We have smartphones, smart cards, smart cars, and pretty smart houses, judging by the increasing number of data-sharing devices linked up between the kitchen and the living room. It makes sense that our cities should be equally smart as well.
For some time now, cities globally have been investing in all sorts of infrastructure to make them hyper-connected, environmentally sound, and, well, cool. Certainly, in some places (San Francisco, New York, and Tokyo instantly come to mind), living in a smart city has become almost a civic right, a basic service citizens demand and won't live without.
Let's stop for a second and put this into perspective. Thanks to the billions of dollars (or euros, yen, yuan, pesos, or whatever other currency comes to mind) already spent by cities, states, and nations, we can make calls while riding underground subways, get GPS info from solar-powered bus stops, whiz by highway toll booths without hitting our brakes, and surf the Web at a park while listening to the birds sing. These are impressive accomplishments.
The exciting -- or scary -- part, depending on your point of view, is that capital projects like these show no sign of slowing down. Networking, energy efficiency, mobility, smart grids, and smart buildings will continue to be potential growth areas the world over as municipalities and regional governments set budget plans for the next decade, industry experts predict.
A report released this week by clean-tech market intelligence firm Pike Research, for example, forecasts that investment in smart city technology infrastructure will total $108 billion from 2010 to 2020. By the end of that period, the firm anticipates that annual spending will reach nearly $16 billion. $16 billion annually. Numbers like that make me think this could be a steady, niche market for component suppliers and semiconductor makers for the foreseeable future.
The conversations about what projects will get the green light are happening now. This week in Amsterdam, leaders from various corporate, government, and environmental segments are gathering at Smart City Event 2011 to discuss, share, and advance the concept of smart city development and "climate neutral" projects. Participants will swap information about best practices, funding opportunities, and cross-industry stakeholder cooperation.
On a European scale, a government commission has even been established to help create a roadmap for smart city initiatives. Among other things, SETIS (Strategic Energy Technologies Information System) pools together different tools smart city planners could use: interactive strategic modeling, technology and capacity mapping, scientific reports, implementation methodologies, and energy cost calculators.
Across the world, and perhaps not at all surprising, China is pumping more money in broadband infrastructure. According to a report this month from IHS iSuppli, China’s spending on broadband infrastructure equipment will soar to $1.15 billion in 2014, up from $925 million this year and $688 million in 2010.
This is only a sliver of what's happening on regional and national levels. Multiply high-tech capital works projects by individual cities on every continent, and I'd say the math would cause some eyeball popping among supply chain professionals.
On the surface, these projects may not seem as glamorous as the hyped up tablet computer or smartphone space. Nevertheless, the smart city market will be just as important -- or even more important -- to end users. Really, what good is a smartphone if you can't get a WiFi signal or buy a coffee with a flick of your wrist while waiting at an electric car charging station?
Thanks for the thoughtful observation. The priorities obviously are different and the needs are differrent between the developed and not so developed geographical areas of the globe. Your point on the purpose of all the innovations and modifications is actually the key to assessing the practicability and usefulness of these innocvations. Otherwise we are just innovating just to to make "smart" product.
Hopefully the making of smarter cities is to improve quality of life of the inhabitants with lower carbon prints left in its wake.
@Nemos _ I agree with you about our need to also look at the needs of the cities in the underdeveloped world where providing the basic infrastructure like roads, parking lots, drainage systems etc is still a top priority. But as technologists we cannot stop from providing the ultramodern communications and associated smart services to the developed cities. Though not today but definitely tomorrow this techonolgy will become affordable and hence percolate to the cities of underdevelopd world also. By recovering our R & D costs from this modern cities, we can then provide the same technology to these underpreviledged nations at a much lower cost. The benefit will slowly spread across the world. A cellphone was a luxury item just a decade ago here in India but now it has become a common man's necessity and the service has also become affordable to the common man.
"By the end of that period, the firm anticipates that annual spending will reach nearly $16 billion. $16 billion annually."
This is very good news for semiconductor industry but the bigger question is will it add extra pressure on supply chain which is already facing many challenges?
How related is this to smart-homes? I think that market will be huge when the current generation that started using the internet and computers starts (continues) to buy houses, etc. because the current decision makers where born without that and grew without them.
Jennifer, SmartCity is a conglomerate promoted by Dubai Holding with TECOM Investments, to develop and manage Knowledge Industry Townships Worldwide. The Dubai smartcity is in operation with more than 103,000 m2 build up area having major IT companies and integrated residential township for employees, with all the advance level amenities. They survived well during the recession period because of the presents of mix group of companies (low, medium and big level companies). I do agree that the global recession affected the giants (IBM, Accenture, yahoo etc), but when compare with outside number of wind up companies and job losses are very less. Moreover, the annual turnover from Dubai smartcity during 2008-09-10 is at par with previous years. The only thing is growth rate is little bit less than the expected or predicted rate. In between government also funded some amount for initial investments.
Last year they had opened first phase of Malta smartcity, with an investment of 275 million Euros. The whole development, which covers an area of 360,000 m2, is to be fully completed in 2021.
Recently they announced another one in Kerala, India (SmartCity Kochi), with an expected investment of 1500 Crore. The project would be spread over 246 acres with an expected to have 818,000 m2 of built up space. It was to be the first SmartCity project in India and on completion, SmartCity Kochi would be one of the largest IT parks in the country.
More details are available in their official website http://www.smartcity.ae/
Nemos - good points. I wish I had a good response for how the developing world is "going smart." Just a guess, given how prevalent cell phones and cell phone techology are in many of these regions, I would expect that's where we'll see some near-term investment and innovation. For instance, during the Mobile World Congress a few months back, I remember hearing about a student-led initiative (I believe it was called NextDrop) that uses mobile phone technology to notify peole about water supply and availablity; the idea was that people who live in places where water was scarce and supply was intermittent could truly benefit from knowing when and where the water was available. The model was being tested in India. (you can read about it here - http://innovations.coe.berkeley.edu/vol5-issue1-feb11/nextdrop). By our standards, that may not be considered a smart city, but for the people who get these alerts, this kind of technology may well be their smartest, life-changing tool. Anyone else have details about what cities in the developing world are doing on this front? Like, what's happening in Lima, Cairo, or Manila?
And to Jacob's question about the difference between smart city and integrated township, they sound almost the same to me. I'm sure there's a technical difference, but it seems like they are blanket terms that encompass a range of activities from big-scale green power generation down to mobile apps that let allow residents to connect directly to city adminstrators/offices.
The article described perfectly how is and how will be our cities smarter in the developed world but didn't mention anything about cities in the underdeveloped world.
The needs are completely different that's why the electronic equipment differs
From my point of view, it sounds weird to read how should be to buy a coffee with a flick. I believe we must concentrate to how technology will help us to improve our way of life and in particular, the way of living in the underdeveloped world.
I would guess, the difference would be in the size and scope of the smart implementation in infrastructure. A township project wouldnt include RFID toll plazas for instance.
Natural disasters wreak havoc to the tune of $100 billion in annual damages, says a UN report. To cope, companies need improved risk management strategies.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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