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Digital Transformation potential in Smart Cities

Digital transformation is a smart cities context is becoming an ever-higher priority. Urban populations worldwide are growing quickly, whilst urban residents place an increasing premium on sustainability and quality-of-life considerations. The net result is that cities must deliver more and higher quality services, whilst using less resources. Thus, the digital transformation of cities is to a great extent unavoidable.

A hidden benefit of the digital transformation of smart cities is that it allows for a greater density of economic activity, so allowing more and higher quality city services to be funded for city dwellers and commuters.

Nine key domains of change in Smart Cities

Overall, we have identified nine key domains of change in the Smart Cites sector that are enabled by digital transformation, as illustrated below.

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These domains of change are discussed in more detail in our report Digital Transformation in Smart Cities:

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The domains of change discussed in the report comprise:

  • Smart Traffic Management including traffic monitoring and parking space and toll booth monitoring systems that are used by city administrations to monitor and manage traffic flows.
  • Smart Streetlights which allow for the efficient use of electricity by adjusting brightness based on motion detection or other parameters and additionally promote safety. Often smart streetlights are also equipped with other monitoring and control capabilities.
  • Public Safety including connected and AI-enabled CCTV for assisting city administrations in surveillance and ensuring safety for citizens.
  • Waste Management including the use of smart waste bins to support efficient waste management.
  • Environment Monitoring including the monitoring of environmental pollutants.
  • Smart Mobility including new and emerging transportation modes that can reduce the use of private vehicles.
  • Integrated Transport Systems including the use of technical solutions and platforms that can provide near real-time public and private transport network data, covering multiple modes of travel in a single interface.
  • Smart Data Management including the collection and storage of data from multiple sources, including IoT devices, to provide a comprehensive unified data platform to support local authorities, businesses, and governments.
  • Wearable Cameras for Personal Protection including body-worn cameras used by first responders and other workers who interact with the general public to capture and store image data.

Collectively, the activities listed above will bring significant changes to the Smart Cities sector.

IoT and Smart Cities

IoT is one of the key technology groups impacting the Smart Cities sector and further detail and analysis of key IoT applications for the Smart Cities sector can be found in Transforma Insight’s Forecast Insight Reports. Some of these applications are directly relevant to the sector, whilst others are only indirectly related.

Directly related IoT applications and Forecast Insight Reports include:

  • Autonomous Road Passenger Vehicles – Automated Road Passenger Vehicles contains autonomous vehicles primarily used to transport passengers on the road, this Application Group includes buses, coaches, minivans, as well as private vehicles. To be counted as part of this Application Group vehicles must be capable of operating at Level 3 of the SAE levels of autonomy. This level of automation requires the vehicle to monitor the environment and requires “the driving mode-specific performance by an automated driving system of all aspects of the dynamic driving task.” In this Application Group the number of autonomous vehicles is represented by RGUs only, the vehicles’ connections will be found in the Vehicle Head Unit Application Group.
  • CCTV – Connected video cameras used by governments for monitoring of streets and public places.
  • Sea & River Transport – Connected commercial ships/boats, including fishing boats (and all associated IoT solutions), passenger ferries and similar. Excludes infrastructure such as ports.
  • Road Public Transport – Connections to buses, specifically related to their role as public transport vehicles, such as the provision of on-board connectivity. Covers urban and inter-city vehicles including private hire coaches and school buses. Excludes infrastructure such as bus stations.
  • Waste Management – Connected refuse bins (such as those provided by Big Belly Solar), aftermarket monitoring devices for wheelie bins, and other refuse collection systems.
  • Rail Transport – Connected freight railway locomotives and carriages, connected passenger railway carriages and locomotives. Includes connectivity for both asset tracking and for the provision of onboard connectivity services. Excludes connected advertising screens, which are covered under the Public Information & Advertising Screens Application Group. Excludes infrastructure such as railway stations or tracks.
  • Micromobility Vehicles – Micromobility typically refers to small and lightweight vehicles, usually operating below 25km/hr. The micromobility vehicles that are covered in this Application Group include bicycles, e-bikes, scooters, e-scooters and cargo bikes. They can be both human- or electric-powered but must retain the ability for human propulsion: electric motorcycles and mopeds can be found under the Vehicle Head Unit Application Group. This report concerns micromobility vehicles with connected features that are sold to consumers or enterprises and does not include any public or shared service vehicles. Shared micromobility vehicles are a part of the Bike & Scooter Sharing Application Group.
  • Public Alarms & Monitors – Public infrastructure for raising alarms and monitoring, such as for gunshot detection and location identification.
  • Public Information & Advertising Screens – Remotely updated billboards and (often interactive) customer and public information screens, including public transport. Includes customer information screens, static advertising (digital signage for the purposes of display of advertising in fixed locations from Times Square to a local bar), public transport advertising (digital signage for the purposes of display of advertising in a form of public transport, specifically buses and train carriages), culture and tourism (including diverse information screens and similar for the purpose of conveying information to tourists or delivering multimedia content), and transport information screens (departure and arrival boards at railway stations, bus stations and airports).
  • Parking Space Monitoring – Remote monitoring of parking spaces, both on-street and in car-parks, both public and private, to provide users and owners with information on occupancy and availability. This Application Group covers only the sensors and aggregation devices. Parking payment is dealt with in the Payment Processing Application Group.
  • Public Space Lighting – The monitoring, control and management of smart lighting for streets and other public spaces, typically provided by local government or utilities.
  • Environment Monitoring – The use of sensors to monitor for a diverse range of pollutants or other environmental factors. This might include CO2, flood water, radioactivity, seismic shock, or pollutants from industrial processes.
  • Infrastructure Monitoring – Includes monitoring of road and rail infrastructure, dams (including hydroelectric and tailing), levees, reservoirs, weirs, and pipelines, for the purpose of checking for structural issues, breakages, theft or other faults. Monitoring devices installed during construction projects counts within the Construction vertical but subsequently to the appropriate specific vertical (typically government) at point of handover.
  • Road Traffic Monitoring & Control – Diverse services associated with road infrastructure including road pricing infrastructure (infrastructure beside or above the road to ensure compliance with road tolls or other payment mechanism), in-vehicle devices for road tolls and other congestion charging schemes (device installed on the dashboard or windscreen to provide identification and verification for tolling and other similar purposes), connected road signs (e.g. variable speed limit signs, information boards and similar), traffic lights (intersection and crossing lights connected for the purposes of more efficiently managing traffic flows), and enforcement cameras (video cameras typically with automatic number plate recognition (ANPR) used for ensuring drivers are complying with the law, e.g. not driving in bus lanes, multi-occupancy vehicles).
  • Bike & Scooter Sharing – Bike & Scooter Sharing covers tracking and monitoring devices embedded in locks, bicycles, scooters and their associated docking stations. These devices may allow customers to access the nearest available vehicle, prevent theft, or enable the collection, redistribution and recharging of vehicles.

Indirectly related IoT applications and Forecast Insight Reports include:

  • Usage-Based Insurance – This Application Group covers onboard devices, or software hosted on a Vehicle Head Unit, used to monitor vehicle usage and driver behaviour to provide a more accurate or reduced insurance premium. In some cases, drivers are provided with instruction through smartphone-based apps to improve their driving. Instances where an application is hosted on a Vehicle Head Unit do not count as a separate connection. However, these instances are counted within the revenue-generating unit (RGU) forecasts.
  • Road Fleet Management – Road Fleet Management covers in-vehicle transportation logistics including job allocation, vehicle tracking, vehicle and driver monitoring, maintenance planning, safety compliance, fuel management, and incident management. It can be delivered as a service via a dedicated aftermarket device or through the factory-fit connectivity (accessed via the vehicle head unit). The forecast takes both heavy and light duty vehicles into consideration. It includes devices deployed in cars, vans, trucks and buses, along with heavy vehicles such as tractors, combine harvesters, pile drivers, tunnelling machines, cranes, and other off-road equipment. Fleet Management solutions are increasingly making use of in-vehicle cameras to monitor both outside the vehicle and within the cabin. These devices, and their consumer counterparts, can be found in the Dash Cams Application Group.
  • Smart Lockers – Smart Lockers refers to the use of connected parcel lockers used for self-service collection and drop-off of parcels and packages, as well as connected variants of conventional storage lockers.
  • Electric Vehicle Charging – Public electric vehicle charging points with a connection to monitor availability, usage, maintenance requirements, and facilitate payment. Does not include vehicle chargers installed on private property.
  • Electricity Smart Meters – Device that records the consumption and, where relevant, generation of electricity at a location and transmits this usage data to providers. In some instances these devices will transmit usage data to users in order to encourage more energy efficient behaviour. This application includes smart meters in both residential and commercial settings.
  • Gas Smart Meters – Device that records the consumption of natural gas at a location and transmits this usage data to providers. In some instances these devices will transmit usage data to users in order to encourage more energy efficient behaviour. This application includes smart meters in both residential and commercial settings.
  • Water Smart Meters – Device that records the consumption of water at a location and transmits this usage data to providers. In some instances these devices will transmit usage data to users in order to encourage more water efficient behaviour. This application includes smart meters in both residential and commercial settings.
  • Global IoT Forecast Report, 2023-2033
  • eCall – Emergency notification from a vehicle in the event of an accident. This application can be supported using the connection provided by the vehicle head unit, or a dedicated device in the vehicle. Includes emergency calling under regulatory mandates such as ERA-GLONASS and eCall in addition to manufacturer provided services.
  • Roadside Assistance – Application that notifies recovery services in the event of a vehicle breakdown. Diagnostics and location tracking may be included to improve efficiency. This application includes dedicated devices in addition to applications hosted on the vehicle head unit.
  • Vehicle Rental, Leasing & Sharing Management – Onboard devices and vehicle head unit hosted applications that are used to provide access, monitor and track the usage of vehicles lent to third parties. This may include traditional car hire companies, shared vehicle programs, and finance companies that lease vehicles to their users.
  • In-Vehicle Navigation – Built-in and discrete satellite navigation devices used to provide directions and routing to drivers. Built-in devices that rely on the vehicle head unit for a connection do not register as a discrete connection in our forecast.
  • Healthcare Monitoring – Includes clinical remote monitoring for heart disease, diabetes, and pulmonary disease (COPD). Also includes wearable fitness tracking devices (but not smart watches), and various home health monitoring devices such as connected bathroom scales. Also includes patient tracking in clinical environments such as hospitals.
  • Portable Information Terminals – Portable information terminals for staff in a range of vertical contexts, including retail and hotels.
  • Autonomous Road Freight Vehicles – The vehicles included in this Application Group are used for transporting goods on the road in a commercial setting. To be counted as part of this Application Group vehicles must be capable of operating at Level 3 of the SAE levels of autonomy. This level of automation requires the vehicle to monitor the environment and requires “the driving mode-specific performance by an automated driving system of all aspects of the dynamic driving task. In this Application Group the number of autonomous vehicles is represented by RGUs only, the vehicles’ connections will be found in the Vehicle Head Unit Application Group.
  • Telemedicine – Mobile location telemedicine to extend the reach of medical services into underserved regions, typically in emerging countries. Fixed location telemedicine to increase the convenience of provision of medical services, typically in wealthier countries.
  • Trigger Devices – Devices that exist to be triggered to indicate an action needs to be taken, typically something has been filled and needs to be emptied, or something is empty and needs be filled. Examples include buttons for room service, table service, the replenishment of communal supplies, mail delivery and collection boxes, and customer voting buttons.
  • Delivery Robots – This Application Group covers small (i.e. not capable of intercity travel or carrying passengers) fully autonomous vehicles that travel on road or pavement to deliver food, beverages, retail shopping, documents and other goods.
  • Asset Monitoring – This application group encompasses a variety of assets that are suitable for remote monitoring. This includes the monitoring of livestock and associated applications such as automated feeders. It also covers the monitoring of fitness equipment located in gyms and other shared contexts. Tracking and monitoring of equipment in ambulances is also incorporated as part of the healthcare vertical. Furthermore, this Application Group includes connected video gaming machines, gambling machines and other devices such as pachinko machines. Monitoring the condition, availability, and use of assets important to public health such as life rings and defibrillators is also present in this application group, including access to potentially dangerous infrastructure such as substations.
  • Connected Batteries – This Application Group includes non-automotive batteries of all sizes and use cases equipped with connectivity, from batteries contained in household devices to grid-scale energy storage. A connection typically allows for the remote monitoring of remaining capacity, temperature, and performance. Portable batteries may make use of location tracking. In some cases, the onboard connection can be used to communicate with smart meters and other grid infrastructure to enable features such as load balancing. This Application Group includes both disposable and rechargeable batteries.
  • Assisted Living – Assisted Living solutions include people tracking devices for the elderly and infirm, and comprehensive, connected medicine dispensers, assisted living solutions for patients that need significant day-to-day support or monitoring. Within the niche of assisted living, connected medicine dispensers play a crucial role and are used to promote patient adherence to prescriptions.
  • Child & Pet Tracking – Dedicated devices for tracking children, including anti-abandonment devices used to prevent children being left in cars. This Application Group does not include mobile phones, or any assisted living devices used by children. Tracking devices for pets, mostly cats and dogs but also potentially other household pets. Both kinds of tracker typically include GPS location capabilities and mobile connectivity, although some may use network triangulation based location to extend battery life.

Other content and related analysis

Besides the detailed sector-focussed content described above, Transforma Insights offers an extensive range of thematic- and vendor-focussed research that will prove invaluable to any end-user seeking to leverage new and emerging digitally transformative technologies.

Of particular note are our Vendor Insight and CSP Peer Benchmarking reports, which provide detailed profiles of leading vendors who might be able to support a range of end-user digital transformation projects.

Our Key Topic Insight reports focus on the qualitative aspects of Digital Transformation, including investigation of interesting or noteworthy topics.

Detailed analysis of regulations that might apply to digitally transformative projects around the world can be found in our Regulatory Database. Meanwhile, our Case Study Database contains more than 1,000 case studies of technology implementations. Each case study contains detailed information on the specifics of the deployment. Used in aggregate it can provide unrivalled guidance on project prioritisation, best practice and vendor selection.

Sector Report

Related Reports

All Reports
REPORT | OCT 29, 2024 | Rohan Bansal ; Suruchi Dhingra ; Matt Arnott
This report provides Transforma Insights’ view on the Autonomous Road Passenger Vehicles market. This segment comprises autonomous vehicles primarily used to transport passengers on the road, including buses, coaches, minivans, and robotaxis, as well as private vehicles, which are capable of operating at Level 3 of the SAE levels of autonomy. The Autonomous Road Passenger Vehicles market is an emerging market with several obstacles. There aren’t many self-driving cars driven by consumers as personally owned vehicles on public roads yet but early robotaxi services are already available in select markets. The path to large scale commercialisation and mass deployment remains challenging because of the need for technological advances, lack of comprehensive regulations, and the high cost of hardware. Development of vehicle to everything (V2X) infrastructure will play a significant role in the development of the autonomous road passenger market as it enables a level of communication and awareness of surroundings that will encourage safe operation of fully autonomous vehicles. The report provides a detailed definition of the Autonomous Road Passenger Vehicles sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
REPORT | FEB 20, 2024 | Paras Sharma
The use of video monitoring solutions has unlocked significant improvements, from round-the-clock surveillance for security purposes to object detection, gesture detection, facial recognition, and motion tracking across industries to gain real-time business insights and prescriptive analysis. Using video analytics, businesses can unlock greater value by analysing spatial and temporal information, provide instant alerts in the event of anomaly detection, and take actions when rules are flouted. Business opportunities, deployment challenges, and stakeholder complexities vary across each application. The demand for video analysis is primarily driven by the benefits that it can bring like better operational efficiency, enhanced public safety, and decreased manual work. There is a wide range of applications that can make use of some or all of these business benefits to gain a competitive advantage and provide a quality service or product to the end-user. There are 23 applications, around 7% of the total applications found in our IoT forecast database, for which video analysis can potentially substitute for IoT devices. Livestock Monitoring, Traffic Monitoring, Parking Space Monitoring, Fire and Security Alarms, Patient Tracking, and Trigger devices are some of the key IoT applications which can be substituted with video analysis. As per our analysis, Security Alarms, Stock Level Monitoring, In-Vehicle Road Pricing Devices, and Fire Alarms are the top applications in terms of connected devices that can potentially be replaced by video analysis. The number of IoT devices for the above-mentioned applications is expected to grow from around 0.9 billion in 2022 to around 2.4 billion by 2032. Even though the share of IoT devices that can be replaced by video analytics is expected to be less than 10% during the forecast period, we cannot neglect the potential of video analysis due to its business benefits and varied use cases across applications. Additionally, in cases where video analytics can substitute for LPWA connections, this substitution may represent an upsell opportunity for mobile network operators and an opportunity to deploy a higher bandwidth connection.
REPORT | APR 24, 2023 | Paras Sharma ; Matt Arnott
This report provides Transforma Insights’ view on the Public Information & Advertising Screens market. Globally, organisations are increasingly deploying digital kiosks, billboards, and signage to offer enriched customer experience by sharing dynamic digital information. This not only reduces manual workload but also provides a platform to earn additional revenue. Using these digital screens, brands offer customised marketing ads, based on audience demographics. Despite the benefits, the industry continues to face security challenge in the form of cyber-attacks such as phishing, malware, ransomware attacks. Cyber attackers often hack digital billboards to surface malicious, false, and misleading material for public display. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.