Nearly 7 in 10 people will live in cities by 2050, based on a recent report by research consultants Frost and Sullivan. With more and more people living in city centers and many still relying on cars, traffic congestion remains one of the biggest challenges facing our society.

Traffic isn’t just a nuisance; it’s a massive drain on the U.S. economy, costing over $160 billion annually. The dense network of vehicles gridlocking our roads has impacts that extend beyond the asphalt — it permeates every aspect of urban life, demanding immediate and comprehensive action.

Fortunately, a path forward exists, but only if we completely reimagine our cities and how we move in them. We'll need to embrace technology in a way that reduces congestion and pollution while enhancing public safety and social inclusion. Say hello to the smart city of the future.

How smart cities can solve the traffic problem

Smart cities present a golden opportunity to keep traffic flowing in the right direction and enhance the overall quality of life for residents. But what will this actually look like in practice?

• Intelligent traffic management — Cities must invest in data analytics and intelligent infrastructure necessary to monitor traffic flow in real time and inform their decision-making. Amsterdam, for example, was able to reduce journey times into the downtown area by tracking changes in real-time traffic behavior and implementing roadblocks in specific areas. The Paris Highway Authority also taps into this technology, utilizing PTV Group’s traffic data platform that leverages TomTom’s live and historic traffic data to enhance the reliability of live traffic updates and inform drivers about traffic conditions. These efforts paid dividends during the two-week stretch of the 2024 Summer Olympics, where congestion levels in Paris were lower than the same period in 2023.
• Speed limit adjustments — Reducing speed limits has proven to reduce congestion, crashes and fuel use. In January 2024, Amsterdam changed its speed limit from 50mph to 30mph, making the city more livable, safer and less polluted. To help implement the new speed limit, the city assessed traffic behavior before and after the change to preempt questions people might have and show them the positive impact of the policy.
• Integrated public transit systems — Smart cities must also prioritize robust public transit systems as a viable alternative to car ownership, which can significantly reduce traffic congestion and promote environmental sustainability. Singapore's Mass Rapid Transit (MRT) network exemplifies this approach, seamlessly integrating ridesharing, bike-sharing and micro-mobility services to provide commuters with convenient access to transportation. This integrated transit system has regularly earned Singapore recognition among the world's smartest cities by the International Institute for Management Development.
• Electric vehicle adoption — Encouraging city dwellers to sub their gas-powered cars for electric alternatives is one of the best ways to clean up a city’s air and noise pollution,  but drivers must have the right incentives and supporting infrastructure.

What smart cities must get right

The benefits of smart cities are clear, but building them requires careful planning and collaboration among various stakeholders and significant technological investment.

• Infrastructure: The Foundation — Infrastructure from the start is mission-critical to smart cities. Cities should implement better traffic lights, smart parking areas, intelligent streetlights, coordinated partnerships with utility companies, reallocation of road space and technology infrastructure such as data centers and network infrastructure.
• Technology: The Driving Force — Technology will be central to any effective smart city, encompassing hardware and software for cloud monitoring, artificial intelligence, city mapping and Big Data analytics.
• Regulations: The Glue That Holds It All Together — Lastly, we need regulatory frameworks to hold everything in place, like vehicle policies, congestion regulations, incentives and emissions targets. Take it from Oslo, which implemented consumer incentives for purchasing electric vehicles and supporting infrastructure developments like charging stations and zero-emissions parking zones. By 2021, the number of EVs entering the city outnumbered gas cars.

Understanding traffic patterns is vital

The key for a successful transformation is for city authorities and planners to incorporate rich data into the heart of everything that they do. Traffic is the heartbeat of a city and by using technology to better understand travel patterns, city leaders can make decisions that reduce pressures and improve the flow. For example, TomTom works with the Wisconsin Department of Transportation, providing route monitoring to measure delays that road work causes in real time. It’s enabled the DOT to not only take proactive measures to improve mobility, but also save on monitoring costs.

This level of understanding will also help cities prepare for an uncertain future, where climate change, population growth, migration, emissions management and other unpredictable events could all make an impact on the way a city moves. 

Drawing inspiration from the success stories of cities like Amsterdam, Singapore and Oslo, we have the opportunity to build smart cities that not only lead the way in innovation but also create a brighter, more sustainable future for generations to come.