While it is well known that smart city models help improve the quality of life in urban areas, their economic impact is often less discussed.

We asked Alessandro Targetti, Head of Business Development at GDS Lighting, to guide us through the advantages of the smart city economy.

 

What are the main economic benefits a city can gain by implementing smart solutions, particularly in urban lighting? 

There are primarily three types of economic benefits: energy savings, reduced maintenance costs and lower expenses for managing malfunctions and system failures.

 

Let’s talk about adaptive lighting. Can you explain the specific economic advantages it offers compared to traditional lighting systems? 

By design, adaptive lighting adjusts to real-time urban needs: light levels automatically increase or decrease based on current conditions. This allows for better lighting in areas with higher safety risks during critical hours, while reducing energy consumption in less frequented zones at low-risk times.

 

Can you share any data or concrete examples of cities that have experienced significant savings through adaptive lighting?

Yes. The city of Massa, in Tuscany, for example, achieved, through the adoption of adaptive lighting systems developed by GDS Lighting, over 20% savings compared to a traditional setup. By “traditional,” I mean systems that use preset dimming schedules in a static way, without reacting to real-time conditions, therefore not truly adaptive.

 

In terms of maintenance, system management, and product lifespan, how much of an impact does remote-controlled lighting have on the overall economy of a smart city?

The impact is substantial. Remote monitoring allows for the immediate or even predictive detection of current and potential failures. When key parameters fall below set thresholds, the system triggers alerts. This enables proactive maintenance planning and can reduce urgent interventions, cutting maintenance costs by an average of up to 30%.

 

From a sustainability perspective, how do smart city systems contribute to reducing energy consumption and lowering operational costs?

Primarily through energy savings, fewer site inspections requiring heavy vehicles, and reduced heat emissions, the result of using lower-power lighting sources. All of these contribute to lower carbon emissions and cost containment.

Smart cities are often seen as a long-term investment. How quickly can municipalities expect a tangible return on investment?

It depends on the technology in use. Today, there are simple systems available, such as TAI (Traffic Adaptive Installation), which focuses solely on vehicle traffic. These solutions can represent up to 20% of the cost of the lighting infrastructure, and offer ROI in 3 – 4 years, a timeframe that is both realistic and financially sound. There are also more complex and scalable systems, but they often come with higher costs that could dilute ROI. 

At GDS Lighting, we offer Sentronic Connect, a patented technology fully integrated within the luminaire itself. It requires no external accessories and offers a cost-to-benefit ratio that is highly sustainable.

 

Are the economic benefits of smart cities limited to large metropolitan areas, or can smaller cities also take advantage of intelligent lighting systems?

The benefits are within reach for all cities, large and small. These systems are user-friendly and easy to manage. The key lies in the project design: a well-structured, efficiency-oriented project based on the actual needs of the community can allow even a small municipality to achieve significant savings with minimal, sustainable investment.

It’s important to understand that most existing public lighting systems are oversized, since they are based on peak traffic hours. Instead, designing around average traffic levels offers vast potential for optimization and cost reduction.

 

Finally, what advice would you give to public administrators who are still hesitant about investing in smart technologies, especially to help them see this investment as a strategic economic opportunity rather than a passing trend?

My advice is to rely on experienced designers who understand how to leverage available technologies effectively. Avoid over-engineered systems that add complexity without increasing efficiency.

Focus instead on simple, clearly defined, and pragmatic solutions, these are the ones that will deliver measurable, immediate, and sustainable results.

Smart city technologies should be seen as investments with tangible returns, not as sunk costs.

 

Alessandro Targetti, Head of Business Development at GDS Lighting.