

By: Susanne Seitinger, PhD, Global Sub-segment Manager Public, Philips Lighting

Global urbanization is happening at an unprecedented rate. More than half of the world’s population currently lives in cities – a trend that is expected to reach 70 percent by 2050 according to the World Urbanization Prospects 2014 report. At the same time, demand for energy and natural resources is also sharply increasing, and competition for business is driving urban areas to further differentiate and attract talent.

Enter the new possibilities for technology in cities: A vision for how cities can use technology to meet sustainability goals, boost local economies and improve services. The possibilities for exploiting new technologies are evolving as more cities develop their own plans and a growing range of market entrants deliver solutions to meet their emerging needs. Navigant Research’s 2015 smart cities report forecasts that annual smart city technology investment will reach $27.5 billion by 2023. Total cumulative investment over the next decade will reach almost $175 billion.

Some of the latest innovations will be seen at this year’s 1776 Challenge Festival. 1776 is a global incubator and seed fund that supports promising startups tackling important challenges in the highly-regulated industries of education, health, energy and smart cities. The Festival is a weeklong competition where 70 of the most innovative startups and entrepreneurs from around the world will compete for $650,000 in prizes. Startups offer a path to quickly and efficiently test many promising ideas instead of debating them. They're approaching decades-old problems with new reasoning. And it's not a moment too soon.

From energy management, to urban mobility, to street lighting and public safety; many of the world’s greatest challenges will need to be met in cities. As startups and new entries into the smart city market put pressure on incumbents to define the distinctive value they create, cities are looking for innovative, entrepreneurial partners that are agile enough to take advantage of new developments at the edges. They are looking for sustainable, connected solutions that not only contribute to increasing efficiency, but also quality of life.

Sustainability rules: Cities are the laboratories where the most innovative ideas are being tested. Urban sustainability initiatives vary widely by city and region across the world. Modebo, a startup focused on promoting energy efficiency in buildings and industry, is bringing the idea of homeostatic design indoors. By providing consulting, reporting, control and automation software to households, industrial applications, government offices and corporations, Modebo brings together a transdisciplinary team focused on promoting energy efficiency. Utilizing big data and smart systems, the team is able to customize energy efficiency applications to each project—resulting in up to 90 percent savings in energy.

Creating connectivity: Meanwhile, EverCharge, another startup competing in this year’s Festival, has created a proprietary device and accompanying service for drivers of electric vehicles who live in apartments and condos and park in common-area garages. The solution allocates power in a way that maximizes the number of cars that can be charged and allows most buildings to offer charging without significant upgrades to existing infrastructure. Like EverCharge, Philips is also identifying ways to increase connectivity in cities. In April 2015, we announced a partnership with the city of Los Angeles to implement the world’s first LED street lighting controls network based on mobile and cloud-based technology. Leveraging mobile connectivity every city street lighting asset instantly becomes part of a reliable and scalable networked solution.

Enhancing quality of life: Perhaps more obvious than making cities sustainable and connected is improving quality of life. New residents flock to cities around the globe because they hope to benefit from economic growth, recreational and cultural opportunities, and equal access to public services, among other benefits. In fact it’s the breadth and sometimes messy creativity of city life that draws people to gather in dense, mixed-use neighborhoods. More density also means greater pressures on infrastructures and supply chains to keep the city vibrant and authentic. Startup Local Roots Farms, for example, has created a cost-effective urban indoor farming system that can grow produce year-round using hydroponics. The company’s big idea is to make farming local through modular units that can be placed anywhere, no matter the geography or climate. As farmers fight to keep up with urban growth, and consumers become more conscious of how their food is produced, this solution meets one of the new factors playing a role in livability.

The face of new solutions will continue to evolve and require collaboration across government, industry, startups and academia. These interdisciplinary conversations will lead to long-term, substantive contributions to city life.