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.