The US Smart Cities Market is projected to grow from USD 192.5 billion in 2025 and to reach USD 374.0 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 14.2% during the forecast period.
US smart cities are increasingly adopted as they enable cities to operate more efficiently, improve the quality of life, and support sustainable development. Technologies such as intelligent traffic signals, smart parking, and connected infrastructure help reduce congestion, lower emissions, and enhance public safety. Cities are leveraging IoT, AI, and real-time data analytics to optimize resource management, streamline public services, and deliver better citizen experiences. The integration of digital platforms also fosters economic growth by attracting new businesses and residents, while open data initiatives empower communities and drive innovation. Federal funding and strong public-private partnerships are further accelerating the deployment of smart city solutions, making urban areas more resilient and competitive in a rapidly changing world.
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By smart building, commercial type is estimated to account for the largest market share in the US smart cities market.
Commercial buildings form the core of US smart building deployments because offices, retail, healthcare, hospitality, and educational facilities offer the largest and most immediate gains in energy savings, operational efficiency, and tenant experience. Recent initiatives in cities such as New York, Chicago, and Los Angeles focus on building automation, advanced HVAC controls, smart lighting, and occupancy analytics to comply with energy codes and city-level climate action plans, including building performance standards and emissions caps. Large enterprises and real-estate owners are adopting integrated building management platforms that combine IoT sensors, cloud analytics, and AI to reduce operating costs and meet ESG targets. Federal and state incentives for energy-efficient retrofits, alongside corporate net-zero commitments, further accelerate commercial smart building investments.
By smart transportation solution, passenger information management is expected to register the highest growth rate during the forecast period.
Passenger information management is emerging as one of the fastest-growing segments in US smart transportation, as cities prioritize real-time, multimodal journey planning and safer, more reliable public transit. Transit agencies are deploying integrated platforms that provide live arrival data, disruption alerts, dynamic routing, and digital ticketing across buses, metros, commuter rail, and micromobility services. These systems rely on GPS, connected vehicles, roadside sensors, and 5G or LTE networks to feed data into cloud-based analytics engines, which then deliver personalized information via mobile apps, station displays, and in-vehicle systems. Federal funding under programs such as the US Department of Transportation’s Smart Infrastructure and “Complete Streets” initiatives supports upgrades to passenger information, particularly for safety-critical road corridors and transit hubs. As cities strive for a mode shift away from private cars and toward public and shared mobility, demand for accurate, real-time passenger information solutions is expected to grow rapidly across US smart cities.
The report profiles key players, such as Siemens (Germany), Cisco (US), Microsoft (US), IBM (US), Oracle (US), Sutherland (US), Hitachi (Japan), Honeywell (US), Verizon (US), Itron (US), AWS (US), Motorola (US), AT&T (US), KETOS (US), INRIX (US), Ubicquia, Inc (US), Schneider Electric (France), Quantela Inc. (US), Clarity Movement (US), and Iteris (US).
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