SMART CITIES DEVELOPMENT: ECONOMIC ANALYSIS OF IOT INFRASTRUCTURE IMPLEMENTATION

The development of smart cities requires the introduction of the Internet of Things (IoT) into the urban infrastructure to optimize management and improve the quality of life. The introduction of IoT solutions ensures cost reduction, development of the digital economy and an increase in the investment attractiveness of cities. The economic efficiency of such systems has led to a decrease in energy consumption, automation of utilities and an increase in the efficiency of flow management. However, digitalization of the urban environment is associated with risks, including cyber threats, high modernization costs and the need to develop flexible regulatory principles. The article provides an economic analysis of the IoT infrastructure of the city budget, considers the source of financing for digital transformation and examines the prospects for using advanced technologies in urban management.