Smart city deployments are moving beyond pilots as operational leaders prioritise ROI and scalable infrastructure. New data from Berg Insight suggests municipalities are consolidating technology trials into manageable asset networks.
The installed base of individually-controlled smart street lights, excluding China, reached 27.9 million units in 2024. This infrastructure is forecast to expand at a compound annual growth rate (CAGR) of 21.8 percent, reaching 74.5 million units by 2029. For grid operators, this volume confirms that connected lighting has matured into a standard component of urban asset management rather than a niche application.
Logistics-focused sensors are tracking a similar upward trajectory. Smart waste technology, which utilises fill-level sensors retrofitted on bins or pre-integrated into containers, had an installed base of 1.56 million units in 2024. This segment is currently the fastest-growing among the non-surveillance applications, with a projected CAGR of 22.3 percent.
Smart parking deployments, involving in-ground or surface-mounted occupancy detection, reached 1.47 million units in the same period. While the growth forecast for parking sensors is slightly lower at 18.4 percent, the data reflects steady deployments of these smart city systems into municipal revenue and traffic management operations.
Environmental monitoring is also densifying. Cities are deploying smaller and lower-cost air quality monitoring devices to supplement regulatory stations. The global count of these non-regulatory units in outdoor urban settings stood at 206,000 at the end of 2024 and is expected to reach 633,000 by 2029. This densification provides plant managers and city planners with granular environmental data without the high capital costs of traditional monitoring infrastructure.
Surveillance remains the dominant category by value. The market for fixed and mobile video and audio solutions was valued at £11.83 billion ($16.21B) in 2024. It is expected to grow at a CAGR of 15.6 percent through the forecast period.
Smart city deployments by region
Adoption patterns vary by region. Europe is the leading adopter of smart city technology outside China, with North America representing the second-largest market. However, rapid urbanisation and top-down government initiatives are driving the fastest growth rates in the Middle East and Asia-Pacific regions.
The focus for procurement teams has shifted towards financial and operational pragmatism. William Ankreus, IoT analyst at Berg Insight, notes that the daily increase in demand for remotely managed infrastructure for smart city deployments is supporting improved service sustainability.
“Cities and municipalities are now prioritising ROI, operational savings, and service quality over technology-led experimentation, accelerating the adoption of digital solutions that deliver tangible outcomes,” concludes Ankreus.
See also: WBA: Why connectivity strategies for smart MDUs matter
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