BANGALORE, October 13, 2016 —
– Overall Spend to Build 100 Smart Cities in India is Pegged at $31 Billion (E) Between 2015-2020
– Over 60% of the Total Technology Spend Would be in Tier III Cities
– Nearly ~45% of the Technology Spend Will be Driven by 3 States Namely UP, Maharashtra and Tamil Nadu
Zinnov, a leading management consulting firm, today released its much-awaited study on ‘Technology Opportunity in Smart Cities in India’. The study brings to light the Government’s plans of building ‘Smart Cities’ and addresses major urban challenges thereby improving the economic contribution. The overall investments required to build 100 smart cities would be in excess of $31 billion over 5 years i.e. 2015-2020 and over 5% of the total spend i.e. $1.5-2 billion would be on technology. Nearly 50% of technology investments would be on cloud solutions spread across setup of private data centers, cloud-based delivery platforms, analytics, and IoT-enabled solutions, etc.
Commenting on the released study, Praveen Bhadada, Partner and Practice Head, Zinnov said that at $870-950 million, Transportation and Power would be the biggest technology spend categories within smart city initiatives followed by Water and Sewage, Governance, Waste Management cumulatively accounting for over $685 million in 5 years. Over 60% of total technology spend would be in Tier-III cities.
The study highlights that the technology spend would be maximum in West region followed by South, North and East respectively. Nearly ~45% of the technology spend will be driven by 3 states namely UP, Maharashtra and Tamil Nadu.
As per the Zinnov analysis, 13 states are categorized as the leaders with high spend on both, overall and technology spend, cumulatively accounting for over 80% of overall and technology spend.
Rajat Kohli, Engagement Manager, Zinnov added that the development of 100 smart cities in India would result into $200 billion of additional contribution in the GDP, 10 million jobs and over $10 billion savings in traffic congestion with the help of smarter technology.
As per Zinnov, global and Indian tech vendors, real estate developers, cross border government institutes and industry associations would make investments in innovative go-to-market strategies and partnerships to tap this huge opportunity. At present, most technology vendors have limited offerings across key focus areas of the initiatives and it would be a challenge for them to integrate their offerings with new and existing physical infrastructure setup in a smart city. They would need to aggressively work on development of local ecosystem, solution customization and regulations management to maximize the opportunity.
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