In our recent research, we identify three key areas for commercial IoT: (1) Connected Homes, (2) Connected Vehicles, and (3) Industrial IoT. An up-and-coming fourth area is personal IoT via wearable technologies. All of these areas have bearing on various Smart City technologies and solutions within the IoT arena relative to public infrastructure.
We believe that Smart Cities represents an opportunity in the public sector as we expect IoT to support various infrastructure initiatives including Smart Grids and other critical areas. In reviewing the European Smart Cities project we see that estimates place expenditures reaching upwards to 16B by 2020.
This is just the start as communications, devices, and overall telecom infrastructure is put into place to support various aspects of the “smart city” including structural health of buildings, waste management, air quality, noise control, traffic congestion, energy consumption, and everyday efficiency items such as smart parking, lighting, and building automation.
We see great synergy coming in public and commercial IoT initiatives, but it will take up to twenty years fully develop. Major IoT initiatives will begin to be impactful starting in 2020 as critical adoption points are reached and major issues, such as interoperability and security, are solved initially through preliminary solutions.
For more information about opportunities for ICT expansion due to urban digitization, see the Telecom Engine report Understanding and Capitalizing on Smart City Opportunities, which evaluates the smart city marketplace and business models. The report also projects smart city market size by vertical and regions for 2015 – 2020.
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