tr scit-3 q13-executive-summary

Eric Woods

Research Director

Clint Wheelock

Managing Director

Executive Summary: Smart City Tracker 3Q13 Global Smart City Projects by World Region, Market Segment, Technology, and Application

NOTE: This document is a free excerpt of a larger report. If you are interested in purchasing the full report, please contact Navigant Research at [email protected].

Published 3Q 2013

RESEARCH REPORT

Smart City Tracker 3Q13

©2013 Navigant Consulting, Inc. Notice: No material in this publication may be reproduced, stored in a retrieval system, or transmitted by any means, in whole or in part, without the express written permission of Navigant Consulting, Inc.

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Section 1 EXECUTIVE SUMMARY

1.1 Introduction

The momentum around smart city programs has continued to rise during 2013. City leaders, central government ministries, and technology and service suppliers have announced a range of new projects, incentives, and innovative product and service offerings. This widespread interest in smart city programs is creating a global market opportunity. Navigant Research forecasts that the global smart city technology market will grow from $6.1 billion in annual revenue in 2012 to $20.2 billion by 2020 at a compound annual growth rate (CAGR) of 16.2%.

This Navigant Research Smart City Tracker provides a survey of the current state of smart city development around the globe in all its diversity. New projects have been added to the database that show continued investment in smart grid, urban mobility, water management, and government service applications for smart cities.

1.2 Navigant Research Coverage

Navigant Research’s Smart City Tracker 3Q13 report tracks projects that aim to address the pressures on cities to meet three core goals:

» Reduce their environmental impact and greenhouse gas (GHG) emissions

» Encourage economic development

» Deliver improvements in citizen services

The Tracker covers projects focused on the five industry sectors that have the most impact on these goals:

» Smart energy

» Smart water

» Smart transportation

» Smart buildings

» Smart government

In addition, Navigant Research tracks major sustainability policy innovations that set the context for future technology investment. Also covered in this Tracker are major new real estate developments that encompass cleantech innovations at several levels, including new smart city greenfield developments.



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1.3 The Projects

The Smart City Tracker 3Q13 report includes 170 projects around the world. More than 80% of the projects are focused on issues related to energy, transportation, or government. Over 50% of the projects have some element focused on transportation and mobility in cities, and almost 45% involve some energy-related projects.

Chart 1.1 Smart City Projects by Region and Primary Industry Sector, World Markets: 3Q 2013

(Source: Navigant Research)

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10

20

30

40

50

60

70

80

North America Europe Asia Pacific Latin America Middle East & Africa

Smart Energy

Smart Water

Smart Transportation

Smart Buildings

Smart Government



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Section 6 TABLE OF CONTENTS

Section 1 ........................................................................................................................................................... 2

Executive Summary .......................................................................................................................................... 2

1.1 Introduction ........................................................................................................................................ 2

1.2 Navigant Research Coverage .............................................................................................................. 2

1.3 The Projects ....................................................................................................................................... 3

Section 2 ........................................................................................................................................................... 4

Tracking the Smart City Market ......................................................................................................................... 4

2.1 Defining the Scope ............................................................................................................................. 4

2.2 Smart City Trends ............................................................................................................................... 5

2.2.1 National Programs ........................................................................................................................ 5

2.2.2 Standards .................................................................................................................................... 6

2.2.3 Supplier Developments ................................................................................................................. 7

2.3 Projects by Region and Sector ............................................................................................................ 8

Section 3 ........................................................................................................................................................... 9

Regional Analysis ............................................................................................................................................. 9

3.1 North America .................................................................................................................................... 9

3.2 Europe .............................................................................................................................................. 10

3.3 Asia Pacific ....................................................................................................................................... 12

3.4 Latin America .................................................................................................................................... 13

3.5 Middle East & Africa .......................................................................................................................... 14

Section 4 .......................................................................................................................................................... 15

Industry Sectors............................................................................................................................................... 15

4.1 Overview ........................................................................................................................................... 15



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4.2 Smart Energy .................................................................................................................................... 16

4.3 Smart Water ...................................................................................................................................... 17

4.4 Smart Transportation ......................................................................................................................... 17

4.5 Smart Buildings ................................................................................................................................. 17

4.6 Smart Government............................................................................................................................. 18

Section 5 .......................................................................................................................................................... 19

Acronym and Abbreviation List ....................................................................................................................... 19

Section 6 .......................................................................................................................................................... 21

Table of Contents ............................................................................................................................................. 21

Section 7 .......................................................................................................................................................... 23

Table of Charts and Figures ............................................................................................................................. 23

Section 8 .......................................................................................................................................................... 24

Scope of Study ................................................................................................................................................. 24

Sources and Methodology ............................................................................................................................... 24

Notes ................................................................................................................................................................ 25



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Section 7 TABLE OF CHARTS AND FIGURES

Chart 1.1 Smart City Projects by Region and Primary Industry Sector, World Markets: 3Q 2013 ...................... 3

Chart 3.1 Smart City Projects by Primary Industry Sector, North America: 3Q 2013 ........................................ 9

Chart 3.2 Smart City Projects by Primary Industry Sector, Europe: 3Q 2013 .................................................. 11

Chart 3.3 Smart City Projects by Primary Industry Sector, Asia Pacific: 3Q 2013 ........................................... 12

Chart 4.1 Smart City Projects by Primary Industry Sector, World Markets: 3Q 2013 ....................................... 15

Chart 4.2 Percentage of Smart City Projects Involving Each Industry Sector, World Markets: 3Q 2013 ........... 16

Table 2.1 Smart City Projects by Region and Primary Industry Sector, World Markets: 3Q 2013 ...................... 8



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Section 8 SCOPE OF STUDY

Navigant Research has prepared this report to provide participants in the emerging smart city technology market with a tracker of global smart city projects. The Smart City Tracker includes fully deployed and pilot projects, as well as smart city strategies and major smart city real estate developments. Navigant Research tracks projects across five key industry sectors: smart energy, smart water, smart transportation, smart buildings, and smart government. This Tracker aims to provide comprehensive documentation of the progress of smart city projects across all global regions and all relevant technologies.

SOURCES AND METHODOLOGY

Navigant Research’s industry analysts utilize a variety of research sources in preparing Research Reports. The key component of Navigant Research’s analysis is primary research gained from phone and in-person interviews with industry leaders including executives, engineers, and marketing professionals. Analysts are diligent in ensuring that they speak with representatives from every part of the value chain, including but not limited to technology companies, utilities and other service providers, industry associations, government agencies, and the investment community.

Additional analysis includes secondary research conducted by Navigant Research’s analysts and its staff of research assistants. Where applicable, all secondary research sources are appropriately cited within this report.

These primary and secondary research sources, combined with the analyst’s industry expertise, are synthesized into the qualitative and quantitative analysis presented in Navigant Research’s reports. Great care is taken in making sure that all analysis is well-supported by facts, but where the facts are unknown and assumptions must be made, analysts document their assumptions and are prepared to explain their methodology, both within the body of a report and in direct conversations with clients.

Navigant Research is a market research group whose goal is to present an objective, unbiased view of market opportunities within its coverage areas. Navigant Research is not beholden to any special interests and is thus able to offer clear, actionable advice to help clients succeed in the industry, unfettered by technology hype, political agendas, or emotional factors that are inherent in cleantech markets.



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NOTES

CAGR refers to compound average annual growth rate, using the formula:

CAGR = (End Year Value ÷ Start Year Value)(1/steps) – 1.

CAGRs presented in the tables are for the entire timeframe in the title. Where data for fewer years are given, the CAGR is for the range presented. Where relevant, CAGRs for shorter timeframes may be given as well.

Figures are based on the best estimates available at the time of calculation. Annual revenues, shipments, and sales are based on end-of-year figures unless otherwise noted. All values are expressed in year 2013 U.S. dollars unless otherwise noted. Percentages may not add up to 100 due to rounding.



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Published 3Q 2013

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