Denmark - Country Commercial Guide
Smart Cities

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2021-11-13

Overview

In light of population growth, urbanization, and climate change, public authorities and companies are focusing on mitigating global challenges by implementing sustainable, efficient, and citizen-centered solutions in growing urban environments. An approach that has gradually become more popular to develop more sustainable and efficient cities is the “Smart City” approach. 

  • Denmark is one of the leading European nations in working with Smart City initiatives. In particular, Copenhagen and Aarhus are far along in implementing these initiatives. The city of Copenhagen has emphasized reducing CO2 emissions and aims to be carbon neutral by 2025. Copenhagen expends efforts to use data as a tool to create a greener city and higher quality of life for its citizens. 
  • The report “Mapping Smart Cities in the EU” (https://www.europarl.europa.eu/RegData/etudes/etudes/join/2014/507480/IPOL-ITRE_ET(2014)507480_EN.pdf ) indicates that Denmark is among the countries with the highest proportion of Smart Cities. More specifically, the report ranks Denmark as number one together with Sweden, Estonia, and Slovenia as the countries with the largest share of major cities that can be characterized as Smart Cities.

Market Challenges

  • Challenges are mainly related to competition and/or the ability to find the right partner and mode of entry. A significant body of relevant legislation is determined at the EU level.

Market Opportunities

Danish cities are investing substantially in intelligent lighting and transport systems, climate adaption, energy renovation and retrofitting, smart grid technology, and digitalization of social and health care services. Denmark is an opportune environment to test Smart City solutions.

Market Entry Strategy

  • One way for U.S. firms to enter the market is to establish partnerships with public authorities, research institutions, and other organizations that work with Smart City solutions. Unless a significant local presence is established, finding a strong local partner with the right network and access to decision makers is a must. The first step would be to become part of a Smart City project or pilot. For instance, Cisco and Hitachi have established partnerships with the city of Copenhagen. Copenhagen’s partnership with Hitachi entailed that the company can use the city as a Big Data laboratory. 

Resources

  • Copenhagen Solutions Lab (City of Copenhagen) initiative: https://cphsolutionslab.dk/
  • State of Green: https://stateofgreen.com/en
  • CLEAN (formerly Copenhagen Cleantech Cluster): http://www.cleancluster.dk
  • Sustainia: https://sustainiaworld.com/
  • For further information, please contact Aleksander Moos, Commercial Specialist