Smart city technologies could save enterprises, governments and
citizens globally over US$5 trillion annually by 2022 according to
a new whitepaper by ABI Research. The new white paper analyzes the
scope for cost savings and efficiency as a driver for smart city
deployments, smart technologies and the IoT.
According to the report, titled ‘Smart Cities and Cost Savings,’
the use and deployment of IoT and smart technologies will be
pivotal to the future success of smart cities, but only if players
collaborate to embrace a holistic approach. With higher
concentrations of people and enterprises in cities as a result of
urbanization, smart city and IoT technology, along with new sharing
and service economy paradigms, will be key for cities to optimize
the use of existing assets, maximize efficiencies, obtain economies
of scale and ultimately create a more sustainable environment.
Automation, artificial intelligence, along with sensors,
data-sharing and analytics, will all be critical in helping cities
save costs.
The report, commissioned by InterDigital (NASDAQ:IDCC), on
behalf of its Smart Cities-focused business, Chordant™, in
partnership with CA Technologies (NASDAQ:CA), considers the
aggregated absolute cost-saving potential for the government,
enterprises and citizens in a typical smart mega city of the future
(i.e., in the next 5 years) with 10 million inhabitants. This is
based on the yearly savings achievable for 75 of the world’s cities
that have a total urban population of more than 5 million (source:
World Atlas). Key cost savings from the ABI Research report
highlight that, in each such typical smart mega city of the
future:
- Governments: Could save as much as $4.95
billion annually. Street lighting and smart buildings are two areas
that could yield savings, with smart street lights expected to cut
repair and maintenance costs by 30 percent.
- Enterprises: A $14 billion cost-saving
opportunity exists for enterprises, in areas that include freight
transportation by using more energy efficient transport options,
such as drones, robots or driverless vans and trucks, and smart
manufacturing plants.
- Citizens: Savings of up to $26.69 billion per
year could be achieved in areas such as utilities, through the
deployment of smart meters and micro-grids, and in education with
the development of a hybrid education system (physical and
online).
“While smart cities technologies offer multiple benefits, very
significant direct cost savings represent a key incentive to
embrace urban innovation for city governments, citizens and
enterprises alike; this allows building stronger business cases
with faster ROI, facilitating project approval and accelerating
deployments,” said Dominique Bonte, VP President, Markets, ABI
Research.
The report references a B2B technology survey of 455 US-based
companies across nine vertical markets conducted in March 2017 in
which the companies ranked a list of 11 key benefits expected from
implementing innovative technologies. “Reduction in operational
costs” barely surpassed “faster and more efficient decision making”
as the number one expected benefit, with a five percent margin.
“Smart cities are built upon the Internet of Things (IoT)
allowing citizens to reimagine how they work, live and play,” said
Rahim Bhatia, General Manager, API Management, CA Technologies.
“We’re excited to see quantifiable outcomes being delivered across
today’s local governments, with application programming interfaces
(APIs) playing a fundamental role in seamlessly connecting the
critical infrastructure that makes smart cities a reality. If
managed effectively, APIs deliver a number of benefits including
the secure exposure and reuse of open data, acceleration of app
development velocity, and the expansion of city partner ecosystems,
to help maximize ROI and improve decision making across all corners
of the new smart city.”
Additional findings from the report also include:
- The scope for efficiency improvements across all urban sectors
and segments amounts to more than US$5 trillion in yearly cost
savings globally by 2022; and
- Enterprises within a mega city (a city of with a population in
excess of 10 million) could save as much as US$14 billion, or 25
percent of total enterprise costs, with smart city
technologies.
“We understand the important role of smart cities for our
future, and this report further reinforces how much these will
contribute in both economic and social terms,” said Jim Nolan,
Executive Vice President, Chordant, at InterDigital. “But the true
potential of smart cities won’t be realized if governments,
enterprises and citizens don’t work together in harmony. Doing so
will promote the emergence of smart city marketplaces and open
platforms, where third-party players are able to ensure seamless
integration of new smart city technologies into legacy platforms
and systems.”
The new report points to several use cases of smart city
technology. One example is the oneTRANSPORT project in the United
Kingdom which used the Chordant platform to address challenges in
transportation systems with IoT technology. The oneTRANSPORT
project enabled transport information to be shared by a number of
stakeholders including transport authorities, municipal
authorities, and new third parties, to optimize transport networks
across towns and cities.
The full ABI Research report, ‘Smart Cities and Cost Savings,’
is available to download here.
About InterDigital®
InterDigital develops mobile technologies that are at the core
of devices, networks, and services worldwide. We solve many of the
industry's most critical and complex technical challenges,
inventing solutions for more efficient broadband networks and a
richer multimedia experience years ahead of market deployment.
InterDigital has licenses and strategic relationships with many of
the world's leading wireless companies. Founded in 1972,
InterDigital is listed on NASDAQ and is included in the S&P
MidCap 400® index.
InterDigital is a registered trademark of InterDigital, Inc.
Chordant is a trademark of InterDigital.
For more information, visit: www.interdigital.com.
About Chordant™
Chordant, an InterDigital business, is part of a global company
passionate about innovation and a standards-based approach that
stimulates thriving global ecosystems. Solutions powered by the
Chordant platform address the fundamental challenges in Smart City
deployments. Like a perfect chord of musical notes, the Chordant
platform brings harmony to diverse devices, data and services. We
have created one of the largest Smart City deployments, integrating
hundreds of transport data sources into a transport data
marketplace. Our Smart City solutions have also been recognized by
leading analyst firms and organizations. For more information,
visit: www.chordant.io.
About CA Technologies®
CA Technologies (NASDAQ:CA) creates software that fuels
transformation for companies and enables them to seize the
opportunities of the application economy. Software is at the heart
of every business in every industry. From planning, to development,
to management and security, CA is working with companies worldwide
to change the way we live, transact, and communicate – across
mobile, private and public cloud, distributed and mainframe
environments. Learn more at www.ca.com.
InterDigital Contact:Patrick Van de WilleEmail:
patrick.vandewille@interdigital.com +1 (858) 210-4814
CA Technologies Contact: Kelley SchultzEmail:
Kelley.schultz@ca.com+1 (646) 826-6035
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