Spending on technologies that enable smart cities initiatives in APeJ is expected to reach $28.3 billion in 2018, according to IDC.
The research firm's first-ever Worldwide Semiannual Smart Cities Spending Guide predicts that spending will accelerate over the 2016-2021 forecast period, reaching to $45.3 billion in 2021.
Intelligent traffic transit management and fixed surveillance applications are driving much of the projected growth. The two use cases will represent more than 36% share of the overall spending throughout the forecast period (2017-21), IDC said.
However, over the forecast period, Vehicle to Everything (V2X) Connectivity and Officer Wearables (Fitbit/smart glasses) use cases will grow exceptionally at a five-year CAGR of 45% and 43.3% respectively.
Services accounts for the highest spending with 32.5% share of the overall spending in 2017, and the trend is likely to observe a linear growth with a five-year CAGR of 21.2% and reach $16.7 billion by 2021.
Hardware is the second largest technology group with $31.7 billion spending followed by Software (18.0%) and Connectivity (17.8%) for 2017. Throughout the forecast period, software is expected to grow fastest at a five-year CAGR of 17.7% and reach $8.3 billion by 2021.
In all the four segments of technology groups, state/local government and transportation are the two leading industries with the maximum usage of fixed visual surveillance and intelligent transportation use cases. These use cases attract considerable investments in all the countries of APeJ.
First published in eGov Innovation