We currently have zero smart cities — by 2025 there’ll be 26

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The budget of smart cities will reach $327 billion by 2025 up from only $96 billion last year, according to a new forecast from Frost & Sullivan.

The company due to the global pandemic, cities will shift their focus towards developing collaborative and data driven infrastructure to utilize in public security services and healthcare.

Due to the high demand of data driven solutions and artificial intelligence, opportunities will increase drastically for digital city services, open data dashboards and crowd analytics.

In the post-pandemic world, investments are expected to increase over the next couple of years for intelligent traffic management, smart grids and autonomous vehicles. Cities have already investing in contact-tracing wearables and apps during COVID as well as autonomous drones.

$2.46 trillion dollar market

Frost & Sullivan expect 26 cities to be smart by 2025 which will generated business opportunities worth over $2.46 trillion.

Smart cities are a new concept therefor there are no universal definition. However, Frost & Sullivan defines it as cities which are active and verifiable pursuits in at least 5 out of 8 areas: infrastructure, energy, technology, healthcare, mobility, buildings and citizens.

As per their definition, they are actually no smart city, with 16 out of 26 located in North America and Europe with the rest in Asia and Oceana. The frontrunners are Seoul, Singapore, Amsterdam and Copenhagen.


While the pandemic has been mainly health related, it has disrupted cities’ ecosystems and infrastructure. Therefore, we are in desperate need for cities focused on being technology first, as it offers innovative solutions which had the ability to reverse the damage and bring respite. For example, citizens can have a safer urban movement if there was knowledge of COVID impacted areas.

Some analysts suggested that the global pandemic could had a negative effect on the government’s short term budget, but many researched have proven that many mayors prioritize investing in infrastructure in both short and long term to help the economy recover. As well as renewed focus to make cities more resilient.

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