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Urban planning is a development process that surrounds political and technical concerns, such as the usage and development of lands, the welfare of societies, and the protection of the environment. The, city planners or urban planners that work with the government or other urban development entities need tools that will help them to layout development designs and plans.

The rising availability of open-source software and imbalances in government budgets are projected to restrain the growth of the market. Reluctance to evolve from conventional business models and insufficient institutional planning capacity across various countries are likely to impede the growth of the market. Factors, such as the increasing number of suburban areas and cities, increased investments in smart city technologies and projects, and a budding global IT industry are projected to offer major growth opportunities to the market over the forecast years.

The global urban planning software and services market size was valued at USD 148.50 billion in 2022 and is expected to be valued at USD 213.32 billion in 2030 and will expand at a compound annual growth rate (CAGR) of 4.2% during the forecast years.

The growing urban population worldwide is also growing the demand for urban management solutions and services. Urban planning software is also used to create 3D urban environment models and plans urban layouts. Urban planning software is used by city planners and architects to visualize how real-world urban design looks. The use of 3D representations also helps to improve urban planning concepts and town design layouts.

Architects, real estate firms, infrastructure developers, urban planners, and urban development-related creative departments all are using urban planning software. It helps in enabling the city planners to construct around existing urban infrastructure. Utility systems, infrastructure, communication networks, distribution chains, and a variety of other aspects and activities are part of the urban planning process. For handling such complex procedures and conceptualize urban designs and plan layouts, urban planners are turning to urban planning software and services.

Key Trends

According to the Smart City Hub, every week almost 1.3 million people move into cities. There are 21 megacities in the world with a population of more than 10 million people, each. Almost 500 cities have populations of one million or more. China alone is expected to have 221 cities with populations of one million or more during the forecast period. Due to

the increase in use of the Internet, more digital awareness has grown among the customers. Also, information on the internet is readily available.

Some of the examples of Smart City Solutions include, Online government services, apartment sharing apps, e-hailing, home energy automation, smart parking, and real-time road navigation apps. Smart cities offer public information and service solutions with electronic service delivery and intelligent traffic management. Rising government and organizing body investment in smart cities is projected to drive urban planning for a number of cities which results in the expansion of the urban planning software and services industry.

Digital transformation is the key word in the market for urban planning software and services. The success of smart city services is directly dependent on the rate of digital implementation. This is because the cloud-based software segment is expected to aggressively grow in the urban planning software and services market.

Smart city innovators and facilitators in the market for urban planning software and services are finding opportunities through civic engagement, events, and hackathons which will help in improving the quality-of-life solutions and services. Companies are diving into open data plans and city directives to help and increase smart city innovations. Strategic planning and conveying its agility in local government performance to individuals also plays a key role for companies in the urban market. To build trust among the people, innovators are developing strategies in order to maintain transparency in smart city project plans.

COVID Impact

The COVID-19 pandemic has led to the imposition of lockdowns in several countries which has created major disturbances across a range of industries. The lockdown restrictions has temporarily put a pause on major infrastructure development activities which were hampering the urban planning software and service industry. Apart from that, the industry is projected to recover rapidly in the coming years as restrictions relax.

As the pandemic goes away and economies recover from the severe loss of revenues and spending on the healthcare sector, governments across the globe are anticipated to focus on other development activities which were on a halt for more than a year.  The growing urban population worldwide is also growing the demand for urban management solutions and services market.

The global urban planning software and services market is highly competitive and is growing at a fast pace due to great technology and various key players. The major players include, AECOM, Arcadis N.V, Arup Group Limited, Town Planning Services, Urban Planning Services, and others.

AECOM is a leading player that operates in the field of infrastructure that offers diverse services which includes, construction, architecture & design, engineering, planning & consulting, and environmental services. The company also has multiple subsidiaries under its portfolio, namely AECOM Capital, AECOM Hunt, and AECOM Tishman. Arcadis N.V. is also a design and consultancy firm that provides various engineering services around the world. It offers diverse services that includes environmental solutions, water solutions, contract solutions, cost management, and project management.

By Component

• Software Segment
• Service Segment

The service segment is expected to have the highest CAGR of 5.1% over the forecast period. It can be attributed to the growing demand for infrastructure planning, building planning, advisory, and digital services by the urban planners. The software segment has accounted for the largest revenue share and is projected to retain its dominance throughout the forecast period. The growth of the software segment can also be attributed to the increase in technology investments by governments for urban development.

By Deployment

• Cloud based segment
• Web based segment

The cloud-based segment accounts for the largest revenue share and is expected to retain its dominance during the forecast period. Additionally, the segment is also projected to grow at the highest CAGR of 4.5% throughout the forecast period. It can be attributed to the increase in awareness and popularity of cloud-based software deployments among organizations. Several benefits, such as flexibility, enhanced computing power, and cost-efficiency also drives the demand for cloud-based solutions. The web-based segment is projected to account for a significant market share and will maintain its position over the forecast period.

Asia Pacific has dominated the market and is expected to expand at the highest CAGR of over 6.1% over the forecast period. Factors, such as ongoing smart city initiatives and growing industrialization are driving the market growth. Currently, over 26 smart cities projects are in progress across Association of Southeast Asian Nations (ASEAN) countries that will help in the growth of the market in this region.

North America also accounts for the third-highest revenue share and is expected to retain its position over the forecast period. The growth of the regional market is due to the existence of market players in the region. Also, the growing preference for sustainable and eco-friendly city infrastructures is driving the growth of the market across the region.

• Global Urban Planning Software and Services Market Forecast Years: 2023-2032
• Global Urban Planning Software and Services Market Historical Years: 2018-2021
• Global Urban Planning Software and Services Market 2022: USD 148.50 Billion
• Global Urban Planning Software and Services Market 2032: USD 213.32 Billion
• Global Urban Planning Software and Services Market CAGR: 4.2%
• Key Segments: Components; Deployment; End- Users; Service
• Key Regions: North America; Europe; Asia Pacific; Latin America; Middle east and Africa
• Key Players: AECOM; Arcadis N.V; Arup Group Limited; Urban Planning Services; Town Planning Services; Bentley Systems; Stantec; Incorporated.”