The latest IMD Smart City Index reported continuous European leadership in smart city initiatives. Experts emphasize that photonics will be crucial to retaining this position, and certain categories, such as mobility, will determine the future of smart cities.

The latest IMD Smart City Index report revealed that Europe is leading the smart cities landscape, with seven cities in the top ten, and Zurich taking the lead. In comparison, North American cities are absent from the top 20, maintaining the same declining trend since 2021.

Industry experts identify photonics as a crucial enabling technology for smart cities, which is essential to adopting the latest advancements.

„We often don’t realize what’s behind most of the tech that powers smart cities. Temperature sensors, air quality, traffic management, security–it’s all powered by photonics. It really is the backbone of smart cities,” said Antanas Laurutis, CEO of Altechna, a global company focusing on custom photonics solutions.

Smart cities use digital technologies that improve daily human life, affecting logistics, traffic management, digital communication, environmental monitoring, and other areas.

The importance of smart city initiatives continues to grow due to the transition from Industry 4.0 to 5.0. Industry 4.0 was a process that represented global changes leading to the integration of digital technologies into manufacturing and industrial processes. It marked the age of automation.

According to the study, a shift to Industry 5.0 can be explained by the challenges societies had to face recently, such as global climate change, pandemics, warfares, refugee crises, and others, all impact daily human lives. All previously achieved technological automations have to shift to human-centrism and primarily help improve life quality of individuals.

“This human-first approach in European cities has often been observed even before smart cities were a hot topic. Europe was historically successful in adapting these human-centric approaches, however, we now observe Asian cities rise due to the same reason. These positions shouldn’t be taken for granted as competitiveness is increasing globally,” Laurutis explained.

While Europe remains competitive in many areas crucial to smart cities, the latest World Economic Forum report, published in January 2025, indicates potential areas where Europe might fall behind, giving up some positions to the U.S. and Asia.

Europe’s starting point for competitiveness in key technology areas (Source: World Economic Forum)

According to Laurutis, mobility and environmental technologies are the ones to watch.

„Environmental mapping technologies are advancing fast, faster than cities adopt them. Soon, we will have drones flying around, continuously surveying landscapes, observing biodiversity, and identifying changes in precise parts of cities,” he said. “Another area that will determine which cities will be considered smart is mobility, including autonomous driving, powered by LiDAR systems. This is something where the U.S. is expected to take the lead.”

Autonomous vehicles rely on photonics-powered LiDAR (light detection and ranging) systems. They navigate much like a person walking through a dark room with a flashlight. By sending out rapid laser pulses and measuring their reflections, these vehicles create a detailed 3D map of their surroundings in real time. This “digital vision” allows them to detect obstacles, pedestrians, and other vehicles with precision, ensuring safe and efficient movement on the road.

„Advancements in photonics also enhance mobility and logistics through innovations like delivery drones, further enhancing the mobility pillar of smart cities. These drones can transport parcels efficiently, conserve resources, and improve delivery systems,” continues Laurutis.

LiDAR technology has made sensors more affordable and expanded their use. Currently, U.S. companies are developing low-cost 4D LiDAR sensors to enhance performance in harsh conditions, such as dust, fog, rain, snow, and sunlight interference.

“4D LiDAR sensors will be crucial to transport and robotics sectors within smart cities. As urban areas continue to evolve, light-based technologies and their adoption will determine whether Europe retains its position or new smart cities will emerge in 2025. At Altechna, we focus on providing custom photonics solutions, which can be applied to city needs,” concluded Laurutis.

One of the projects where Altechna uses LiDAR technology is GALACTIC, aiming to improve the climate modeling and enhance the monitoring of the planet’s surface regarding the impact of climate change.
www.altechna.com