Smart Infrastructure Market Poised to Hit USD 874.1 Billion Globally

The size of the worldwide smart infrastructure market was estimated at USD 179.1 billion in 2024 and is projected to increase at a compound annual growth rate (CAGR) of 19.26% from 2025 to 2033, reaching USD 874.1 billion.

One of the main factors propelling the market expansion is the world's urban population growth, which encourages governments to spend money on smart infrastructure solutions. Over 55% of people on Earth already reside in cities, and 68% are expected to do so by 2050, according to the UN. To improve urban living conditions, lessen traffic, and boost resource efficiency, this transformation entails the creation of smart cities that make use of cutting-edge technology like the Internet of Things (IoT), artificial intelligence (AI), and data analytics.

Additionally, the market is expanding due to smart city projects' growing emphasis on public safety, transportation, water distribution, and energy management. In addition, the market is expanding due to the growing awareness of environmental sustainability and the increasing implementation of smart infrastructure solutions that optimize energy efficiency and reduce emissions.

Concurrently, the market is expanding due to the advancement of energy storage systems, smart grids, and automated building management systems that improve the efficiency of enterprises and cities.

The creation of smarter, more connected infrastructure systems is made possible by the growing convergence of IoT, AI, and machine learning (ML), which is supporting market expansion. IoT devices provide predictive maintenance, efficient use of resources, and enhanced service delivery by gathering real-time data on a variety of infrastructure components.