Gartner Research

Market Trends: Digital Business Opportunities in Smart Cities Need IoT Foundations

Published: 17 June 2014

ID: G00263702

Analyst(s): Alfonso Velosa, Bettina Tratz-Ryan


Many cities are deploying sensors for data to build digital citizen and government services, but few specifically reference or focus on IoT solutions. Efforts to build IoT best practices and value come from a mix of hackathons, sensorized urban assets and innovative city departments.

Table Of Contents


  • The IoT Is Emergent, Especially in a City Department Context
    • IoT Can Find Business Intelligence and Best Practices in Many Communities
    • IoT Will Enable Commercial Business Opportunities

Market Trend

  • IoT Use Cases and Best Practices in Cities Are Emerging
  • Market Structure Trend
    • Pace of IoT Deployments Depends on Uncovering the Value of the Information of Things
  • Technology Trend
    • Smart City Must Leverage IoT Architecture Elements
  • Buyer Trends
    • City Departments Are Focused on Solving Local Issues Based on Scarce Funding

Contrarian View

  • If Privacy and Information Protection Issues Cannot Be Resolved, Citizens Will Push Back on IoT Adoption

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