The global safe city market size was valued at USD 27.28 billion in 2021 and is projected to reach USD 87.07 billion by 2030, growing at a CAGR of 14.5% from 2022 to 2030. This growth is primarily driven by increased government spending on urban safety and security initiatives, along with the rapid development and integration of advanced technologies such as Artificial Intelligence (AI), big data analytics, and cloud computing.

Government investments in smart city infrastructure are opening up significant growth opportunities for the market. Although the COVID-19 pandemic initially hindered progress, particularly in 2020 through early 2021 due to lockdowns and halted projects, the latter half of 2021 saw a resurgence in infrastructure funding aimed at economic recovery. This renewed focus has further accelerated the demand for integrated safety solutions in rapidly urbanizing cities.

The increasing global population and rapid urban growth have necessitated advanced surveillance and monitoring systems to manage and reduce crime rates. Various governments, including those in the U.K., India, Australia, and Norway, are proactively implementing street safety systems to protect vulnerable groups such as women and children. For instance, in July 2022, the U.K. government allocated USD 41.40 million through its Safer Street Fund program to enhance security infrastructure, including the integration of CCTV and smart lighting systems across public areas.

Private sector players are also responding to rising public sector demand by forming strategic alliances to secure government contracts. In June 2022, Axis Smart City collaborated with Melbourne city authorities to upgrade CCTV systems with advanced PTZ cameras capable of automatic detection and centralized control. These efforts underscore the ongoing trend of public-private partnerships in deploying next-generation urban security solutions.

Smart city initiatives now routinely include smart lighting, centralized command centers, automated fire detection, and GPS-based tracking systems. Additionally, mergers and acquisitions continue to play a critical role in enhancing service capabilities. For example, in January 2022, Batic Investments and Logistics Co. acquired a stake in Smart Solutions Co. for USD 3.19 million to strengthen its IT and communication service offerings in Saudi Arabia.

Despite strong momentum, the industry faces hurdles such as high initial capital investments and increasing cybersecurity risks. The development and maintenance of safe city solutions demand significant R&D and specialized technical staff, contributing to elevated costs. Moreover, rising incidents of cyber threats like ransomware and data breaches pose serious challenges. To counter these, industry players are increasingly collaborating with tech providers to enhance digital security while controlling development costs.

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Key Market Trends & Insights

• North America led the global market in 2021, contributing over 30.5% of total revenue.

• Asia Pacific is poised for the fastest CAGR through 2030 due to its rising urban population and growing smart city investments.

• Hardware remained the dominant component segment, capturing over 62.5% share in 2021.

• Video surveillance and analytics represented the largest technology segment, with a revenue share exceeding 17.5% in 2021.

Market Size & Forecast

• 2021 Market Size: USD 27.28 Billion

• 2030 Projected Market Size: USD 87.07 Billion

• CAGR (2022–2030): 14.5%

• Leading Region in 2021: North America

• Fastest Growing Region: Asia Pacific

Key Companies & Market Share Insights

Leading market players are heavily investing in R&D to drive innovation and operational efficiency. Mergers, acquisitions, and strategic partnerships remain central to expanding market presence and improving product offerings. For instance, in July 2022, Affluence Corp.’s subsidiary OneMind Technologies partnered with Corsight AI to implement facial recognition in crowded urban settings. Similarly, Iveda collaborated with AXIOM in June 2019 to deploy its video surveillance solutions in South Africa under the safe city initiative.

Prominent players in the global safe city market include:

• ABB Ltd.
• ALE International SAS
• BAE Systems PLC
• Bosch Energy and Building Solutions
• Esri
• Honeywell International Inc.
• Identiv, Inc. (3VR)
• NEC Corporation
• Siemens AB
• Teledyne FLIR LLC

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Conclusion:

The safe city market is rapidly evolving, powered by technological advancements, urbanization, and government initiatives focused on public safety. While challenges such as high capital expenditure and cybersecurity threats exist, the growing collaboration between public entities and technology providers is driving innovation and market expansion. As cities continue to embrace smart infrastructure and digital monitoring systems, the safe city market is expected to experience sustained growth and transformation over the coming years.