Smart City Statistics By Market Size and Trends (2026)

Introduction

Smart City Statistics: Smart cities are changing how we live every day. As cities grow, traffic, pollution, energy use, and public services become harder to manage. A smart city uses technologies such as sensors, apps, and data to run more efficiently and faster. It helps reduce traffic jams, save electricity, improve safety, and cut waste. Streetlights can turn on only when needed, buses can arrive on time, and emergency help can reach people more quickly. Citizens can also access services online with ease.

In this article, we’ll see what makes a city “smart,” how it works, and why it matters, along with key challenges such as privacy, cost, and security.

Editor’s Choice

1. The Global Smart City Market size is expected to reach approximately USD 1,308.1 billion by 2026 and USD 4,605.7 billion by 2033.
2. Cities that adopt Smart City solutions could improve energy efficiency by 30% over 20 years.
3. Today, about 55% of the world’s population lives in urban areas, and this share is expected to increase to 68% by 2050.
4. From a 2026 smart-city connectivity lens, the global baseline is that 6.0+ billion people (73.2%) are already online.
5. About 70% of the world’s population could be living in smart cities by 2050.
6. By 2040, Renewable Energy Sources are projected to generate about 84% of global electricity, supply about 65% of household heating, and provide about 38% of industrial heating.
7. Smart-city IoT cellular connections will grow at a 17.9% CAGR (2022-2027), exceeding 122 million.
8. Under India’s Smart Cities Mission (June 24, 2025), 28 cities added 2,900+ MLD of drinking-water treatment and placed 17,026 km of water networks under SCADA to reduce leaks and non-revenue water.
9. Connected public transport is the highest at 74%, and traffic monitoring/management is next at 72% (both are mobility-related).
10. The global AI in smart cities market was estimated at USD 50.63 billion in 2025.
11. Industry experts expect that by 2050, about 60% of the world’s population will live in areas covered by smart city programs, and this shift is likely to strengthen and modernise security services.

General Smart City Statistics

• According to Visual Capitalist, the share of people living in cities increased from 3% (1800) to 29% (1950), reached 50% (2008), and is projected to rise to 65% (2040).
• Around 1.3 million people are moving into cities every week, which continues to increase demand for housing, jobs, transport, and public services.
• There are 21 megacities in the world, meaning cities with more than 10 million people.
• Tokyo (Japan) is highlighted as the largest city, with a population of 36 million+.
• The number of cities with more than 1 million people grew from 12 (1900) to 83 (1950) and then to 500+ (2011).
• The top 600 urban centres generate about 60% of global GDP, indicating that economic activity is highly concentrated in major cities.
• Cities use about 60%-80% of the world’s annual energy needs, so urban growth has a major impact on global energy demand.
• Lighting alone accounts for about 19% of the world’s total electricity consumption.
• Smart cities are increasingly built on sensors, networks, and public engagement, enabling real-time urban data that improves city services and decision-making.
• Urban poverty remains a major issue, with 1 billion people living in slums, and this number is expected to double to 2 billion by 2030.
• Access to connectivity is expanding, with 5 billion mobile subscriptions worldwide in 2011, supporting new tools for reporting issues and improving service delivery.
• The smart city market is estimated at USD 34 billion per year, and city “open data” and smarter controls are positioned to improve performance, including potential efficiency gains of around 30% in some service areas.

Smart City Market Size

(Source: market.us)

• The Global Smart City Market size is expected to reach approximately USD 1,308.1 billion by 2026 and USD 4,605.7 billion by 2033.
• The market will grow at a CAGR of 19.7% from 2024 to 2033.
• Smart cities are expected to deliver large economic benefits of about USD 20 trillion by 2026.
• Cities that adopt Smart City solutions could improve energy efficiency by 30% over 20 years.
• In the European Union, adding digital services has been linked to an 85% drop in city operating costs.
• In one reported spending or budget split, 23% is allocated to culture and tourism, while 8% is allocated to city administration.
• Globally, the governments most recognised for leading Smart City development include Singapore, Seoul, London, Barcelona, and Helsinki.

Urban Population Growth Statistics Relevant To Smart Cities

• Today, about 55% of the world’s population lives in urban areas, and this share is expected to increase to 68% by 2050.
• This move from rural areas to cities (called urbanisation), combined with overall population growth, is projected to add around 2.5 billion more people to urban areas by 2050.
• Around 90% of this urban growth is expected to happen in Asia and Africa.
• According to population.un.org, in 2026, Eastern & South-Eastern Asia is expected to have an urban population of about 1.97 billion, with a slow annual urban growth rate of roughly 0.07%.
• The urban population is also estimated at 1.88 billion in Central & Southern Asia (1.17% growth), 0.92 billion in Sub-Saharan Africa (2.88%), 0.84 billion in Europe & Northern America (0.22%), 0.53 billion in Latin America & the Caribbean (0.74%), and 0.51 billion in Northern Africa & Western Asia (1.69%).

Smart Cities Ranking

Smart City Connectivity Statistics

• According to the Data Portal report insight from a 2026 smart-city connectivity lens, the global baseline is that 6.0+ billion people (73.2%) are already online.
• Industry expectations point to just under 5.0 billion people having mobile internet access (up from 4.8 billion in 2025).
• Ericsson’s report further stated that by end-2026, 5G may reach around 3.5 billion subscriptions and 60% coverage, enabling 35GB/month smartphone use for smart services.
• For fixed networks, global fixed broadband subscriptions are forecast at 1,555,400,000 by 2026, according to Reportlinker.
• Smart-city IoT cellular connections will grow at a 17.9% CAGR (2022-2027), exceeding 122 million.
• To manage this efficiently, edge computing will be essential, potentially cutting data transfer by 80% in some cases.
• Sector airtime revenue is forecast to exceed USD 900 million by 2027.

By Energy Infrastructure

• Smart cities in the United States, Denmark, Canada, India, and Australia can efficiently meet their energy needs by using renewable energy sources.
• In these smart cities, RES provides roughly 40% to 100% of the total energy supply, according to Market.us Scoop.
• From an environmental perspective, RES is widely regarded as one of the most environmentally friendly ways to generate energy.
• According to the International Energy Agency’s net-zero plan, RES is expected to play a major role in future energy use by 2040.
• By 2040, Renewable Energy Sources are projected to generate about 84% of global electricity, supply about 65% of household heating, and provide about 38% of industrial heating.
• The total consumption of all renewable energy sources (including hydropower) could increase by 76% to 115%.
• The share of global energy consumption supplied by RES (excluding nuclear energy) is expected to be around 19% to 25%.
• On a global level, the share of electricity generated from RES is expected to rise to about 61% by 2030.

(Source: smartcity.edu.mn)

• About 70% of the world’s population could be living in smart cities by 2050.

By Water Supply and Sanitation

• From 2000 to 2030, the urban populations of Africa and Asia are expected to double, sharply increasing demand for a reliable water supply in cities.
• In developing countries, about 27% of urban residents lack piped water in their homes.
• In many large metropolitan systems, leakage-loss rates above 50% are not unusual.
• Many megacities lose about 250 to 500 million m³ of safe drinking water annually due to leaks and related losses.
• In one megacity, the wasted water could supply drinking water for 10-20 million people each year.
• Under India’s Smart Cities Mission (June 24, 2025), 28 cities added 2,900+ MLD of drinking-water treatment and placed 17,026 km of water networks under SCADA to reduce leaks and non-revenue water.
• In a smart-metering case (Nov 7, 2025), real-time alerts cut NRW by 23%, sped leak repairs by 64%, and reduced billing complaints by 41%.
• In Europe, Guimarães (Portugal) reduced water loss by 16% from 2017 to 2024, using 195 monitored zones.
• For sanitation, Thiruvananthapuram (Attukal) launched a plan to construct an 18 km underground sewage pipeline costing ₹37 crore (reported Feb 19, 2026).

Smart Infrastructure Investment Statistics

• The global smart city ICT infrastructure market was valued at USD 170.67 billion in 2025 and is projected to reach USD 190.16 billion in 2026.
• The market is expected to reach USD 451.68 billion by 2034, implying a compound annual growth rate of 11.42% over the 2025-2034 period.
• Hardware and infrastructure make up the largest share of the smart city infrastructure market, accounting for 45%, while software and platforms are growing the fastest, with a CAGR of about 16%.
• From a technology perspective, Internet of Things (IoT) currently leads with a 35% share, and artificial intelligence/machine learning (AI/ML) is the fastest-growing area with an expected 17.50% CAGR.
• By application, smart transportation and mobility is the top use case, accounting for 30% of the market, and government and municipal authorities are the largest end users with a 38% share.
• By deployment model, cloud-based/SaaS solutions dominate with a 42% share, while hybrid deployments are the fastest-growing, accounting for 16.50%.
• The U.S. smart city ICT infrastructure market is expected to be about USD 57.81 billion in 2026. It is forecast to grow to around USD 139.94 billion by 2034, at an average annual rate of 11.63%(CAGR) from 2025 to 2034.

Top 10 Smart City Use Cases

(Source: iot-analytics.com)

• Connected public transport is the highest at 74%, and traffic monitoring/management is next at 72% (both are mobility-related).
• Video surveillance and analytics is 72%, water level/flood monitoring is 72%, connected streetlights is 68%, weather monitoring is 68%, and air quality/pollution monitoring is 68%.
• Smart water metering and fire/smoke detection both have a 66% share, while water quality monitoring has a 64% share.

Smart City GDP Statistics

• San Marino (City) produces USD 1.54 billion; Luxembourg City-Trier produces USD 69.45 billion; Montevideo produces USD 49.70 billion; Seoul produces USD 926.79 billion; Riga produces USD 20.00 billion; and Taipei produces USD 407.84 billion.
• San Marino (City) contributes 90.872%, Luxembourg City-Trier contributes 79.925%, Montevideo contributes 77.314%, Seoul contributes 51.355%, Riga contributes 49.670%, and Taipei contributes 48.482% of their countries’ total GDP.
• Followed by Bangkok (48.299%), Lima (47.344%), Manila (46.750%), Lisbon (43.666%), Athens (42.061%), Tokyo (producing USD 2055.70 billion, 41.849%), Copenhagen (33.676%), Auckland (30.971%), Helsinki (30.509%), Kabul (29.797%), Budapest (29.573%), Paris (28.920%), and London (producing USD 978.40 billion, 28.981%) each contribute a major share of their country’s national GDP through their city or metropolitan economies.

AI In Smart Cities Market Statistics

(Source: precedenceresearch.com)

• The global AI in smart cities market is estimated at USD 50.63 billion in 2025.
• The market is expected to rise to USD 64.71 billion in 2026.
• By 2034, the market is forecast to reach about USD 460.47 billion, which implies a strong 27.80% CAGR from 2025 to 2034.

Recent Developments

• Industry experts expect that by 2050, about 60% of the world’s population will live in areas covered by smart city programs, and this shift is likely to strengthen and modernise security services.
• In May 2024, TVS Supply Chain Solutions Limited announced that its fully owned subsidiary, TVS SCS Europe and UK, had partnered with Manchester Metropolitan University to expand the use of AI to improve business operations.
• According to GSMA, 5G networks covered about 33% (one-third) of the global population in 2025.
• In the United States, the NTIA recently announced plans to repurpose at least 1500 MHz of spectrum to support 5G satellites, mobile services, and broadband connectivity.
• In 2025, about 27 billion IoT devices were connected worldwide.
• As of January 2024, VERSES AI Inc. partnered with Analogue to begin smart-city work in Abu Dhabi, supporting the UAE’s infrastructure.
• India’s Smart Cities Mission targets 100 cities and invests in smart transport, smart energy, and digital systems, reported in USD.
• At the 2025 World Smart City Expo in Busan, WeGO expanded global ties, boosting cross-border coordination on programs.
• The City of Phoenix was recognised in the 2025 IDC Smart Cities North America Awards for its Chilled Drinking Water in Public Spaces Initiative, showing continued focus on public services and quality-of-life projects.
• Curiosity Lab in Peachtree Corners, Georgia, announced a partnership with Esri to use ArcGIS Online and ArcGIS Velocity for real-time data operations and GIS-based smart city management.

Conclusion

Smart cities use technology to improve city life by reducing traffic, saving energy, increasing safety, and delivering public services more quickly. Still, a smart city is not just about new gadgets. It must protect people’s privacy, use data honestly, and support everyone, including poor and older adults. Good planning and strict rules are needed.

If cities grow in a clean, safe, and fair way, smart city projects can make daily life easier and improve the future for all.

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