Smart Infrastructure Market Size

Smart Infrastructure Market 2024 Size and Trends:

The global smart infrastructure market size was valued at USD 179.08 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 874.07 Billion by 2033, exhibiting a CAGR of 19.26% from 2025-2033. North America currently dominates the market, holding a market share of over 30.8% in 2024. The growth of the North American region is driven by technological advancements, government initiatives, renewable energy integration, and private-sector collaborations.

The integration of Internet of Things (IoT), artificial intelligence (AI), and advanced analytics plays a pivotal role in transforming traditional infrastructure into intelligent systems. These technologies enable real-time monitoring, automation, and optimization, enhancing the overall efficiency and reliability of infrastructure operations. Furthermore, the growing need to reduce energy usage and environmental impact is encouraging the adoption of smart grids, energy management systems, and other advanced solutions. These technologies not only optimize energy usage but also facilitate the integration of renewable energy sources. Apart from this, the increasing number of government investments and policies aimed at promoting smart city projects and sustainable development are propelling the market growth. These initiatives often include subsidies, public-private partnerships, and regulatory frameworks that encourage the adoption of smart technologies.

The United States plays a crucial role in the market, driven by strategic collaborations among leading technology firms, urban planners, and cybersecurity experts. These partnerships focus on combining expertise in AI, advanced security solutions, and innovative urban planning to develop integrated and sustainable smart city solutions. By addressing critical infrastructure needs and promoting technological innovation, such alliances enhance the development and deployment of efficient and secure smart systems. For example, in 2024, Gorilla Technology Group Inc., NC Digy Smart Cities LLC, Protactics, and AECOM announced a strategic partnership to advance smart city infrastructure in Latin America and the United States. The collaboration aims to leverage AI, cybersecurity, and urban planning expertise to create secure, sustainable, and efficient cities. This initiative is expected to drive significant growth in smart city development over the coming decades. Besides this, the growing awareness about the benefits of smart infrastructure, such as improved safety, reduced operational costs, and convenience, is driving adoption in residential, commercial, and industrial sectors.

Smart Infrastructure Market Trends:

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. The World Bank reports that approximately 56% of the global population, or 4.4 Billion people, reside in urban areas. Moreover, widespread product employment to effectively reduce traffic congestion, improve public transit, and lower energy usage 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. According to EDGAR, global greenhouse gas (GHG) emissions began to rise again shortly after the peak of the pandemic, reaching 53.8 Gt CO2eq in 2022. This represents a 2.3% increase compared to 2019 and a 1.4% rise from 2021 levels. 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

Advancement in technologies, which include the internet of things (IoT), artificial intelligence (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, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on type and end user.

Analysis by Type:

• Smart Grid

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

Smart grid stands as the largest component in 2024, holding around 36.3% of the market. Smart grids represent the largest segment owing to the rising need for reliable and efficient energy distribution systems. This grid utilizes advanced technologies such as IoT, AI, and data analytics to monitor and manage energy flows in real time, optimizing resource allocation and reducing energy losses. The integration of different renewable energy sources, such as solar and wind, into the grid is increasing their overall adoption, ensuring a stable and sustainable power supply. Governments and utility companies are investing in smart grid projects to enhance grid resilience, improve fault detection, and reduce downtime. The ability of smart grid to provide detailed energy usage insights empowers individuals to manage usage more effectively while promoting energy conservation. Additionally, the growing use of smart meters and demand response systems enables greater flexibility and adaptability to fluctuating energy needs. These features make smart grid a critical component of modern energy infrastructure, driving their dominance in the market.

Analysis by End User:

• Utility
• Transport
• Communications
• Built Environment
   

Built environment leads the market with around 55.8% of market share in 2024. Built environment leads the market, driven by the increasing demand for energy-efficient and sustainable solutions across residential, commercial, and industrial spaces. Smart building technologies, such as automated lighting, HVAC systems, and advanced security solutions, are transforming the way infrastructure operates, enabling real-time monitoring and control. These innovations enhance operational efficiency, reduce energy usage, and promote sustainability. Governments and private organizations are implementing smart infrastructure projects within the built environment to meet sustainability goals and improve resource management. Additionally, advancements in IoT and AI allow for seamless integration of intelligent systems, ensuring adaptive and responsive infrastructure. The sector also benefits from the growing awareness about the benefits of connected systems, including reduced maintenance costs and improved safety. As businesses and homeowners adopt smart technologies to enhance convenience and efficiency, the built environment continues to dominate the market, positioning itself as a cornerstone of global smart infrastructure development.

Regional Analysis:

• 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
   

In 2024, North America accounted for the largest market share, reaching 30.8%. North America leads the smart infrastructure market, bolstered by advanced technologies and government initiatives supporting innovation across sectors. Significant investments in IoT and AI integration into transportation, energy, and building systems drive growth, while robust regulatory frameworks ensure alignment with sustainability goals. The adoption of renewable energy and advanced grid solutions further cements its dominance. In 2023, Black & Veatch completed a milestone project in South El Monte, California, setting up 16 high-capacity chargers for Schneider National Inc.’s electric truck fleet. These chargers, part of the Joint Electric Scaling Initiative (JETSI), enable 32 trucks to charge simultaneously, reaching 80% capacity in 90 minutes. This CARB and CEC-supported initiative exemplifies the region's focus on intelligent infrastructure for sustainable transport. With collaborations between public and private sectors and increasing individual demand for energy-efficient systems, North America remains at the forefront of deploying cutting-edge infrastructure solutions that enhance connectivity, optimize resources, and support sustainability.

Key Regional Takeaways:

United States Smart Infrastructure Market Analysis

In North America, the United States accounted for 89.80% of the total market share. Large smart infrastructure market developments in the US are extremely fast due to technological advancements, urbanization, and a new perspective on orientations focused on greener cities. An illustration is the fact that according to Forbes, over 3,000 companies in the US use the Internet of Things (IoT), thereby covering further integration of smart technologies in daily infrastructure. Demand for energy-efficient solutions, adoption of IoT, AI and big data analytics is changing energy, transportation and utility-related industries. By providing funding to modernize transportation networks, energy systems and public utilities, federal efforts such as the Infrastructure Investment and Jobs Act continue to fuel that growth. Focused on decreasing harmful carbon emissions and promoting environmental sustainability, renewable energy solutions and environmentally friendly building practices increasingly drive this trend. Smart grids, intelligent transportation systems, and automated building technologies are central to this transition. Also, the increasingly growing demand for greater public safety and disaster resilience is spurring additional investments. With strong private sector involvement and ongoing efforts toward smart cities, the US market is set to continue growing with promise in the future.

Europe Smart Infrastructure Market Analysis

Sustainability, efficiency, and smart cities are the main drivers for the smart infrastructure market in Europe. In its 2023 assessment, the European Environment Agency (EEA) reported 24.1% of final energy use in the European Union came from renewable sources, thus demonstrating the commitment of the region in terms of carbon footprint reduction and development of eco-friendly infrastructure. The development of energy-efficient, sustainable infrastructure through the Green Deal of the European Union and other initiatives is being underpinned by a stronger push from governments themselves for smart grid, renewable energy integration, and smart transport systems. The growth of digital technologies-i.e., IoT, blockchain, and AIdid transform the management of infrastructures by harvesting data in real-time, predictive maintenance, and optimizing resource usage. In addition, the aging infrastructure in Europe requires investments into upgrades that will make them more resilient and enable an increase in the quality of services provided. Governments and municipalities use smart solutions to improve traffic management, reduction in water waste, refuse collection, and public safety. Furthermore, investment by the private owner-operators closed with their tech providers would speed up the rollout of smart infrastructure. The move towards meeting climate policies and living in smart cities will continue to boost the growth of the market for connected sustainable infrastructure solutions in the coming years.

Asia Pacific Smart Infrastructure Market Analysis

The Asia Pacific region is propelled into modernity by rapid urbanization, modernization of infrastructure, and massive government investments into smart city projects. In accordance with Forbes, 60% of firms in the Asia-Pacific region are predicted to nationalize AI technology by using regionally trained language models, which reflects an increasing concentration on leveraged advanced technology that abets infrastructure development. In China, India, and Japan, the vision is to overhaul existing infrastructure to serve expanding population bases and enhance urban standard living. The application of IoT, AI, and cloud computing into infrastructure systems enhances the efficiency and aids real-time monitoring. Both the growing demand for energy-efficient solutions and the push towards sustainable development propel the adoption of smart grids, intelligent transport systems, and green building standards. With urbanization trends taking off, governments are dedicating attention to effective mobility solutions, water management, and waste solutions, thus providing substantial opportunities for smart infrastructure adoption all across the region.

Latin America Smart Infrastructure Market Analysis

The smart infrastructure market in Latin America is driven by rapid urbanization, with 81.2% of the population in Latin America and the Caribbean living in urban areas, according to UNDESA-Data 2018. As cities expand, so does the demand for services. Public efficiency increases and is sustained. Urban solutions Governments are investing in smart infrastructure to address infrastructure gaps. Improve energy efficiency and increase the efficiency of the transportation network The adoption of IoT and AI technologies is transforming infrastructure management. This makes it possible to monitor public utilities and services in real time. Economic challenges are driving the need for cost-effective and scalable infrastructure solutions. This makes smart technology essential to the growth of this sector.

Middle East and Africa Smart Infrastructure Market Analysis

The smart infrastructure market in the Middle East and Africa is driven by rapid urbanization, with 60% of the population in the Arab region living in cities, a figure projected to reach 70% by 2050, according to UN-HABITAT. This urban growth is fueling investments in smart city projects, focusing on energy efficiency, mobility solutions, and sustainable development. Key markets like the UAE, Saudi Arabia, and South Africa are adopting IoT-based systems for smart grids, transportation, and infrastructure management. Additionally, efforts to diversify economies and reduce reliance on fossil fuels are accelerating the integration of renewable energy and smart technologies across the region.

Competitive Landscape:

Key players in the smart infrastructure market are focusing on technological advancements, strategic collaborations, and product innovations to enhance their market presence. They are leveraging IoT, AI, and advanced analytics to develop integrated solutions that optimize energy usage, improve operational efficiency, and support sustainability goals. In 2023, Cisco collaborated with AT&T to launch solutions focused on improving connectivity for hybrid work teams. By integrating Cisco’s Webex Calling and SD-WAN solutions with AT&T’s mobile network, companies can provide staff a safe, reliable experience regardless of location or device, boosting productivity and adaptability in the current dynamic work setting. These services emphasize the increasing importance of intelligent infrastructure in meeting contemporary workforce requirements. Additionally, companies are targeting emerging markets and upgrading legacy systems to meet evolving demands.

TThe report provides a comprehensive analysis of the competitive landscape in the smart infrastructure market with detailed profiles of all major companies, including:

• 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.
   

Latest News and Developments:

• July 2024: SmartHomes Infrastructure Pvt. Ltd. launched Dholera Forest Estate, which is the inaugural forest-themed plotted development in the Dholera Smart City. Spanning 0.208 Million sq yards, the project integrates smart infrastructure with sustainability, offering long-term investment potential. Featuring green spaces, energy-efficient designs, and eco-friendly amenities, it provides a blend of modern living and intelligent, sustainable solutions within a smart city framework.
• April 2024: Siemens Smart Infrastructure has launched Electrification X, a scalable IoT-based SaaS suite designed to optimize electrification infrastructure for renewable generators, utilities, and industries. Built on cloud services, it enhances efficiency, performance, and sustainability while reducing costs and CO₂ emissions. The solution aims to drive the electrification of infrastructure for a more sustainable future

Smart Infrastructure Market Report Scope:

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 2019-2033.
• 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.