The 2025 Smart Cities Market Report analyzes the global landscape, showing how technology, data, and innovation transform urban centers into sustainable, efficient, and livable environments. Governments and businesses collaborate to address urbanization challenges and make smart city solutions essential in transportation, energy management, public safety, and environmental monitoring. This report explores key trends, including the integration of the Internet of Things (IoT), artificial intelligence (AI), and 5G networks to create interconnected urban ecosystems. Further, investment in green technologies, smart mobility solutions, and public-private partnerships shape the development of future cities. The report also examines leading startups and offers insights into the evolving market landscape to show how smart city solutions will contribute to sustainable urban development.
This smart city report serves as a reference for stakeholders within the industry, investors, policymakers, and economic analysts, providing a snapshot of the industry’s health to map its trajectory for innovation and growth in the coming years.
StartUs Insights Smart Cities Market Report 2025
- Executive Summary
- Introduction to the Smart City Report 2025
- What data is used in this Smart City Report?
- Snapshot of the Global Smart City Market
- Funding Landscape in the Smart City Market
- Who is Investing in Smart City Solutions?
- Emerging Trends in the Smart City
- 5 Innovative Smart City Startups
Executive Summary: Smart City Market Report 2025
This report is created using data obtained from the Big Data and AI-powered StartUs Insights Discovery Platform, covering more than 4.7 million global companies, as well as 20K+ technologies and emerging trends. We also analyzed a sample of 1000+ smart city startups developing innovative solutions to present five examples from emerging smart city industry trends.
- Industry Growth Overview: The smart city market is expanding, supporting over 9700 companies with a 24.09% annual growth rate. This growth highlights increased technological integration and innovation in urban infrastructures.
- Manpower & Employment Growth: With over 690000 employees globally, the market added 43000 employees last year. This reflects rapid employment growth across various skill levels.
- Patents & Grants: The market has secured over 3500 patents and 1090 grants that show support for research, development, and innovation essential for smart city advancements.
- Global Footprint: Major hubs for smart city innovation include the USA, India, Germany, France, and Spain. City hubs like London, Singapore, Dubai, Bangalore, and Hong Kong drive key advancements worldwide.
- Investment Landscape: Investments continue to grow, with the average investment round valued at USD 15.1 million. Over 3300 investors have contributed to the industry’s progress, which supports its innovation and expansion.
- Top Investors: The combined investment by top investors exceeds USD 1 billion. Standard Chartered, Tencent, and Intesa Sanpaolo lead the list, showcasing backing from these major players.
- Startup Ecosystem: Five innovative startups include GreenMesh (IoT cloud), Ai4SmartCity (AR-based city experiences), Amptricity (energy storage), Neusitz.ch (urban furniture), and GRECiOT (air quality monitoring) that address critical smart city needs.
- Recommendations for Stakeholders: Entrepreneurs should develop interoperable, citizen-centered solutions that enhance urban living and integrate with existing city infrastructures. Governments must facilitate innovation by establishing open data policies and creating favorable regulatory frameworks to attract investment while prioritizing privacy and security. Also, companies should collaborate across sectors to deliver scalable, sustainable solutions, leveraging data analytics, IoT, and AI to optimize resources, reduce costs, and improve urban resilience.
Explore the Data-driven Smart Cities Outlook for 2025
The Smart Cities Report 2025 uses data from the Discovery Platform and encapsulates the key metrics that underline the sector’s dynamic growth and innovation. Our database includes 1000+ startups among over 9700 companies, demonstrating a broad innovation landscape. The sector maintains an annual growth rate of 24.09%, supported by over 3500 patents and 1090 grants for research and development. The global workforce exceeds 690000 employees, with 43000 added last year. The prominent hubs include the USA, India, Germany, France, and Spain, with city hubs in London, Singapore, Dubai, Bangalore, and Hong Kong. This highlights the international distribution of smart city activities.
What data is used to create this smart city report?
Based on the data provided by our Discovery Platform, we observe that the smart city industry ranks among the top 5% in the following categories relative to all 20K topics in our database. These categories provide a comprehensive overview of the industry’s key metrics and inform the short-term future direction of the industry.
- News Coverage & Publications: The smart city industry saw over 9900 publications last year.
- Funding Rounds: With over 4900 funding rounds recorded, the industry stands out in investment activity.
- Manpower: Employing more than 690000 workers globally, the sector added 43000 new employees last year. This reflects rapid workforce expansion.
- Patents: The sector also holds over 3500 patents.
- Grants: It has secured more than 1090 grants, which shows strong support for research and development initiatives.
- Yearly Global Search Growth: The yearly global search growth of 24.31% in the smart city industry reflects increasing public interest and market demand.
A Snapshot of the Global Smart City Industry
The smart city industry continues to develop rapidly, with an annual growth rate of 24.09%. The sector supports 1000+ startups, with over 590 in early stages, supporting innovation. Further, more than 300 companies have undergone mergers and acquisitions.
Intellectual property drives innovation, with over 3500 patents registered by more than 850 applicants. The patent activity has grown by 89.38% annually, with China and South Korea emerging as top issuers, accounting for over 1250 and 1200 patents, respectively.
Explore the Funding Landscape of the Smart City Industry
Investment in the smart city sector remains strong, with an average investment value of USD 15.1 million per funding round. More than 3300 investors have participated in over 4900 funding rounds. This demonstrates increasing financial support. These investments have impacted more than 1300 companies and highlight the sector’s ability to attract investor interest and capital.
Who is Investing in Smart City Solutions?
The top investors in the smart city industry have invested over USD 1 billion, showing strong financial commitment to the sector’s growth and innovation.
- Standard Chartered has invested USD 363.3 million across two companies.
- Tencent has allocated USD 288.7 million to two companies.
- Intesa Sanpaolo has distributed USD 263.4 million among the three companies.
- Crédit Agricole has invested USD 132.2 million across four companies.
- UniCredit has committed USD 115.6 million to three companies.
- BPI France has invested in 18 companies, totaling USD 105.1 million.
- Alibaba Group has invested USD 103.3 million across two companies.
- Ant Group has committed USD 93.3 million to two companies.
- Hermitage Capital has allocated USD 71.4 million to two companies.
Access Top Smart City Innovations & Trends with the Discovery Platform
Explore the emerging trends within the smart city landscape along with the firmographic data:
- Digital Twin solutions are becoming essential for real-time simulation and urban infrastructure management. This trend has over 5600 companies working in this space, supported by more than 370K employees. In the last year, 32K new employees joined. The annual trend growth rate of 20.23% signals increasing adoption of digital twins across industries.
- IoT technologies ensure seamless communication between smart systems and devices. With more than 3500 companies, IoT solutions are key enablers of smart city initiatives. The sector employs over 138K people, with 11K new employees joining last year. The annual trend growth rate of 18.64% reflects the importance of interconnected devices in urban infrastructure.
- Sustainable Development is a guiding framework for balancing economic growth with environmental stewardship in smart cities. Backed by over 6600 companies, this trend focuses on integrating sustainable practices within urban environments. The sector employs more than 640K individuals, with 33K new employees added last year. Although the annual trend growth rate is 9.34%, it continues to play a crucial role in long-term urban planning and environmental conservation.
5 Top Examples from 1000+ Innovative Smart City Startups
The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.
GreenMesh offers IoT Cloud for Smart Cities
Slovenian startup GreenMesh develops IoT-based solutions for smart cities and industrial automation to offer real-time data management and predictive analytics. Its Widgelix, a low-code IoT platform, integrates with diverse devices and communication protocols like LoRaWAN. This platform enables businesses and municipalities to connect, manage, and analyze data from various sensors for optimizing resource management and automation across sectors. Widgelix provides tools like data visualization, automated alerts, and a rule engine to streamline IoT workflows and enhance decision-making. GreenMesh enables businesses and cities to transform raw data into actionable insights for improving efficiency, sustainability, and scalability across industries.
Ai4SmartCity provides AR-powered City Experiences
Italian startup Ai4SmartCity delivers modular software solutions for smart cities and public administration services. Its platform integrates AI, augmented reality, and smart interfaces to streamline institutional communication, digitalize public services, and promote cultural and territorial development. Its key offerings include CMS portals, mobile apps, and AR-enabled tools for tourism and urban management for municipalities and public organizations. The startup combines AR mobility, online citizen services, and remote work solutions for councils and associations. Ai4SmartCity promotes social innovation by enhancing engagement between citizens and institutions to ensure efficient service delivery and promote sustainable urban development.
Amptricity delivers Sustainable Energy Storage
US-based startup Amptricity offers solid-state energy storage systems (ESS) to improve energy management in residential, commercial, and industrial sectors. Its batteries use solid electrodes and electrolytes to eliminate risks like thermal runaway and toxicity associated with traditional lithium-ion batteries. These systems provide high energy density, support simultaneous charging and discharging, and operate efficiently in temperatures ranging from -40°C to 55°C. The startup’s solutions enable peak shaving, load shifting, and uninterrupted power during outages, for renewable energy storage and backup power in critical facilities. Amptricity supports sustainable energy use while lowering insurance and maintenance costs to provide energy independence and financial efficiency.
Neusitz.ch provides Smart City Urban Furniture
Swiss startup Neusitz.ch provides urban furniture solutions for smart cities, focusing on connected infrastructure and sustainability. Its products include solar-powered smart benches like the Steora models that combine photovoltaic (PV) modules, Wi-Fi connectivity, and device charging stations via USB and wirelessly. These benches also feature ambient lighting, air cooling systems, and sensors to optimize energy use and enhance user comfort. The startup’s solutions emphasize modularity and environmental responsibility. With a design that operates autonomously using solar energy, the benches function effectively across varied weather conditions and contribute to greener, more connected urban environments.
GRECiOT enables Air Quality Monitoring
Greek startup GRECiOT develops IoT-based environmental monitoring solutions for indoor and outdoor air quality management. The startup collaborates with microstations to measure pollutants and provide real-time data via a cloud platform. These solutions use AI and machine learning to identify pollution sources and enable predictive analytics. The startup’s offerings include air quality tools for cities, schools, and industrial sites, to aid organizations monitor environmental conditions, optimize energy usage, and enhance public health. GRECiOT thus promotes sustainable urban development by supporting stakeholders with actionable data to improve decision-making and promote healthier living environments.
Gain Comprehensive Insights into Smart City Trends, Startups, or Technologies
The smart city industry is set for sustained growth in 2025, driven by technological advancements and increasing urban challenges. Emerging trends like digital twins, IoT solutions, and sustainable development will shape future innovations to enhance urban efficiency and environmental resilience. With continued global investment and workforce expansion, the industry will play a pivotal role in building smarter, more sustainable cities worldwide. Get in touch to explore all 1000+ startups and scaleups, as well as all industry trends impacting smart city companies.
