The combination of AI and urban mobility is now necessary, not just a pipe dream. Cities are rushing to implement data-driven, intelligent ecosystems that are resilient, sustainable, and efficient as a global industry grows at a rate of trillions.
Thanks to advancements in IoT and artificial intelligence, the global smart city market is rapidly changing. The market for AI in smart cities is projected to reach around USD 50.6 billion by 2025 and expand at an astounding CAGR of almost 28 percent to reach USD 460 billion.
Simultaneously, the larger smart cities market is valued at approximately USD 624 billion and is expected to reach USD 4.65 trillion by 2032.
Growing urban problems, such as traffic jams, public safety issues, deteriorating infrastructure, and environmental stresses, are driving this exponential growth. AI-powered traffic management, predictive policing, digital twins for climate resilience, and smart utilities are being implemented by cities in North America, Europe, and the Asia-Pacific region. At the core of intelligent transportation, real-time surveillance, curbside analytics, and autonomous mobility are machine learning and computer vision.
Moreover, cities are achieving measurable outcomes: AI-driven traffic projects aim to slash commute times by over 20 %, while pilot studies show reductions in urban congestion by up to 30 %. Digital twins for urban systems are now in use in more than 500 cities to enhance climate and infrastructure resilience.
Autonomous vehicles are pivotal to this transformation.
