Stakeholders, Global

Frost & Sullivan California

25.07.2017 - 17:13:09

Stakeholders in Global Smart City Market Seek New Funding Models to Monetize Projects

Growth Partnership Subscription. The study analyzes and profiles each financing mechanism to understand the key aspects of smart city projects. This will give stakeholders a holistic view of the infrastructure and financing involved in developing smart cities.

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The creation of smart cities will have wide implications for all industries offering public and private services. For instance, smart cities will disrupt public utilities segments such as energy, transportation, waste management and water distribution. Private participants in industries such as ICT will fuel this disruption by integrating their services and providing hardware to change the way citizens live.

"In developing countries, stakeholders in smart city development often resort to direct financing through government allocation or international grants. However, international grants and financing are dependent on political and economic stability," noted Mukherjee. "To attract foreign funding, which often is complemented by transfer of technology and expertise, local governments must focus on their ease-of-doing-business indicators."

Meanwhile, participants in developed economies rely more on revenue-based financing models to build infrastructure. Stakeholders from both types of economies have found great value in adopting the public and private partnership model, even though the terms of agreement may vary according to the region.

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Smart Cities Funding Models

Francesca Valente
Corporate Communications – Americas
P: +54 11 4777 5300
F: +54 11 4777 5300



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