The global smart city technology market will grow from $6.1 billion in annual revenue in 2012 to $20.2 billion by 2020, according to a study by Navigant Research.
That represents a compound annual growth rate of 16.2 percent, according to Smart City Tracker 3Q13.
City programs and supplier innovation are driving the growth. City leaders, central government ministries, and technology and service suppliers have announced a range of new projects, incentives, and innovative product and service offerings. The market is also seeing an increase in innovations from suppliers in terms of the partnerships they are forming with cities and other stakeholders, Navigant says.
The report provides a survey of the current state of smart city developments around the globe. The report covers 170 projects around the world. More than 80 percent of the projects are focused on issues related to energy, transportation, or government. Over 50 percent of the projects have some element focused on transportation and mobility in cities, and almost 45 percent involve some energy-related projects.
Europe has more smart city projects currently underway than any other region (see chart), followed by Asia Pacific then North America, according to the report.
Siemens announced in July that it is working with local power companies and real estate development associations to launch a large smart city project in Vienna, Austria.
A living laboratory will be created in the next five years in the waterside district of Aspern, one of the largest urban development projects in Europe. Here, power supply, building systems, intelligent power grids, and information and communication technologies will interact.
The partners have established the company Aspern Smart City Research with a budget of nearly $51 million. The company will start work October 1 to create a multifunctional urban district in Aspern, which is located in the northeastern part of Vienna.