Smart Infrastructure Market Trends

Growth Drivers

• Implementation of telecommunication network: The endeavor of developing smart infrastructures is based on high-speed, effective, and secured communication through telecommunication networks such as fiber optic cables, cell towers, switches, routers, and data centers. Technologies to be integrated with the network include 5G, IoT, cloud computing, and AI for optimization through systematic network planning, infrastructure deployment, configuration, security, testing, and maintenance to obtain high-speed data transmission, improvement in customer experience, and operational efficiency. A well-planned telecommunication network would facilitate various applications in a smart city; hence, living conditions and sustainability would be improved in the locality.
• Increase in adoption in non-residential sectors: A growing influx of smart infrastructure within non-residential settings such as commercial buildings, industrial facilities, healthcare, education, and government frameworks, associated with the adoption of BMS, EMS, security and surveillance systems, network infrastructure Wi-Fi, IoT, data analytics, and insights are driving market growth. This assists in fulfilling the demand for energy and operational efficiency, improved security, occupant experience, and sustainability. As the non-residential sector continues to evolve, smart infrastructure will increasingly play its role in shaping the future of buildings and facilities.
• Favorable government policies and initiatives: Governments across the world initiate different programs to develop sustainable, efficient, and resilient urban ecosystems. Incentives for developing smart infrastructure solutions with energy-efficient buildings, and data analytics platforms through funding, policies, and regulations are being facilitated by governments. This can stimulate economic growth and job opportunities while improving the quality of life and advancing innovation. 

Challenges

• Rising concerns about data privacy: Data privacy is a paramount concern in smart infrastructure, owing to the vast range of personal and sensitive data being generated through connected devices and sensors. Furthermore, the threat of maintenance of confidentiality, integrity, easy availability of data, stringent control over individual rights, cyberattacks, and protection of personal information prevails.
• High upfront costs: Smart infrastructure solutions require a high upfront investment cost that includes designing, procuring, and deploying advanced technologies. Moreover, hardware and software costs involved in integration and testing require the training and support of highly skilled personnel. As a result, owing to the financial burden organizations would deter themselves from pursuing smart infrastructure projects despite its long-term benefits hindering the growth of the market.