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Smart Cities Market Size, Share and Forecast 2026-2036

The global smart cities market is worth USD 134 bn in 2026 and is forecast to reach USD 417 bn by 2036, growing at a 12.0% CAGR. China is the largest country market and Hardware and sensors is the largest by component segment.

USD 134 bnMarket size 2026
USD 417 bnForecast 2036
12.0%CAGR 2026-2036
ChinaLargest country

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5 segmentation views25 countries2026 to 2036 yearly forecast

Market overview

The global smart cities market is worth USD 134 bn in 2026 and is forecast to reach USD 417 bn by 2036, growing at a 12.0% CAGR. China is the largest country market and Hardware and sensors is the largest by component segment.

ScopeSmart cities: technology for urban services, including intelligent transport, smart street lighting, public safety systems, smart grids and metering, water management, city data platforms and integration services purchased by cities and utilities.
IndustryTechnology
Value 2025USD 120 bn
Value 2026USD 134 bn
Value 2036USD 417 bn
CAGR 2026-203612.0%
Volume 202644.8 thousand deployments
Volume 2036139 thousand deployments
Average price 2026USD 3,000,000 per deployment
Report priceStarts from USD 1,999
PublishedNovember 2026

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Smart Cities market size and forecast, 2026-2036

Exhibit 1The global smart cities market is forecast to grow from USD 134 bn in 2026 to USD 417 bn by 2036, more than triplingGlobal market value in USD: 2025 base year, 2026 estimate and forecast to 2036. CAGR 2026 to 2036: 12.0%
Smart Cities market value, 2025 to 2036Market value by year. 2025: USD 120 bn; 2026: USD 134 bn; 2027: USD 151 bn; 2028: USD 169 bn; 2029: USD 189 bn; 2030: USD 211 bn; 2031: USD 237 bn; 2032: USD 265 bn; 2033: USD 297 bn; 2034: USD 333 bn; 2035: USD 373 bn; 2036: USD 417 bn. Compound annual growth rate 2026 to 2036: 12.0%.2025134 bn2026237 bn2031417 bn203612.0% CAGR

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

YearMarket value
2026USD 134 bn
2027USD 151 bn
2028USD 169 bn
2029USD 189 bn
2030USD 211 bn
2031USD 237 bn
2032USD 265 bn
2033USD 297 bn
2034USD 333 bn
2035USD 373 bn
2036USD 417 bn

Smart Cities market segmentation

By component

Exhibit 2Hardware and sensors is the largest segment by component, with 40.0% of 2026 revenueEstimated share of 2026 global revenue, by component
Smart Cities market share by component, 2026Share of 2026 revenue by component. Hardware and sensors: 40.0%; Services: 32.0%; Software and platforms: 28.0%.Hardware and sensors40.0%Services32.0%Software and platforms28.0%

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Hardware and sensors40.0%29.9%USD 53.8 bn8.8%
Software and platforms28.0%35.8%USD 37.6 bn14.8%
Services32.0%34.3%USD 43.0 bn12.8%

By solution

Exhibit 3Smart utilities and grids adds the most revenue by solution, growing from USD 34.9 bn in 2026 to USD 106 bn by 2036Estimated revenue in USD by solution, 2026 and 2036 forecast
Smart Cities market by solution, 2026 and 2036Revenue by solution in 2026 and 2036. Smart utilities and grids: USD 34.9 bn in 2026, USD 106 bn in 2036, change +203%; Intelligent transport: USD 32.3 bn in 2026, USD 97.7 bn in 2036, change +203%; Public safety and surveillance: USD 26.9 bn in 2026, USD 74.4 bn in 2036, change +177%; City platforms and other: USD 18.8 bn in 2026, USD 74.2 bn in 2036, change +295%; Smart buildings and lighting: USD 21.5 bn in 2026, USD 65.1 bn in 2036, change +203%.20262036 forecastChangeSmart utilities and grids+203%34.9 bn106 bnIntelligent transport+203%32.3 bn97.7 bnPublic safety and surveillance+177%26.9 bn74.4 bnCity platforms and other+295%18.8 bn74.2 bnSmart buildings and lighting+203%21.5 bn65.1 bn

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Intelligent transport24.0%23.4%USD 32.3 bn11.7%
Smart utilities and grids26.0%25.4%USD 34.9 bn11.7%
Public safety and surveillance20.0%17.8%USD 26.9 bn10.7%
Smart buildings and lighting16.0%15.6%USD 21.5 bn11.7%
City platforms and other14.0%17.8%USD 18.8 bn14.7%

By end user

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Municipal governments46.0%46.2%USD 61.8 bn12.0%
Utilities30.0%30.1%USD 40.3 bn12.0%
Transport authorities14.0%15.4%USD 18.8 bn13.0%
Other public bodies10.0%8.4%USD 13.4 bn10.0%

By city size

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Megacities above 10 million30.0%31.0%USD 40.3 bn12.4%
Large cities 3 to 10 million34.0%34.0%USD 45.7 bn12.0%
Mid-sized cities 1 to 3 million24.0%24.0%USD 32.3 bn12.0%
Small cities and towns12.0%11.0%USD 16.1 bn11.0%

By funding model

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Public budgets46.0%42.0%USD 61.8 bn11.0%
Public-private partnerships32.0%34.0%USD 43.0 bn12.7%
Utility and operator funded22.0%24.0%USD 29.6 bn13.0%

Top 25 countries for smart cities by revenue

Countries are ranked by revenue earned from sales in the country, not by where the product is made. The ten largest hold 83.0% of 2026 revenue and the 25 countries below together hold 95.2%.

Exhibit 4China is the largest country market at USD 40.3 bn in 2026, and the three largest countries hold 56.0% of global revenueEstimated 2026 revenue in USD and share of the global market, ten largest countries
Smart Cities market, ten largest countries in 2026Ten largest countries by 2026 revenue. China: USD 40.3 bn, 30.0%; United States: USD 26.9 bn, 20.0%; Japan: USD 8.1 bn, 6.0%; India: USD 8.1 bn, 6.0%; United Kingdom: USD 5.4 bn, 4.0%; Germany: USD 5.4 bn, 4.0%; Saudi Arabia: USD 5.4 bn, 4.0%; South Korea: USD 4.0 bn, 3.0%; United Arab Emirates: USD 4.0 bn, 3.0%; France: USD 4.0 bn, 3.0%.China40.3 bn 30.0%United States26.9 bn 20.0%Japan8.1 bn 6.0%India8.1 bn 6.0%United Kingdom5.4 bn 4.0%Germany5.4 bn 4.0%Saudi Arabia5.4 bn 4.0%South Korea4.0 bn 3.0%United Arab Emirates4.0 bn 3.0%France4.0 bn 3.0%

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

#CountryValue 2026Share 2026Value 2036CAGR 2026-36
1ChinaUSD 40.3 bn30.0%USD 119 bn11.5%
2United StatesUSD 26.9 bn20.0%USD 72.6 bn10.4%
3JapanUSD 8.1 bn6.0%USD 20.0 bn9.5%
4IndiaUSD 8.1 bn6.0%USD 43.8 bn18.4%
5United KingdomUSD 5.4 bn4.0%USD 15.9 bn11.4%
6GermanyUSD 5.4 bn4.0%USD 14.6 bn10.5%
7Saudi ArabiaUSD 5.4 bn4.0%USD 24.6 bn16.4%
8South KoreaUSD 4.0 bn3.0%USD 12.1 bn11.6%
9United Arab EmiratesUSD 4.0 bn3.0%USD 15.4 bn14.4%
10FranceUSD 4.0 bn3.0%USD 10.9 bn10.4%
11SpainUSD 3.4 bn2.5%USD 9.4 bn10.7%
12SingaporeUSD 2.7 bn2.0%USD 8.6 bn12.1%
13NetherlandsUSD 2.2 bn1.6%USD 6.0 bn10.6%
14ItalyUSD 1.7 bn1.3%USD 4.6 bn10.1%
15PolandUSD 1.4 bn1.0%USD 4.4 bn12.1%
16TurkeyUSD 1.1 bn0.8%USD 3.6 bn12.5%
17MexicoUSD 900 mn0.7%USD 2.9 bn12.3%
18IndonesiaUSD 712 mn0.5%USD 2.7 bn14.1%
19South AfricaUSD 578 mn0.4%USD 1.7 bn11.2%
20ThailandUSD 457 mn0.3%USD 1.5 bn12.3%
21SwedenUSD 363 mn0.3%USD 960 mn10.2%
22NorwayUSD 296 mn0.2%USD 793 mn10.4%
23BelgiumUSD 228 mn0.2%USD 584 mn9.8%
24TaiwanUSD 188 mn0.1%USD 543 mn11.2%
25EgyptUSD 148 mn0.1%USD 543 mn13.9%
Rest of worldUSD 6.4 bn4.8%USD 19.4 bn11.7%
Exhibit 5China and United States account for 44% of the USD 283 bn the market is forecast to add by 2036Forecast revenue added between 2026 and 2036 by country, in USD
Smart Cities market, where the growth to 2036 comes fromRevenue added between 2026 and 2036. Market value 2026: USD 134 bn. China: +USD 79.1 bn; United States: +USD 45.8 bn; India: +USD 35.8 bn; Saudi Arabia: +USD 19.3 bn; Japan: +USD 12.0 bn; 20 other countries: +USD 78.2 bn; Rest of world: +USD 13.0 bn. Market value 2036: USD 417 bn.Market value 2026134 bnChina+79.1 bnUnited States+45.8 bnIndia+35.8 bnSaudi Arabia+19.3 bnJapan+12.0 bn20 other countries+78.2 bnRest of world+13.0 bnMarket value 2036417 bn

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

Competitive landscape

Group 1: Global leaders

  • Siemens
  • Cisco
  • IBM
  • Huawei
  • Schneider Electric
  • Honeywell

Group 2: Regional and specialist players

  • Hitachi
  • ABB
  • Johnson Controls
  • Hikvision
  • Alibaba Cloud
  • Thales
  • NEC Corporation
  • Bosch
  • ZTE
  • Yunex Traffic

Group 3: Emerging and niche players

  • Kapsch TrafficCom
  • Cubic Corporation
  • Itron
  • Telensa
  • Ubicquia
  • Quantela
  • Libelium

Research methodology

Every figure on this page comes from the research framework that we apply to all of the markets we cover. The 2025 base for the smart cities market is built from the volume sold and the price that buyers pay, and is cross-checked against the size of the wider industry the market belongs to. Where a market can be sized in more than one way, the routes are compared before a figure is set.

The forecast runs year by year from the 2025 base to 2036. Growth in each year reflects demand from the industries that buy the product, adoption of new technology, pricing, regulation and replacement cycles. Volume and price are modelled together, so revenue in each year equals volume multiplied by average price. The 2026 to 2036 compound annual growth rate of 12.0% is calculated from the resulting values.

The market is divided by component, by solution, by end user, by city size, by funding model. The 25 largest countries are ranked by revenue earned from sales to buyers in each country, not by where the product is made. Segment values and country values add up to the market total in every year, and every report is checked for consistency before it is published.

Companies are placed in three groups: global leaders, regional and specialist players, and emerging and niche players. The groups describe how companies compete in the market. They are not a ranking and they are not market shares.

Our analysts also carry out primary research. Customized reports add interviews with key opinion leaders, such as senior executives, technical specialists and buyers, to test the assumptions behind the numbers for the question being asked.

Read the full research methodology

Frequently asked questions

How big is the smart cities market?

The global smart cities market is estimated at USD 120 bn in 2025 and USD 134 bn in 2026.

How fast will the smart cities market grow?

It is forecast to reach USD 417 bn by 2036, a compound annual growth rate of 12.0% from 2026, an increase of USD 283 bn.

Which country is the largest market for smart cities?

China is the largest market by revenue at USD 40.3 bn in 2026, 30.0% of the global total. The three largest countries together hold 56.0%.

Which country is growing fastest?

Among the ten largest markets, India is growing fastest at 18.4% a year from 2026 to 2036.

Which smart cities segment is largest?

In the by component split, Hardware and sensors is the largest segment with 40.0% of 2026 revenue.

Who are the leading smart cities companies?

Global leaders include Siemens, Cisco, IBM, Huawei.

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