China Smart Cities market growth
The China smart cities market is projected to reach USD 59.9 billion by 2023 from USD 30.4 billion in 2018, at a CAGR of 14.5% during the forecast period. Growth in this market is mainly driven by the increase in population, need for rapid urbanisation, and governments’ investment and several policies to speed up the successful implementation and development of smart cities projects.
The research report from Marketsandmarkets says that continuous developments in mobile apps that are based on advanced technologies, such as Fifth Generation (5G), Internet of Things (IoT), and cloud computing, and IT outsourcing are the booming areas within the software segment of China Smart City. Moreover, Zhongguancun, Beijing, Shanghai, and Hangzhou are the regions posing an increasing trend for the software segment. Key market players in the smart infrastructure include Hollysys, Nari Technology, China Railway Electrification Engineering Group.
Analysts found that the smart transportation segment is the prime focus of smart city development in China with about 70% of projects are concentrated towards transportation sector transformation. Within the report, it is the hardware market that is predicted to cover the majority of investments in smart transportation. It accounts for more than 80% of the overall smart transportation market. However, the services market is the highest growing market in the smart transportation segment during the forecast period. In smart transportation, research shows that the majority of ICT investments are taking place in smart mobility areas. Key market players found to be active in the smart transportation sector include Advantech, Kontron and the China Railway Rolling Stock Corporation (CRRC).
The report shows that China is making progress in improving the surveillance of its people with the addition of AI, facial, and gait recognition capabilities in its security and systems. China is more focused on a surveillance system that will connect security cameras nationwide via the cloud to a database of every person’s facial ID profile and a file of their personal details. In 2015, the Ministry of Public Security launched a project aiming to establish a giant facial recognition database to identify any citizen within seconds, the project is still under the development phase. Its target is to achieve an accuracy rate of 90% but faces formidable technological hurdles. The project aims to identify any one of its 1.3 billion citizens within 3 seconds. The country is more focused on the real-time analysis of surveillance data using the sensor system to improve public system and security.
Marketsandmarkets researchers found that the Chinese government has begun to adopt and implement various smart city initiatives. The performance of smart city initiatives significantly varies from one initiative to the other. There is a strong financial and institutional support from the central and local government for making smart city initiatives. Along with the population push and the need for rapid urbanisation, environmental pollution is also a key driver for the development of smart cities in China.
