The UK smart cities market size reached USD 46.94 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 164.87 Billion by 2033, exhibiting a growth rate (CAGR) of 15.00% during 2025-2033. Rapid urbanization, supportive government initiatives, ongoing advancements in Internet of Things (IoT) technology, rising demand for sustainable solutions, extensive public safety measures, increased investment in infrastructure, expanding data analytics integration, improved transportation systems, and a growing focus on energy efficiency and environmental sustainability are some of the key factors strengthening the market growth.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 46.94 Billion |
Market Forecast in 2033 | USD 164.87 Billion |
Market Growth Rate (2025-2033) | 15.00% |
Urbanization and population growth:
One of the main factors propelling the market for smart cities in the UK is the expanding urbanization across the country. For instance, according to industry reports, the UK population was estimated at 68.3 Million in mid-2023, reflecting a 1.0% increase from mid-2022. As more people migrate to urban areas, cities are faced with increasing demands for infrastructure, services, and housing. This influx necessitates the adoption of smart technologies to manage resources effectively and elevate the quality of life for residents. Smart city initiatives focus on integrating data-driven solutions to optimize traffic management, waste disposal, and energy consumption, allowing urban planners to create more efficient and livable environments. As a result, real-time traffic monitoring systems assist alleviate congestion by offering dynamic routing options, while smart waste management solutions can improve collection routes and decrease operational costs, which boosts their market demand.
Government policies and investment:
In the UK, government backing is essential to the development of smart city initiatives. Initiatives such as the UK Government’s Smart Cities Mission aim to foster innovation and collaboration among local authorities, businesses, and research institutions. In line with this, significant funding allocated for pilot projects that demonstrate the viability of smart technologies is aiding in market expansion. For instance, in July 2023, the UK government announced a £40 million fund to enhance digital connectivity and advance wireless technologies. It will support 5G Innovation Regions, boosting sectors like healthcare, transport, agriculture, and manufacturing, strengthening smart city projects. Additionally, such public investment encourages private sector participation, leading to a vibrant ecosystem of startups and established companies developing solutions ranging from smart grids to intelligent transportation systems. Additionally, policies promoting sustainability and carbon neutrality drive the adoption of smart technologies, as cities seek to reduce their environmental impact and enhance resilience to climate change.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on focus area.
Focus Area Insights:
The report has provided a detailed breakup and analysis of the market based on the focus area. This includes smart transportation (smart ticketing, traffic management system, passenger information management system, freight information system, connected vehicles, and others), smart buildings (building energy optimization, emergency management system, parking management system, and others), smart utilities (advanced metering infrastructure, distribution management system, substation automation, and others), and smart citizen services (smart education, smart healthcare, smart public safety, smart street lighting, and others).
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Focus Areas Covered |
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Regions Covered | London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, Others |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: