Smart city technologies gain global momentum across core urban services

A new report from Berg Insight highlights a significant expansion in the global adoption of smart city technologies, focusing on street lighting, parking, waste management, air quality, and surveillance. The data suggests a market shift as municipalities move beyond experimental phases to prioritize return on investment and operational efficiency in urban infrastructure. This trend is driving a transition toward remotely managed services that enhance sustainability and resilience across major global regions.

According to the latest research from Berg Insight, the global installed base of individually controlled smart street lights reached 27.9 million units in 2024, excluding China. This sector is expected to grow at a compound annual growth rate (CAGR) of 21.8 percent, reaching 74.5 million units by 2029. While street lighting represents a major volume of units, the smart waste sensor technology market is projected to be the fastest-growing segment with a CAGR of 22.3 percent. This market, which includes fill-level sensors either retrofitted or pre-integrated into bins, started 2024 with an installed base of 1.56 million units.

The report also tracks smart parking sensors and non-regulatory urban air quality monitoring devices. Smart parking occupancy sensors, which numbered 1.47 million units in 2024, are forecasted to grow at an 18.4 percent CAGR. Meanwhile, the field of air quality monitoring is expanding as smaller, lower-cost devices complement traditional regulatory stations; these units are expected to increase from 206,000 in 2024 to 633,000 by 2029. The largest financial sector covered is smart city surveillance, which includes both fixed and mobile video and audio solutions, reaching a global market value of €13.6 billion in 2024 with a projected 15.6 percent CAGR.

Geographically, Europe has emerged as the leading adopter of smart city technology outside of China, with North America following as the second-largest market. However, the Middle East and Asia-Pacific regions are currently the fastest-growing markets, driven by rapid urbanization and ambitious top-down government initiatives. William Ankreus, an IoT analyst at Berg Insight, noted that the demand for remotely managed infrastructure is increasing daily. He emphasized that cities are now prioritizing tangible outcomes and operational savings over technology-led experimentation, which is accelerating the adoption of digital solutions on a large scale.