IDC FutureScape: Worldwide Smart, Sustainable Cities and Communities 2025 Predictions

IDC FutureScape Figure

• Figure: IDC FutureScape: Worldwide Smart, Sustainable Cities and Communities 2025 Top 10 Predictions

Executive Summary

IDC FutureScape Predictions

• Summary of External Drivers

• Predictions: Impact on Technology Buyers

• Prediction 1: By 2025, 55% of Cities and States Will Create AI Governance Guardrails to Bolster Employee Responsible AI Use, Combat Cybercrime and Disinformation, Fill National Policy Gaps, and Ensure Transparency

• Associated Drivers

• IT Impact

• Guidance

• Prediction 2: By 2025, to Address Increasing Challenges in Services Delivery and User Experience from Technical Debt, 60% of Midsize to Large Cities Will Embark on a Major Transformation of at Least One Core Application

• Associated Drivers

• IT Impact

• Guidance

• Prediction 3: By 2026, Digital-First Field Operations Enabled by 5G Connectivity Will Improve Worker Safety and Efficiency, with a 20% Reduction in Accidents and 40% Increase in Productivity

• Associated Drivers

• IT Impact

• Guidance

• Prediction 4: By 2026, 50% of Large Cities Will Create New Executive Roles to Coordinate a Response to the Impact of Extreme Heat on Water Availability, Built Infrastructure, Transport Operations, and Public Safety

• Associated Drivers

• IT Impact

• Guidance

• Prediction 5: By 2027, 40% of Smart Cities Will Use Enterprise Tools to Create Highly Custom GenAI Capabilities, Grounded in Their Data, to Provide New Services like Personalized Benefits and Customer Service

• Associated Drivers

• IT Impact

• Guidance

• Prediction 6: Due to Frequent Attacks and Staff Shortages, by 2027, One-Third of States and Midsize to Large Cities Will Move LLMs from Public Cloud to Infrastructure Inside Their Security Perimeter

• Associated Drivers

• IT Impact

• Guidance

• Prediction 7: By 2028, over 50% of Major Cities Will Leverage AI-Enabled Software-Centric Technology for Intelligent Traffic Management to Optimize and Automate Traffic Light Operations

• Associated Drivers

• IT Impact

• Guidance

• Prediction 8: Due to a 50% Increase in Weighting of Social Value in Technology RFPs Led by Europe, by 2028, Subnational Governments Will Require Social Performance Measures and Outcomes Analysis in Technology Solutions

• Associated Drivers

• IT Impact

• Guidance

• Prediction 9: By 2029, Cities and States Will Use Professional Services Partners to Create 30% More Cross-Departmental Innovations via Collaborative Workflows Across Data Sets That Reveal New Synergies and Opportunities

• Associated Drivers

• IT Impact

• Guidance

• Prediction 10: By 2030, 60% of State and Local Governments Will Create Digital Twins to Make Informed Decisions About the Built Environment and Sustainable and Resilient Development for Rural and Urban Areas

• Associated Drivers

• IT Impact

• Guidance

Advice for Technology Buyers

External Drivers: Detail

• AI-Driven Business Models — Moving from AI Experimentation to Monetization

• The Drive to Automate — Toward a Data-Driven Future

• Future Proofing Against Environmental Risks — ESG Operationalization and Risk Management

• Regulatory Flux — Navigating Compliance Challenges in a Shifting Policy Landscape

• Expanding Digital Security Frontiers — Fortification Against Multiplying Threats

• Responsible and Human-Centric Technology — Ethics in the Enterprise

• Battling Against Technical Debt — Overcoming Hurdles to IT Modernization

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• Related Research