U.S. Smart Cities Market Size, Share & Trends Analysis Report By Application (Smart Utilities, Smart Governance, Smart Transportation, Smart Healthcare), And Segment Forecasts, 2024 - 2030

U.S. Smart Cities Market Size & Trends

The U.S. smart cities market size was estimated at USD 178.7 billion in 2023 and is expected to grow at a CAGR of 23.1% from 2024 to 2030. This growth is attributed to the increasing government investments in digital infrastructure to drive the country's evolution towards a digital economy. This focus on digitizing commercial buildings enhances citizen experiences and promotes service transparency. Furthermore, the strategic partnerships and investments among the market players in the country contribute to the advancement of smart city projects, fostering innovation and sustainable urban development in the U.S.

The U.S. accounted for a revenue share of 23.9% in the global smart cities market in 2023. Smart cities leverage information and communication technologies to drive long-term economic growth, optimize resource management, and enhance the quality of life for their residents. These cities utilize their advanced infrastructure to support local businesses, the environment, transportation and mobility, healthcare, lifestyle, and governance. The adoption of smart city solutions is being driven by increasing urbanization globally and a demand for a higher standard of living. The main goal of smart cities is to spur economic development and improve individuals’ quality of life by allowing the development of local areas and leveraging technology to attain smart results.

The U.S. smart cities market is poised for significant growth due to government support and technological advancements. The U.S. government has made substantial investments in modernizing urban infrastructure and adopting smart city technologies. For instance, in March 2021, the U.S. government began to commit more resources to accelerate AI, identifying it as one of five key "Industries of the Future. Furthermore, the U.S. federal government launched initiatives in AI-enabled smart city systems and proposed policy recommendations for Congress and the Biden administration to increase research in AI energy applications and increase resources for AI adoption benchmarks.

Application Insights

The smart utilities segment dominated the market, accounting for the largest revenue share of 28.3% in 2023. This share is attributed to government support, technological advancements, and the need for efficient resource management. In addition, the rapid expansion of manufacturing and processing industries is also anticipated to create opportunities for smart city platform manufacturers in the future. Furthermore, the integration of advanced data analytics and cloud technologies is expected to drive the segment’s growth in the smart cities market.

The smart governance segment held a significant market share in 2023, owing to the increased adoption of digital technologies and data-driven decision-making by local governments. In addition, the commitment to sustainable urban growth and the need for responsive, transparent governance further is expected to drive the segment's growth.

Smart Utilities Insights

The energy management segment held the largest revenue share of 55.1%, in 2023. This growth is attributed to rapid urbanization and industrialization. Rising investments in R&D to develop innovative energy management systems, including solutions based on blockchain technology, are boosting the growth of the energy management utility segment.

The water management segment held a substantial revenue share in 2023, owing to the increasing urban population and water demand, aging water infrastructure, and the need for efficient management. Furthermore, the adoption of advanced technologies such as smart meters, sensors, and IoT to optimize water usage and detect leaks, as well as supportive government policies and initiatives to promote sustainable water management practices in smart cities, are fueling the growth of the segment.

Key U.S. Smart Cities Company Insights

The smart cities market in the U.S. is fragmented, with various players offering diverse solutions. Some of the companies include Cisco Systems, Inc.; General Electric; IBM Corporation.; Microsoft; Itron Inc.; Honeywell International Inc.; and Siemens. These players are adopting strategies such as strategic partnerships, agreements, and acquisitions to develop their smart city footprint and stay ahead in the competition.

• Honeywell International Inc. is a leading technology corporation that develops and markets innovative solutions to tackle persistent worldwide issues related to energy efficiency, safety, security, productivity, and urbanization.

Recent Developments

• In February 2024, Itron, Inc., a pioneer in innovative energy and water management solutions for utilities and cities, unveiled a refreshed brand identity that embodies its growth and commitment to harnessing enhanced intelligence to build a more sustainable and resourceful world. This new brand identity underscores Itron's dedication to fostering efficiency, connecting communities, promoting sustainability, and increasing resourcefulness.

• In March 2023, Honeywell announced the successful implementation of the first phase of the Bangalore Safe City project in India. This initiative, established in association with the State Police of Karnataka, leverages Honeywell's cutting-edge technology linked with smart and security to create an empowering, safer, and effective environment for women and girls in the city.

U.S. Smart Cities Market Report Scope

U.S. Smart Cities Market Report Segmentation

This report forecasts revenue growth at a country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. smart cities market report based on application:

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Smart Utilities

  • Smart Governance

  • Smart Transportation

  • Smart Healthcare

  • Smart Building

  • Environmental Solution

• Smart Utilities Outlook (Revenue, USD Billion, 2018 - 2030)

  • Energy Management

  • Water Management

  • Waste Management