06 Apr 2018
Smart City Projects to Boost Technology Spending in Central and Eastern Europe over the Next Five Years, Says IDC
FOR IMMEDIATE RELEASE, Prague — According to the first release of the Worldwide Semiannual Smart Cities Spending G uide published by International Data Corporation (IDC), technology spending on Smart Cities initiatives in Central and Eastern Europe (CEE) is forecast to reach $1.7 billion in 2018.
The strategic priorities that IDC believes will drive this spending in CEE throughout the 2017-2021 forecast period are intelligent transportation, data-driven public safety, and resilient energy and infrastructure. Intelligent traffic and transit and fixed visual surveillance will emerge as the two largest use cases in terms of spending, followed by smart outdoor lighting and Smart City platforms.
While these use cases have already attracted considerable investment across the region, the focus varies across countries and cities. Also, according to local authorities, Smart City investments in the region are inhibited by low levels of demonstrable impact or value. Smart City initiatives in recent years were devised in a way to get financed through EU programs, however proven positive results were achieved only in those cases where the projects are closely aligned with the long-term goals for city development. The local authorities have already discovered that this approach is working better and are thus devising complex urban strategies. “We have observed a change in the attitude of the local governments, and Smart Cities spending in the years to come will move from isolated projects and become more closely tied to priorities of complex programs for urban development,” says Neli Vacheva, IDC analyst of the Smart City market in CEE. IDC believes that government-driven Smart City initiatives over the 2017-2021 forecast period will result in a compound annual growth rate (CAGR) of 20.6% in spending on enabling technologies. The worldwide market for technologies related to Smart City development is expected to post a CAGR of 18.6% over the same period.
IDC's Worldwide Semiannual Smart Cities Spending Guide quantifies the expected technology opportunity around smart cities initiatives from a region and worldwide level. Spending data is available for nine regions with a focus on 15 use cases across five strategic priorities, as well as the overall smart cities market size. The spending guide is designed to provide IT vendors with insights into this rapidly growing market and how the market will develop over the five-year forecast period.
About IDC Spending Guides
IDC's Spending Guides provide detail on key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.
International Data Corporation is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.