Explore our latest thought leadership, ideas, and insights on the issues that are shaping the future of business and society.
Choose a partner with intimate knowledge of your industry and first-hand experience of defining its future.
Discover our portfolio – constantly evolving to keep pace with the ever-changing needs of our clients.
Become part of a diverse collective of free-thinkers, entrepreneurs and experts – and help us to make a difference.
See our latest news, and stories from across the business, and explore our archives.
We are a global leader in partnering with companies to transform and manage their business by harnessing the power of technology.
Our number one ranked think-tank
Explore our brands
Explore our technology partners
The report “Street Smart: Putting the citizen at the center of Smart City initiatives” reveals that more than half of citizens (58%) perceive smart cities as sustainable and that they provide a better quality of urban services (57%). That explains why more than a third of them (36%) are willing to pay more for this enriched urban existence. However, serious challenges to implementation exist, particularly in terms of data and funding.
Capgemini has found that only one in ten city officials say they are in the advanced stages of implementing a smart city vision, and less than a quarter (only 22%) have begun implementing smart city initiatives – a particular challenge as two-thirds of the world’s population is expected to live in a city by 2050, with the number of megacities set to rise from 33 today to 43 by 2030. Moreover, there is a considerable global desire for smart cities among citizens, meaning an accelerated approach would be well received.
The key to unlocking an improved urban life
According to the report, sustainability is of increased importance for urbanites. Citizens find challenges such as pollution (42%) and of lack of sustainability initiatives (36%) a major concern and may leave their city as a result. However, over the past three years, 42% of city officials say that sustainability initiatives have lagged, and 41% say their cities becoming unsustainable over the next 5-10 years is one of the top five consequences of not adopting digital technology.
While smart city initiatives can lead to improvements across urban services, Capgemini has found that perception is key, and that the benefits aren’t just limited to tangible outcomes. Citizens using smart city initiatives are happier with the quality of their city life. For example, 73% say they are happier with their quality of life in terms of health factors, such as air quality. However, this drops sharply to 56% among those who have not used a smart city initiative. More than a third of citizens (36%) are willing to pay to live in a smart city. This figure rises for younger and richer citizens: 44% among millennials, 41% among Gen Z respondents and 43% among those earning more than $80,000.
Data and funding are critical implementation challenges
Although smart cities can solve some of the traditional pain points experienced in cities, such as public transport and security, serious challenges to implementation exist. Data is central to smart city optimization, yet 63% of global citizens say the privacy of their personal data is more important than superior urban services. Meanwhile, almost 70% of city officials say that funding their budget is a major challenge, and 68% of officials say they struggle to access and build the digital platforms needed to develop smart city initiatives. From a citizens’ perspective, 54% think BigTech firms would provide better urban services than those currently in place.
Matthias Wieckmann, Head of Digital Strategy, City of Hamburg, says: “When considering a smart city initiative, it is best to start with small uses cases that can be tested before expanding and securing visibility and viability for funding. For city officials early in their journey, smaller solutions will help pave the way faster rather than starting with a big overall solution. It is also easier to find acceptance, support and finance for projects this way.”
Smart city initiatives help to manage the COVID-19 crisis
Smart Cities can help to address pandemics, Capgemini has found that as the world tackles COVID-19, city officials are using technology to address some of the challenges faced. 68% of city officials have found that digital initiatives like apps which connect people to healthcare facilities or provide remote patient monitoring are helping them to manage the crisis. The city of Bengaluru, India, repurposed its command center into a ‘war room’ to follow patients and draw up containment plans using heat mapping technologies. In Rome, airport staff are using smart helmets with augmented reality and thermal scanners to screen multiple visitors simultaneously while maintaining a safe distance.
Accelerating implementation requires close collaboration between key stakeholders
Innovative technology – and the funds to innovate and deliver – will not in themselves create a smart city. Collaboration between stakeholders like local government officials, citizens, and third parties including start-ups, academic institutes or venture capital funds is key. To that extent, Capgemini recommends a three-phased approach for city officials:
Pierre-Adrien Hanania, Capgemini’s Global Offer Leader for AI in the Public Sector, says: “Smart city perception and status have become an important differentiator for citizens. It has become crucial for city planners and officials to realize that the citizens are the smartest asset a city has and to put them at the center of smart city initiatives. City officials must work to ensure that technology-led interventions give people the experience and quality of life that they want and need. By doing so, cities will avoid their inhabitants leaving for another city and will enhance their digitization pathway, benefiting of the willingness of citizen to invest in their home. Furthermore, smart initiatives allow cities to be more resilient to challenges like COVID-19 but to achieve that, it is key to federate both the data environment and the city’s stakeholders in order to shape the blueprint of their city together – putting sustainability, data privacy and the city’s DNA at its core.”
To read a full copy of the report and its recommendations, click here.
The Capgemini Research Institute conducted an extensive consumer survey of more than 10,000 citizens and an executive survey of 310 city officials spread across 10 countries and 58 cities, including the US, the UK, France, Germany, Netherlands, Italy, Spain, Sweden, India, and Singapore.
Capgemini is a global leader in consulting, digital transformation, technology and engineering services. The Group is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year+ heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. Today, it is a multicultural company of 270,000 team members in almost 50 countries. With Altran, the Group reported 2019 combined revenues of €17billion.
Visit us at www.capgemini.com. People matter, results count.
About the Capgemini Research Institute
The Capgemini Research Institute is Capgemini’s in-house think-tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners. The Institute has dedicated research centers in India, Singapore, the United Kingdom and the United States. It was recently ranked #1 in the world for the quality of its research by independent analysts.
Visit us at https://www.capgemini.com/researchinstitute/
 For this research Capgemini has used the United Nations Economic Commission for Europe definition of a smart city: “A smart sustainable city is an innovative city that uses information and communication technologies (ICTs) and other means to improve quality of life, efficiency of urban operation and services, and competitiveness, while ensuring that it meets the needs of present and future generations with respect to economic, social, cultural and environmental aspects”.
 A megacity is a very large city, especially one with more than 10 million people living in it.
 “68% of the world population projected to live in urban areas by 2050, says UN”, (UN, May 2018)
 Millennials (also known as Generation Y) include all those born between the early 1980s and the late 1990s. It succeeds generation X and precedes generation Z beginning in the year 2000.
 “45 smart city command and control centers turn into COVID-19 war rooms”, The Economic Times, March 2020
 “Italian airport leads Europe in adopting AR thermal scanning helmets”, Venturebeat, May 2020
You may accept all cookies, or choose to manage them individually. You can change your settings at any time by clicking Cookie Settings available in the footer of every page.