Smart City, originally designed as an integration of eight parameters, namely, Smart Governance, Smart Healthcare, Smart Building, Smart Transportation, Smart Citizen, Smart Energy, and Smart Infrastructure, involves the technical and creative collaboration of various stakeholders such as corporate, service providers, citizens and policy makers to build an intelligent delivery model within the framework of the city. It is a system that requires the active participation of all sectors ranging from Energy and Power, Transportation, Banking and Financial, Health Care, Water, Government Services etc. The aim of such a framework is to facilitate management and movement by accommodating real-time responses.
Smart city concept involves introducing new approaches to urban operations. The impact of the technology on all its stakeholders requires the integration of digital technologies, smart and intelligent urban planning, public-private partnerships, community involvement, government incentives and changes in policies. Alternatively, smart cities is about a system that grows intelligently and in a compact manner. Such a process is usually top-down with architects, developers, planners and experts dominating the process and citizens benefiting, yet contributing actively to the evolution of the process.
Digital Technologies not only aids in maintaining information and accountability, but also helps government bodies to engage the citizens. The community plays a crucial role as they carry most of the local knowledge and can identify problems that affect them the most. The ICT technologies are tools that can enhance planning and help in carrying out the implementation process smoothly.
The Smart solutions offered by Smart Cities are Smart Homes, Smart Utilities, Smart Transportation, Smart Integration, Smart Healthcare, Smart Security etc. Smart Energy is the fastest growing segment with the large scale adoption of smart energy solutions and smart grids. Efficient energy storage is another area in the smart energy sector that will be crucial as it helps manage and store renewable energy.
Smart City Projects
The technology that has been met with enthusiasm by both leaders and politicians alike, has heralded several innovative projects to improve sustainability, technological advancement and services. The smart city concept is a continuous process since suppliers continuously provide services based on the evolving needs of society. This is an interesting trend as more than half of the world’s population lives in urban areas and more than 80% of the first world countries reside in cities. The system has also caught up in the developing countries of Latin America where the technology is growing at a phenomenal CAGR of 39.41%, followed by Asia-Pacific and Middle East and Africa.
Among the 26 global smart cities have been identified with most of the above listed parameters, more than half of these cities are located in US and Europe. Market Research estimates that the market is to be valued at $ 1.3 trillion with more than 80 smart cities project by the end of the decade in segments of transportation, energy, healthcare and infrastructure.
Clean, Green and Efficient Cities
The primary focus today is on eco-friendly cities with specific characteristics in transport, energy, power and waste management. For instance, the smart grid is being fostered for a better smart energy management. It has been identified to be necessary to have a coherent and holistic approach to building intelligent cities.
How to make Smart Cities work?
The design and implementation faces challenges in funding as the introduction of such technologies requires changing the old infrastructures or altering certain components of the current set-up to accommodate parameters of smart cities. Additionally, it is essential to come up with the right business model based on the social, economic, cultural and political state in a country. Identifying potential partners and developing data analytic and cloud solutions into the business model is vital.
Smartness in the urban landscape can help every country in the world gain economic growth and prominence. And in the end, cities are not just meant to produce wealth; but are meant to produce citizens who are happier, more productive and feel a sense of ownership for their city.
For more on the investment opportunities of Smart Cities, please visit us at http://www.mordorintelligence.com/industry-reports/smart-cities-market