The Smart Cities segment in India is poised for significant growth during the forecast period, driven by increasing demand for high-performance computing, enhanced reliability, stability, and supportability, reduction in ongoing costs, elimination of traditional systems and manual processes, and improved security. The Smart Cities Market revenue in India is expected to grow at a CAGR of 19% during 2026–2031, reaching an aggregate of US$ 48 billion by 2031.
The Indian Government’s $7 billion Smart City Mission aims to implement smart solutions to enhance infrastructure and service delivery across Indian cities. This initiative encompasses multiple facets of the Internet of Things (IoT), including smart energy, smart transportation, smart infrastructure, smart buildings, smart security, connected homes, and smart healthcare.
In the coming decades, the urban sector will play a critical role in the structural transformation of the Indian economy and in sustaining high economic growth rates. Ensuring high-quality public services in cities and towns is essential not only as an end in itself but also to realize India’s full economic potential. Economic growth cannot be sustained without actively facilitating urbanisation, nor can poverty reduction be achieved if the needs of the urban poor are isolated from broader urban management challenges. Cities must become engines of national development, requiring a fundamental shift in mindset that bridges the traditional rural-urban divide.
The COMPAXED team provides expertise in the Smart Cities segment, supporting clients through M&A, Investment Banking, and Corporate Advisory services.
