As the world's urban population grows year after year, cities face increased pressure to adapt and innovate. According to the United Nations, over half of the world's population lived in cities in 2019, with that figure expected to rise to 68% by 2050, according to a study presented at the 21st International Scientific Conference Globalization and its Socio-Economic Consequences 2021. This exponential growth highlights the critical need for cities to strengthen their infrastructure and implement comprehensive urban development strategies.
A global trend has emerged that incorporates innovative technologies such as the Internet of Things (IoT), artificial intelligence (AI), and blockchain technologies into urban management practices. This trend has gained traction as cities around the world deal with the challenges posed by rapid urbanization. The COVID-19 pandemic has highlighted the importance of smart city technologies in managing crises and protecting public health.
The inevitability of digitalization in urban centers is evident, with the proliferation of smart cities expanding across the globe. These cities serve as incubators for innovative solutions, continuously refining their development models to meet the evolving needs of their inhabitants.
Understanding China's Emergence in Smart Cities
A notable player in this landscape is China, renowned for its rapid digitalization efforts and the proliferation of smart cities within its borders. To gain insights into the trajectory of smart city development in China, researchers have undertaken a comprehensive analysis of global trends and the Chinese market landscape.
Drawing on a wealth of scientific articles, reports, and statistical data from reputable sources such as the International Data Corporation (IDC) and PwC, researchers have identified key patterns and trends shaping the smart city market.
Cities, as hubs of human activity and economic growth, wield significant influence across various spheres. However, this concentration of resources often comes at a cost to the environment, prompting concerns regarding sustainability and ecological balance. The emergence of the smart city concept stems from the imperative to mitigate these environmental impacts while fostering urban development.
Early iterations of smart cities focused primarily on environmental sustainability, leveraging ‘green technologies’ to address pressing ecological challenges. Sensor technologies were deployed to monitor air quality, traffic flow, and waste management, laying the groundwork for more sophisticated urban management systems.
As new technologies emerge from decades of research and development, a small number of companies have taken the lead in the transformation of cities. Alibaba, Baidu, DiDi Chuxing, Huawei, and Tencent have all integrated their respective technologies in Hangzhou, Suzhou, Shenzhen, Shanghai, and Beijing, among others. These technologies serve as the foundation for ‘digital brains,’ which leverage cloud computing, AI, and the IoT to create smart city infrastructures.
For example, Alibaba's City Brain—which is an AI-powered system integrated with network infrastructure—revolutionizes urban management by automating traffic systems, optimizing public transportation routes, and identifying environmental issues. Initially piloted in Hangzhou, where Alibaba's headquarters are located, City Brain has significantly improved transit times, reduced ambulance arrival times, and lowered overhead for law enforcement through AI surveillance of traffic violations. Moreover, the system has been deployed in parking lots and hospitals, enabling innovative ‘park-first, pay later’ schemes and supporting medical treatment with Alibaba's Medical Brain, which utilizes AI and big data to enhance patient care.
China’s Five-Year Plan
In 2011, China's 12th Five-Year Plan announced its intention to develop ‘digital cities.’ The plan aimed to accelerate the construction of new-generation IT infrastructure, mobile communication networks, internet infrastructures, digital and television broadcasting networks, satellite communication facilities, and an ultra-high-speed, large capacity, and highly intelligent national trunk transmission network. The government also wanted to build broadband connections in both urban and rural areas to improve interconnectivity.
This infrastructure now serves as the foundation for China's smart cities. Smart cities are urban areas that collect vast amounts of data and harness it to enhance city operations. Developers can build technological applications on a city's critical communications infrastructure, transforming data into insights and insights into tools. These applications, in turn, serve as a form of public-private collaboration, generating opportunities for the government, businesses, and the public. For example, in the case of public transportation, bus riders could use a real-time traffic monitoring application to determine the best time to travel with less traffic, thereby reducing the overall strain on the public transportation system.
In subsequent five-year plans, Beijing has focused on smart city development. Policymakers have directed significant resources toward advancing the technological innovation and public-private partnerships that underpin smart cities. This includes development in the fields of 5G, AI, new energy vehicles, cloud computing, blockchain technology, and the IoT, all of which play critical roles in the infrastructure of many of China's cities. China's ruling National People's Congress approved a USD 1.4 trillion fiscal plan in early 2020 to spur technological innovation in these fields.
The evolution of technologies such as AI, blockchain, and big data has propelled smart cities beyond their environmental roots, ushering in a new era of connected urban infrastructure. Digital twins, AI-driven analytics, and IoT networks have enabled cities to optimize operations, enhance service delivery, and improve the quality of life for residents.
In essence, the journey towards smart cities demonstrates humanity's ability to innovate and adapt in the face of urbanization's complex challenges. As cities evolve and embrace digital transformation, the smart city paradigm provides a blueprint for sustainable, resilient, and inclusive urban development in the modern century.
