The rapid evolution of technology and the advent of the Internet of Things (IoT) are transforming our cities into hyperconnected entities, known as smart cities. These new urban areas aim to enhance the quality of life for their residents while addressing the environmental challenges ahead.
But what are the real advantages and disadvantages of this hyperconnectivity?
Advantages of hyperconnectivity in smart cities
Energy efficiency and environmental sustainability
It is well known that greenhouse gas emissions remain the greatest challenge in preserving our ecosystem.
As in the entire European Union, energy use is the leading source of GHG (greenhouse gas) emissions in France.
One of the primary objectives of smart cities is to reduce carbon emissions and promote sustainable resource management. Thanks to IoT, buildings and infrastructure can be equipped with sensors that optimize energy and water usage. For example, intelligent energy management systems regulate real-time consumption, reducing waste.
“Smart cities integrate advanced technologies to produce renewable energy and manage water sustainably, which is crucial to achieving carbon neutrality,” explains Victoire Duhem, Practice Director at NAOS International.
Initiatives such as using local and energy-recovering materials for housing construction and implementing efficient recycling systems are also key components of smart cities.
For instance, Copenhagen has already equipped all its urban furniture with sensors, from streetlights (to reduce energy consumption) to trash cans (for optimized waste collection).
Improved transportation and mobility
Public and non-polluting transportation is another priority for smart cities. Through hyperconnectivity, transportation systems can be coordinated more effectively. Autonomous vehicles, ridesharing applications, and intelligent public transit networks reduce congestion and greenhouse gas emissions.
Consider Taiwan and its capital city, Taipei.
In 2016, Taipei established the “Taipei Smart City Project Management Office” to foster collaboration between the public and private sectors on smart city initiatives. By 2023, Taipei ranked second in Asia and fourth globally according to the IMD Smart City Index.
The high mountains surrounding Taipei trap air pollutants, leading to significant air quality issues. To address this, an air quality monitoring program was launched, where sensors send automated alerts and traffic route messages to inform citizens and redirect traffic in areas with poor air quality. Additionally, an AI-controlled traffic light system helps reduce pollution by minimizing idle times during peak hours.
Enhanced quality of life and public services
Hyperconnectivity also improves citizens’ quality of life by optimizing public services. For example, intelligent waste management systems monitor bin fill levels and organize more efficient collections. Additionally, air and water quality monitoring technologies ensure a healthier environment for residents.
Victoire Duhem notes: “System interoperability in a smart city allows for more responsive and personalized services for citizens, enhancing their daily well-being.”
Disadvantages and Challenges
Data security and privacy
One of the main disadvantages of hyperconnectivity is the issue of data security and privacy. Smart cities collect vast amounts of data about their residents, raising concerns about protecting personal privacy. Cyberattacks and data breaches can have severe consequences for individuals and urban infrastructure.
According to a Cisco report, IoT infrastructure security is a major concern, with over 70% of IoT devices being vulnerable to attacks.
Cities must therefore invest heavily in cybersecurity solutions to protect their networks and citizens’ data.
Cost and complexity of implementation
The development of a smart city requires substantial investments in infrastructure and technology. Initial costs can be prohibitive for many municipalities, particularly in developing countries.
Idate, a consultancy specializing in the digital economy, anticipated in 2023 significant investments in smart city technologies.
The Asia-Pacific region leads with 43% of investments, followed by Europe with 27% and North America with 20%.
The scope and vitality of these investments reflect the growing maturity of smart city technologies.
In France, however, the smart city concept appears to be losing its appeal and is rarely presented as a model, with few exceptions.
Challenges related to the interoperability of different technological systems can also slow the deployment of smart cities. It is essential to ensure that new technologies can operate harmoniously to avoid inefficiencies and malfunctions.
Risk of digital divide
Hyperconnectivity may also exacerbate the digital divide among different population groups. Individuals with limited access to technology or the internet risk being left behind in a smart city. Therefore, it is crucial for smart city initiatives to include strategies that ensure digital accessibility and inclusivity.
In France, the “France 2030” investment plan was launched by the Macron government.
The plan sets several ambitions that must be implemented locally with the support of regional authorities.
Smart territory strategies aim to operationalize these initiatives across all communities, whether urban, suburban, or (especially) rural. For example, “France 2030” emphasizes energy transition and resilience as priority themes.
A World Bank study highlights that unequal access to technology can exacerbate socio-economic disparities. Smart cities must adopt an inclusive approach to ensure that all citizens can benefit from hyperconnectivity’s advantages.
Development opportunities for businesses
Intelligent transport and infrastructure
Smart cities offer enormous development opportunities for businesses specializing in transportation and infrastructure. Intelligent mobility solutions, such as autonomous vehicles and optimized public transit networks, are rapidly expanding fields. Companies can also position themselves in the connected infrastructure market, offering energy management and environmental monitoring systems.
Sustainable buildings and resource management
With the implementation of RE 2020, new standards must now be met for new constructions as well as for renovation projects of older buildings.
This regulation also applies to housing renovations requiring a prior declaration from January 1, 2022. These new measures aim to limit buildings’ energy consumption, reduce their carbon footprint, and improve occupant comfort.
Construction sector companies play a key role in developing smart cities. Using local and energy-recovering materials and designing sustainable and intelligent buildings are major trends. Furthermore, resource management solutions, such as recycling and water management systems, present significant opportunities.
Information and communication technologies
Businesses specializing in information and communication technologies (ICT) are central to smart cities.
They can develop interoperability platforms, cybersecurity solutions, and IoT applications to enhance connectivity and urban infrastructure security.
While smart cities represent the future of our urban areas, they also pose challenges in terms of data security, implementation costs, and the digital divide.
To fully realize the potential of smart cities, policymakers must ensure an inclusive and secure approach.
The development opportunities are vast for businesses specializing in transportation, infrastructure, construction, and information technologies. This requires a profound transformation of organizations and the identification and retention of talent capable of building the cities of tomorrow.