How big is the Iot in Smart Cities Market | Value, Drivers & Forecast 2025

Q: What is the IoT in Smart Cities market size?

The IoT in Smart Cities market is anticipated to exceed USD 207.6 billion by 2031.

Q: Who are the leading companies in the IoT in Smart Cities market?

Key players include IBM Corporation, Cisco Systems, Inc., NEC Corporation, Huawei Technologies Co., Ltd., Schneider Electric SE, and Intel Corporation

Q: What are the factors propelling growth in the IoT in Smart Cities market?

This growth is driven by rising urbanization and global initiatives toward sustainable urban development.

Q: What are the major challenges in implementing IoT in smart cities?

Major hurdles include data privacy concerns, high implementation costs, and cybersecurity risks in urban infrastructure.

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6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA6550

Publication Date: Jul 2025

How Big Is the Iot in Smart Cities Market?

According to 6Wresearch internal database and industry insights, the Global IoT in Smart Cities market was valued at USD 93.7 Billion in 2024 and is projected to exceed USD 207.6 Billion by 2031, growing at a CAGR of 13.10 % during the forecast period (2025–2031).

This unprecedented growth is driven by rising urbanization, demand for real-time city infrastructure monitoring, and global initiatives toward sustainable urban development. Governments across the globe are rapidly adopting IoT technologies to enhance energy efficiency, reduce traffic congestion, improve safety, and manage public services more intelligently.

Key Growth Factors of the IoT in Smart Cities Market

Increased government investments in digital urban infrastructure and smart governance.
Widespread adoption of connected sensors for traffic and environmental monitoring.
Smart grids and smart utility meters transforming energy and water management.
Incorporation of 5G networks enabling faster data transmission for real-time analytics.
Increasing emphasis on sustainable urban planning and carbon footprint reduction.
There has been surge in demand for intelligent public transport and smart waste management systems.

IoT in Smart Cities Market Trends

IoT in Smart Cities Market is undergoing a shift with growing integration of AI and machine learning for predictive analytics in city management. Edge computing is gaining prominence for low-latency operations. Smart surveillance with facial recognition, smart poles with environmental sensors, and IoT-enabled parking solutions are becoming widespread. Public-private partnerships and open data platforms are reshaping urban service delivery models.

Emerging Developments in the IoT in Smart Cities Market

Emerging developments in the innovations in the IoT in Smart Cities Market include deployment of digital twins for real-time simulation of city functions, adoption of blockchain to secure IoT networks, and smart mobility-as-a-service (MaaS) ecosystems. Cities are increasingly investing in interoperable IoT platforms for integrated command and control centers. Vendors are now focusing on modular and scalable IoT frameworks to meet city-specific infrastructure needs efficiently.