Shulou(Shulou.com)06/03 Report--

IDC's latest "Global Semi-Annual Smart City Spending Guide" shows that smart city initiatives in Asia/Pacific excluding Japan (APEJ) will reach $35.4 billion by 2019, up 16.8% from 2018 projections. Total spending on smart city projects from Singapore, Beijing, Shanghai and Seoul is expected to exceed $4 billion this year.

Gerald Wang, IDC's head of public sector research for Asia Pacific, said,"Cloud solutions dominate the digital transformation needs of smart cities until 2018. As city governments shift from isolated cloud computing to digital integration and cross-agency centers, there is an increasing demand for connected ecosystems such as transportation and public safety. Smart advantages will also become a new stage of development for mature smart cities. As edge-based intelligent solutions gain more computing power, cloud platforms can act as grid computing architectures to fully coordinate and optimize the different computing capabilities of cities, thereby further automating the interior of cities.

Hardware accounted for the highest spending, accounting for nearly 40% of overall smart city-related spending in 2019. Services took second place in terms of spending, followed by software and network connectivity. Interestingly, service spending will exceed hardware spending by the end of the forecast, with a five-year CAGR of 17.9%(2017-2022).

Strategic priorities related to data-driven public safety, resilient energy and infrastructure, and intelligent transportation will bring the largest spending in 2019. Among the key strategic priorities driving smart city investment, the top five are fixed visual surveillance, advanced public transport, smart traffic management, non-revenue water (NRW) management and smart outdoor lighting. Total spending on these use cases accounted for 40.7% of total investment in 2019. Similarly, connected back-offices and smart kiosks are key use cases in the areas of economic development, citizen engagement, and sustainable planning and management that will garner considerable investment.

China will account for the majority of investment spending on smart city-related technologies in Asia Pacific. Consumption will come primarily from fixed visual surveillance in 2019, with demand from video sources for tracking and monitoring citizen activity increasing.

The spending guide also reflects cases IDC has observed in the market. Singapore is creating its own digital twin, while South Korea has become one of the most IoT connected countries, and other governments such as China, India, Australia and Indonesia are taking steps to follow suit. Moreover, India's demand for investment in technology is increasing due to its growing urban population.

"The Asia-Pacific region is a hub for innovation, and governments are finally realizing and focusing energy and investment on smarter technology choices so that cities across the region can manage growth and increasing market opportunities. As more cities and communities begin to adopt better-equipped, connected and sustainable living patterns, APEJ's regional spending will accelerate over the forecast period. "Swati Chaturvedi, senior market analyst, IDC's Asia Pacific IT spend team, said.

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