Smart Infrastructure Market Size, Share & Industry Analysis, By Type (Smart Grid, Smart Water Network, Intelligent Buildings, Intelligent Transportation Network, and Others), and by End-user (Utility, Transport, Communications, and the Built Environment) and Regional Forecast, 2024-2032

The global smart infrastructure market size was USD 151.01 billion in 2023. The market is projected to grow from USD 187.46 billion in 2024 to USD 986.25 billion by 2032 at a CAGR of 23.07% during the forecast period (2024-2032).

Smart infrastructure helps in establishing a smart community that integrates digital technology such as the use of information and communication technology (ICT) for delivering values of self-monitoring and accuracy in decision making for improving sustainability.  The smart community facilitates smart type of infrastructure such as water and energy networks, transportation & mobility, data centers, buildings, streets, and others.  This system includes the use of Internet of Things (IoT) devices such as connected sensors, lights, meters, which collect and analyze the data. This data is further used for improving infrastructure, public utility, and services.

The global health emergency caused by the sudden outbreak of COVID-19 viral infection has significantly affected numerous verticals. The COVID-19 impact has resulted in global lockdown, which has caused disruptions and changes to global production networks and cost nearly USD 50 billion to the global value chain in early March 2020 when the pandemic has not even expanded globally.  Furthermore, the sudden drop in global trade has caused vast implications for economics and societies, resulting in subsequent fall in job opportunities, income, and price fluctuations.

The pandemic has struck the global value chain by three channels. Firstly, the huge distribution of transportation system got disconnected with the logistics access of the supply chain, where the global value chain accounted for more than 60% of global trade and affecting all the subsequent production activities. Furthermore, as many countries have adopted social distancing and border control measures, this has significantly reduced the transportation of goods and services and resulted in serious disruption in the supply chain.

The second channels that impacted the global value are the disruption of the supply side of production. Other than that, the closure of transportation and workplaces has also put a significant constraint on supply-side production. The third channel through which the global value chain was impacted is the sudden drop in demand and cancellation of orders from March 2020, when the virus spread globally.

Smart Infrastructure Market Trends

Rising Technological Advancement in Smart Grid Technology to Drive Market Growth 

The substantial growth of smart community services which facilitate advanced infrastructures, such as energy networks, transportation, data center, energy, buildings, and others has emphasized the best practice for smart cities by implementing integrated asset management solutions. For example, the smart grid infrastructure is equipped with power grids and information and communication technology (ICTs), which has enabled the effective use of electricity use and grid operation based on sustainability principles.

For instance, in August 2020, ABB developed a seamless platform associated with clean energy generation systems and energy storage devices in China, which controls power generation with the help of distributed power management systems. This technological advancement has helped monitor various electrical and environmental parameters across the power distribution system, ensuring efficient power management strategies such as peak shaving and load transfer. At the real time, it has also led to intelligent distribution, along with metering and coordination control for creating a smart grid which benefits energy efficiency and energy saving.

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Smart Infrastructure Market Growth Factors

Rising Implementation of Telecommunication Networks Acts as Market Drivers

Many industries in large cities use the smart infrastructure model for enhancing and improve the quality of sustainable life, mobility, healthcare, energy, and others. The telecommunication infrastructure adds up to the development of advanced infrastructure, and this model includes various technologies, such as the Internet of Things (IoT), Wireless Sensor Networks (WSNs), and Cloud Computing which plays an important objective for efficient network and communication.

However, access to this infrastructure and data communication is the key component for smart city infrastructure, and cities ensure that the communication platforms and infrastructure are established and accessible openly and efficiently. For instance, in May 2021, Mavenir worked with National Telecom Public Company Limited (NTI), Cisco Systems, to build the future of networks with cloud-native, open architecture software that has made Ban Chang Thailand’s first fully functioning 5G based smart city.

Increasing Focus on Sustainability & Switching to Green Energy Resources to Fuel Growth

The growing concerns over climate change and increasing carbon emissions, led to a rise in various technologies and renewable energies solutions. Smart infrastructure is among one of the solutions that offer a pathway to achieve these goals by integrating technologies such as IoT sensors, data analytics, and automation to optimize resource utilization, enhance energy efficiency, and reduce emissions across various sectors including transportation, buildings, and utilities.

Additionally, the government of different countries and various industries have focused on increasing the smart infrastructures for achieving carbon neutrality. For instance, in January 2024, Siemens introduced Building X Sustainability Manager, a novel application within its Building X digital building platform, designed to aid organizations in reaching their sustainability and net-zero objectives. This application streamlines the process by gathering, storing, and analyzing data from an organization’s utility bills. It acknowledges achievements along with identifying areas for enhancement, making sustainability efforts more accessible and actionable. Hence, rising government initiatives and industrial transition for attaining sustainability would boost the smart infrastructure market over the forthcoming years.

RESTRAINING FACTORS

Rising Cybersecurity Threats and Privacy Concerns over Telecommunication Technology to Restrain Growth 

Smart infrastructure projects require funding from public and private resources. These advanced infrastructure models use ICTs services to communicate or optimize resources. Due to the constant interaction, big data plays a vital role in developing and building a smart infrastructure. However, this massive amount of data exchanged and integration between the system has aroused concern for privacy, security, and cybersecurity threats in smart type of infrastructure projects. In addition, due to the lack of policies and common standards, many cities are experimenting with integration problems on privacy and cyber threats.

For context, the smart infrastructure projects comprise three layers where data is being exchanged in large numbers, and smart government may use this to generate new insights. However, this data exchange has created a significant challenge: security policies, procedures, and other hidden security vulnerabilities throughout the smart city ecosystem, which has aroused the risk of threat actions in the system and disrupted the ground operations. For example, in 2020, the Australian transport company, Toll Group, was attacked by hackers and massive amounts of data, including financial reports, invoices, and the locking of the system with ransomware.

Smart Infrastructure Market Segmentation Analysis

By Type Analysis

Smart Grid Segment to Dominate owing to Detection in Local Power Usage Changes

Based on type, the market is segmented into Smart Grid, Smart Water Network, Intelligent Transportation Network, Intelligent Buildings, and Others.

The smart grid segment accounted for the major share of the market in 2023.  Smart grid detects local changes in power usage and reacts automatically without the need for human intervention. Smart grid has excellent advantages over traditional distribution system such as it reduces electricity theft, electricity losses, cost, meter reading cost, reduces equipment failures, it reduces sustained outages, and reduces consecutively associated restoration cost and it reduces air emissions of carbon dioxide, sulfur dioxide, and nitric oxide. Hence smart grid contributes to keeping the environment green.

The intelligent transportation network segment is expected to grow as it is widely used in real-time parking management, electronic toll collection, emergency vehicle notification systems, automated road speed enforcement, speed alerts, variable speed limits, dynamic traffic light sequence, and collision avoidance systems.

The smart water network segment is the fastest-growing segment of the market in 2020, owing to its rising demand from commercial building infrastructure for a water management system. A smart water network helps to prevent the potential presence of Legionella bacteria in building plumbing systems with IoT flow monitoring and detect and fix wasteful leaks with flow monitoring.

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By End-user Analysis

Built Environment Segment to Dominate Attributable to Minimal Waste and Lower Environmental Impact

The built environment segment accounted for the major smart infrastructure market share in 2023. The term built environment encompasses all forms of building such as housing, industrial, commercial, hospitals, schools, and civil engineering infrastructure. In the built environment, the smart type of infrastructure is used to minimize waste with their lower environmental impact and use of renewable sources and materials. This is anticipated to contribute to the segmental growth in the forthcoming years.

Private and public facilities for electricity, data, gas, oil and petroleum products, water, storm water or sewage, wireless, as well as facilities that share poles, ducts, or conduits, and any connected infrastructure, make up the utility sector.

Smart transportation market includes the use of basic management systems such as car navigation, traffic signal control systems, container management systems, automatic number plate recognition, or speed cameras.

REGIONAL INSIGHTS

The market has been analyzed across five key regions: North America, Asia Pacific, the Middle East & Africa, Europe, and Latin America. 

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North America is estimated to hold the largest market share in 2023. This is attributable to the rapid-paced industrialization and urbanization in the region. Moreover, the increasing adoption of new technologies and solutions for addressing the escalating demand of inhabitants living, driving, working, is creating growth opportunities for developing smarter infrastructure and delivering a flexible solution. For instance, Intel and the City of San Jose are collaborating for implementing Intel’s IoT smart city demonstration platform for City’s green vision initiative by creating environmental sustainability and enhancing the quality of life. Moreover, the Array of things (AoT) project was initiated in Chicago to improve the living experience by collecting real-time data.

Asia Pacific is anticipated to hold the second position in the market during the forecast period. Asia Pacific has continuous acceleration for smart cities compared to other regions due to the extensive availability of IoT sensors and IT infrastructure. Developed countries such as Singapore, Hong Kong, Japan, Thailand, Australia, and others are piloting many smart city concepts by offering blueprints of emerging Asia cities, particularly those with rapidly aging populations. For instance, Thailand has introduced The Eastern Economic Corridor (EEC) for transforming three Thai provinces into smart cities. Moreover, the country aims to achieve 100 smart cities by 2024.

During the forecast period, Europe is expected to increase at an exponential rate. The European Commission has developed two approaches that support the implementation of smart urban technologies. For example, the CITY KEYS project is developed for a smart city performance measurement system to overcome a regulatory barrier and performance monitoring factor. The project aims to validated and develop a framework for measuring performance for promoting a common, transparent, comparable monitoring for smart city solutions across European cities.

The evolution and perspectives for a smart city are transforming the cityscapes in South America. For example, In Santiago, the Chilean authorities have recognized the importance of clean mobility with the increasing air contamination and traffic congestion and aim for increasing the numbers of electric mobility by 2022.

The Middle East & Africa is the prominent region due to the growing demographics in urbanizations along with rapid expansion has led to gain sustainable smart cities traction across the region. For example, Masdar City of Abu Dhabi is the first smart sustainable city in the Middle East region. Moreover, Masdar city has used a combination of various technological innovations in the planning of architecture and energy along with smart water meters for helping wastewater.

List of Key Companies in Smart Infrastructure Market

Siemens to Focus on Expanding Its Product Line and Utilize Its Channels to Market New Products

Siemens is a multinational conglomerate that specializes in electrification, automation, and digitalization. Siemens is a leading supplier of systems for power generation and transmission, as well as medical diagnosis, and is one of the world's top developers of energy-efficient, resource-saving technology. The company's smart infrastructure products aid in the creation of safe and healthy indoor environments, the reduction of airborne and surface contaminants, the improvement of air quality through new HVAC maintenance strategies and advanced filtration, the management of energy performance by offsetting new HVAC guidelines with energy efficiency strategies and IoT technology, the provision of real-time updates to occupants regarding space utilization and emergency notifications, and the maintenance of healthy and safe indoor environments.

The smart infrastructure market has witnessed a large number of small and large players delivering products for numerous applications, which are shaping the competitive landscape of the market. These participants are operating at the country and regional levels, limiting them to cater to needs overseas effectively. However, some established organizations such as Schneider Electric (Spain), Indra (France), Sensus (U.S.), Aclara (U.S.), And Philips (Netherlands), among others, possess a significant integration with local sales partners to hold a substantial global presence.

• On March 08, 2021, the Siemens Smart Infrastructure division announced that the company will transform its headquarters in Zug, Switzerland, into a carbon-neutral location by 2030. The Zug campus of Siemens is the largest among the Swiss location and is the showcase for smart buildings that combine innovative building technology and renewable energy for achieving energy efficiency and decarbonization.


• In February 2020, Siemens Smart Infrastructure division has launched a smart building suite that is designed to create a more efficient and flexible workplace that has Internet of Things-enabled devices, applications, and services which turn has turned offices into a competitive advantage for companies. The suite consists of Siemens technology and a building management system for reposing intelligently to user input and environmental data for adapting the employee needs with real-time analytics and provide insights for the same.

LIST OF KEY COMPANIES PROFILED:

• Siemens (Germany)


• Schneider Electric (Spain)


• Indra (France)


• Sensus (U.S.)


• Aclara (U.S.)


• Topcon (Japan)


• Cree (U.S.)


• Holophane (U.K.)


• Dialog Semiconductor (U.K.)


• Philips (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• June 2021 - Cityzenith joined the Digital Twin Consortium by creating the SmartWorldOS software platform which creates virtual replicas of buildings, cities, and infrastructure for tracking, monitoring, and optimizing carbon emission and minimizing environmental damage.


• May 2021 - Schneider Electric agreed with Roco Group, which is the world leader in designing, producing, and commercialization of bathroom space for determining a roadmap towards decarbonizing. The agreement consists of three phases, In the first phase, Roco Group will define the vision and analyze the environment and new settings. During the second phase, Schneider Electric will study the Roco Group plant to set commitments for energy reduction and implement a sustainable energy generation unit. In the final phase, the companies will advance in the digitization of the company’s process and optimize energy management.


• January 2021 - Philips expanded its leadership inpatient care management solutions for the hospital by acquiring Capsule Technologies Inc., which is the leading provider of medical devices and data technologies for hospitals and healthcare organizations. The acquisition is a perfect fit for Philips's strategy for transforming the delivery of care with integrated solutions. Other than that, this acquisition has led towards a combination of Philips’s portfolio with Capsule leading medical device information platform to scale management solutions for all the care settings in hospitals and remote patient areas.

REPORT COVERAGE

The global smart infrastructure market research report presents a comprehensive assessment of the industry by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches have been adopted to make meaningful assumptions and views to formulate the market research report. Furthermore, the report covers a detailed analysis and information as per market segments, including type, application, and regions, helping our readers to get a comprehensive overview of the global industry.

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