A “smart city” is one where technology and data dovetail to create a higher quality of life for its residents. But beneath that simple idea lies a powerful transformation reshaping how cities function in the 21st century. Across the globe, urban centers are under mounting pressure. Populations are swelling, infrastructure is aging, and the climate crisis is intensifying. Traditional city systems—transport, energy, waste, water—are no longer equipped to keep pace. This is where the smart city vision takes hold: reimagining the urban landscape through digital intelligence.
This push for smarter cities is being driven by powerful long-term trends and catalysts.
- Urbanization is accelerating. More than half of the world’s people live in cities today, and the UN projects that will rise to 68% by 2050. That surge of urban population (over 2.5 billion new city dwellers) is straining aging infrastructure and creating urgent demand for upgrades.
- Sustainability and climate goals are compelling cities to adapt. For example, the European Commission has already outlined targets for 2030, 2040, and 2050. Smart city solutions – like LED lighting, electric transit, and intelligent grids – help cities meet these goals cost-effectively.
- Technology has matured to make smart cities achievable. 5G networks, affordable IoT sensors, cloud computing, and AI means it’s now feasible to connect cities on a grand scale. These advances slash the cost of “smart” upgrades while boosting their impact.
As an investment theme, smart cities are not about a single technology, but an ecosystem of urban innovation. In this report, we highlight the top smart city stocks to watch in 2025, grouped by their role in the value chain: Smart Infrastructure & Connectivity, Smart Mobility & Transportation, Smart Energy & Utilities, and Smart Public Services & Safety.
Smart Infrastructure & Connectivity
Without strong infrastructure, smart cities can’t run. Think of this layer as the “nervous system” that helps everything talk to each other. These companies lay the groundwork for everything from connected streetlights to data-driven city planning. In other words, these smart city stocks represent the critical enablers – the “picks and shovels” of smart cities.
Cisco Systems (NASDAQ: CSCO)
HQ: USA; Networking backbone for smart cities.
Cisco is the backbone provider of networking for smart cities. Long known for internet routers and switches, Cisco now offers end-to-end solutions that connect city devices and secure the data flowing between them. This networking prowess makes Cisco a key enabler of everything from smart traffic lights to connected hospitals. The company has shifted toward software and services (like cybersecurity and IoT management) on top of its hardware. For a smart city stock, the appeal is that virtually every smart city project – whether it’s rolling out public Wi-Fi, coordinating autonomous shuttles, or linking up utility sensors – needs reliable, secure connectivity. Cisco provides that “digital plumbing.”
Cisco’s networking gear and software are essential tools for cities becoming smarter, and the company’s global scale and experience make it a blue-chip way to invest in the theme. While Cisco serves many sectors, its deep client base with governments give it a stable role within smart cities. It’s a mature tech company that plays the role of the “networking nervous system.”
Johnson Controls (NYSE: JCI)
HQ: Ireland; Smart building technology specialist.
Johnson Controls is a building technology specialist making city buildings smarter and greener. It provides advanced HVAC systems, building automation software, fire/security systems, and energy storage solutions for large facilities. In the context of smart cities, JCI’s role is upgrading schools, hospitals, offices, and other critical buildings so they use less energy and communicate with the grid. The company has over a century of experience in climate control and now leverages digital platforms (like its OpenBlue software) to optimize building operations in real-time. For example, JCI helps city skyscrapers automatically adjust ventilation and lighting, connect to smart power grids to shed load during peak times, and even integrate with electric vehicle charging in parking structures.
JCI offers a stable, global player benefiting from mandates for green buildings and retrofits. As cities strive to cut carbon and operating costs, JCI’s solutions in building efficiency and automation are in growing demand, making it a core smart infrastructure pick. In their words, Johnson Controls is creating “intelligent buildings, efficient energy solutions, integrated infrastructure and next-gen transportation systems that work together to deliver on the promise of smart cities.”
Siemens AG (FRA: SIE)
HQ: Germany; Industrial conglomerate with broad smart city portfolio.
Siemens is a German industrial tech giant and a key architect of smart city infrastructure globally. With a broad portfolio spanning transportation, energy, and automation, Siemens touches nearly every aspect of urban infrastructure. Its Smart Infrastructure division provides advanced electrical grids, building automation, and energy management for cities, while Siemens Mobility delivers mass transit solutions. This makes Siemens integral to a wide range of projects from upgrading city metros to modernizing grids for renewable energy integration. The company has also been shifting to focus more on digitalization and IoT, building a platform to help cities analyze data from infrastructure in real time.
For investors, Siemens offers a large-cap, diversified way to ride smart city growth. Siemens’ management explicitly targets becoming a more focused digital industry and smart infrastructure player. Meanwhile, it’s financially strong and pays dividends, and its size means it’s able to gain contract wins through sheer technological depth. Its order books in areas like smart rail systems and energy-efficient building solutions are growing with government stimulus in Europe, the U.S., and China.
Signify N.V. (AMS: LIGHT)
HQ: Netherlands; Smart lighting and streetlight poles as “vertical assets.”
Signify (formerly Philips Lighting) is a global leader in smart lighting solutions for cities. It converts old streetlights into intelligent LED networks that save energy and improve safety. For cities, the value proposition is simple. Upgrading to LED streetlights can cut electricity costs by 50–70%, and these connected lights do more than just illuminate streets. They can house sensors and cameras and form a backbone for other smart applications (air quality monitors, traffic counters, 5G small cells, etc.). Streetlight poles can then become “vertical assets” for smart city deployment, not just fixtures for lighting roads. Signify’s IoT platform (Interact City) allows city managers to dim lights remotely, detect outages, and even analyze data like foot traffic via sensors.
In a smart city portfolio, Signify offers a play on energy-efficient infrastructure that also creates a digital network throughout the urban landscape. The company’s focus on municipal clients and its long track record (as Philips Lighting) give it a strong moat. As a result, it’s frequently ranked the top vendor in the smart streetlighting market, having implemented over 3,000 projects in 58 countries.
Smart Mobility & Transportation
From EV charging to AI-driven traffic control, mobility is one of the most visible parts of a smart city. This sector includes the companies reinventing how people and goods move – not just with electric vehicles, but also with automation, real-time data, and urban transport platforms. Smart city stocks in this category are focused on cleaner, faster, and more connected transportation.
ABB Ltd. (STO: ABB)
HQ: Switzerland; Electrification and automation giant.
ABB brings a multi-pronged approach to smart cities through its expertise in electric power, robotics, and automation. A big focus for ABB is electrifying urban transportation and buildings. The company supplies fast chargers for electric buses and cars, so when you see an electric bus quietly cruising by, ABB likely had a hand in the charging infrastructure. ABB’s smart grid technologies also help cities handle the influx of renewable energy – its software like ABB Ability™ OPTIMAX manages complex energy flows in city districts, automatically balancing supply and demand across solar panels, energy storage, and traditional grid power. In Trondheim, Norway, ABB’s system is at the heart of a pilot “positive energy” neighborhood that produces more power than it consumes, using ABB’s real-time optimization to trade energy peer-to-peer and cut waste.
ABB’s differentiator is combining industrial-grade hardware (transformers, chargers, robots) with smart software analytics, giving cities end-to-end solutions for energy and transportation. Its long-standing relationships with governments and its engineering know-how give it an edge in large-scale urban infrastructure tenders.
EVgo, Inc. (NASDAQ: EVGO)
HQ: USA; Fast-charging EV networks in high-throughput areas.
EVgo operates one of America’s largest public fast-charging networks for electric vehicles, a crucial piece of smart transportation infrastructure. As cities push for cleaner air and electric buses and cars, ample charging stations are needed to keep those EVs moving. EVgo is a pure-play on this trend: it builds and owns charging stations in city centers, retail parking lots, and along highways. The company has been expanding rapidly – it received a major $1.25 billion loan from the U.S. Department of Energy to help install about 7,500 additional fast chargers across the country by 2030. This government support underscores EVgo’s strategic role in national EV adoption.
As a smart city stock, EVgo represents a direct bet on EV adoption in cities. Every new electric municipal fleet or rideshare vehicle needs a place to charge. EVgo’s model of owning the chargers means it can profit from growing utilization as more EVs hit the road. The company is still young and investing heavily, but its partnerships (for example, with GM and rideshare fleets) and its first-mover footprint in many urban areas give it an edge. If EV adoption continues, EVgo stands to benefit from both charging fees and potential subsidies, driven by the smart city goal of cleaner transportation.
Verra Mobility (NASDAQ: VRRM)
HQ: USA; Automated toll booths and digital traffic enforcement.
Verra Mobility provides the technology that makes city transport systems safer and more efficient – automated toll booths, red-light cameras, speed enforcement systems, and related software. It’s a behind-the-scenes player that many drivers don’t know, yet its systems are widely used by governments in the U.S. and abroad. For instance, if you’ve ever breezed through an electronic toll gantry or received a camera-generated speeding ticket, Verra’s technology was likely at work. Its services help cities reduce traffic congestion (by automating toll collection), improve road safety (by deterring red-light running and speeding), and raise revenue without new taxes.
Verra is a pure-play on digital traffic enforcement and road user charging, niches that should grow as urban congestion and safety concerns drive demand for tech solutions. Within this market, Verra has a steady, utility-like quality, since cities sign multi-year recurring revenue contracts for these services. It’s also expanding internationally and into new areas like school bus safety cameras. As more cities embrace Vision Zero (eliminating traffic fatalities) and congestion pricing, Verra is well positioned.
Smart Energy & Utilities
Electricity and water keep a city running, but old infrastructure just isn’t up to modern demands. That’s where this sector comes in. These companies build smart grids, deploy advanced meters, and help utilities monitor and manage resources in real time. Smart city stocks in the energy and utility space are powering the transition to greener, more responsive city systems.
Itron, Inc. (NASDAQ: ITRI)
HQ: USA; Smart grids and smart utilities.
Itron is a global leader in smart utility solutions, making the devices and software that help manage energy and water in a city. The company’s core products are smart meters (for electricity, gas, and water) and the related networking systems that collect meter data automatically. By digitizing utility infrastructure, Itron enables cities and utilities to detect leaks and outages faster, balance power supply and demand, and bill customers more accurately. A simple example of Itron’s impact: with smart meters and sensors, a water utility can pinpoint a pipe leak in hours instead of months, saving millions of gallons. Itron also provides IoT platforms that integrate streetlight controls, traffic sensors, and environmental monitors – essentially an operating system for smart cities.
Among smart city stocks, Itron is a pure-play pick for the smart grid and smart utility angle. A big growth driver for Itron is the global push for smart grids and sustainable resource management. The company has decades of domain expertise and a large installed base worldwide, which gives it a solid, annuity-like business model (selling both the devices and long-term maintenance/software services).
Badger Meter, Inc. (NYSE: BMI)
HQ: USA; Smart water technology with advanced meters and software.
Badger Meter is a pure-play smart water technology company. It produces advanced water meters and software that allow utilities to track water usage in real time and identify issues like leaks or pipe bursts quickly. As droughts and water scarcity make headlines, cities are increasingly investing in smart water management – and Badger is at the forefront of this niche. The company has transformed from just a meter manufacturer to a provider of end-to-end solutions. Its recently acquired software platforms, like Syrinix and SmartCover, add analytics and sewer monitoring to its portfolio. This is crucial for cities facing water scarcity and aiming to reduce “non-revenue water” (water lost to leaks or theft).
As a smart city stock, Badger Meter offers a compelling, mission-critical story. Water is the lifeblood of any city, and managing it efficiently is a must rather than a luxury. Badger’s high-margin, recurring revenue model (from selling devices and follow-on software/services) and its focus on sustainable outcomes give it runway as global water infrastructure undergoes upgrade.
Schneider Electric SE (EPA: SU)
HQ: France; Smart city energy management and automation.
Schneider Electric is a global powerhouse in energy management and automation – a France-based company that plays a vital role in smart city projects worldwide. If Cisco connects the city’s data, Schneider connects and optimizes the city’s power. In essence, Schneider’s technologies help utilities turn a traditional electrical grid into a “smart grid.” For example, Schneider might automate a transit system’s power supply, manage lighting and HVAC in public buildings through centralized software, or deploy EV charging infrastructure tied to renewable energy sources. The company’s EcoStruxure platform allows different systems (power, HVAC, security, etc.) to communicate and be controlled for peak efficiency.
While Schneider is a diversified industrial, it has a high strategic focus on sustainability and smart city solutions. Thus, Schneider Electric offers broad exposure to the “hardware and brains” behind smart cities. With a strong global presence and track record, Schneider is a relatively lower-risk way to invest in the theme compared to smaller pure play smart city stocks.
Xylem, Inc. (NYSE: XYL)
HQ: USA; Diversified water technology provider.
Xylem is a leading water technology company at the heart of smart city sustainability efforts. It provides a broad suite of solutions for water and wastewater management, including pumps, treatment equipment, and a growing array of smart water technologies. A city using Xylem’s tools can remotely monitor water flow, detect leaks in pipes, optimize pump energy usage, and even predict maintenance needs. Given that urban water systems often waste 20-30% of water due to leaks, these improvements are both economically and environmentally significant. Xylem is also innovating in flood control and stormwater management – vital as climate change increases extreme weather. For example, the company’s smart pumps and controllers can dynamically respond to rain events to prevent city flooding.
Xylem is a bet on smarter urban water infrastructure – an area sometimes overlooked next to energy or transport, but absolutely vital for livable cities. Roughly half of the company’s revenue comes from the water utility sector, which is seeing increased spending on modernization. And as one of the most diversified water tech providers, Xylem has an edge in winning large contracts.
Smart Public Services & Safety
Beyond physical places, cities are also systems of governance, safety, and community. This sector includes companies that help cities go digital: cloud-based emergency alert systems, connected law enforcement tools, and software platforms that modernize city hall. Smart city stocks in this category are making sure cities don’t just run better, but also respond better in a crisis.
Bentley Systems (NASDAQ: BSY)
HQ: USA; Digital twins & infrastructure software.
Bentley Systems is a leader in software for infrastructure engineering. For smart cities, Bentley enables what’s called “digital twins” of cities: detailed, up-to-date 3D digital models of urban infrastructure that are linked with real-time data. City planners and engineers can use Bentley software to simulate and oversee roads, bridges, water pipes, rail lines, and more. For example, the city of Helsinki used Bentley’s city-scale digital twin to integrate data for sustainability and urban planning initiatives. Instead of static blueprints, cities get a living model – marrying traditional engineering models with IoT and GIS (geographic information systems) data into one hub. Bentley’s partnerships – such as with Microsoft Azure for cloud and AI – mean it can offer cities cutting-edge analytics on their digital twins.
The company has a deep competitive moat in this niche: it has been serving engineers for decades and its software is industry-standard for many critical infrastructure domains. Autodesk is a competitor in design, but Bentley’s focus on large-scale civil and utility systems gives it a strong brand within city agencies and their consultants.
Motorola Solutions (NYSE: MSI)
HQ: USA; Unified platform for public safety communications.
Motorola Solutions is the gold standard in public safety communications, providing the mission-critical systems that police, fire, and emergency personnel rely on in cities worldwide. Motorola is known for its robust two-way radios and dispatch network infrastructure (land-mobile-radio systems), which are lifelines for first responders. In the smart city context, Motorola has expanded into a broader suite of safety technologies: it now offers integrated command center software, 911 call center solutions, and an array of video security products after acquisitions of Avigilon (security cameras & AI video analytics) and Pelco. This means Motorola can outfit a city with a unified platform. Whether it’s upgrading to next-gen 911 systems or expanding a network of street cameras, Motorola is a trusted, one-stop supplier.
As a smart city stock, Motorola Solutions offers a significant moat in the public safety niche. The company’s technology has high switching costs as critical systems that agencies trust. Long-term maintenance contracts give Motorola a stable recurring revenue base. In recent years, the company has seen revenue growth driven by these software and video segments in addition to its core radio business.
Axon Enterprise (NASDAQ: AXON)
HQ: USA; Public safety and law enforcement technology.
Axon is best known as the maker of the TASER, but today it’s a full-spectrum provider of law enforcement technology – from body-worn cameras to cloud software that manages police evidence. In a smart city context, Axon’s mission is to modernize public safety. Its connected body cameras record interactions and upload video to a secure cloud (evidence.com) where police departments can easily manage and share it. This improves transparency and efficiency in the justice system. Axon also sells digital platforms for dispatch and real-time operations, and even AI tools to help redact videos or flag important footage. As a result, the company has become the dominant vendor in law enforcement technology.
For smart city investors, Axon provides a growth story tied to a clear trend: police and public safety agencies are embracing tech to do their jobs better and foster trust with the community. Many agencies are still rolling out body cams and stun devices as standard gear, and Axon often wins those contracts. It also uses a razor-and-blade model (devices plus multi-year software subscriptions), yielding a steady recurring revenue stream.
Tyler Technologies (NYSE: TYL)
HQ: USA; Software for public sector and civic services.
Tyler Technologies is a leader in software for local governments, making it a key (if sometimes overlooked) smart city stock. While not dealing in flashy hardware, Tyler’s cloud-based solutions power many of the administrative functions that keep cities running: court case management, public records, budgeting, permitting, and 311 citizen service systems. This back-office modernization is a crucial aspect of smart cities (“digital government” or GovTech). Tyler has also moved into public safety software through acquisitions, offering dispatch and records systems for law enforcement that can connect with its court software, creating a seamless flow from incident to adjudication. Tyler’s decades in this niche have made it a trusted vendor to municipalities across all 50 U.S. states, enjoying sticky recurring revenue through annual maintenance contracts.
In a portfolio, Tyler offers a way to invest in the digital transformation of civic services. The trend toward cloud adoption in the public sector is still in early innings, and many city and county agencies are just now moving off legacy systems; Tyler’s addressable market is expanding. And in this market, the company occupies a strong competitive position: the public sector has notoriously high barriers to entry due to long sales cycles and need for domain expertise.
Gorilla Technology (NASDAQ: GRRR)
HQ: UK; AI and video IoT for smart cities.
Gorilla Technology is a smaller, high-growth company providing AI-powered video analytics and cybersecurity for smart cities. Headquartered in the U.K. (with origins in Taiwan), Gorilla focuses on the “video IoT” space – essentially, making sense of the vast video and sensor data that cities collect. Its software can analyze feeds from all kinds of cameras and sensors to detect anomalies or threats in real time. For example, Gorilla’s tech could enable a smart city system to automatically spot a traffic accident on a CCTV feed and alert authorities, or identify a suspicious object left unattended in a subway station. Such capabilities are increasingly in demand as cities expand their camera networks and seek to apply AI for public safety and efficiency.
Gorilla offers a pure-play on AI in smart cities, reflecting the high-tech frontier of urban management tools. This is a segment that could scale quickly as the AI revolution accelerates. Gorilla is currently not yet profitable, which is typical of emerging tech firms. However, it has already landed partnerships with major players like BT Group to deploy its solutions – and as a relatively small company, contract wins can have an outsized boost to its revenue trajectory.