Urbanization – Smart Cities

The world population is moving from rural to urban locations and the urban populations will grow by an estimated 2.7 billion over the next 40 years. Cities are facing unprecedented challenges as the pace of the urbanization movement is increasing exponentially.


150.000 new town residents per day

Every day, urban areas grow by almost 150 000 people, either due to migration or births. Between 2011 and 2050, the world’s urban population is projected to rise by 72 % (i.e. from 3.6 billion to 6.3 billion) and the population share in urban areas will grow from 52 % in 2011 to 67 % in 2050. In addition to the increase of city population, due to climate change and other environmental pressures, cities are increasingly required to become “smart” and take substantial measures to meet stringent targets imposed by commitments and legal obligations.

Cities consume 75% of world´s energy

The cities in 2050 are estimated to consume 75 percent of the world’s energy and produce 80 percent of its greenhouse gas emissions. At the same time, the population is ageing and by 2050 the number of people over the age of 60 is expected to triple and will outnumber children under 15 for the first time in history.

Estimated value of global Smart City business

The global Smart City market will be valued at 1.565 billion USD in 2020. Over 26 Global Cities are expected to be Smart Cities in 2025, with more than 50% of these smart cities from Europe and North America. This will urge the change of urban governance as well as governments of Smart Cities are transforming from a traditional model of a silo-based organization to a more collaborative, integrated service delivery model. Cities will collaborate with each other to drive smart city innovation by entering partnerships with each other.

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The business challenges and possibilities outside EU & US in 2017

The year 2016 is coming to the end and we are looking forward to the new year 2017 with a sense of ambiguity: the Brexit gave the first shock to the EU in 2016 and as if that were not enough, the US election changed the game plan.

Or did they?

What has changed or is changing in the real world. The head line news has hardly affected to any real, tangible needs of people in the Latin America, Africa or Central Asia, or any other region or country in transition, as an example.

The European economy is limping ahead; technological new gadgets are being taken into use practically every day but the real changes are taking place in the transition economies; their needs are the most tangible and visible.

Urbanization – the Ongoing Megatrend

Urbanization is changing the nature of business as about 150, 000 people around the world are moving into urban- like environment every day. That process opens tremendous business opportunities to companies. Concurrently with the accelerating mobility of population, the needs to develop new methods to the protection of nature and environment are increasing.  The mankind just cannot afford anymore to carry on the reckless contamination of soil or air pollution as we have done in the past, ultimately causing the extinction of species.

Urban populations interact with their environment; urban people change their environment through their consumption of food, energy, water, and land. In turn, the polluted urban environment affects the health and quality of life of the urban population hence, urbanization is also likely to concentrate some environmental effects geographically.

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