Smart Infrastructure Market Size

Market Overview:

The global smart infrastructure market size reached US$ 149.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 773.3 Billion by 2032, exhibiting a growth rate (CAGR) of 20.06% during 2024-2032. Rapid urbanization and digitalization, the rising need for efficient management and utilization of resources, ongoing technological advancements, and the introduction of numerous favorable government initiatives are some of the major factors propelling the market.

Smart infrastructure refers to the integration of advanced technologies and digital systems into various physical infrastructure components, such as buildings, transportation networks, energy grids, and cities. It leverages the power of the Internet of Things (IoT), artificial intelligence (AI), and data analytics to enhance efficiency, sustainability, and connectivity. It encompasses a wide range of applications, including smart buildings with automated controls for lighting, heating, and security, intelligent transportation systems that optimize traffic flow and reduce congestion, renewable energy grids that monitor and manage energy generation and consumption, and smart cities that use data to improve urban planning and resource management. 

Rapid urbanization and the surging population are driving the demand for smart infrastructure solutions to address the challenges of increasing congestion, resource management, and sustainability in cities. Moreover, the escalating consumer concerns regarding the environment and energy efficiency are propelling the adoption of smart technologies that optimize energy usage and reduce carbon emissions. In addition to this, extensive government funding and initiatives in developing smart infrastructure as part of their economic development and sustainability goals are creating a positive outlook for market expansion. Concurrent with this, the rising efforts across the world to upgrade and modernize the aging existing infrastructure for improved efficiency and safety are impelling the market growth. Furthermore, continuous technological advancements, such as IoT, AI, and data analytics, enabling real-time monitoring, automation, and data-driven decision-making, are presenting lucrative market growth opportunities.

Smart Infrastructure Market Trends/Drivers:

Rising urbanization and population growth

Rapid urbanization and population growth are key drivers of the market. With an increase in the number of people living in urban areas, cities become more crowded, creating a greater need for efficient management and utilization of various resources, such as water, energy, and transportation. Moreover, widespread product employment to effectively reduce traffic congestion, improve public transit, and lower energy consumption and greenhouse gas (GHG) emissions are contributing to the market growth. In addition to this, the rising integration of high-tech smart solutions to enable urban sustainability, reduce the carbon footprints of cities, and become more sustainable by maximizing energy utilization, reducing waste output, and enhancing transportation systems is presenting lucrative growth opportunities for the market.

Favorable government initiatives and policies

Governments around the world are actively promoting and investing in smart infrastructure projects to drive economic development, enhance sustainability, and improve the quality of life, which is mainly driving the market growth. In line with this, the availability of various funding, incentives, and regulatory support for smart city initiatives, transportation upgrades, renewable energy integration, and other infrastructure projects are presenting remunerative opportunities for the market. In addition to this, the escalating concerns about the environment, sustainability, and GHG emissions are fueling the adoption of smart technologies, attracting private sector investments and influencing innovation in the market. Moreover, the COVID-19 pandemic has highlighted the importance of smart infrastructure in ensuring public safety and resilience, which, in turn, is positively impacting the market growth.

Ongoing technological advancements and digital transformation

The rapid advancement of technologies, such as IoT, AI, cloud computing, and data analytics are significant drivers of the market. These technologies provide the foundation for smart infrastructure, enabling real-time data collection, analysis, and intelligent decision-making. IoT sensors and devices collect data from various infrastructure components, while AI and data analytics algorithms process this data to derive actionable insights for efficient resource management, predictive maintenance, and improved operational performance. Cloud computing enables storage, sharing, and access to data from anywhere, facilitating seamless connectivity and communication across smart infrastructure systems. In addition to this, ongoing digital transformation across industries has further accelerated the adoption of smart infrastructure as organizations seek to increase operational efficiency, productivity, and sustainability.

Smart Infrastructure Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global smart infrastructure market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on type and end user.

Breakup by Type:

• Smart Grid
• Smart Water Network
• Intelligent Transportation Network
• Intelligent Buildings
• Others
   

Smart grid are dominating the market

The report has provided a detailed breakup and analysis of the market based on the type. This includes smart grid, smart water network, intelligent transportation network, intelligent buildings, and others. According to the report, smart grid represented the largest segment.

The large-scale demand for smart grids for efficient energy management, integration of renewable energy sources, and the desire for improved grid reliability and resilience is aiding in market expansion. In addition to this, the expanding demand for smart water networks to cater to challenges of water scarcity, aging infrastructure, and the need for efficient water management is creating a positive outlook for the market growth. Furthermore, the rising concerns about traffic congestion, mobility, transportation efficiency, and improved safety are propelling the adoption of smart transport technologies such as traffic monitoring systems, intelligent traffic signals, and smart parking. Besides this, the transition towards a more sustainable energy ecosystem and the focus on reducing carbon emissions is promoting the market growth.

Breakup by End User:

• Utility
• Transport
• Communications
• Built Environment
   

Built environment hold a larger share in the market

A detailed breakup and analysis of the market based on the end user has also been provided in the report. This includes utility, transport, communications, and built environment. According to the report, built environment accounted for the largest market share.

The expanding deployment of smart grid systems, advanced metering infrastructure (AMI), and energy management to enable real-time monitoring, demand response, and efficient energy distribution is creating a positive outlook for market expansion. In addition to this, the surging demand for intelligent transportation systems (ITS), smart traffic management, and connected vehicles to facilitate traffic monitoring, dynamic signaling, and real-time traveler information, further optimizing traffic flow, reducing congestion, and improving road safety, is aiding in market expansion. Furthermore, the increasing number of smart city projects that leverage data analytics, IoT, and connected infrastructure to improve urban planning, resource management, and quality of life is presenting remunerative opportunities for market expansion.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance in the market, accounting for the largest smart infrastructure market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

North America is experiencing significant urbanization, leading to increased pressure on existing infrastructure systems. This is driving a largescale demand for smart solutions to address challenges related to population growth, congestion, energy consumption, and sustainability. In addition to this, governments at the federal, state, and local levels are actively promoting smart infrastructure projects through funding and regulatory support, thus strengthening the market growth. Besides this, North America is home to several technology leaders and research institutions, which are driving technological advancements in areas like IoT, AI, and data analytics. This, in turn, is propelling the demand for smart infrastructure.

Apart from this, Europe has a set ambitious sustainability target, which is impelling the widespread adoption of smart infrastructure to reduce carbon emissions, optimize energy usage, and improve resource management. Additionally, the European Union's Horizon 2020 program and subsequent research and innovation initiatives foster collaborations and support the development of smart infrastructure technologies.

Competitive Landscape:

The market is characterized by a competitive landscape with the participation of various technology providers, infrastructure developers, and solution vendors. The market is witnessing intense competition as companies strive to capitalize on the growing demand for smart infrastructure solutions across multiple sectors. Technological innovation plays a crucial role, with companies focusing on developing advanced solutions based on IoT, AI, data analytics, and connectivity technologies. Companies are offering cutting-edge, scalable, and interoperable solutions to gain a competitive advantage. The leading market players often form strategic alliances to combine their expertise, resources, and technologies to deliver comprehensive solutions and enhance their market presence. Additionally, the market is attracting new entrants and start-ups that bring fresh perspectives and disruptive solutions. These new players often focus on niche markets or specific applications within the smart infrastructure ecosystem, challenging established players and driving innovation.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Aclara Technologies LLC (Hubbell Incorporated)
• ABB Limited
• AVEVA Group Limited
• Black & Veatch Holding Company
• Cisco Systems Inc.
• Schneider Electric SE
• Sensus USA Inc. (Xylem Inc.)
• Siemens AG
• Verizon Communications Inc

Recent Developments:

• In June 2023, ABB Limited unveiled a revolutionary propulsion concept, ABB Dynafin™ that mimics the movements of a whale tail to significantly increase ship efficiency.
• In June 2023, as part of the Joint Electric Scaling Initiative (JETSI) project, Black & Veatch announced the design-build completion of 16 high-power chargers in South El Monte, California, for Schneider National Inc.
• In 2023, Cisco announced partnership with AT&T to provide a powerful, mobile-first, and unified collaboration experience via a single business mobile number.

Smart Infrastructure Market Report Scope:

Key Questions Answered in This Report:

• How has the global smart infrastructure market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global smart infrastructure market?
• What is the impact of each driver, restraint, and opportunity on the global smart infrastructure market?
• What are the key regional markets?
• Which countries represent the most attractive smart infrastructure market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the smart infrastructure market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the smart infrastructure market?
• What is the competitive structure of the global smart infrastructure market?
• Who are the key players/companies in the global smart infrastructure market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the smart infrastructure market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global smart infrastructure market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the smart infrastructure industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.