All Reports
1Q 2023

AI for Sustainable Cities

AI and Predictive Analytics Platforms for Transportation, Energy Management, and Environmental Quality in the Urban Environment

AI, with its predictive analytics and pattern recognition abilities, offers a path to meaningful utilization of the growing amounts of municipal data. Several AI applications to address city sustainability challenges have emerged from their pilot and trial phases to be adopted mainstream, demonstrating that AI can be a key tool in solving problems that would otherwise be difficult or impossible to address. To date, smart cities have used AI for sustainability mostly in three segments: transportation, energy management, and environmental quality.

Cities are adopting sustainability AI to improve the effectiveness of staff time spent on data collection and analysis. AI’s ability to process large amounts of data from diverse sources makes it a useful tool in addressing difficult, sticky problems, which have many interacting factors that may be difficult to detect manually. The largest barriers to AI adoption are municipal procurement practices, which are not designed to accommodate many AI companies’ pricing models, and concerns from residents about how cities will protect their privacy and how they will manage these new technologies’ IT and cybersecurity demands.

This Guidehouse Insights report finds that the AI market should experience substantial growth in the coming decade as climate challenges increase, deployment of IoT devices grows, and cities become familiar with the outcomes that AI systems can achieve. The recent passage of infrastructure and climate investment programs in key markets (US and Europe) will further boost the AI market. Guidehouse Insights forecasts that annual smart city AI sales revenue will grow from $693.3 million in 2023 to $6.5 billion by 2032, a  compound annual growth rate of 28.2%.

Pages 41
Tables | Charts | Figures 18
  • How are smart cities using AI to meet sustainability goals?
  • What forms of data are cities using for AI?
  • How is AI’s use guiding the development of transportation, energy, and environmental quality systems?
  • What are the largest drivers and barriers to smart cities adopting AI for sustainability?
  • In what ways could cities use emerging AI technologies in the mid to long term?
  • IoT sensor developers
  • Cloud computing providers
  • AI software developers
  • Municipal transportation system equipment manufacturers
  • Environmental quality sensor manufacturers
  • Smart utility meter manufacturers
  • Utilities
  • Energy system developers

1. Executive Summary

1.1   AI for City Sustainability Is Reaching Maturity for a More Use Cases

1.2   Market Trends and Issues

1.3   Market Forecasts

2. Market Issues

2.1   AI Can Help Address City Sustainability Challenges

2.2   Report Scope and Definitions

2.3   State of the Market

2.4   Common Sustainability AI Applications

2.4.1   Transportation

2.4.1.1   Smart Parking

2.4.1.2   Traffic Analysis

2.4.1.3   Traffic Flow Management

2.4.1.4   Curbside Management

2.4.1.5   Road Condition Monitoring

2.4.1.6   Automated Vehicles

2.4.2   Energy Management

2.4.2.1   Smart Meters and Disaggregation

2.4.2.2   Smart Streetlighting

2.4.2.3   Vehicle to Grid

2.4.2.4   Microgrids

2.4.3   Environmental Quality

2.4.3.1   Water Pressure and Leak Detection

2.4.3.2   Automated Water Usage Monitoring

2.4.3.3   Flood Detection and Abatement   10

2.4.3.4   Air Quality Prediction and Automated Actions

2.5   Market Drivers

2.5.1   Improving Staff Productivity

2.5.2   Addressing Sticky Problems

2.5.3   Increasing Public Engagement

2.6   Market Barriers

2.6.1   Privacy and Biases

2.6.2   Procurement Practices

2.6.3   Municipal Siloing

2.6.4   IT Infrastructure Demands

3. Select Industry Players

3.1   Transportation AI Players

3.1.1   Automotus

3.1.2   GoodRoads

3.1.3   Hayden AI

3.1.4   Miovision

3.1.5   NoTraffic

3.2   Energy AI Players

3.2.1   Bidgley

3.2.2   Flashnet

3.2.3   Innowatts

3.2.4   Sense

3.3   Environmental Quality AI Players

3.3.1   Aclara

3.3.2   Breezometer

3.3.3   IQAir

3.3.4   Xylem

3.4   Multisector Players

3.4.1   ABB

3.4.2   Alibaba Group

3.4.3   Amazon

3.4.4   Microsoft

3.4.5   SAS

3.4.6   Siemens

4. Market Forecasts

4.1   Scope

4.2   Methodology

4.3   World Markets Revenue

4.4   Revenue by AI Segment

4.4.1   Transportation

4.4.2   Energy

4.4.3   Environmental Quality

4.5   Revenue by Geographic Region

4.5.1   North America

4.5.2   Europe

4.5.3   Asia Pacific

4.5.4   Latin America

4.5.5   Middle East & Africa

5. Conclusions and Recommendations

5.1   Leading Use Cases

5.2   Recommendations

5.2.1   Vendors

5.2.2   Municipalities

5.2.3   Developers

6. Acronym and Abbreviation List

7. Table of Contents

8. Table of Charts and Figures

9. Scope of Study, Sources and Methodology, Notes

  • Annual Smart City AI Revenue by Region, World Markets: 2023-2032
  • Annual Smart City AI Revenue by Region, World Markets: 2023-2032
  • Cumulative Smart City AI Revenue by Region, World Markets: 2023-2032
  • Annual Smart City AI Revenue by Segment, World Markets: 2023-2032
  • Percentage of Smart City AI Revenue by Segment, World Markets: 2023
  • Percentage of Smart City AI Revenue by Segment, World Markets: 2032
  • Annual Smart City AI Revenue by Segment, North America: 2023-2032
  • Annual Smart City AI Revenue by Segment, Europe: 2023-2032
  • Annual Smart City AI Revenue by Segment, Asia Pacific: 2023-2032
  • Annual Smart City AI Revenue by Segment, Latin America: 2023-2032
  • Annual Smart City AI Revenue by Segment, Middle East & Africa: 2023-2032
  • Annual Smart City AI Revenue by Region, World Markets: 2023-2032
  • Cumulative Smart City AI Revenue by Region, World Markets: 2023-2032
  • Annual Smart City AI Revenue by Segment, World Markets: 2023-2032
  • Annual Smart City AI Revenue by Segment, North America: 2023-2032
  • Annual Smart City AI Revenue by Segment, Europe: 2023-2032
  • Annual Smart City AI Revenue by Segment, Asia Pacific: 2023-2032
  • Annual Smart City AI Revenue by Segment, Latin America: 2023-2032
  • Annual Smart City AI Revenue by Segment, Middle East & Africa: 2023-2032
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