Key Takeaways

• Smart city infrastructure, particularly connected street lights, is rapidly expanding, with an expected growth from 27.9 million units in 2024 to 74.5 million by 2029.
• Smart waste technology is leading growth among non-surveillance applications, projected to grow at a rate of 22.3 percent annually.
• Surveillance technology remains the most valuable segment in smart city solutions, with a market value of £11.83 billion in 2024.

Expansion of Smart City Technologies

Smart city deployments are increasingly moving beyond pilot projects as municipalities focus on return on investment (ROI) and scalable solutions. A report from Berg Insight reveals that cities are integrating technology trials into functional asset networks.

The installed base of smart street lights, excluding China, reached 27.9 million units in 2024, with a forecast compound annual growth rate (CAGR) of 21.8 percent, potentially rising to 74.5 million units by 2029. This significant increase indicates that connected lighting has transitioned from a niche application to a core element of urban asset management.

Alongside street lighting, logistics-based sensors are also on the rise. The smart waste technology sector, which incorporates fill-level sensors on waste bins, achieved an installed base of 1.56 million units in 2024. This segment is currently the fastest-growing among non-surveillance applications, with an anticipated CAGR of 22.3 percent. Smart parking systems, featuring occupancy detection sensors, reached 1.47 million units, although their growth is slightly slower at 18.4 percent. These developments illustrate the steady integration of smart technologies into municipal revenue collection and traffic management.

Environmental monitoring is on the rise as well, with cities deploying compact and cost-effective air quality monitoring devices to complement regulatory systems. The number of these non-regulatory air quality monitoring units was approximately 206,000 in 2024 and is expected to grow to around 633,000 by 2029. This densification enables more detailed environmental data collection without the steep costs associated with traditional methods.

Despite the growing variety of smart city technologies, surveillance technology continues to dominate the market by value, with fixed and mobile video and audio solutions valued at £11.83 billion ($16.21 billion) in 2024. This segment is projected to expand at a CAGR of 15.6 percent during the forecast period.

Regional adoption of smart city technologies differs significantly. Europe leads the way outside of China, while North America holds the second-largest market share. However, the fastest growth rates are occurring in the Middle East and Asia-Pacific, driven by rapid urbanization and government initiatives.

The emphasis for procurement teams has shifted towards pragmatic financial and operational considerations. According to William Ankreus, an IoT analyst at Berg Insight, the increasing demand for remote infrastructure management is enhancing the sustainability of services. Municipalities are now focusing on ROI, operational efficiencies, and quality of services rather than purely technology-driven experiments, thus accelerating the adoption of digital solutions that yield measurable results.

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