Global Smart City Engineering and Construction Services Market Report 2021: Market Expected to Reach $ 453.07 Billion by 2030
DUBLIN, August 31, 2021 / PRNewswire / – The “Global smart city engineering and construction (E&C) services market, by project (buildings, other), by application (IoT, housing, other), by city topography (developed, emerging), by type of service, by solution, estimate and forecast, 2017 – 2030 “ report was added to ResearchAndMarkets.com offer.
The global smart city engineering and construction (E&C) services market held a market value of $ 106.64 billion in 2020 and should reach $ 453.07 billion by 2030. The market is expected to grow at a CAGR of 16.5% during the projected period.
Smart city engineering and construction (E&C) services are used for the development and construction of smart cities. The market is primarily driven by the growing adoption of connected and smart technologies in smart cities, supportive government initiatives promoting smart cities, and the increasing digitization of public safety and transportation.
However, the security concerns associated with smart cities are expected to hamper the growth of the market. Besides, the high costs associated with these services are also expected to hamper the growth of the market.
Increase digitization in public safety and transport
The increasing use of digitization tools in transportation, as well as public safety services, is expected to drive the market growth. Smart sensors are used to improve traffic flow as well as to improve transport efficiency. By using the E&C services of smart cities, it is possible to improve efficiency as well as sustainable gains through digital innovations. These innovations can offer new ways of delivering public services and also optimize the use of unused or surplus resources.
In addition, the tourism sector in these cities can benefit from better management of dissemination, such as continuous transport. In addition, smart grids can be connected to the transportation system and home devices to manage energy supply and demand more efficiently. Hence, the increasing digitization of public safety and transportation is expected to drive the growth of the market.
Increase in the number of government initiatives in favor of smart cities
Various government initiatives as well as public-private partnerships are driving the growth of the market. For example, China has various smart city initiatives that combine metering devices, integrated sensors and other such monitoring technologies with artificial intelligence analysis and big data processing to help manage public spaces as well as cities.
In 2020, the country has around 800 smart city pilot programs in the planning or process. This is about half of the total smart cities in the world. Such initiatives are expected to drive the market growth during the forecast period.
The ICT consulting segment accounted for the largest share and is expected to grow at the fastest CAGR of 18% due to the growing demand for ICT consulting services in the smart city market. In addition, the end-to-end services segment is expected to hold the second largest market share.
The infrastructure segment accounted for the largest share due to the rapid growth of the construction industry globally. The software segment is estimated to forecast the highest growth rate during the forecast period.
The urban development segment is expected to dominate the market with more than 44% share due to the increasing development of smart city projects in urban areas. The buildings segment is expected to grow at the fastest rate during the forecast period.
The smart grid segment accounted for the largest market share due to the growing demand for smart city E&C services for this application. It is estimated that the IoT segment will experience the fastest growth during the projected period.
The developed economies segment accounted for the largest market share due to the favorable government initiatives in these economies. The emerging economies segment is expected to experience the fastest CAGR of 18%.
The Asia Pacific The region holds the largest market share of over 34% and is expected to grow at the fastest growth rate due to the increasing focus on digital infrastructure development and the presence of rapidly developing economies , as India and China, where their governments are investing heavily to develop smart cities, which also power engineering and construction (E&C) services.
The North America region accounted for the second largest market share due to the well-developed ICT infrastructure and the presence of leading technology providers. The presence of various international boards in the region is also expected to drive the growth of the market.
The approximate market share of the top nine players is close to around 52%. These market players are engaged in partnerships, new product launches, mergers and acquisitions to strengthen their presence in the market.
For example, in March 2021, Aecom signed a $ 2 billion contract with the US Air Force Civil Engineer Center for the provision of planning, design and construction management services at the center.
- Bleak & Veatch Singapore
- Buro Happold
- Daxue Council – China
- Gaia Smart Cities Solutions Pvt. Ltd.
- Incheon smart city corporation – Korea
- Meinhardt Group
- Mott MacDonald
- Surbana Jurong Private Limited – Singapore
- Tata Consulting Engineers
- WSP Global Inc
- Honeywell International, Inc.
For more information on this report, visit https://www.researchandmarkets.com/r/csdh1v
Research and markets
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SOURCE Research and Markets