Investment Analysis: The Cost of Integrating Smart Poles into City Infrastructure

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Smart poles, integrating lighting, monitoring, energy distribution, and notification systems, create a unified management system.

Cities around the world are already experiencing the benefits of the transformative power of intelligent poles — for example, Sydney, having implemented a smart city program, has managed to create new jobs, attract startups, become greener and more comfortable, as well as reduce greenhouse gas emissions.

However, before investing in this innovation, it is necessary to evaluate its cost and prospects of this promising technology.

Detailed view of a smart pole showing integrated sensors, cameras, LED lighting modules, and connectivity components in an urban installation
Modern smart pole installation in a city setting with integrated lighting, monitoring systems, and connectivity features demonstrating urban smart infrastructure

From local limitations to global presence

The high cost of deployment and maintenance, as well as issues with coordination and standardization, create obstacles for the widespread, global presence of smart poles. To minimize costs, rational use of existing resources, unified planning of new installations, and standardization of equipment interfaces are necessary.1

The financial burden associated with implementing smart poles — including costs for 5G, IoT, and AI — limits their application in developing countries. Additionally, governments face difficulties when modernizing existing infrastructure due to high initial investments, which hinders market development. Despite this, smart poles remain a key element of 5G infrastructure, and their development will continue. The need for reliable infrastructure and effective solutions based on real data is only growing — and this leads to growth in the smart poles market.

Developed countries are at the forefront of implementing advanced technologies. In 2021, North America led the global smart poles market. This is due to growing demand in the US and Canada, where there is a desire to reduce electricity costs. Demand for smart poles is expected to increase significantly in the near future, as governments and municipalities invest in smart city projects, striving to create efficient and sustainable urban infrastructure.2

Aerial view of smart poles network deployed in an urban downtown district showing coverage pattern and integration with existing city infrastructure

Implementation of smart poles — measurements, efficiency, and technological solutions 2025

To assess costs, detect potential problems, and determine the economic benefits of smart poles, cost-effective systems for monitoring the structural condition of street lighting can be used. These sensor-based systems help identify abnormal loads and damage, assisting cities in planning budgets and infrastructure investments. The approach presented in the study "Designing a Low-Cost System to Monitor the Structural Behavior of Street Lighting Poles in Smart Cities" suggests using inexpensive monitoring systems for widespread implementation in cities with limited resources.3

Professional developments include detailed design and modeling, with simulations, load calculations, and environmental analysis. This allows for identifying and eliminating potential problems at early stages. Artisanal developments often do not include such detailed processes.

 Infographic showing Sydney's smart city program achievements including 20% emissions reduction and startup growth statistics through smart infrastructure implementation

For comprehensive transformation, integrated data collection methods are used: visual control (drones, thermal imagers), sensors for vibration, deformation, tilt, position, and environment. The Internal Zhaga Hub Station, working superbly in conditions from -40 to +70°C with hot-swapping functionality, simplifies data transmission to the server for real-time space monitoring.

A modular approach to smart poles allows cities to significantly reduce project costs. Thanks to configuration flexibility, functionality can be increased as needed, and simple component replacement reduces maintenance costs.

Conclusion

The secret to a successful smart city project lies in the right methodology

Assessment of costs and benefits is achieved through a flexible "roadmap" that establishes clear goals, uses an evidence base, and ensures optimal financing for "smart" projects.

Investments in smart city innovations bring "sustainability dividends," significantly reducing risks to people, infrastructure, and the environment, as well as enhancing safety through monitoring and notifications. Smart poles transform the city comprehensively and on a large scale, although not instantaneously.

For example, Sydney, as part of its smart city project, has already demonstrated impressive results: a 20% reduction in emissions and attracting 27% of the country's technology startups.4 Considering the projected growth of the smart poles market to $35.9 billion by 2031, with an annual growth rate of 17.9%,2 their attractiveness and necessity for cities are obvious.