Table of Contents
In recent years, “smart cities” have been created to solve various problems faced by cities, such as energy shortages and traffic congestion, by utilizing advanced technologies such as IoT (Internet of Things) , big data , and AI (artificial intelligence) for town development. It has attracted a lot of interest. Efforts to realize “smart cities” are being promoted in various parts of Japan, and major real estate companies are also actively supporting this.
“Town development” may seem like a big framework, but “town” is a collection of real estate. In other words, a smart city that optimizes the entire city with technology can be regarded as having an aspect as a collection of smart houses , smart homes , and smart buildings .
Smart cities are closely linked to the entire real estate industry, not just developers and some of the largest real estate companies. In order to look to the future of the real estate industry and the real estate tech market, let’s keep track of the latest situation in Japan regarding smart cities, which can be called the “ultimate real estate tech”.
What is a “Smart City”?
The City Bureau of the Ministry of Land, Infrastructure, Transport and Tourism said, “For various issues facing cities, management (planning, maintenance, management, operation, etc.) is carried out while utilizing new technologies such as ICT, and overall optimization is achieved. A city or district is defined as a “smart city”.
A “sustainable city” is a city that is being developed with consideration for the global environment so that future generations can live comfortably while pursuing convenience for us today. The smart city is trying to achieve this by making full use of various technologies.
According to the “ 2018 Domestic Smart City Related IT Market Outlook” released by IT specialist research company IDC Japan on February 18, 2019, the total global expenditure in 2018 regarding the amount of smart city related IT market spending The amount is estimated to reach US $ 81 billion and US $ 158 billion in 2022. Regarding the domestic market, it is predicted that the market size will be 462.3 billion yen in 2018, the average annual growth rate from 2018 to 2022 will be 21.2%, and the market size in 2022 will be 996.4 billion yen.
Furthermore, in a questionnaire survey on smart city-related IT investment conducted by IDC in November 2018 targeting 554 domestic companies and government agencies, more than 60% of companies and government agencies have started planning for that initiative. Or they answered that they are actually executing the project, and it is clear that the budget for smart city-related IT is also on the rise toward 2020.
The company also predicts that the top five use cases for spending in the domestic smart city IT market will be advanced public traffic guidance, intelligent traffic control, fixed surveillance image data analysis, environmental surveillance, and smart streetlights.
Smart City as a Place for “Co-creation”
Looking at the efforts being made in smart cities, the “real estate tech” products and services currently used in smart homes and smart houses to optimize individual lives will be convenient for the entire city in the future. It can be predicted that it will be incorporated into the system for enhancement. The transition from “individual” optimization to “whole” optimization may not be unrelated to the shift in people’s values from “ownership” to “sharing.”
Even in the business world, “open innovation” is being actively carried out to create new value by breaking into the framework of organizations such as companies, organizations, and universities, but in smart cities, residents, companies, and universities are united. It is also attracting attention as a co-creation “laboratory” place to try to create new technologies and products.
For example, the “Kashiwanoha” smart city has “initiatives for new industry creation” as one of the concepts of urban development, and is new through support from venture support specialists and networks with domestic and overseas entrepreneurs. We have a facility called “KOIL (Kashiwanoha Open Innovation Lab)” to promote the development of businesses and research areas .
In addition, on June 5, 2018, Kashiwa City, Kashiwanoha Urban Design Center (UDCK), Drone Works, and Mitsui Fudosan announced the establishment of “Kashiwanoha IoT Business Co-creation Lab”. This will be centered around Kashiwa City, utilizing the IoT demonstration field environment built around the Tsukuba Express line area, including the “Kashiwa Leaf Campus” area, together with various participating companies and organizations such as companies, local governments, and educational institutions. This is an initiative to try to spread and utilize IoT in neighboring areas and create opportunities for IoT-related businesses. It is expected that the demonstration experiments and information sharing here will lead to solving the problems of the town on the Kashiwanoha Campus.
These efforts are being carried out in various places, and the “Smart City Takamatsu Promotion Council”, which was established in October 2017 for the purpose of realizing a smart city in Takamatsu City, Kagawa Prefecture, is also a place for the realization of open innovation. Based on this, we are proceeding with efforts toward the realization of “Smart City Takamatsu”.
Countless organizations and organizations, such as local governments, developers, construction companies and local companies, are involved in creating a city. In addition to that, in order to realize a smart city, it is indispensable to collaborate with various service providers, companies with technologies, research institutions, etc. It can be said that the fact that smart cities are attracting attention as a place where open innovation can be easily carried out is deeply related to the formation of smart cities.