The rise of innovation in government provides one of the key opportunities to build more sustainable cities. ‘Smart’ cities, characterized by using technologies such as sensors and advanced data analytics, are powering new forms of urban governance and decision-making. Global spending on smart city initiatives is forecasted to exceed USD 440 billion in 2025, with a significant portion of funds directed toward smart mobility, energy, and public safety. These smart city solutions demonstrate one of the potential blueprints that cities can use to address urban sustainability and resource management and enhance the quality of citizen life. While smart technologies have spread across developed and developing countries, the OECD estimates that just 1% of the data gathered by smart city sensors is actually utilized. Therefore, there remains immense opportunity for these technologies to be better leveraged to create meaningful impacts.
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The Rise of Smart Cities
Smart cities are rapidly emerging as a solution to the challenges posed by urbanization. By leveraging cutting-edge technologies such as the Internet of Things (IoT), artificial intelligence (AI), big data analytics, and sensory technology, smart cities aim to improve efficiency, reduce environmental impact, and repurpose urban footprints. From optimizing energy usage to managing traffic flow, these innovations offer a new pathway for urban living that shifts the historical precedent of overconsumption, high emissions, and high congestion to one that is optimized.
Smart technologies enable cities to collect, analyze, and act upon vast amounts of data generated by urban activities. For instance, smart grids improve energy efficiency by dynamically adjusting energy supply based on demand, while intelligent transportation systems reduce congestion and emissions by optimizing traffic patterns in real time. In some cities, smart grids are already expected to reduce energy consumption by 15-20% over the next decade.
Yet cities are diverse places, so how cities incorporate these technologies to become ‘smart’ is not uniform. The existing urban land-use and city design have implications for how a city can meaningfully integrate technologies in its most effective capacity. Peter Griffiths of BABLE Smart Cities told us, “Europe’s infrastructure and buildings are largely there, so the goal is to retrofit or to decarbonize demolition and rebuild. Some of the newer cities in Asia and Africa are being built with smart from the ground up, potentially giving them some advantages. Smart cities should enable people to decide what they want to accomplish in a way that supports human flourishing, from mobility to energy use to how and where we work and live.”
Transforming Daily Life
The integration of smart technologies into urban infrastructure has a profound impact on how people live, work, and interact within cities. Smart homes equipped with energy-efficient appliances and connected systems empower residents to monitor and reduce their energy consumption. In public spaces, smart lighting systems, such as those deployed in Barcelona, enhance safety and reduce energy use by automatically adjusting brightness based on activity levels.
Transportation is another sector suitable for smart city innovations. Global investments in smart mobility solutions, including electric vehicles (EVs) and autonomous transport, are expected to reach USD 3 trillion by 2040, reshaping urban mobility and reducing congestion. Ride-sharing platforms, autonomous vehicles, and integrated public transport systems make commuting more efficient and environmentally friendly. Smart parking solutions guide drivers to available spots, reducing time spent searching and minimizing traffic congestion and emissions created by idling. Investments in bike-sharing and e-bikes also help advance sustainable mobility through mobile applications that make it easier for residents to access alternative transport options that are connected and geo-positioned.
Health and well-being also benefit from smart city initiatives. Sensors monitoring air quality and water purity help cities address pollution and ensure access to clean resources. Urban planners use data to design green spaces and recreational areas that promote physical and mental health.
Innovative Urban Technology
One of the most promising aspects of smart cities is their ability to address specific challenges through tailored solutions. For example, smart waste management systems use sensors to monitor bins and schedule pickups only when necessary, reducing costs and emissions. In disaster-prone areas, early warning systems powered by IoT devices provide real-time alerts, enabling swift responses with the ability to save lives.
As Dr. Tiago Miguel Ferreira, a Senior Lecturer in Smart and Resilient Cities and Structures at the School of Engineering at the University of the West of England told us, “innovative AI-driven early warning systems for climate-related hazards are set to become instrumental in future risk management strategies. Machine learning models can analyze weather patterns, seismic activity, and hydrological data, providing city officials with crucial time to prepare and implement protective measures. Additionally, smart drainage systems can dynamically adjust water flow based on rainfall forecasts, preventing urban flooding and reducing strain on stormwater infrastructure.”
Educational opportunities are also enhanced in smart cities. Digital platforms and connected devices facilitate remote learning and access to resources, bridging gaps in education. Meanwhile, local governments use data-driven decision-making to allocate resources more effectively, ensuring equitable access to services such as healthcare, housing, and education.
Digital maps are another such tool that can drive transformative change. According to Carlo Ratti, Professor at the Massachusetts Institute of Technology and Director of the MIT Senseable City Lab, “digital maps are the unsung heroes of urban efficiency, turning abstract data into actionable insights. They aren’t just for navigation anymore – they are living platforms that shape how we move, work, and interact. Urban policy can deploy these tools in transformative ways to improve lives. Consider dynamic mapping for mobility. Cities like Singapore use real-time traffic data to optimize bus and train schedules. Similarly, pedestrian heat maps encourage walkability by identifying underserved areas for new crossings or shaded walkways, improving both health and equity.”
People-Centered Smart Cities
The ongoing evolution of smart cities offers a glimpse into a future where urban areas are not just centers of economic activity but also hubs of innovation and sustainability. By prioritizing technological integration and focusing on human-centric design, smart cities have the potential to create environments that are inclusive, efficient, and resilient. The adoption of smart technologies is expected to reduce urban carbon emissions by 15-30% by 2030, significantly contributing to sustainability goals. From reducing environmental footprints to enhancing daily conveniences, the benefits of smart cities are far-reaching and transformative.
Professor Carlo Ratti describes technology and data as a lens to see issues of climate, equity, and resilience, rather than a solution. Rather than ‘Smart’ cities, which emphasize technology’s role, Professor Ratti’s Lab at MIT aspires to facilitate ‘Senseable’ cities, which has dual meaning: “both ‘able to sense’ and ‘sensible’. A Senseable city aspires to put people at the center – rethinking everything from energy use to mobility, water management to participatory governance.”
As we design and implement advanced technologies and integrate them into our urban fabrics, cities will also grapple with new ethical questions and must make decisions on privacy. Sensors and video technology can increase efficiencies and improve the built environment, but there is also risk of eroding personal freedoms, over-monitoring, and exacerbating social inequalities. Community input will be essential to the success of these technologies, so people can collectively can decide what we allow into our cities, including those aspects we embrace, and those we reject. Only then can we maintain human-designed spaces that do not reduce every plot of land or building facade to its most efficient use, but instead to its best use. As Peter Griffiths concluded, “if we want to achieve smart and sustainable futures, we have to consider which policies are inflationary and which are supportive. And if we want smart transitions, we still need spaces in cities where people can just play.”
