Smart city startups worldwide are expected to generate $110,7-billion in revenue by 2025, a trifold increase in five years, according to data presented by

Smart cities aim to cater to the growing urban population while improving on safety, sustainability, and mobility. These initiatives are backed by new technologies like artificial intelligence and the Internet of Things using sensors and data collection to gather large amounts of public data available for researchers and startups to work with.

Last year, smart city startups worldwide generated $32,3-billion in revenue, revealed the Statista survey. This figure includes all revenue that companies generated by offering technologies and products that use information, data and connectivity technologies to create more value within the public city environment.

In 2021, smart city startups’ revenues are expected to grow by $6,7-billion and then surge by a staggering $71,7-billion in the next four years.

Analysed by regions, Asian smart city startups are expected to generate $14,9-billion or 38% of total revenues in 2021. By 2025, this figure is forecast to soar by 232% to $49,6-billion.

European smart city startups are expected to witness a 166% revenue growth in this period, rising from $8,7-billion in 2021 to $23,16-billion in 2025.

North American startups follow with $12,3-billion in revenue in 2021. Statista data show this value is set to grow by 152% and reach $31,2-billion in the next four years.

The Statista survey revealed that smart utilities generate the highest share of startup revenues in the smart city market. In 2021, these startups are expected to make $10,7-billion or one-third of total revenues.

Smart utilities are companies in the electric, gas and water sectors that employ connected sensors across their grids to analyse operations and deliver services more efficiently. Most of them are heavy users of the IoT technology and the latest communications, software, computing, and mapping solutions. By 2025, the entire segment will grow by 180% and hit a $30-billion value.

As the second-largest revenue stream, the mobility segment is set to reach a $9,4-billion value this year. Statista predicts this figure to jump by nearly 190% to $27,2-billion in the next four years.

Smart buildings are expected to witness a 172% revenue growth in this period, with the figure rising from $7,2-billion in 2021 to $19,2-billion in 2025.

However, startups delivering environmental solutions for smart cities are set to witness the most significant growth in the following years. Between 2021 and 2025, their revenues are expected to surge by 210% and hit $16,4-billion globally.