Smart Cities: What They Are and Why They Matter
Smart City is the concept of a community, a town, or a city, that uses IoT technology to improve its services. Smart City companies develop IoT solutions.
June 5, 20198 min read

Written by Ashok Chintagunta, MS Computer Science, Louisiana Tech University
CTO & Software Engineer, AI and Automation
Published June 5, 2019Updated August 19, 2026
A “smart city” is the concept of a community, such as a town or city, that uses technology—specifically the Internet of Things—to improve its services.
It may sound at first like something out of science-fiction. But smart city technology is exactly the same technology people are already using in daily life. Smart city companies have just repurposed it for upgrading a community’s infrastructure. When implemented, smart city projects allow a community to run more smoothly and efficiently.
What is the Internet of Things?
The key to understanding smart city technology is knowing about the Internet of Things (IoT). This is an umbrella term for any physical object that is connected to the internet, often through a mobile app. For example, an IoT door lock would be a lock that one could access even when away from the door in question.
The advantage of IoT in this situation would be the ability to see on a mobile app that you had forgotten to lock the front door of your house.
Instead of going home to remedy the situation, you could use an internet connection to lock the door remotely. It is easy to see how the convenience that IoT provides is already becoming a part of life for many individuals.
Of course, accessing the things you need from a remote location is one advantage of the Internet of Things, but there are many others. Some IoT devices are also connected to motion sensors.
A smart light, for example, could detect the motion of someone walking into a room. A smart garbage can could send an alert to its owner when it’s time to take out the trash.
What does this have to do with cities?

Smart city companies create these same technologies in a way that improves a city’s government-run services. Here are a few examples of how this might work:
PARKING
It’s a pain to drive around looking for a parking spot. Instead, a driver with access to smart city technology could access a mobile app that would show them available spaces. This smart service would make life a lot easier for drivers in a smart city project by eliminating all the extra traffic created by people driving around looking for a parking spot and help them save on gas. And, of course, cutting out that traffic is good for the environment as well. Columbus, Ohio takes its smart parking services further by partnering with smart city companies to provide charging stations for electric vehicles next to certain spaces.
TRAFFIC
A mobile app that provides information on the specific location of bad traffic would also help cities and their citizens in the same ways. It could even suggest alternate, low-traffic routes. This would become a two-way service if the app allowed citizens to report problems like potholes.
WASTE
Instead of picking up trash on routine rounds, a smart dumpster would send an alert to the sanitation department in a smart city project. Notice how this is the same concept as the personal trash can above, only repurposed to serve a city.
WATER USAGE
A mobile app can send alerts to citizens when they have used a certain amount of water in the month. This is an especially innovative example of partnership with a smart city company. It allows the app user to determine their own custom settings and monitor their own water use. And this example is not hypothetical, either; Cary, North Carolina uses this system to send water-usage alerts to their citizens.
POLICE SURVEILLANCE
Smart video surveillance could help the police department keep the community safe. Many cities already use cameras to record traffic violations and criminal activity. A smart camera provided by smart city companies would be equipped with technology to recognize license plates or faces. It could even send an alert to police if there is any suspicious activity.
Bill Gates’s Smart City and GOogle’s Smart CIty
Some of the most famous tech companies in the world are working on their own smart city projects. For example, Bill Gates’ investment firm, Cascade Investment LLC, announced plans in November 2017 to build an entirely new city close to Buckeye, Arizona.
The future “Bill Gates smart city,” has been named Belmont. It will utilize solar energy and Arizona’s lenient policies on self-driving cars to implement smart city technology in this new community. Similarly, Google, (or, more precisely, its sibling company Sidewalk Labs) has ambitious plans to build a “Google smart city” in Toronto called Quayside.
This neighborhood will feature smart city technology like raincoats for buildings, heated sidewalks for melting snow in cold weather, and self-driving taxis.
Microsoft Smart City
More relevant to already-existing cities, Microsoft smart city technologies are helping governments meet their citizens’ needs. The government of Aukland, New Zealand has partnered with Microsoft to develop software and apps to improve transportation and parking services and keep track of the feedback citizens provide on social media.
Microsoft has also partnered with Tel Aviv to make the government more accessible to its citizens and features a two-way system, where citizens can send the government a picture of a problem that needs to be addressed on a “DigiTel Mobile App” while the “Digitel Residents Club” app keeps citizens informed about local businesses and community events. Parents even register their children for school through the app.

Any Town Can Be a Smart City
This short list of examples alone shows how a “smart city project” can take on a variety of forms. On the one hand, this variety can make the term “smart city technology” difficult because it isn’t very specific. Two places that use different smart technologies for unrelated purposes (traffic surveillance and water usage, for example) are both smart cities. A place is “smart” if it applies all of the above examples or just one.
On the other hand, this ambiguity is what makes the idea work so well. Every city is different: a smart city project that could be useful in New Orleans or Dallas would not be practical for our home base in Shreveport, Louisiana. There is a lot of freedom wrapped up in this idea for each city to decide what smart services would best meet the needs of its citizens.
Coming Up Next…
In our next article, we’ll discuss some of the “smartest” cities in the world, what makes them unique, and what we can learn from them, even in rural areas.
By looking at what these governments have done with smart city technology, we’ll discover simple solutions that small towns can implement to provide services that are more efficient, convenient, and environmentally-conscious. Subscribe to our newsletter and stay tuned for more.
Smart City Project Examples
Company/Project | Location | Examples of Smart Technology |
|---|---|---|
Belmont (Bill Gates) | Buckeye, Arizona | Solar energy, self-driving cars |
Quayside (Google/Sidewalk Labs) | Toronto | Building raincoats, heated sidewalks, self-driving taxis |
Microsoft partnership | Auckland, New Zealand | Transportation and parking apps, feedback tracking |
Microsoft partnership | Tel Aviv | DigiTel Mobile App for problems, DigiTel Residents Club app |
Smart city technology examples, domain by domain
Abstract descriptions of smart cities are less useful than specific deployments. Nearly every real programme is a sensor, a network, a data platform and a decision that used to be made on a schedule and is now made on evidence. The examples below are the ones small and mid-sized municipalities actually implement first, because they pay back inside a normal budget cycle.
Domain | What is sensed | Typical action | Indicative payback |
|---|---|---|---|
Street lighting | Ambient light, presence, luminaire fault status | Adaptive dimming and fault-based maintenance dispatch | 3-6 years, mostly from energy and truck rolls |
Traffic | Vehicle counts, queue length, signal timing performance | Adaptive signal timing and corridor coordination | 1-3 years in delay reduction |
Water and utilities | Flow, pressure, acoustic leak signatures | Leak localisation before surface failure | 2-4 years from non-revenue water recovery |
Waste collection | Container fill level | Dynamic routing instead of fixed schedules | 1-2 years in fuel and labour |
Parking | Bay occupancy, session duration | Guidance apps and demand-based pricing | Under 2 years where enforcement exists |
Public buildings | Occupancy, temperature, energy use by circuit | HVAC scheduling and load shedding | 2-5 years in energy spend |
Environment | Particulates, noise, flood level | Alerting, planning evidence, emergency response | Non-financial; regulatory and safety |
Caption: the smart city technology examples with the clearest operational case for smaller municipalities.
What makes a deployment succeed or stall
- Start with one measurable operating cost, not with a platform purchase.
- Choose the network before the sensors — LoRaWAN, NB-IoT and mesh imply very different site work and running costs.
- Budget for the ten-year battery and replacement cycle, not just the hardware purchase.
- Insist on open data formats; proprietary lock-in kills the second project.
- Set a data retention and privacy policy before the first camera or occupancy sensor goes live.
- Assign an owner inside public works who is accountable for acting on the data.
- Run a 90-day pilot on a single corridor or building before city-wide procurement.
The hardware side of these programmes — enclosures that survive weather and vandalism, power budgets that hit a ten-year life, certification for public deployment — is ordinary product engineering with unusually harsh requirements. Our electronics design and design for manufacturing teams build exactly this class of device, and the product development process is the same one used for consumer hardware, with longer environmental testing.
Smart City Technology Examples, by Domain
Most smart city technology examples fall into four domains: mobility, utilities, public safety and buildings. What separates a deployment that survives a budget cycle from one that quietly dies is rarely the sensor - it is whether the data reaches an operator who is accountable for a metric.
Domain | Example deployment | Hardware at the edge | Metric it moves |
|---|---|---|---|
Mobility | Adaptive signal control on a corridor | Radar or video detection per approach | Average corridor travel time |
Utilities | Acoustic leak detection on water mains | Battery hydrophones on valves | Non-revenue water percentage |
Utilities | AMI electricity metering | Two-way meters plus mesh collectors | Outage detection time |
Public safety | Connected streetlight with fault reporting | LED driver with NEMA controller | Lamp outage repair time |
Buildings | Occupancy-driven HVAC in civic buildings | CO2 and PIR sensors per zone | kWh per square foot |
Waste | Fill-level sensing in public bins | Ultrasonic sensor in lid | Collection miles driven |
Cost and Payback Ranges
Deployment | Unit cost installed | Annual service per node | Typical payback |
|---|---|---|---|
Streetlight controller | $70-140 | $3-8 | 4-7 years |
Bin fill sensor | $120-250 | $12-30 | 2-4 years |
Water leak node | $400-900 | $25-60 | 3-5 years |
Signal detection per approach | $3,000-9,000 | $150-400 | Congestion benefit, not cash payback |
Building zone sensor kit | $250-600 | $10-25 | 2-3 years |
Payback numbers move mostly with labor, not hardware. A bin sensor that removes two collection trips per week pays back faster in a city with high fuel and overtime costs than a technically identical node in a small municipality. That is why pilots should be sized to a route or a corridor, not to a technology.
Procurement Checklist for a Pilot
- Name the operator who reads the dashboard daily, before you buy anything.
- Require open data export (CSV plus API) and written ownership of the data in the contract.
- Specify battery life at the actual reporting interval, not the vendor best case.
- Confirm the radio technology has coverage on the pilot route today, not after a planned build-out.
- Set a firmware update path that does not require a truck roll.
- Define a decommission plan and cost per node so the pilot can end cleanly.
- Write the go/no-go metric and threshold into the purchase order.
Cities that put the go/no-go threshold in writing before installation reach a decision in one budget cycle. Cities that do not tend to accumulate pilots that neither scale nor stop, which is the most expensive outcome available.
Frequently asked questions
What are the most common smart city technology examples?
Adaptive street lighting, connected traffic signals, water leak detection, fill-level sensors on waste containers, occupancy-based parking guidance and building energy management. These dominate because each replaces a fixed schedule with a measured condition and shows savings quickly.
Do smart city projects only make sense for large cities?
No. Smaller municipalities often see faster payback because their operating budgets are dominated by a few line items — waste routes, street lighting energy, water loss — and a single well-chosen deployment moves one of them measurably.
What network do smart city sensors use?
Most municipal deployments use low-power wide-area networks such as LoRaWAN or NB-IoT for battery-powered sensors, and cellular or fibre for anything with continuous power and higher bandwidth, such as cameras or signal controllers.
What are the main privacy concerns with smart city technology?
Anything that can be linked to an individual — camera imagery, licence plate reads, phone MAC addresses, fine-grained occupancy. The standard mitigations are edge aggregation so raw data never leaves the device, short retention windows, and a published policy adopted before deployment.
How long does a smart city pilot take?
A single-domain pilot typically runs 90 days to a full season: enough to capture weather variation and a monthly billing cycle, and short enough to make a procurement decision within one budget year.
Frequently asked questions
What is the Internet of Things?
The key to understanding smart city technology is knowing about the Internet of Things (IoT). This is an umbrella term for any physical object that is connected to the internet, often through a mobile app. For example, an IoT door lock would be a lock that one could access even when away from the door in question. The advantage of IoT in this situation would be the ability to see on a mobile app that you had forgotten to lock the front door of your house. Instead of going home to remedy the situation, you could use an internet connection to lock the door remotely. It is easy to see how the convenience that IoT provides is already becoming a part of life for many individuals. Of course, accessing the things you need from a remote location is one advantage of the Internet of Things, but there are many others. Some IoT devices are also connected to motion sensors. A smart light, for…
What makes a deployment succeed or stall?
Start with one measurable operating cost, not with a platform purchase.. Choose the network before the sensors — LoRaWAN, NB-IoT and mesh imply very different site work and running costs.. Budget for the ten-year battery and replacement cycle, not just the hardware purchase.. Insist on open data formats; proprietary lock-in kills the second project.. Set a data retention and privacy policy before the first camera or occupancy sensor goes live.. Assign an owner inside public works who is accountable for acting on the data.. Run a 90-day pilot on a single corridor or building before city-wide procurement. The hardware side of these programmes — enclosures that survive weather and vandalism, power budgets that hit a ten-year life, certification for public deployment — is ordinary product engineering with unusually harsh requirements. Our electronics design and design for manufacturing…
What are the most common smart city technology examples?
Adaptive street lighting, connected traffic signals, water leak detection, fill-level sensors on waste containers, occupancy-based parking guidance and building energy management. These dominate because each replaces a fixed schedule with a measured condition and shows savings quickly.
Do smart city projects only make sense for large cities?
No. Smaller municipalities often see faster payback because their operating budgets are dominated by a few line items — waste routes, street lighting energy, water loss — and a single well-chosen deployment moves one of them measurably.
What network do smart city sensors use?
Most municipal deployments use low-power wide-area networks such as LoRaWAN or NB-IoT for battery-powered sensors, and cellular or fibre for anything with continuous power and higher bandwidth, such as cameras or signal controllers.
What are the main privacy concerns with smart city technology?
Anything that can be linked to an individual — camera imagery, licence plate reads, phone MAC addresses, fine-grained occupancy. The standard mitigations are edge aggregation so raw data never leaves the device, short retention windows, and a published policy adopted before deployment.
How long does a smart city pilot take?
A single-domain pilot typically runs 90 days to a full season: enough to capture weather variation and a monthly billing cycle, and short enough to make a procurement decision within one budget year.
Filed under:EducationInspirationNewsTech
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