According to a new report published by Introspective Market Research, titled, “Smart City Market by Application and Packaging Type: Middle East and Africa Opportunity Analysis and Industry Forecast, 2022–2030,” the Middle East and Africa Smart City market size was valued at $ 140.21 million in 2022, and is projected to reach $ 225.17 million by 2030, registering a CAGR of 6.1% from 2022 to 2030. A Smart City is an urban environment that leverages advanced technologies to enhance the quality of life for its residents and improve overall efficiency in various aspects of city management. It integrates information and communication technology (ICT), data analytics, and the Internet of Things (IoT) to optimize infrastructure, services, and communication.

In the Middle East, cities like Dubai and Doha have been at the forefront of adopting smart city initiatives, leveraging technologies such as IoT (Internet of Things), AI (Artificial Intelligence), and data analytics to optimize services like transportation, energy management, and public safety. These cities aim to create more sustainable and efficient urban environments. In Africa, smart city developments are gaining momentum, with cities like Cape Town, Nairobi, and Lagos embracing digital innovations. The focus is on leveraging technology to address issues such as traffic congestion, water and energy management, and the provision of public services.

The Smart City market in the Middle East and Africa is driven by a combination of public and private sector investments, collaborations, and initiatives. Governments are working towards creating regulatory frameworks that support the adoption of smart technologies, while technology companies are actively involved in deploying solutions for smart infrastructure. Smart city initiatives leverage advanced technologies such as Internet of Things (IoT), artificial intelligence, and data analytics to optimize urban services, including transportation, energy, healthcare, and public safety. The MEA region recognizes the potential of smart city solutions to improve efficiency, sustainability, and the overall well-being of its growing urban population.

Middle East and Africa Smart City Market, Segmentation

The Smart City market is segmented based on Component and Functional Area, and Country.

Component:

The dominance of the Hardware segment can be attributed to the foundational role it plays in enabling various smart city functionalities. Smart cities heavily rely on a robust and interconnected hardware ecosystem to collect and process data efficiently. Sensors and IoT devices deployed across urban landscapes facilitate the acquisition of real-time data related to traffic flow, energy consumption, waste management, and other crucial parameters.

Functional Area:

Smart Mobility plays a pivotal role in transforming urban landscapes by leveraging innovative technologies to enhance transportation systems, reduce congestion, and improve overall efficiency. As urbanization accelerates across the region, governments and municipalities are increasingly investing in smart solutions to address the growing challenges of transportation and mobility. The dominance of Smart Mobility in the MEA Smart City market can be attributed to several factors. The rising population in urban areas has led to increased demand for efficient and sustainable transportation solutions. Smart Mobility initiatives incorporate technologies such as intelligent transportation systems, smart parking, and connected vehicles to optimize traffic flow and reduce commuting time.

Country:

The United Arab Emirates (UAE) is poised to dominate the Middle East and Africa Smart City Market, reflecting its commitment to innovation and technological advancement. With visionary leadership and substantial investments in smart infrastructure, the UAE has emerged as a regional leader in developing smart cities. Cities such as Dubai and Abu Dhabi showcase cutting-edge technologies in areas like transportation, energy management, healthcare, and public services. The implementation of Internet of Things (IoT) solutions, data analytics, and artificial intelligence has played a pivotal role in transforming these cities into intelligent urban hubs.

Some of The Leading/Active Market Players Are-

• Etisalat Digital
• Huawei Technologies
• Orange Business Services
• Schneider Electric
• Microsoft Azure
• SAP
• Mastercard Labs for Financial Technology
• IHS Markit
• SWVL
• Careem
• Dubai Roads & Transport Authority
• Hyperloop One
• Masdar
• Enel X Veolia
• Green Climate Fund
• Accenture
• Cisco Systems
• Siemens
• Orascom Construction PLC, and Other Active Players

Key Industry Developments

In January 2023, Siemens acquired Enlighted, a leading provider of smart building technology, to strengthen its smart city offerings.

In April 2023, Microsoft unveiled its Azure Digital Twins platform, enabling cities to create virtual representations of their physical infrastructure for data-driven decision-making.

Key Findings of the Study 

• The Smart Mobility segment held the major share of the market accounting near 40% of the total Smart City market.   
• The United Arab Emirates Country is expected to continue to lead the market followed by Saudi Arabia during the forecast period.