Global Smart Infrastructure Market Expected to Reach USD 874.1 Billion by 2033 - IMARC Group

Global Smart Infrastructure Market Statistics, Outlook and Regional Analysis 2025-2033

The global smart infrastructure market size was valued at USD 179.1 Billion in 2024, and it is expected to reach USD 874.1 Billion by 2033, exhibiting a growth rate (CAGR) of 19.26% from 2025 to 2033.

The rapid rise of urban populations across the globe, which motivates governments to invest in smart infrastructure solutions, is one of the primary reasons driving the market expansion. According to the United Nations, more than 55% of the world's population lives in cities, with 68% anticipated to move there by 2050. This transition involves the development of smart cities that use cutting-edge technologies such as the Internet of Things (IoT), artificial intelligence (AI), and data analytics to improve urban living conditions, reduce traffic congestion, and increase resource efficiency. Furthermore, the increasing focus of smart city initiatives on energy management, water distribution, public safety, and transportation is driving the market growth. Apart from this, the widespread adoption of smart infrastructure solutions that maximize energy efficiency and lower emissions owing to the rising awareness of environmental sustainability is catalyzing the market expansion. In confluence with this, the development of smart grids, energy storage systems, and automated building management systems that make cities and industries function more effectively, is bolstering the growth of the market. As per a report by the IMARC Group, the smart grid market is expected to reach US$ 253.5 billion by 2032, exhibiting a growth rate (CAGR) of 16.2% annually.

The rising convergence of IoT, AI, and machine learning (ML) that enable the development of smarter, more connected infrastructure systems is bolstering the market growth. IoT devices collect real-time data on numerous infrastructure components, enabling predictive maintenance, optimal resource usage, and improved service delivery. According to an industry report, there were 16.6 billion linked IoT devices by the end of 2023, with a 13% increase predicted to reach 18.8 billion by the end of 2024. Furthermore, AI algorithms analyze massive volumes of data to identify patterns, improve decision-making, and build adaptive systems that can adjust dynamically to changing conditions. Smart infrastructure solutions, such as intelligent traffic management and automated building controls, use these technologies to provide better performance and lower costs. Furthermore, the imposition of supportive government policies and increased public spending on infrastructure modernization are also driving the smart infrastructure market share. For instance, in August 2024, India’s Cabinet Committee on Economic Affairs (CCEA) approved 12 new smart city projects under the National Industrial Corridor Development Programme (NICDP) with an investment of INR 286.02 billion (US$3.41 billion).

Global Smart Infrastructure Market Statistics, By Region

The market research 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, 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. According to the report, North America accounted for the largest market share on account of robust technological advances, comprising research institutes and creative businesses.

North America Smart Infrastructure Market Trends:

North America is dominating the smart infrastructure market, driven by significant investments in advanced technologies and robust government support for modernization. Furthermore, the extensive adoption of IoT, AI, and fifth-generation (5G) technology, which strengthens the region's ability to conduct smart city projects, is driving the market growth. According to projections, 5G connections in the region will account for 29% of all North American connections by the end of 2023, up a remarkable 64% year on year. Moreover, 77 million new connections were added to its network, bringing the total number of North American 5G connections to 197 million in 2023. Along with this, the mature technology ecosystem, combined with rising urbanization rates, which stimulate innovation and expedite the adoption of intelligent solutions across multiple sectors, are encouraging the market expansion.

Europe Smart Infrastructure Market Trends:

Europe's smart infrastructure market is driven by stringent environmental restrictions and sustainability objectives. In addition, the region's increasing use of renewable energy integration, smart grids, and automated building systems is driving the market expansion. Aside from that, the increasing emphasis on public safety and data-driven urban planning is propelling the market forward.

Asia-Pacific Smart Infrastructure Market Trends:

Asia-Pacific is rapidly urbanizing and implementing smart city projects, making it a key region in the smart infrastructure market. In addition, increased investment in smart transportation, energy management, and urban planning is boosting the market growth. Furthermore, rapid technological breakthroughs and decreased costs for IoT devices in the region are contributing to the market expansion.

Latin America Smart Infrastructure Market Trends:

The rapid urbanization and the necessity for infrastructure development are driving the Latin American smart infrastructure market growth. Additionally, the industry is expanding as a result of smart city projects being implemented to address issues including water management, energy inefficiencies, and traffic congestion. In addition, the market is growing as a result of the introduction of international funding and government initiatives that support the adoption of smart technology.

Middle East and Africa Smart Infrastructure Market Trends:

Due to the growing urbanization and economic diversification initiatives, the Middle East and Africa (MEA) region is progressively implementing smart infrastructure technologies. Furthermore, the advent of smart and ambitious projects that seek to incorporate cutting-edge technologies into energy management, transportation, and urban planning is stimulating the market growth.

Top Companies Leading in the Smart Infrastructure Industry

Some of the leading smart infrastructure market companies 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, and Verizon Communications Inc., among many others.

In June 2024, Schneider Electric announced that their SMART Buildings Division would revolutionize their digital buildings industry in Canada. The purpose of this expansion is to provide building owners and operators with all-inclusive solutions and services that help them reach their sustainability and decarbonization objectives.

Global Smart Infrastructure Market Segmentation Coverage

• On the basis of the type, the market has been categorized into smart grid, smart water network, intelligent transportation network, intelligent buildings, and others, wherein smart grid represent the leading segment, due to their ability to optimize energy distribution and reduce operational inefficiencies. Moreover, the rising investments in renewable energy integration and grid modernization is bolstering the demand for smart grids.
• Based on the end user, the market is classified into utility, transport, communications, and built environment. According to the report, built environment dominates the market, as it encompasses critical infrastructure such as buildings, urban spaces, and utilities that require advanced technological integration. Furthermore, the growing urbanization and the emphasis on energy-efficient buildings is driving the market growth.