Navigant Research Blog

Smart Cities Initiative Provides Added Boost to Growing IoT Market

Ryan Citron — September 29, 2015

Coinciding with Smart Cities Week in Washington, D.C., the Obama administration announced an investment of over $160 million for a new Smart Cities Initiative on September 14. The initiative focuses on federal research and will leverage over 25 new technology collaborations to help municipalities address key challenges such as reducing traffic congestion, fighting crime, fostering economic growth, managing the effects of climate change, and improving the delivery of city services.

The initiative shows the U.S. government following other national governments in supporting smart city initiatives, including the United Kingdom, India, and South Korea. This is further evidence of how the smart city concept is being fully embraced in North America.

The Obama administration has broken down the investment allocation as follows:

  • More than $35 million in new grants and over $10 million in proposed investments assigned to build a research infrastructure for smart cities, led by the National Science Foundation and National Institute of Standards and Technology.
  • Nearly $70 million in new spending and over $45 million in proposed investments allotted to unlock new solutions in safety, energy, climate preparedness, transportation, health and more, by the Department of Homeland Security, Department of Transportation, Department of Energy, Department of Commerce, and the Environmental Protection Agency.

IoT Segment Growing Quickly

This announcement comes at a time when interest and activity in smart cities technologies and solutions is higher than ever. There is a growing focus on the intersection of smart cities and the Internet of Things (IoT). In the context of smart cities, IoT refers to a network of physical objects within a smart city that are embedded with electronics, software, sensors, and connectivity to enable these objects to collect and exchange data.

Just over the past few weeks, several high-profile developments in the IoT market have taken place. General Electric announced the creation of a new business unit with the aim of becoming the leader in the IoT; IBM appointed Harriet Green—the former CEO of Thomas Cook Group in the United Kingdom—to lead its new IoT business unit (IBM is expected to invest $3 billion over the next 4 years in this unit); and Salesforce announced a new IoT Cloud platform. According to the Smart Cities Initiative, these developments in the IoT market reinforce the importance of its focus on “creating test beds for ‘Internet of Things’ applications and developing new multi-sector collaborative models.”

Array of Things

Several cities in the United States have been evolving to add more IoT concepts to smart city projects. For example, the University and the city of Chicago are engaged in a joint venture named the Array of Things (AOT) with the Argonne National Laboratory. This project will provide real-time, location-based data through sensor boxes that will be deployed in the Chicago area. The sensors will detect temperature, light, vibration, carbon monoxide, pedestrian and vehicle traffic, and surface temperatures to work with applications that use the sensor data to alert residents to areas with traffic congestion, pedestrian traffic, and icy patches on sidewalks. Data collected by the AoT project will be free and open to the public, a key feature of the program. The National Science Foundation is providing an additional $3.1 million to the AoT project, derived from the White House’s Smart Cities Initiative funding. The impact of IoT on smart cities will be explored in more depth in Navigant Research’s upcoming Smart City Street Management report.

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