SMART CITIES

System of Systems

Whitepaper

www.juniperresearch.com

SMART CITIES System of Systems

1.1 Introduction
It is well known that the Industrial Revolution represents one of the key
turning points in modern mankinds history. The mechanisation of
manufacturing processes alongside improvements in fuel efficiency,
heralded rapid transition from an agricultural economy to an industrial
one. During the same period, economic gains eventually led to
improvements in the quality of life which, in turn, led to rapid expansion of
the population.
While cities were, of course, already well-established during this period of
transition, the economic fruits of the Industrial Revolution meant that
cities were increasingly seen as settlements where some form of
opportunity could be found, be it from a financial or social standpoint.
Similarly, urban life was perceived to provide a higher overall quality of
life than that which could be found in rural areas.
A second inflection point occurred during the 20th century, following the
invention of the transistor. Even greater efficiencies were gained thanks
to the miniaturisation of parts and the commoditisation of technology,
contributing to the rise of the Information Age. The use of computing
resources and, subsequently, the Internet has led to the expansion of
business reach, opportunity and financial gain. The development of cities
as centralised economic hubs that began accelerating in the wake of the
Industrial Revolution, has now been compounded by the arrival of the
connected city, where being online is seen as essential to most business
operations.

As technology has developed and concepts such as Ubiquitous

Computing have emerged, early visions of so called smart cities have
involved the notion of cities becoming fully-connected environments,
where almost every conceivable element in the city limits is integrated
into some sort of automated computing system. In turn, this vision gives
rise to a divide in opinion. On the one hand, the city is a utopian paradise
of efficiency comprising systems running with metronomic precision; on
the other, the city is a dystopian centre of restricted possibilities, shackled
by the measurement of every event occurring inside it.
At present, the Ubiquitous City, as described in the paragraph above, is
limited to a small number of projects across the globe. Indeed, these
cities are purpose-built settlements developed on greenfield sites,
contrasting with the vast majority of cities elsewhere, which are on
brownfield sites, where planning the full transition from city to Ubiquitous
City would entail enormous complexity and expense. Consequently,
todays vision of a smart city, certainly for the near-term at least, is quite
different to the notions driven by the concept of Ubiquitous Computing.

1.2 Smart City Components

Given that there is still some ongoing discussion as to what exactly a
smart city is and the fact that the smart city market in itself is still in a
nascent state, this report is intended to focus on 2 overarching benefits of
the smart city: sustainability and efficiency. To identify, analyse and
forecast the market for smart cities, Juniper Research has chosen to
segment the city into a number of components which will also serve to
define the structure of the report. These components are shown in the
following figure:

SMART CITIES System of Systems

Figure 1.1: Smart City Components

1.3 Smart City Drivers

Awareness of the need for greater sustainability where human activity is
concerned has been greatly heightened, particularly as the information
age has enabled mankind to measure quantitative data in relation to the
environment. This includes, but is not limited to:

Source: Juniper Research

Naturally, important factors in the smart city model include not only the
citizens themselves, but also the governmental bodies that ultimately
decide how the components listed above should be implemented or
developed, as well as the commercial bodies invested in the various
market verticals. These actors will undoubtedly play an important role in
deciding the success, or failure, of any smart city initiatives. These will
therefore be considered alongside any discussion of the above
components.

Climate change as a result of increased GHG (greenhouse gas

emissions) from vehicles, energy production, farming and
manufacturing;

Consumption of finite resources where limits and/or quotas had not

previously been imposed;

Quality of life, where access to electricity, clean water and food can
reliably be estimated.

Population trends are also showing evidence of rapid urbanization,

moving away from traditional rural communities. This trend links heavily
to the requirements for more sustainable living, given that city migration,
in general terms, leads to:

Wider opportunities for personal wealth;

A higher spend on electrical items;

A higher proportion of Internet-connected society;

Increased consumption of energy.

Furthermore, cities do not have the ability to add infrastructure and

expand horizontally at the pace at which humans are accumulating in

SMART CITIES System of Systems

these agglomerations. This leads to increased levels of

congestion where it is not appropriately managed,
crowding on public transport where payment systems are
not efficient enough or supply of transport vehicles is
insufficient. With the knowledge that resources cannot be
increased at the pace that is required for business to
continue smoothly, cities have come to the realisation that
existing services must be made more efficient as opposed
to added to, where digital technology is the enabler.

Figure 1.2: Smart City Traffic Management & Parking Cumulative CO2e Emissions
Savings 2014 2019: 164 MMT

1.4 Smart City Traffic Management &

Parking
Juniper Research forecasts that congestion-easing smart
city traffic management and parking projects will reduce
cumulative associated emissions in the order of 164 MMT
(million metric tonnes) CO2 between 2014 and 2019. This
figure is comparable to the annual emissions produced by
35 million vehicles. Not only will this benefit the
environment, but also significantly impact the quality of city
dwellers lives, with some 700 million vehicles projected to
be on city roads by 2019.

North America

Latin America

Western Europe

Central & Eastern Europe

Far East & China

Indian Subcontinent

Rest of Asia Pacific

Africa & Middle East

Source: Juniper Research

SMART CITIES System of Systems

Order the Full Research Suite

the means by which opportunities can be exploited to achieve

municipal goals.

Smart Cities: Strategies, Energy, Emissions & Cost Savings 2014 2019
The Full Research Suite includes the following:

c)

12 exclusive case studies and 12 vendor profiles.

d)

Available in pdf.

Market Sizing & Forecasts

a)

b)

Unique market forecasts for the savings potential of the Smart

Cities market with 4 chapters of forecasts.

Executive Summary
a)

Ready to use PowerPoint presentation of the Key Features of

the Full Research Suite

Analyses and forecasts the Smart Cities market in terms of

cost, energy and emissions savings achievable through
implementation of the Smart Grid, Smart Traffic Management &
Parking and Smart Street Lighting projects.

Publication Details

c)

50 Tables; 9 What-if-analyses; and over 5,750 data points.

Authors: Steffen Sorrell

d)

Country level data for Canada, China, Denmark, Germany,

Japan, Norway, Portugal, Spain, Sweden, US, and UK.

Contact Jon King, Business Development Manager, for more information:

Jon.King@juniperresearch.com

e)

Available in pdf and Interactive Forecast Excel format.

Market Trends & Competitive Landscape

a)

Extensive analysis of market drivers, hurdles and savings

opportunities facing stakeholders across the Smart City
landscape, with particular focus on the Smart Grid, Smart Traffic
Management & Parking and Smart Street Lighting.

Publication date: January 2015

Juniper Research Ltd, Church Cottage House, Church Square,

Basingstoke, Hampshire RG21 7QW UK
Tel: UK: +44 (0)1256 830001/475656 USA: +1 408 716 5483
(International answering service)
Fax: +44(0)1256 830093
http://www.juniperresearch.com

b)

Invaluable insights into the technologies that enable efficiency

gains, and the strategies that market players are employing to
execute smart city projects. It also advises on best practices and