Are they origins of social apartheid or just empty hypes? The North Star for a few cities are too high and bur to see as the concept of smart cities still stands amidst dilemma than promises. Implementation of smart city concept compels the ruling government to incorporate technology in every parameter of our daily life. While Europe is a leading region in terms of smart cities attributed benefitted technologically, the region will witness growth of 21% CAGR in the span of next nine years. According to a report compiled by Persistence Market Research, the global smart city market is expected to witness growth of 18.8% CAGR over the forecast period, 2016-2026.
Impact of Smart Technology
Development in terms of communication, connectivity through Internet of Things will leverage the city with the power of technology. While the main idea behind implementation of smart city concept is to make the city overall functioning of the city people centric. However, apprehensions of democracy destruction due to dominance under the ambit of technology is likely to impact the smart city market significantly in the coming years.
While the concept of smart city could be subject to technical fallacy, the smart city market will witness a significant growth in the coming years. The global smart city market is likely to account for US$ 3,482.2 Bn in the span of next nine years. Moreover, the global market will witness an upsurge in growth attributed to huge investment in the first five years of the predicted period.
In parallel to the aforementioned, another debate includes the parameter of development and list of cities that need development. Channelizing developmental activities in developed countries will not be efficient utilization of investment as compared to the under-developed pockets of the countries. Furthermore, the concept of smart cities might be pitched with various loopholes, use of data effectively could serve as the panacea in terms of maintaining order and addressing various inefficiencies technologically. Additionally, in pace with growing technology plagued with various loopholes, prying eyes of hackers could breach securities that the city would be incorporated with.
Smart energy among various segments accounted for major market share of over US$ 100 Bn in 2015. However the smart security segment is expected to lead over the smart energy segment in the span of next nine years. Moreover, adoption of smart security technology in IP surveillance camera, network security systems, wireless alarms for public safety and cyber security systems are factors that will boost growth of the smart cities market globally.
Compelling need for reduced carbon emissions and conserved energy is likely to fuel relatively high demand for technologies that are energy efficient. Moreover, smart grid technologies among other technologies supply relatively more energy while reducing the carbon footprints, and can pace up with high demand for technologies that are energy efficient. Furthermore, majority of the countries including China, Brazil, Germany, France, Spain, India, US and UK are likely to invest heavily in the smart grid technology in the coming years.
While smart building segment is at a budding stage, increasing popularity and awareness regarding sustainable conditions of living will contribute towards growth of the smart building segment significantly in the span of next nine years. In addition, diminishing prices related to sensors will encourage deployment in building management systems and building automation. Due to such factors, the smart building segment will witness relatively high growth in the coming years.
Implementation of the smart city concept could result in significant growth, however it need to step out of the ‘technical fallacy’ to reach its north star. While the concept of smart cities has its own hits and misses, overall incorporating technology with the management of the city could enhance standards of living. However, imposition of stringent rules and regulations imposed by governments in various countries could significantly inhibit growth of the market globally. APAC among other regions will account for a revenue share of over 29%, and will witness relatively fast growth by the end of 2026. Furthermore, governments in various countries are mainly collaborating with service providers, which will impact growth of the market significantly in the coming years. Therefore, chose to be smart than remain stuck in the ‘technical fallacy’.
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