Smart Cities Market Outlook: Industry Trends and Future Growth Path
The global smart cities market is undergoing rapid expansion, reflecting the increasing global demand for sustainable and connected urban ecosystems. Valued at US$600.2 billion in 2025 , the market is forecast to reach US$1,791.5 billion by 2032 , advancing at an impressive CAGR of 20.1% . Cities are adopting digital technologies to enhance efficiency, sustainability, and quality of life, positioning smart urban development as a central theme for the future of global infrastructure. Market Highlights and Key Insights Smart cities leverage IoT, AI, 5G, and data analytics to transform governance, mobility, and energy systems. Services hold over 40% share in 2024, driven by IoT and AI deployment. Software is the fastest-growing segment, forecasted to expand at a 21.1% CAGR during 2025–2032. Asia Pacific is the fastest-growing region with a projected 29.2% CAGR , while North America benefits from U.S. government funding worth US$ 100 m...