Global AI in Urban Planning Market to Hit USD 13.60 Billion by 2035 | CAGR 19.65%

Read more about this report- Global AI in Urban Planning Market to Hit USD 13.60 Billion by 2035 | CAGR 19.65%

The AI in Urban Planning Market is valued at USD 1.89 Billion in 2024. The market is projected to reach USD 13.60 Billion by 2035 through a robust CAGR of 19.65% from 2025 to 2035. One of the greatest market expansion factors is a surge in the incidence of smart city projects on a global scale, and one of the growth threats is the data privacy issues regarding the gathering of urban data. Further, an opportunity exists where state-of-the-art machine learning algorithms are integrated into augmented predictive urban analytics.

There are five segments in the market, which involve Components (software, hardware, and services), Applications (infrastructure planning, traffic management, environmental monitoring, and land use planning), Technology (machine learning, natural language processing, and computer vision), Data Source (satellite imagery, IoT sensors, and social media data), and End Users (government agencies, urban planners, and construction firms). The software segment is the largest and is poised to dominate in the future, as there is an increased need for data-driven decision-making instruments and advanced visualisation platforms.

Fields of application include traffic control, infrastructure and traffic optimisation, environmentally friendly sustainability, and emergency management, with traffic control being one of the prime areas where AI and traffic have seen major innovations provided by real-time traffic prediction and threshold-free traffic control by signal adaptation of autonomous vehicles. The trend of growing integration in the IoT and big data analytics also drives this segment. The Smart Cities Mission in India provides another example showing a government-led initiative aiming at increasing the use of AI to make urban planning and infrastructure more efficient.

Geographically, the market is inclusive of North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Specifically, South Korea is becoming an important actor because it is investing intensively to develop AI-based urban infrastructure and activities that foster smart cities at the national level. The top vendors awaiting the AI in the urban planning market include the IBM Corporation, Siemens AG, Cisco Systems, ESRI, and Hexagon AB. These companies shape the market forces with the solutions intended for the more intelligent urban ecosystems in the form of a substantial AI offering, strategic partnerships, and constant innovation.