IoT in Smart Cities Market Report 2026

IoT in Smart Cities Market Overview

• IoT in Smart Cities market size has reached to $269.36 billion in 2025 • Expected to grow to $742.23 billion in 2030 at a compound annual growth rate (CAGR) of 22.5% • Growth Driver: Rising Adoption Of 5G Technology To Drive Market Growth • Market Trend: Technological Advancements Driving Innovation In IoT in Smart Cities Market • Asia-Pacific was the largest region in 2025.

What Is Covered Under IoT in Smart Cities Market?

The Internet of Things (IoT) in smart cities refers to a network of physical devices, vehicles, buildings, and other objects that are embedded with sensors, software, and network connectivity, which enables them to collect and exchange data, within the region of a smart city. It is used to connect various components of the urban infrastructure and create a seamless, efficient, and smart sustainable environment. The main IoT in smart cities component types are solutions, and services. IoT (Internet of Things) solutions in smart cities refer to the employment of connected devices and sensors to gather and analyze data to improve the efficiency, sustainability, and livability of urban environments. The various technologies includes Bluetooth, cellular network, RFID, and others applied in smart building, smart healthcare, smart energy, smart transportation, public safety, smart infrastructure, and others.

What Is The IoT in Smart Cities Market Growth Forecast?

The iot in smart cities market size is expected to see exponential growth in the next few years. It will grow to $742.23 billion in 2030 at a compound annual growth rate (CAGR) of 22.5%. The growth in the forecast period can be attributed to expansion of smart city investments, integration of AI driven city analytics, growth of connected transportation systems, rising focus on sustainability goals, adoption of city wide data platforms. Major trends in the forecast period include smart infrastructure management, connected urban services, real time city monitoring, intelligent energy management, smart public safety systems.

Global IoT in Smart Cities Market Segmentation

1) By Component: Solutions, Services 2) By Technology: Bluetooth, Cellular Network, RFID, Other Technologies 3) By Application: Smart Building, Smart Healthcare, Smart Energy, Smart Transportation, Public Safety, Smart Infrastructure, Other Applications Subsegments: 1) By Solutions: Smart Lighting Solutions, Smart Waste Management Solutions, Smart Transportation Solutions, Smart Water Management Solutions, Smart Energy Management Solutions, Smart Parking Solutions, Smart Environmental Monitoring Solutions 2) By Services: Consulting Services, System Integration Services, Maintenance And Support Services, Managed Services, Data Analytics Services, Training And Education Services

What Is The Driver Of The IoT in Smart Cities Market?

The growing implementation of 5G technology is expected to propel the growth of the IoT in the smart cities market going forward. The 5G technology is the fifth generation of cellular technology used for making wireless services faster, less abrupt, and more flexible. 5G technology will act as a key propeller of IoT in smart cities, offering a platform to link an enormous range of sensors and actuators with strict energy efficiency and data transmission. Thus, the growing implementation of 5G technology will propel the growth of the IoT in the smart cities market. For instance, in March 2023, according to the Global Mobile Suppliers Association (GSA), a UK-based nonprofit organization associated with the mobile communications industry, by the end of 2022, there were 1.15 billion 5G subscribers, a rise of over 530 million from 619 million a year earlier. This translates to 85.9% year-on-year growth. 5G subscriptions now account for 10.7% of all global mobile subscriptions, a percentage that is forecast to grow to 16% by the end of 2023 with 1.77 billion subscribers. Therefore, the growing implementation of 5G technology will drive the development of the IoT in the smart cities market.

Key Players In The Global IoT in Smart Cities Market

Major companies operating in the iot in smart cities market are Cisco Systems Inc.; Intel Corporation; The International Business Machines Corporation (IBM); Huawei Technologies Co. Ltd.; Tech Mahindra Limited; Microsoft Corporation; Honeywell International Inc.; Bosch Global Software Technologies Private Limited; Siemens Incorporation; PTC Inc.; ARM Inc.; Schneider Electric SE; Deutsche Telekom AG; Hitachi Ltd.; SAP SE; Dell Technologies Inc.; Samsung SDS Co. Ltd.; Hewlett Packard Enterprise Company LP; Toshiba Corporation; Panasonic Corporation; Sony Corporation; LG Electronics Inc.; Philips Lighting Holding B.V.; Osram Licht AG; Cree Inc.; Acuity Brands Inc.; General Electric Company; Verizon Communications Inc.; AT&T Inc.; Johnson Controls International plc

Global IoT in Smart Cities Market Trends and Insights

Major companies operating in the IoT in the smart cities market are developing new business platforms for digital transformation to gain a competitive edge in the market. Digital transformation refers to the process of leveraging digital technologies to fundamentally change and enhance various aspects of business operations, strategies, and customer experiences. For instance, in July 2025, Vodafone España, a Spain-based telecommunications company, announced the launch of its own IoT platform aimed at serving enterprises and public administrations. The platform is designed to enable smart-city and public-service applications, including city management, logistics, water-cycle management, tele-assistance, and emergency services. Vodafone’s IoT platform leverages its extensive NB-IoT network, which already connects over 9.3 million devices, offering high scalability, low latency, and energy-efficient connectivity.

What Are Latest Mergers And Acquisitions In The IoT in Smart Cities Market?

In October 2023, Kontron AG, an Austria-based provider of embedded computing platforms and IoT technology hardware and software solutions, acquired Bsquare Corporation for approximately US $38 million. With this acquisition, Kontron sought to enhance its IoT software capabilities and broaden its smart-city and connected-devices offering, reinforcing its end-to-end proposition across hardware and software for urban infrastructure and smart-systems markets. BSquare is a U.S.-based provider of IoT device software, device management platforms, and connectivity services for industrial and smart city applications.

Regional Insights

Asia-Pacific was the largest region in the IoT in smart cities market in 2025. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the IoT in Smart Cities Market?

The IoT in smart cities market consists of revenue earned by entities IoT services such as infrastructure management, transportation, energy management, and building automation. The market value includes the value of related goods sold by the service provider or included within the service offering. IoT in the smart cities market also includes the sale of sensors, lights, and meters to monitor and analyze data. The IoT in smart cities market also includes sales of processors, smart meters, streetlights and microcontrollers equipment which are used in providing IoT in smart cities services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. The IT market is segmented into IT services; computer hardware; telecom and software products.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the IoT in Smart Cities Market Report 2026?

The iot in smart cities market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the iot in smart cities industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.