Global Smart Infrastructure Market Assessment, By Component [Hardware, Software, Services], By Application [Smart Grid Infrastructure, Smart Water Network, Smart Building, Smart Transportation System, Smart Safety and Security System, Others], By Deployment Mode [On-Premises, Cloud-Based, Hybrid], By End-user [Government, Commercial, Residential], By Industry [Energy and Utilities, Transportation and Logistics, Construction and Real Estate, Manufacturing, Healthcare, Retail and E-Commerce, Government and Public Sector, IT and Telecommunication, Others], By Region, Opportunities and Forecast, 2017-2031F

Global smart infrastructure market is projected to witness a CAGR of 19.70% during the forecast period 2024-2031, growing from USD 805.07 billion in 2023 to USD 3393.01 billion in 2031. The smart infrastructure market relies heavily on smart transportation systems, as transportation was responsible for 27% of the United States' greenhouse gas emissions in 2020, resulting in an urgent need for greener solutions. Global investments of USD 50 trillion by 2040 are needed for the new decentralized and decarbonized transportation infrastructure. The United States Infrastructure legislation and the European Union's European Green Deal have committed USD 3.35 trillion and USD 1.11 trillion in the fiscal year of 2021, respectively, for this transition. These funds are invested towards improving smart transportation systems. Local authorities play an important role within this framework in delivering and sustaining these improvements that will lead to smart infrastructure market development.

For instance, in February 2024, Huawei Technologies Co., Ltd. introduced four new intelligent solutions that enhance transportation with advanced systems for road traffic, railways, and airports. These solutions aim to boost efficiency and security across various transportation sectors globally.

Wastewater Management Drives Smart Infrastructure Market

The smart infrastructure market is fueled by wastewater management owing to the potential environmental, health, and economic impacts. China had 64 million people dependent on wastewater treatment plants vulnerable to earthquakes and soil liquefaction, with around 200 million individuals admitting heightened flood risks from climate change. The rising necessity of strong infrastructure has underpinned the massive investments in the growing demand for smart wastewater management solutions. Real-time monitoring, predictive maintenance, and control systems help wastewater treatment plants to operate efficiently and safely, minimizing risks associated with the disposal process while reducing costs. These solutions can be part of improving service reliability as smart wastewater systems are equipped with advanced sensors and data analytics that make them more capable of dealing with extreme environmental challenges and contribute to the overall growth of the smart infrastructure market.

For example, in May 2024, Siemens SE expanded its software portfolio with new AI-based apps for water utilities available on the Siemens Xcelerator marketplace. These user-friendly solutions enhance water infrastructure efficiency, reducing water loss and preventing pollution.

Energy Infrastructure to Reshape the Smart Infrastructure Market

The transformation of energy infrastructure propels the smart infrastructure market. The 2003 blackout in North America highlighted the importance of grid modernization, necessitating massive investments in smart grids to make them more reliable and better connected with renewable generation. The United States Energy Independence and Security Act of 2007, along with the European Union’s "20-20-20" targets aiming for 20% renewable energy by 2020 drive further investment. The aim of South Korea to get 11% of their national energy from renewables by 2030, coupled with Japan's post-Fukushima disaster emphasis on smart grids, reinforces this move towards more intelligent and resilient power plants globally.

For example, in August 2024, Hitachi Energy, a division of Hitachi, Ltd., launched a new switchgear technology free of sulfur hexafluoride (SF6), a potent greenhouse gas. This innovation addresses 80% of SF6 emissions from the power sector and supports a projected USD 60 billion high-voltage switchgear market growth by 2050.

Government Initiatives Acts as a Catalyst

Investment and new-age innovations are making a robust impact across the smart infrastructure market with the support of government initiatives. Programs like the European Green Deal and the United States Infrastructure Investment and Jobs Act provide substantial funding for modernizing infrastructure, including smart grids and energy-efficient buildings. These programs create opportunities for organizations to leverage advanced technology. China's increasing emphasis on smart cities and Japan's Smart Community Roadmap also drive the market and promote sustainable and resilient infrastructure. This trend not only boosts sales in the smart infrastructure sector but also enhances efficiency and creates new business opportunities by allocating government resources to encourage research and development and large-scale deployments.

For example, in May 2022, the European Parliament and Council approved Regulation (EU) 2022/869; this new rule updates the guidelines for Europe's energy infrastructure to meet climate goals and enhance security and affordability, contributing towards the growth of the smart infrastructure market.

Energy and Utility Segment Leads the Smart Infrastructure Market

The energy and utility sectors dominate the smart infrastructure market. The International Energy Agency (IEA) reported that in 2024, if all planned investments are realized, global energy will exceed USD 3 trillion, with around USD 2 trillion invested in clean energy technologies and infrastructure. Since 2020, investments in renewable energy, such as wind and solar, smart grid technology, and energy storage, have increased, surpassing industry spending on coal, gas, and oil. This shift is part of a broader goal to promote infrastructure reforms and renewable energy alternatives. Such initiatives in smart infrastructure will facilitate efficient grid operations, enable the integration of renewable energy, and contribute to the overall effective management of energy resources.

North America Holds the Dominating Share in the Smart Infrastructure Market

North America is leading the smart infrastructure market, driven by extensive smart meter installations. As of 2022, the United States electric utilities had about 119 million advanced metering infrastructure (AMI) units, or approximately 72% of total electric meters. Approximately 88% of these are residential customers, with 73% of residential meters being smart meters. This widespread deployment indicates North America's emphasis on creating modern energy infrastructure. Investments in smart grids and advanced technologies enhance energy management, improve efficiency, and support the integration of renewable energy sources. Smart infrastructure will likely be one of the key areas in which North America looks to retain its dominance as it seeks out advanced, sustainable solutions.

For instance, in June 2024, Honeywell International Inc. introduced its Emissions Management Suite, which is certified for hazardous locations and marine use. This end-to-end solution for offshore oil and gas platforms in North America enhances methane detection and supports regulatory compliance.

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Future Market Scenario (2024-2031F)

• Smart grids are expected to become standard by 2030 in most industrialized regions, allowing real-time energy management, more efficient renewable generation integration, and smarter grid reliability.
• Increased investment in renewable energy sources paired with smart infrastructure will be implemented as long-term options.
• In the forecasted period, the market may witness an increase in the usage of Internet of Things (IoT) devices and sensors to provide detailed data for infrastructure management.
• The adoption of green building technologies, such as energy-efficient HVAC systems and smart lighting, will accelerate. These innovations will support sustainable building practices and help meet stricter environmental regulations and carbon reduction goals.

Report Scope

“Smart Infrastructure Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global smart infrastructure market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	2023
Historical Period	2017-2022
Forecast Period	2024-2031
Projected Growth Rate	CAGR of 19.70% between 2024 and 2031
Revenue Forecast in 2031	USD 3393.01 billion
Segments Covered	Component, Application, Deployment Mode, End-user, Industry
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profile	ABB Ltd., Cisco Systems, Inc., General Electric Company (GE), Hitachi, Ltd., Honeywell International Inc., IBM Corporation, Johnson Controls International plc, Oracle Corporation, Schneider Electric SE, Siemens AG
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, global smart infrastructure market has been segmented into the following categories: 

• By Component
  • Hardware
  • Software
  • Services
• By Application
  • Smart Grid Infrastructure
  • Smart Water Network
  • Smart Building
  • Smart Transportation System
  • Smart Safety and Security System
  • Others
• By Deployment Mode
  • On-Premises
  • Cloud-Based
  • Hybrid
• By End-user
  • Government
  • Commercial
  • Residential
• By Industry
  • Energy and Utilities
  • Transportation and Logistics
  • Construction and Real Estate
  • Manufacturing
  • Healthcare
  • Retail and E-Commerce
  • Government and Public Sector
  • IT and Telecommunication
  • Others
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

Rapid growth in the smart infrastructure market is attributed to advancements in IoT technologies, artificial intelligence, and machine learning. Key players are increasingly adopting smart solutions for city management such as 5G infused streetlights, which provide excellent data performance and a wide range of services connecting to municipal life, including efficient traffic management and environmental monitoring. As the demand for energy efficiency and sustainability rises, this market is expected to grow immensely through investments in electrification and decarbonization. Stakeholders will have to collaborate to develop holistic solutions that address the challenges faced by urban areas while improving the quality of life for residents.

In November 2024, GE Vernova Inc. expanded its collaboration with Amazon Web Services (AWS) to enhance cloud-based software solutions for energy companies, improving asset management and emissions data, thus supporting the transition to smart infrastructure and sustainable energy.

In May 2024, ABB Ltd. acquired Siemens AG’s Wiring Accessories business in China. The USD 150 million revenue unit will enhance ABB’s smart buildings division, expanding its market reach and distribution network across 230 cities.

Key Players Operating in Global Smart Infrastructure Market are:

• ABB Ltd.
• Cisco Systems, Inc.
• General Electric Company (GE)
• Hitachi, Ltd.
• Honeywell International Inc.
• IBM Corporation
• Johnson Controls International plc
• Oracle Corporation
• Schneider Electric SE
• Siemens AG

Markets and Data’s reports answer the following questions:

• What is the current and future market size of the product/service in question globally or specific to different countries?
• How are the markets divided into different product/service segments and the market size and growth of each segment?
• What is the market potential of different product segments and their investment case?
• How are the markets predicted to develop in the future and what factors will drive or inhibit growth?
• What is the business environment and regulatory landscape specific to the product/service?

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