Singapore plans to grow data centres by 25%

Citywide sensors are also being studied.

There is a high potential for mature telecoms markets in the Asia Pacific Region to advance IoT development, leveraging strong ICT fundamentals, access to skilled labour, and more robust regulatory and legal frameworks, BMI Research said in a report. Key markets include Singapore, Japan, South Korea,Taiwan, Australia, China.

"A strong consumer appetite for advanced technology and devices in the APAC region will bode well for the uptake of consumer IoT products. However, enterprise will be the first adopter, implementing cost-saving measures while smart cities will emerge first in city-states such as Singapore," the firm noted.

In Singapore, the government plans to expand datacenters by 25% and install citywide sensors under its "Smart Nation" initiative.

However, BMI argued that the potential for smart-city technologies to improve the efficiency of existing infrastructure is a downside risk for the construction sector - especially in developed markets - as it could reduce the need for new projects.

As such, smart cities in Asia will prove to be a highly disruptive force in the infrastructure sectors and create opportunities for technology companies and network operators to participate in the infrastructure industry.

"Demand for connected infrastructure will be driven by rapid urbanisation, placing pressure on existing transport and utility grids in the region," BMI said.

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