September 20, 2012
Around the world, city leaders face the challenge of delivering economic growth while meeting sustainability targets and rising expectations about the quality of municipal services, often in the face of drastic budget reductions. This is forcing many city leaders to improve efficiency and drive further innovation in the creation and delivery of services. According to a recent report from Pike Research, a part of Navigant’s Energy Practice, new platforms for communication, data sharing, and application development – particularly cloud computing and data analytics – will play a key role in this transformation.
Cumulative investment in smart government technology between 2011 and 2017 will be almost $4.8 billion, the report finds. Annual investment in smart government technologies in North America alone will surpass $1 billion in 2017, and annual investment in cloud services for smart cities will reach nearly $1.4 billion worldwide by 2017.
“Cloud-based computing, in particular, offers new options for cities that reduces capital expenditure, provides access to new skills, and reduces time-to-deployment of new solutions,” says research director Eric Woods. “Cloud-based systems also enable cities to take advantage of the huge amounts of operational data they collect to improve efficiency and develop new services.”
City leaders are also looking at investment in technology as a means of spurring economic growth. This includes a range of strategies: making the city a center of cleantech development and innovation (e.g., Denver, Copenhagen, and Amsterdam); creating new types of digital commerce and development (e.g., New York and Manchester); being at the leading edge of technology adoption (e.g., Barcelona and Friedrichshafen); becoming an exporter of technology (e.g., Seoul); or retaining or establishing a position as a regional trading hub (e.g., Singapore and Songdo). Each of these approaches, the study concludes, requires a vision of where the city is heading, an investment in infrastructure, and a commitment to innovation.
The report, “Smart Government Technologies”, analyzes the global market opportunity for smart government technologies. It assesses the business drivers, market forces, and technology trends that are transforming the use of information and communications technology and related technologies in smart cities and communities. The study forecasts the size and growth of the market for smart government technologies through 2017, and it also forecasts the growth in smart government data analytics and cloud-based services between 2011 and 2017. The report includes profiles of major smart government initiatives around the world and also examines the strategies of key players in the smart government market including government agencies, IT companies, telcos, and infrastructure providers. An Executive Summary of the report is available for free download on the Pike Research website.
Contact: Richard Martin
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* The information contained in this press release concerning the report, “Smart Government Technologies,” is a summary and reflects Pike Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.