The headline of the press release below talks about which smart city sectors will see rapid growth. And the first sentence talks about the potential to hit $3.3 trillion by 2025.
As great as those things are, I think there are even more important tidbits tucked inside:
- New funding mechanisms are essential and they are starting to appear
- Partnering is a crucial success factor, as we already heard from Laurent Schmitt of Alstom, a Smart Cities Council Lead Partner, during a recent Q&A on Alstom's smart city game plan
- Utilities will play a pivotal role in creating the necessary integrated services, something some vendors and most utilities still haven't figured out
- The crux of a smart city is the interconnectedness between departments and between cities and citizens,not merely the level of technology in any single department
See the bottom of the release for the opportunity to view a Sept. 5 webinar. - Jesse Berst
Frost & Sullivan: Connected and Intelligent Infrastructure, e-Government Services, and Smart Security Solutions to Drive Smart City Market
Global Opportunity in Smart City Market to Total $3.3 Trillion by 2025
LONDON, Aug. 26, 2013 /PRNewswire/ -- New analysis from Frost & Sullivan reveals a $3.3 trillion market potential in smart cities by 2025 with multiple opportunities to tap into infrastructure development, technology integration, and energy and security services.
Frost & Sullivan will be organising a web conference providing an analysis of the smart city market discussing the market opportunity, growth areas, and new business models on Thursday, 5 September 2013, at 16.00 BST. Senior Partner, Sarwant Singh, Program Manager, Archana Amarnath, and Team Leader, Archana Vidyasekar, will facilitate the discussion along with IBM Vice, President Karen Parrish, and other key industry players.
The briefing will provide insights into the competitive landscape highlighting the next game changers in the market throwing light on the growing complexity of the smart city value chain and the multiple roles key strategic partners can take within the eco-system.
The session will look into how utility providers, infrastructure companies, system integrators and telecom operators are actively pursuing this market adding more layers of intelligence as either integrators offering pre-packaged bundled solutions or as product vendors offering intelligent hardware and infrastructure. The briefing will also look into opportunities in managed services as management / operation of smart solutions / services become equally important for long-term sustainability.
New business models and funding mechanisms will also be discussed. While public-private partnerships, government budgets and grants have been the most preferred city project model, the smart city market has warranted a need for new partnership models and more private-sector involvement. In this context, non-grant based funding tools such as debt / equity funds and performance-based contracting have all emerged as ways to attract inward investment and manage city projects.
"The penetration of smart city market for service providers will depend on how quickly these companies converge and tap into each other's industry value chains and assume multiple roles in the eco-system," says Ms. Amarnath. "Big data analytics, cloud-based services, and M2M enabled services that intelligently provide real-time inputs hold the potential to adequately provide smart solutions. Converged business models between utility and technology providers are in a unique position to offer these integrated services."
"Smart cities will be measured on the level of intelligence and integration of infrastructure. Modern cities are hubs for smart devices such as the internet, smart phones, cloud computing, social networks and iPads. What makes a Smart City differ is its emphasis on creating connections and systems, not only between millions of smart devices, but also between businesses, public sector, knowledge institutions, and inhabitants of the city," adds Ms. Vidyasekar.
The web conference will highlight projects, companies and technologies that are going to invade and change the smart city space globally in the next decade. The presentation will benefit market players from energy, infrastructure, and ICT sectors as well as builders, manufacturers, distributors, network providers, managed services and outsourcing companies.
If you would like to participate in this complimentary web conference, please email Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com with your full contact details. Upon receipt of the above information, a registration link will be emailed to you. You may also register to receive a recorded version of the briefing at anytime by submitting the aforementioned contact details.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
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Jesse Berst is the founding Chairman of the Smart Cities Council. Click to subscribe to SmartCitiesNow, the weekly newsletter highlighting smart city trends, technologies and techniques.
