3. More Cities Will Become "Smart"

In 2016 the U.S. Department of Transportation said it would invest $65 million in programs funding smart city technologies, aimed at easing traffic congestion and creating new mobility services.

While many cities have started to look at IoT initiatives, this government funding will help pave the way for mass adoption of smart city functionality. As part of this, analyst firm Analysys Mason says 2017 will see new investment models as a critical element necessary to transition projects such as city-wide energy efficiency systems from small trials to full-scale smart city operations.