8 elements that make cities smart

NEW DELHI: Smart cities present market opportunities worth $1.5 trillion by 2020 and for a smart city to be successful there is a necessity to adopt a structured approach, focusing on open collaboration and infrastructure, Frost & Sullivan says.

However, cost and existing infrastructure remain the key factors influencing the development of smart cities. Most smart cities initiatives are currently being funded by special development funds as well as public-private sector partnerships.

“With the unique challenge of balancing the needs of the various stakeholders, it is expected that governments will take the lead in guiding the transformation of smart cities,” it adds.

There are eight key elements that define a Smart City: Smart Governance, Smart Building, Smart Healthcare, Smart Mobility, Smart Infrastructure, Smart Technology, Smart Energy and Smart Citizens.

By 2025, it is estimated that there will be over 26 Smart Cities featuring at least five of the eight mentioned elements; with more than 50% located in North America and Europe. One key characteristic of smart cities is the efficiency underlying the various aspects that help it run more effectively, be it energy, infrastructure and healthcare.

“Through the application of technology in areas such as energy recovery from waste and managing energy efficiency, the focus for smart energy will remain on transforming the power grid,” says Ravi Krishnaswamy, Vice-President, Energy & Environment Practice, Frost & Sullivan Asia Pacific. To meet this demand and differentiate themselves, utility companies will look to tailor their various new service packages for their customers.

“In smart cities, the combination of IoT and Cloud Technology is expected to spur the creation of an entire cloud-based ecosystem serving stakeholders such as end-users and innovators. However, cloud security will remain one of the key challenges faced,” noted Andrew Milroy, Senior Vice-President, ICT Practice, Frost & Sullivan Asia Pacific.