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A smart city uses cloud-based data and technology to create a more efficient, sustainable, and better quality of life for the people who live there. A smart city alleviates traffic jams and improves resource management by “talking” to its citizens to make data-informed decisions in real time. Smart cities are not a shiny thing of the future: they’re ever-present today.

According to the IDC, smart city technology is expected to grow to $135 billion by 2021. If flying taxis or driverless cars are our future transportation, smart cities are taking population growth and urbanization risks by storm.

Below, we assess the benefits of smart cities and how they can improve the lives of their citizens. For a look at what exactly makes a city “smart” and the world’s leading smart cities, jump to the infographic.

What makes a city a smart city?

A smart city, also called an eco-city or sustainable city, has a system of sensors, networks, and applications to collect data that help connect and improve the city.

To address issues as diverse as traffic congestion and energy use, a smart city uses Information and Communication Technology (ICT) and Internet of Things (IoT) systems to connect the data that optimizes every layer of the city. This data helps trigger actions to streamline urban services, reduce costs, and improve people’s overall quality of life.

Think of it like this: the city talks to you. It tells waste management when a trash bin needs to be emptied or commuters when there’s an open parking spot nearby.

The data also improves communication between the people who live there, the city, and the government. This connectivity helps build a more efficient and sustainable infrastructure. In some cities, a mobile app is used where citizens can check updates in real-time.

Why do we need smart cities?

According to the UN, over 40 megacities with more than 10 million people will exist by 2020, with 68% of the world population projected to live in urban areas by 2050. While some megacities are already struggling to deal with the influx of residents, smart cities are a solution to help make urban areas easier to live in. Better yet, they can help create a more sustainable future.

Jesse Berst, the Chairman of the Smart Cities Council, said it best: “Cities are our hope for the future. If you’re in the U.S. or Europe, 80 percent of us live in cities already. We can’t solve the planet’s problems unless we solve them in cities.”.

Read more: The Zebra