The Smart City Observatory of the School of Management of the Politecnico di Milano reported that 2022 was a positive year for the Smart City market in Italy (+23% over 2021). The growth is also due to the allocation of the first funds linked to the NRP.

39% of municipalities above 15,000 inhabitants started at least one Smart City project in 2022. And almost all administrations that have initiated projects in recent years want to continue investing in new Smart City initiatives. These projects are set to increase in the future.

The National Recovery and Resilience Plan (NRP) represents a great opportunity to develop smart projects in Italy. According to the Observatory’s estimate, funding dedicated to smart cities exceeds 17 billion euros and 82% of municipalities are planning investments financed with funds from the NRP, focusing on digitalisation, sustainability and inclusion.

In detail, 2.9 billion will be dedicated to the digitisation of public administration. Much of the ‘smart’ potential of the NRP will be allocated to the green revolution and ecological transition, whereby EUR 10.7 billion is allocated to solutions aimed at increasing energy efficiency and sustainability. These include interventions for integrated territorial monitoring, the reduction of hydrogeological risks and the creation of energy communities, especially in urban centres with less than 5,000 inhabitants. In addition, EUR 2.5 billion is earmarked for Integrated Urban Plans, an intervention that aims to improve the suburbs of 14 Metropolitan Cities, creating new services for citizens and digitising infrastructures to transform the most vulnerable areas into smart and sustainable realities. Finally, EUR 1 billion will be earmarked for urban regeneration projects.