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China Smart City Construction Prospects and Investment Strategy Report, 2013-2017

China Smart City Construction Prospects and Investment Strategy Report, 2013-2017

Last Update:2014-05-25

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Preface

Table of Content

According to the report released by United Nations Human Settlements Programme, nowadays half of human beings are living in city. But such a significant transformation is just a beginning. The global urbanization ratio will be 70% by 2050 while the urban population in developing countries will double from 2.3 billion in 2005 to 5.3 billion in 2050. The fastening urbanization enables the cities with unprecedented rights of economy, polity and technology, which play a leading role in the world. In the meantime, cities are challenged with environmental pollution, traffic jam, energy shortage, housing shortage, unemployment, and diseases. In the new circumstance, it is an important task for city construction to obtain a sustainable development and deal with many problems which bring by urban development. Accordingly, the concept of “smart city” is proposed as it is a feasible way to deal with urban problems as well as the trend for urban development in the future.

In narrow sense, “smart city” refers to improve urban conditions by various advanced technologies especially information technology, and to make a convenient life in urban areas. In broad sense, it refers to optimize resources integration and provide pleasant mood but not pressure by urban planning and buildings. In one word, “smart city” means the city which fits for people’s overall development. In other words, smart city is the city which planned by smart ideologies, constructed by smart ways, managed by smart means, and developed by smart approaches, then to improve the accessibility of urban space which will enable a vigorous and significant progress. Smart city features as overall connection, full integration, stimulating innovation and cooperation.

The development of smart city depends on the progress of information technology, Internet of Things, cloud computing, 3S and others. These technologies are the base to realize smart city. The construction of smart city including three stages: things connection (obtain data and information), inter-connection (transfer data and information), and intelligent stage (analyze data and information). With the indepth integration of mobile communication, computer and internet, the constant emerging application, model and subject of information technology have become a significant driving force for economic development. Government encourages the innovation of application model and promotes the construction of smart city. Information technology remains the important approach for the sustainable and healthy urban development for a long time.

The domestic construction of “smart city” has fastened the pace since 2011. The large-scale urban information upgrading is beginning which will bring a development to industrial chain relevant industries. Data shows that by the end of May 2011, all of the first tier cities in China propose a detailed planning to “smart city” construction while 80% of the second tier cities also propose the concept as well.

Presently, many cities in China such as Shenzhen City, Kunming City and Ningbo City sign the strategic cooperation agreement with IBM and take a first step towards smart city construction. Beijing City plans to release “outline on intelligent Beijing” after realizing the target of “digital Beijing” while Shanghai will involve the smart city construction in the “twelfth five years” development plan. Besides, Foshan, Wuhan, Chongqing and Chengdu are launching the “smart city” strategy and gradually promote relevant planning, projects and activities.

First of all, smart city bases on the construction of information infrastructure. Operators have accelerated the deployment and emphasized the infrastructure construction of broadband, WiFi and others. The construction of smart cities will speed up the urban information infrastructure as well as promote a fast upgrading for equipment manufactures like optical fiber communication. In the aspect of industrial informationization, benefiting from the emerging typical benchmark projects, informationization of the industries which have a close relation with people’s living, such as transformation, logistics, environmental protection and medical treatment, will speed up. Furthermore, “smart city” contains some new industries, especially high-end information service industries like interactive entertainment, digital publish, and professional consulting services.

To sum up, “smart city” is a system reform which will give full play to the industrial radiation and promote the comprehensive economic transformation. The World Bank predicts as follows: for the “smart city” construction with over million populations, by adopting a full-range smart management the urban development profit will 2.5 to 3 times more with the same investment. It means “smart city” will be of great use to realize the sustainable development target of about 4 times and will lead the future urban development in the world.

Qianzhan Business Information Co., Ltd. Industry Research College
Research Team of Smart City


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