1Q 2022

Smart Cities Outlook: Catalysts for Growth

The next decade is likely to be one of dramatic change for many cities around the world. Trends that have been core drivers for smart city programs have been accelerated by a combination of the Covid pandemic, the growing impact of climate change, and the rapid digitalization of many services. Challenges such as providing digital connectivity for all citizens, increasing the resilience of city infrastructure, and decarbonizing buildings and transport are driving technical, funding, and policy innovation.

The smart city movement has been engaging with these issues for more than a decade. However, those discussions have often been kept at a distance from the daily political and management issues facing city leaders. Too many smart city initiatives have been restricted to visions statements, pilot projects, and research studies. That is changing. In an important sense, all cities are now smart cities. Four key catalysts for this acceleration are: new approaches to the city planning; an increasing capacity for digital transformation; investment in smart and resilient infrastructure; and the emergence of new funding sources and business models.

This report examines the impact of these catalysts and the opportunities and challenges they present for the smart city market. Recommendations are provided for technology providers, service partners, and other stakeholders.

Pages 15
Tables | Charts | Figures 7
  • What are the emerging trends in smart cities?
  • What are the key policy and design innovations?
  • What are the drivers for change in the smart city market?
  • How are city digital strategies maturing?
  • What are the focus areas for smart and sustainable solutions?
  • What are the main supplier opportunities and challenges?
  • Municipalities
  • State and regional government
  • City service providers
  • Smart city solutions providers
  • IoT and city platform vendors
  • IT, networking, and telecommunications vendors
  • Transportation and mobility providers
  • Energy management hardware and software vendors
  • Utilities
  • Government agencies
  • Investor community


Executive Summary

Catalysts for Change

Urban Design and City Strategy

Digital Transformation

City Infrastructure 4.0

Business Model Innovation

Market Example: Digital Twins

Market Accelerators and Inhibitors

What it Means

Conclusion and Key Recommendations

Additional Resources and Contact

  • Catalysts for Change: Global Examples
  • Urban Design and City Strategy
  • Digital Transformation
  • City Infrastructure 4.0
  • Business Model Innovation
  • Annual Municipal Digital Twins Revenue by Region, World Markets: 2022-2031


  • Market Accelerators and Inhibitors