Several studies indicate that the Smart City solutions market will grow steadily at a rate of over 22% annually until 2026. These estimates come from an analysis by leading global consulting firms examining healthcare, telecommunications, education, media and entertainment, mobility and micromobility, utilities, and government.
With the current adoption of technologies such as 5G and the Internet of Things (IoT) like Wisun and LoRa , digital technology-based solutions will take a leap in quality and transformation in the coming years , as they will combine disruptive technologies such as big data, analytics and data mining , cloud storage systems, security and cybersecurity, artificial intelligence and various types of connectivity.
According to this , it is estimated that, by meeting the goals of the sustainable development objectives for 2030 and 2028, the market for smart solutions for urban conglomerates will be around 156 billion dollars, which will be responsible for generating employment and will give dynamism, mainly, to the economies of the European Union, the United States, China and Latin America; although Singapore, South Korea, India and Japan are also part of the group of countries and cities that have put Smart solutions at the north of their management.
The above-average global GDP growth (5.9%) seen last year gives meaning to the forecasts, while an economic slowdown is expected this year but the trend remains upward, according to the International Monetary Fund (IMF).
Co-creating the City of the Future
To understand the rise of Smart Cities, it’s important to consider that, in the wake of COVID-19, governments in all developed countries are increasing their budgets for these kinds of solutions, especially thanks to capital injections from the public and private sectors. There’s a need for coordinated work, which is why we talk about co-creating the city of the future . This challenge isn’t just for the government; the private sector, academia, civil society, and every citizen must also contribute to building a sustainable city model.
The pace of innovation can only be measured by developing people-centered solutions to improve experiences and quality of life in urban spaces. To measure the results of a smart city, it is important to understand and measure the following points:
- Smart transport. Smart mobility and micromobility. The growing problems of traffic congestion as a result of rapid urbanization, along with the need to modernize public transport infrastructure, are driving market expansion in both developing and developed countries worldwide.
- Smart Government. The city surveillance segment accounted for the largest share of the market in 2021. Growing concerns about safety and public security are driving the use of video management systems and IP cameras globally.
- Clean energy with smart management. In the area of smart utilities, the energy management segment drove the greatest growth for the global city market. Analyzing energy consumption data, identifying electricity savings potential, and monitoring progress and continuous network improvements are key features offered by most solutions in this field.
Technological innovation must be linked to the problems faced daily by city dwellers . For example, it’s clear that insecurity is a key concern for any city. In these cases, security cameras and drones can be invaluable for better street monitoring . But developing cities are also those that generate value sustainably. Therefore, it’s not just about monitoring; it’s about using streetlights efficiently . This improves both lighting and security, but we don’t waste energy by using automated and intelligent systems.
Smart Cities: Moving from traditional city management to intelligent management
A smart city is clearly a new paradigm. It’s a shift from what we know—traditional city management—to intelligent management , which is based on innovation, technology, data, and evidence.
This is why the Ministry of Information and Communications Technologies in Colombia published resolution number 01117 of April 5, 2022: “establishing the digital transformation guidelines for the smart city and territory strategies of territorial entities, within the framework of the digital government policy.” This will guide national and local government entities in the transformation of cities towards a path of Smart Cities .
With the emergence of all these initiatives and new technologies in the tech world, new opportunities are beginning to appear to try to transform our cities . I’m referring specifically to the metaverse, NFTs, virtual reality, crypto assets, DAOs, and of course, blockchain, digital twins, IoT, among many other technologies that are already commercially available.
To better understand what the metaverse is about in a Smart Cities context, Forbes Magazine, regarding the Metaverse Initiative proposed by Facebook, stated:
“ In tomorrow’s metaverse, we won’t be on Zoom calls or in Facebook groups. We won’t be posting messages or watching YouTube videos. We’ll be transported there. We’ll be at the conference. We’ll be in the meeting. We’ll be with our colleagues, friends, and family. And we’ll do it by using lightweight, modern, normal-looking glasses that will respond to our commands and transport us—or holograms of us—to all these different places, instantly and no matter where we are. “
Forbes Magazine
However, the great advantage we have today is our opportunity to use technology to expand possibilities in different metaverses and, more importantly, to create our own. That is, thanks to blockchain technology and its applications , it is now possible to create a smart city with sustainable projects in the metaverse through a collaborative process , and today the smart city movement is beginning to resurge. On one hand, we are seeing the rise of Citycoin, which provides a way for people to support cities and grow their cryptocurrency wallets while earning Bitcoin (BTC) and Stacks (STX) for themselves. Each city has its own currency, starting with Miami and the Miami Coin (MIA).
On the other hand, some cities have begun creating their digital twins , allowing them to plan, manage, and optimize their cities across a range of applications, such as mobility and sustainability . According to a study by ABI Research, more than 500 cities are expected to implement digital twins by 2025. Finally, with the integration of the Metaverse and all the blockchain tools, it will be possible to value every asset in this new digital space and travel through that world via our avatars, buying and selling our goods using cryptocurrency.
Written by: Jorge Rojas – Solutions Architect at ITS InfoCom
