On the way to a smart city

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Big cities want to become smart

Whether it’s for digital citizen services, modern heating networks, or energy-efficient buildings, cities and towns are increasingly turning to digital technologies. Smart city projects combine technological innovation with sustainable solutions, from connected transport systems to smart energy grids. The goal is clear: more efficient cities with greater proximity to their citizens.

Of the 236 respondents, 64 percent state that a smart city project has already been implemented in their city. There is a clear correlation here: the larger the city, the higher the frequency of such projects.

Large cities are under particular pressure, as traffic congestion, air pollution, housing shortages, and energy issues are especially pressing there. Smart city technologies such as traffic management, digital citizen services, and smart energy grids are particularly beneficial in areas that are large and densely populated. Sensors, data platforms, and mobility solutions are significantly more useful in large cities than in smaller communities.

Six out of ten respondents say that a smart city project is currently being planned in their town. New projects will be launched in the coming twelve months, primarily in large cities (78 percent), respondents state.

Sources: Deloitte, MobilityMindz, #svm/F.A.Z. Business Media | research

Digital administration remains the biggest challenge

Smaller towns tend to focus on targeted solutions to individual problems. Digital citizen services, e-charging stations, and energy savings in street lighting, for example, are important issues here. Traffic congestion and greening are less pressing issues, whereas comprehensive public transport is. The topics of smart city projects that have already been implemented or are planned vary accordingly. In towns with fewer than 20,000 inhabitants, respondents indicate that projects in the area of digital administration are being predominantly implemented. Energy and the environment, as well as data management, follow a long way behind.

All respondents, regardless of whether a smart city project has already been implemented or is in the planning stage, see the greatest need for action in digital administration. Data management is the second biggest challenge, followed by infrastructure and mobility. Respondents from large and medium-sized cities mention the topic of mobility more often than average. It is striking that larger cities name several areas for action. While respondents from rural communities highlight an average of just over two topics, those in cities with more than 500,000 inhabitants name almost five. Medium-sized cities fall between these extremes, with an average of three and a half mentions.

Sources: Deloitte, MobilityMindz, #svm/F.A.Z. Business Media | research

Biggest bottlenecks in terms of money and staff

Smart city projects are an important building block for the digital transformation of towns and cities. However, respondents also face a number of hurdles on their way to becoming smart towns or cities. First and foremost, there is a lack of money.

Some 75 percent of respondents see financing as an obstacle. It is important to note that 81 percent of respondents state that their smart city projects are financed from municipal funds. In addition, subsidy programs play an important role (70 percent). Private investors have so far been virtually uninvolved (5 percent).

From the respondents’ point of view, staff shortages and a lack of skills among administrative staff are the second biggest obstacle to smart city projects, with 67 percent citing this issue. Only just over half of respondents from large cities attest to administrative staff having a high level of expertise in dealing with smart city issues.

Sources: Deloitte, MobilityMindz, #svm/F.A.Z. Business Media | research