Analyst Insight: Smart Cities in Emerging Economies

With the world emerging from COVID-19-related economic disruptions over the next year, considerable attention is being paid to economic recovery and what role governments may play in it. With many governments focusing on infrastructure projects in their recovery plans, economic stimulus money may become available to accelerate smart city deployments. This assertion also holds true for developing nations in Latin America and Middle East & Africa. As economic productivity and quality of life continue to trend upward, these world regions and their cities have shown interest in smart city concepts to further their development.

Cities in developing countries, often with high population densities, trend toward projects that increase order and accessibility in municipal operations. Common areas of focus include more accessible governments, more efficient transportation options, and smart energy. The funding for these projects is more likely to come from outside investors rather than municipal funds, and these investments will likely play a substantial role in the near- to mid-term future.

Across all world regions, Guidehouse Insights tracks 565 smart city projects. This Guidehouse Insights report focuses on current and expected development trends in developing regions, defined here as Latin America and Middle East & Africa. This report also seeks to highlight how the smart city market in these areas compares with the more developed regions of North America, Europe, and advanced economies in Asia Pacific.