United Kingdom Smart Cities Market Size, Share, and COVID-19 Impact Analysis, By Application (Smart Transportation, Smart Governance, Smart Building, Environmental Solution, and Smart Utilities), By Technology (IoT, AI & ML, Cloud computing, 5G networking, Edge computing, and Others), and United Kingdom Smart Cities Market Insights, Industry Trend, Forecasts to 2035

United Kingdom Smart Cities Market Insights Forecasts to 2035

• The United Kingdom Smart Cities Market Size was Estimated at USD 49.5 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 20.98% from 2025 to 2035
• The United Kingdom Smart Cities Market Size is Expected to Reach USD 402.3 Billion by 2035

According to a research report published by Spherical Insights & Consulting, the United Kingdom Smart Cities Market Size is anticipated to reach USD 402.3 Billion by 2035, Growing at a CAGR of 20.98% from 2025 to 2035. The rise of cutting-edge, creative information and communication technology (ICT) and rising urbanization are driving the market share of smart cities. Some of the major factors driving the market's expansion are stringent public safety regulations, expanded data analytics integration, and an increasing emphasis on energy efficiency.

Market Overview

The market for smart cities in the UK is the industry devoted to creating and deploying these technologies in many domains, such as infrastructure, energy, healthcare, transportation, and governance. They are also known as a region that uses technology, data, and connectivity to improve sustainability and the standard of living for its citizens. The market is driven by factors such as environmental concerns and government initiatives to improve city management and resource utilization. Furthermore, with rising investments in cybersecurity infrastructure, emergency response systems, and monitoring, public safety and security are becoming important factors in the growth of smart cities. Also, to guarantee real-time surveillance and quicker incident response, advanced video analytics, AI-powered threat identification, and integrated communication platforms are being implemented, contributing to the expansion of the smart cities market. Further, development of news like in November 2020, techUK announced the formation of a new Smart City group to drive innovation and collaboration in urban technology across the UK. This multidisciplinary collective brought together industry experts, technologists, and thought leaders to optimize smart technology adoption in cities.

Report Coverage

This research report categorizes the market for the United Kingdom smart cities market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom smart cities market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom smart cities market.

Driving Factors

The market for smart cities is driven by rapid urbanization and the rising need for efficient and sustainable urban living. Moreover, IoT, artificial intelligence, and big data analytics are examples of advanced technologies that governments use to better allocate resources, cut expenses, and enhance the lives of their residents. Furthermore, a conducive climate for innovation and investment is created by government policies and incentives in many nations. Additionally, government programs and initiatives significantly influence the market for smart cities across the country.

Restraining Factors

The market growth is being restricted due to the high initial costs, intricate implementation procedures, significant investments, data privacy and security, and the absence of strict regulations. Besides, growing worries about climate change which also hamper the market expansion.

Market Segmentation

The United Kingdom smart cities market share is classified into application, and technology.

• The smart transportation segment accounted for the highest share in 2024 and is expected to grow at a substantial CAGR during the forecast period.

The United Kingdom smart cities market is segmented by application into smart transportation, smart governance, smart building, environmental solution, and smart utilities. Among these, the smart transportation segment accounted for the highest share in 2024 and is expected to grow at a substantial CAGR during the forecast period. The segment growth is driven by urbanization, traffic, and the demand for more intelligent transportation systems, the industry is expanding significantly. Further, to increase efficiency, lower pollution, and advance sustainability by lowering energy consumption and carbon emissions, governments are investing substantially in intelligent mobility solutions. Besides, growing connected cars and the need for sophisticated public transit systems propel the segment growth.

• The IoT segment held a significant share in 2024 and is expected to grow at a rapid pace during the forecast period.

The United Kingdom smart cities market is segmented by technology into IoT, AI & ML, cloud computing, 5G networking, edge computing, and others. Among these, the IoT segment held a significant share in 2024 and is expected to grow at a rapid pace during the forecast period. This is because of the high proliferation of smartphone applications in smart cities and the adoption of high-speed internet access. Moreover, businesses are rapidly utilizing electronic gadgets for requiring mobility and wireless connectivity, in various industrial verticals like logistics, healthcare, and retail operations.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom smart cities market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Satellite Vu
• Telensa
• WRLD
• TechNovator
• NCTech
• AppyWay
• Others 

Recent Developments:

• In February 2024, BT launched a multi-million-pound NB-IoT network to support the development of smart cities and industries across the UK. The network, which covered 97% of the UK population, was built on EE’s mobile infrastructure and was designed to connect low-data-demand assets like street lighting and underground water sensors. This helped improve efficiency, reduced costs, and enable automation in sectors such as utilities, construction, and the public sector.

• In September 2023, the UK government allocated £4 million to trial smart technology in towns and cities, aiming to enhance local connectivity. Six areas across the UK have been awarded funding to test smart street lamps that could house EV charging hubs and improve wireless coverage, including 5G.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom smart cities market based on the below-mentioned segments:

United Kingdom Smart Cities Market, By Application

• Smart Transportation
• Smart Governance
• Smart Building
• Environmental Solution
• Smart Utilities

United Kingdom Smart Cities Market, By Technology

• IoT
• AI & ML
• Cloud computing
• 5G networking
• Edge computing
• Others