What Makes a Modern Smart City?

Smart cities leverage connected technologies and other emerging systems to effectively meet inhabitants’ needs, improve their lived experience, and deliver civic engagement without compromising on basic considerations like data integrity and privacy protection.
But what technologies and systems does our latest smart cities research identify as being key to the smart city concept?
Smart Buildings
Smart buildings refer to where buildings use information and communications technology-based systems, services, and technology for optimisation of the facility's performance and operations to create a comfortable environment and improve sustainability.
These systems and services often involve IoT devices and solutions, such as sensors, which are utilised to generate data to measure power and air quality, energy, and resource consumption, as well as occupancy, and to predict maintenance needs to achieve efficiency. Collectively, they contribute to the lowering of energy and operational costs and enable inhabitants to make informed decisions about changes or improvements they may want to undertake for buildings their own consumption habits.
Smart buildings differ from ‘connected’ buildings, with the former referring to building operations connected to and run and/or managed by IT networks. On the other hand, smart buildings produce insights from the data collected, often enriched by AI/ML, and feed them into platforms for responsive and highly configurable solutions.
Smart Grid
Smart grids can be broadly defined as an electricity supply network that uses digital communications technology to detect and react to local changes in usage, leveraging analytics and smart metering, and including elements such as microgeneration.
Like smart buildings, smart grid leverages IoT and adapts to changing supply and demand patterns by ensuring communication throughout the value chain without overly relying on separate operators, as well as through data collection and analysis. It acts as an integrated management mechanism to coordinate demand and supply and oversee efficient and sustainable energy distribution.
More importantly, since it is a foundational system, it lays the basis for the efficient functioning of all other smart city components, such as smart lighting, buildings, and interrelated systems such as EV charging.
Smart Lighting
Smart lighting is one of the earliest applications of smart cities, where analytics and sensors are leveraged to optimise how lighting is used; helping reduce emissions compared to traditional lighting systems.
With the help of sensors, pedestrian traffic is monitored and adapted to traffic and control systems, which also allowed remote diagnostics and visualisation. Smart lighting also has a role in ensuring public safety. Adoption of smart lighting technologies have also paved the way for the use of other sensors leveraging poles for uses in air quality monitoring and parking, Wi-Fi connectivity, EV charging, and more. In this sense, smart lighting is a precursor to smart city solutions employed.
Smart Traffic Management & Parking
These concepts involve the use of digital technologies to manage vehicular traffic for the purpose of driving efficiencies, reducing congestion, and/or minimising harmful emissions.
Smart traffic management holds a great potential to reduce GHG (Greenhouse Gas) emissions by optimising the traffic flow, especially when complemented or supported by other mobility solutions such as congestion surcharges and carpooling/ride hailing. They also contribute to the prevention of accidents and improve road safety.
Likewise smart parking solutions aim to reduce fuel and time consumption caused by parking efforts and optimise these activities through data collected by PMS (Parking Management Systems) that include sensor-based solutions.
MaaS
MaaS is a type of service which enables users to plan, book, and pay for multiple types of urban mobility services through a joint digital channel. The channel is often a platform that collates different transport modes, as well as parking facilities to deliver the most efficient and seamless route to journeys.
MaaS has gained in popularity within the last decade thanks to increased adoption of local governments and transit authorities/agencies worldwide of the mobility platform solutions to provide unified approaches to transport that encompasses products and services in interconnected industries such as digital ticketing and mobile payments.
MaaS, concurrent to smart city developments, is an area that continues to grow and increasingly adapts alternative modes of transport such as ride sharing/carpooling.
Want more insights and statistics?
Download our latest smart cities whitepaper, which examines how technology is enabling new innovations within urban environments, and assesses key trends driving growth. You can also visit our infographics area, where you'll find infographics ranking the top smart cities in Asia, Europe, North America, and the World.
Latest research, whitepapers & press releases
-
ReportAugust 2026Fintech & PaymentsContactless Payments Market Data: 2026-2031Our Contactless Payments market analysis provides exhaustive data coverage of the market in its entirety, including the adoption of mobile wallets featuring contactless payment technology, the growth of contactless transactions, and the market’s associated values.
VIEW -
ReportAugust 2026Fintech & PaymentsDigital Ticketing Market Data: 2026-2031Our Digital Ticketing report provides exhaustive coverage of the digital ticketing market, including the adoption rates of digital ticketing across different ticketing segments, as well as the use of wearable payments and chatbots.
VIEW -
ReportAugust 2026Fintech & PaymentsQR Code Payments Market: 2026-2031This research provides exhaustive coverage of the QR Code Payments market, including the adoption rates of QR code payment systems across retail, person-to-person (P2P), and ticketing use cases.
VIEW -
ReportJuly 2026IoT & Emerging TechnologyVLEO Satellite Market: 2026-2031Our Very Low Earth Orbit (VLEO) Satellite Market research suite provides comprehensive analysis of one of the fastest-emerging markets within the global space economy.
VIEW -
ReportJuly 2026Telecoms & ConnectivityIPX Providers Competitor Leaderboard: 2026Our IPX Providers Competitor Leaderboard 2026 delivers comprehensive evaluation and examination of 16 leading IPX vendors. It provides mobile network operators and other IPX customers with profiles, competitor benchmarking, and strategic analysis of these leading providers.
VIEW -
ReportJuly 2026Fintech & PaymentsPOS Market: 2026-2031Our Point of Sale (POS) Market research suite provides detailed and insightful analysis of this evolving market; enabling stakeholders - from POS hardware manufacturers, payment infrastructure providers, software developers, and hospitality and retail vendors - to understand future growth, key trends, and the competitive environment.
VIEW
-
WhitepaperJuly 2026IoT & Emerging TechnologyBeyond LEO: Why VLEO is Becoming the Next Growth Market
Our complimentary whitepaper, Beyond LEO: Why VLEO is Becoming the Next Growth Market, explores how VLEO is transitioning from an experimental orbital regime into a commercially viable market.
VIEW -
WhitepaperJuly 2026Fintech & PaymentsFrom Transaction to Transformation: The Future of POS
Our complimentary whitepaper, From Transaction to Transformation: The Future of POS, analyses the current landscape of the POS market. It also provides insight into key trends shaping the POS market, such as POS terminals increasingly being used as a business management platform.
VIEW -
WhitepaperJuly 2026Fintech & PaymentsBeyond the Boarding Pass: The Digital Travel Credential Paradigm
Our complimentary whitepaper, Beyond the Boarding Pass: The Digital Travel Credential Paradigm, examines the rapidly evolving state of the digital travel credential market.
VIEW -
WhitepaperJuly 2026Fintech & PaymentsThe Top Three Drivers of Network Tokenisation Adoption
Our complimentary whitepaper, The Top Three Drivers of Network Tokenisation Adoption, examines the state of the network tokenisation market; considering its impact on different payment modalities, how it is shaping the modern payments landscape through safer, more secure payments, and how it could unlock the potential of agentic commerce.
VIEW -
WhitepaperJune 2026Fintech & PaymentsMoney20/20 Europe 2026 Key Takeaways: What You Need to Know Post-event
Money 20/20 Europe once again brought together people from across the fintech, payments and identity ecosystems; creating three days of discussions, announcements and networking.
VIEW -
WhitepaperJune 2026Fintech & PaymentsChargeback Management: The Fightback Against Friendly Fraud
Our complimentary whitepaper, Chargeback Management: The Fightback Against Friendly Fraud, examines the growing impact of friendly fraud on the chargeback management space, as well as how chargeback management tools are mitigating this threat.
VIEW
-
IoT & Emerging Technology
VLEO Satellites: Global Investment to Near $10 Billion by 2031; Driven by Falling Launch Costs
July 2026 -
Telecoms & Connectivity
Juniper Research Identifies Syniverse, BICS, and iBASIS as Leaders in the IPX Market
July 2026 -
Fintech & Payments
POS Transactions to Reach $41 Trillion Globally by 2031, as Convergence Towards Unified Commerce Surges
July 2026 -
Fintech & Payments
Digital Travel Credentials: 1.2 Billion Passengers to Adopt DTCs Globally by 2035, Fuelled by Passenger Demand for Seamless Journeys
July 2026 -
Fintech & Payments
Network Tokenisation to Secure 2.4 Trillion Global Transactions Between 2026 and 2030 – Representing 86% of Applicable Transactions
July 2026 -
Telecoms & Connectivity
Juniper Research Identifies BICS, Telna, and Vodafone Procure & Connect as Leaders in the Sponsored Roaming Market
July 2026