructure, such as smart grids. Data-driven public safety and intelligent transportation were also high-priority areas, capturing 18% and 14% of overall spending respectively.

Electricity and gas smart grids will “still attract the largest share of investments, although their relative importance will decrease over time as the market matures and other use cases become more mainstream”, IDC said in a statement.

“Fixed visual surveillance, advanced public transportation, intelligent traffic management and connected back office follow” and – combined with smart grids — represent over half of projected spending. 

Vehicle-to-everything connectivity, digital twin and officer wearables will likely see the fastest spending growth over the next five years, IDC predicted.

Singapore will remain the top investor for smart cities initiatives, followed by 2020 Olympics host Tokyo, New York and London, with each tipped to spend more than $1 billion this year.

Of the 207 cities surveyed for IDC’s Worldwide Smart Cities Spending Guide, however, fewer than 80 are investing over $100 million per year and most are spending $1 million or less.

“On a regional basis, the United States, Western Europe and China will account for more than 70% of global smart cities spending throughout the forecast. Latin America and Japan will experience the fastest growth in smart cities spending in 2020,” IDC reported. Meanwhile, APAC excluding Japan and China will make up just 11.8% of the market.

Image credit: ©stock.adobe.com/au/Production Perig