Tokyo - September 27, 2010 - As smart city projects start across the world, Nikkei Business Publications (President & CEO: Yasuo Hirata; Tokyo) has conducted a research on the smart city market and announced that the market size will be a cumulative total of 3,100 trillion yen for the next twenty years. A smart city is a new initiative aiming at sustainable growth with effective IT-based operation of energy and infrastructures and reduced CO2 and waste emissions.
Nikkei BP Cleantech Institute, Nikkei BP's think tank specializing in environmental and energy issues, studied 100 smart cities out of 300-400 smart city projects worldwide and, based on the data gathered, forecasted the smart city market. Of the elements constituting a smart city, energy-related industries (power grids, renewable energies including photovoltaics, batteries, next-generation automobiles, etc.) alone are projected to grow from what is approximately a 45 trillion yen market in 2010 to 180 trillion yen in 2020. The smart city market as a whole will reach a cumulative total of 3,100 trillion yen for 20 years up to 2030 (Figure 1). The investment in batteries, in particular, is expected to account for 50% of all the investment after 2020.
Furthermore, the entire market size will be well over a cumulative total of 5,000 trillion yen if markets in the related fields are included in the calculation, such as water infrastructure, smart housing, smart home appliances, operation and maintenance of the smart city equipment and devices, and services to visualize power consumption. The industries involved will be extensive, from manufacturing industries, such as electricity, electronics, and automobiles, to IT and communications, construction, and services, not to mention electricity and infrastructure.
The detail of the research is included in "Sekai-no smart city soran (Comprehensive Guide to Smart Cities of the World)" published on September 28 by Nikkei BP (research conducted by Nikkei BP Cleantech Institute and TechnoAssociates).
Nikkei BP Cleantech Institute offers information on environmental and energy technology and aims to contribute to decision making processes of companies, industries, and the national government. Leveraging Nikkei BP's influence in the electronics, machinery, IT, and construction industries, it provides information useful for companies to develop their green / energy business.
This press release may contain forward-looking statements that reflect the company's current views with respect to future events and business performance. Those forward-looking statements are subject to certain risks and uncertainties and the company's actual results could differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, among other factors, general business and economic conditions, rapid or unexpected changes in technologies, cancellation or delay of customer orders.
Nikkei Business Publications is part of The Nikkei group, which has newspaper publication as its main business and three additional business divisions of digital media, publishing and broadcasting under its umbrella. Covering a wide variety of specialized areas including business, computer, electronics, construction, services and medicine, Nikkei Business Publications, in July 2008, merged with its sister company, Nikkei Home Publishing, to also bring consumer magazines into its portfolio.