Smart infrastructure: a growing market worth 1.36 billion
The Milan Polytechnic Observatory outlines scenarios involving artificial intelligence and digital twins
Key points
- V2X algorithms and technologies for motorway management
From smart roads to energy networks, Italy’s major infrastructure is undergoing a transformation, and the revolution shaping it is driven by data, digital technologies and (inevitably) artificial intelligence. Roads, railways, bridges, facilities and logistics systems are gradually evolving from their traditional role as physical assets to be built and maintained into ‘digital platforms’ capable of generating, collecting and utilising information.
This trend towards transformation is firmly established, driving significant growth in this market and pushing the economic value of spending on smart infrastructure in 2025 to €1.36 billion, which is 16% higher than the previous year. The figure emerges from the latest research by the Digital & Smart Infrastructures Observatory at the Politecnico di Milano, which Il Sole 24 Ore was able to preview, and reflects an increase in investment, particularly in relation to projects linked to the NRRP, funding from the European Connecting Europe Facility programme, and implementations by major public and private operators.
And there is another important indicator that attests to the current dynamism of the infrastructure sector, namely the growing involvement of specialist start-ups (the Observatory has identified 218 such start-ups globally, which are expected to raise just under $600 million in funding in 2025 alone), players who are increasingly taking centre stage in an ecosystem that is gradually bringing together utilities, operators, tech providers and institutions around a shared information pool.
The largest sector? The energy sector
According to the Politecnico report, the most dynamic sector is Smart Energy Infrastructure, which is worth €460 million and has grown by 21%, followed by Smart Railways at €320 million (a 12% increase) and Smart Roads at €240 million (up 17%). Next come a series of expenditure items showing positive growth of between 10% and 14%, specifically solutions that make bridges and tunnels smart, which generate a turnover of €175 million, airports and ports (75 and 50 million respectively) and projects for Smart Logistics Hubs (40 million).
This growth trend is inextricably linked to the widespread adoption of a range of converging technologies, including the aforementioned AI, the Internet of Things and advanced connectivity systems, Digital Twins and data analytics platforms – not to mention, of course, cybersecurity tools. Taken together, these technologies are redefining the way in which infrastructure is designed, monitored and managed, and what the major works sector is facing, as Damiano Frosi, co-director of the Digital & Smart Infrastructures, is effectively an unprecedented paradigm shift. ‘Infrastructure, which has always been a physical and static asset, is transforming into a digital, dynamic and interconnected platform. And whilst in the past – the expert added – the value of a project was measured primarily by its size and structural soundness, today the new competitive frontier lies in the ability to make it smart through software and data.”

