Smart City and IoT markets projected to expand through AI integration

The Internet of Things (IoT) landscape is evolving from basic device connectivity toward AI-powered, application-centric environments. Connectivity Management Platforms (CMPs) are shifting to include AI-enabled, cloud-native capabilities to transform device telemetry into actionable business insights across sectors such as manufacturing, healthcare, and logistics.

Simultaneously, the global smart city platforms market is projected to grow significantly. According to market intelligence from Business Market Insights, the market is expected to reach US$ 61.42 billion by 2033, rising from a 2025 valuation of US$ 24.58 billion. This growth is driven by a compound annual growth rate (CAGR) of 12.13% between 2026 and 2033.

Technological advancements in AI-driven analytics, edge computing, and digital twin simulations are enabling city administrators to move toward proactive, predictive governance. These platforms serve as integrated software ecosystems that unify municipal departments like transportation, public safety, and water management into interoperable dashboards.