Asia will hit $1.03 trillion in 2020
China will make the biggest contribution to the smart building market with 46%, followed by Japan with 19% and India with 11%
In 2025, we will see around 26 global smart cities. Around 50% of these will be from North America and Europe. Most of the pilot projects, innovation and leadership in the smart cities space are taking place in North America, which will lead the world in new smart energy capacity and the smart grid market in the next three years with a CAGR of 30-35%, according to Frost & Sullivan estimates.
Europe has the largest number of smart city project investments globally. It is expected to see a five-fold growth in the installed base of smart meters by 2017 and will experience a growth rate of 20-25% in the smart grid market in the next three years. China will account for more than 50% of the global smart cities, generating $320 billion for China’s economy by 2015. However, it is the entire Asia-Pacific region that will be the fastest growing region in smart energy space by 2015. Smart grid investment in this region will exceed $171 billion by 2017. The Southeast Asian region will see a growth in smart meter market with 24.5% penetration rate by 2020. The Asian smart building market will reach $1.03 trillion by 2020, up from $427 billion in 2011. China will make the biggest contribution to this with 46%, followed by Japan with 19% and India with 11%.