According to IDC Worldwide Smart Cities Spending Guide, in 2018, the spending on the Smart Cities initiatives and related technologies is expected to be around USD 28.3 billion in Asia Pacific region (excluding Japan).
The spending is expected to accelerate over the years to reach USD 45.3 billion in 2021.
"This research spans a compilation of worldwide Smart City projects across 41 categories of use cases," the head of public sector at IDC Asia Pacific said as reported by a channel. "Key investments for Asia Pacific Smart Cities are notably in intelligent transportation, data-driven public safety, and resilient energy and infrastructure, although a deeper dive suggests different prioritization across first, second and third-tier cities in the region."
The much stimulus, from the government sector, is on intelligent traffic transit and surveillance said IDC. These are being used for streamlining traffic use and moving towards secured cities.
In 2017, services account for maximum share of spending (32.5 percent) and this trend is expected to remain linear in future. By 2021, it is expected to reach a figure of USD 17.7 billion. Hardware became the second largest technology group, which was then followed by connectivity and software.
By 2021 the fastest growth is expected for the software, which is expected to reach USD 8.3 billion.
Visual surveillance and intelligent transportation are the two cases that are attracting investments from various countries. State or Local governments and transportation came as leading industries in all four-technology segments with the maximum potential of sing visual surveillance and intelligent transportation.
In all the four technology segments, State/Local Government and Transportation are the two leading industries with the maximum usage potential for fixed visual surveillance and intelligent transportation use cases. These use cases are already attracting considerable investments in all the countries in the region.
IDC predicted that China will use fixed visual surveillance more than any other country. IDC is not surprised by the lead of China as the country has attracted widespread publicity recently along with usage of smart glasses by their police personnel.
According to IDC China has planned for 500 smart cities of which the work for 290 cities has commenced. Other cities like India, Singapore and Korea are also following suit in the smart city domain.