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Trends in 2025 for Smart Cities

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Hans Teuben, Luc Baardman, Ravi Shankar Arunachalam & Ambika Chinnappa
Apr 15, 2025

Technology is redefining urban living. Rapid urbanization this century has transformed cities into bustling centers of growth and innovation. However, this progress comes with challenges, such as resource management, climate resilience, and efficient governance. In 2025, emerging technologies will play a pivotal role in reimagining how cities function at scale.

With more than half the global population now living in cities, urban areas are under immense pressure to adapt to growing populations and environmental concerns. Smart cities are rising to the challenge, integrating advanced technologies to improve infrastructure, enhance public services, and foster sustainable living. This will also ensure inclusivity, while improving the quality of life for urban dwellers.

The following insights into the trends shaping the future of our cities reveal that a new chapter in urban living is under way.

With cities getting smarter, novel digital services—such as smart grids, on-demand mobility, smart water management—are reinventing public service models and processes. At the same time, they are driving an unprecedented surge in data generation and flows. Urban data platforms serve as the essential infrastructure for effectively utilizing city data to enhance operational efficiency and scale smart city initiatives. They connect, analyze and visualize all data from diverse domain systems in urban fabric. From here, data can be further shared to city services or third-party private entities, enabling innovative business models to flourish.

As part of the project, Rotterdam, Umeå and Glasgow developed urban data platforms to tackle respective city specific challenges. The Digital City Platform in Rotterdam discloses and visualizes actual energy use, as well as use over a period of time (by individual buildings, as well as the whole area). is connected to the platform and, together with real-time data, it forms a 3D digital twin of the city. This 3D digital twin supports Rotterdam in crowd and public space management, smart mobility, electricity and thermal grid planning and operational optimization, as well as energy and resource efficient waste collection and processing.
Cities are also beginning to adopt a federated data spaces model to facilitate sovereign and secure ways of data sharing across city domains, as well as across cities and borders. EU-funded initiatives such as the have developed a multi-stakeholder data governance blueprint. This initiative creates a cross-sectoral data space for governments and their providers, enabling interoperability to improve service delivery to citizens. Several pilot projects——are underway in the DS4SSCC program where multiple cities are collaborating to co-create value.

Digital twins and IoT technologies are shaping optimized city operations feeding off data from urban data platforms. By creating virtual models of cities, planners can simulate and test the impact of new developments, identify potential issues, optimize city services and proactively create policies to avoid future impact. Through simulation, monitoring, and optimization of various urban elements, digital twins help cities achieve a balance between economic growth, efficient operations, and environmental protection.Ìý

Depending on the maturity levels, cities are adopting digital twin solutions that range from descriptive analysis and predictive intelligence to scenario simulations.Ìý
The platform is a digital twin of the city-state, providing a dynamic 3D model that enables users across various sectors to develop advanced tools and applications for testing concepts and services. It also supports planning, decision-making, and research on innovative technologies to address complex and emerging challenges.Ìý
Shanghai has developed an extensive to monitor and manage city operations, including traffic flow, energy consumption, and environmental conditions. This digital representation aids in optimizing urban planning and improving public services.
As the next evolution, digital twin models are overlaid with immersive experience technologies such as augmented reality (AR), virtual reality (VR) and mixed reality (MR), to provide additional context about the urban elements.   (Citiverse) was launched by the International Telecommunication Union (ITU), the United Nations International Computing Centre (UNICC) and Digital Dubai to provide normative guidance and framework for virtual world solutions in cities.
Digital twins and citiverse initiatives are redefining city operations by making urban environments more efficient, resilient, and citizen-friendly.

With increasing frequency of extreme weather events, cities need to buckle up, investing in the resilience of their infrastructure. From IoT-enabled flood monitoring systems to predictive analytics for disaster management, urban areas are focusing on safeguarding both people and resources. Smarter water systems address challenges like scarcity through innovative recycling and distribution methods. Physical systems, such as water systems, were not built with the digital age in mind. Yet rebuilding is also often not an option given the enormous costs of (temporary) replacements. A mitigation can be found in retrofitting  these physical assets to digital infrastructures using sensors and remote-control digital components. A great example can be found in France with Voies navigables, the French inland waterway network facilitator.
Another compelling example of climate adaptation strategies can be found in the battling of urban heat islands (UHRs). For instance, the city of has undertaken significant measures, such as planting trees, revamping its iconic zinc rooftops, and installing cooling public infrastructure, to reduce heat retention. Similarly, adapted ancient Persian techniques by using qanat water supply systems, enhanced with renewable energy, to cool buildings through water circulation within walls. These initiatives exemplify the proactive steps European cities are taking to mitigate the effects of urban heat islands. Albeit the outcome is physical, extensive modelling in digital twins forms the basis upon which cities act.

Governments across the globe are no longer merely setting ambitious climate goals, they are operationalizing these commitments into tangible outcomes. The European Green Deal stands as a hallmark initiative, aiming to make the EU the world’s first climate-neutral continent by 2050. Under this framework, the program, launched in May 2022, has achieved significant milestones: for the first time, electricity generation from wind and solar has surpassed gas, with an 18% reduction in gas consumption in just two years.
Governments understand that they need to lead by example. The global with its 18 partner nations has set stringent targets for net-zero emissions in government agency operations by 2050. This initiative employs strategic measures like carbon pollution-free electricity, net-zero buildings & operations, zero-emission vehicles, climate resilient infrastructure & operations, and circular economy practices. Progress is evident: Australia achieved a more than in operations in 2022 compared to the previous year.
– Local Governments for Sustainability is a global network working with more than 2,500 local and regional governments committed to sustainable urban development. Active in 125+ countries, this network is influencing sustainability policy and driving local action for zero emission, nature-based, equitable, resilient and circular development. City agencies are increasingly leveraging circular economy principles, transforming waste into raw materials and fostering innovative business models. Amsterdam is a pioneer city in sustainable and circular urban development and is focused on three value chains—food and organic waste streams, consumer goods, and built environment.Ìý It is constantly tracking progress through a .Ìý
Despite notable progress, governments face hurdles, such as budget constraints, siloed institutional frameworks, cultural resistance to change, and complexities in measuring and reporting progress. Overcoming these barriers demands a combination of political commitment, inter-agency collaboration, investment in innovation, and robust public-private partnerships. Sharing global best practices will be critical in refining sustainability strategies and achieving long-term goals.

 Health as a priority for urban planners
Environmental health technologies will take center stage in urban planning. After all, cities are made for humans to thrive. Sensors will be used to monitor air quality, noise pollution, and other factors that influence well-being. Predictive health tools will guide the development of spaces that support healthier lifestyles. An earlier study showed the potential for a quick return-on-investment, with savings reported by of between 485-700€ per inhabitant. A stark demographic fault line is, however, emerging, splitting urban centers into two distinct camps: old and young.
Aging cities, primarily in high-income nations and parts of the developing world, face a demographic crunch. Public transit systems, pedestrian infrastructure, even housing—all demand costly retrofits to accommodate aging populations. Economically, these cities struggle with a shrinking workforce shouldering the weight of pension systems and healthcare needs. To address this issue, is exploring the development of AI-driven robots, such as AIREC, designed to assist with tasks like shifting patients, cooking, and folding laundry. Meanwhile, youthful cities are experiencing the inverse. Here, labor markets churn with opportunity, powered by policies prioritizing education, employment, and entrepreneurial ambition. But these cities aren’t without growing pains. Pollution, congestion, and urban stress loom large, as does a rising tide of respiratory disorders and mental health struggles among young, high-strung populations. One creative solution is a low cost and flexible gondola-like ride hailing network being piloted in . This cable car transit system will appeal to younger residents seeking efficient and sustainable mobility options.

The road ahead: Challenges and opportunities

The future of urban living will be defined by how effectively cities adopt and integrate these technological innovations. While the potential benefits are immense—smarter resource management, reduced environmental impact, and improved citizen experiences—success depends on political commitment, societal acceptance, and the ethical use of technology.

In 2025, smart cities will not only focus on innovation but also on creating inclusive, resilient, and sustainable communities. By leveraging the technologies shaping today’s urban transformation, we can build cities that thrive in harmony with people and the planet.

Authors

Luc Baardman

Ecosystem Facilitator, ÎÚÑ»´«Ã½ Invent

Ravi Shankar Arunachalam

Public Administration & Smarter Territories SME – Global Public Sector
“As a Public Sector strategist and technologist at ÎÚÑ»´«Ã½, I assist local, state, and federal governments worldwide in harnessing the full potential of a collaborative, Government-as-a-platform model to revolutionize citizen service delivery. With a deep understanding of industry challenges, citizen expectations, and the evolving technology landscape, I develop systemic transformation strategies and solutions that provide lasting value to both people and the planet”

Hans Teuben

Director Strategy and Innovation Public Sector – Smart Cities and Mobility
“We take cities and citizens on a journey to address societal challenges using digitization and data: Tackling environmental, sustainability and mobility issues, improving quality of life, overcoming societal divides, and supporting economic development. Our ethical approach prioritizes privacy and security. We help to develop strategy, design and co-create solutions with ecosystems, develop transparent AI and build, run and maintain interoperable data platforms and services for cities.”

Ambika Chinnappa

Knowledge Management Lead, Global Public Sector
“At ÎÚÑ»´«Ã½, I lead Knowledge Management initiatives to ensure that critical expertise, insights, and best practices are effectively captured, curated, and shared across our global teams. By enabling efficient knowledge flow and collaboration, I help our Public Sector colleagues stay informed, aligned, and empowered to drive impactful outcomes. Through structured KM strategies, I aim to enhance organizational learning, support smarter decision-making, and contribute to the delivery of innovative, sustainable solutions for governments and the communities they serve.â€