Bergur Thormundsson
Research expert covering technology in the Nordics, AI and smart cities
Smart cities in Europe - statistics & facts
While smart cities might evoke the image of Star Wars-style future cities, the reality is both humbling and impressive. Smart cities straddle the intersection between technology and traditional urban planning, with every aspect of modern technology being in some way applicable to the smart city concept. The smart city market has been growing consistently in Europe for the last decade, with projected revenues of around 46 billion U.S. dollars expected in 2028. The growth trend of smart cities has been stymied somewhat, with revenue growth dropping from over 30 percent in 2021 to barely 18 percent in 2023. This is still significant year-on-year growth, and the market is still healthy.
The pressure of energy and the benefit of transport
Europe, perhaps more than many other continents, finds itself needing to improve and adapt its city models for a more sustainable and economic system. Europe is not quite self-sufficient in energy production, a critical problem once gas from Russia stopped flowing in 2022. This led to a considerable spike in energy prices in Europe, with prices rising nearly tenfold in that time. Increased installation of renewable energy technologies and more efficient energy use through smart city projects is vital to drive down the cost of energy to the consumer. Europe does have one advantage over many other regions in that its public transport systems are already well developed, so advancement in that area is easier than for the U.S., for instance. This lowers the cost of upgrading systems to apps and connected devices for ease of use and connectivity.Great cities not just for tourism
Europe houses the most amount of advanced smart cities in the world. According to a 2022 survey, three of the top five digital cities were in Europe – Copenhagen, Amsterdam, and London. When the list is looked at closer, nine out of the top 20 digital cities in the world can be found in Europe. This suggests considerable investment and a desire for more smart city connectivity in the old continent. This is not only limited to the public infrastructure or the private sector, as Europe also leads the world in E-governance, the availability of citizens to interact with its government through digital mediums.
