Future Markets Research Releases Report on Actelis Networks: A Key Player Amidst Smart City Growth and Rising Infrastructure Cyber Risks

Actelis operates at the intersection of rapidly growing industries, including smart cities, cybersecurity, and critical infrastructure modernization. The company’s hybrid-fiber technology, which combines the speed and reliability of fiber-grade connectivity with the cost-effectiveness of leveraging existing copper infrastructure, has proven indispensable for cities and government entities seeking efficient solutions for upgrading aging networks. In 2024, Actelis introduced its "Cyber Aware Networking” initiative, an AI-driven software component it is collaborating on that adds an additional layer of cybersecurity to its networking solutions. This software continuously monitors for and mitigates cyber threats, addressing vulnerabilities in real-time, especially at the edge of IoT networks.

Actelis has experienced significant growth over the past year, driven by high-profile projects and expanding market confidence. The most recent notable achievements include:

• Seattle ITS Modernization: Actelis’ hybrid-fiber technology was selected to power Seattle’s Intelligent Transportation Systems (ITS), supporting traffic signals, congestion monitoring systems, and dynamic messaging. As the "Smartest City” in the U.S., Seattle’s decision to partner with Actelis underscores the trust placed in its solutions for critical urban infrastructure.
• Washington, D.C. Expansion: Actelis secured additional orders for the nation’s capital, building on a $2.3 million project announced earlier in 2024. This collaboration with M.C. Dean integrates Actelis’ technology into Washington’s traffic management systems, optimizing flow and safety in one of the country’s busiest urban environments.
• Military and Government Contracts: Actelis has expanded its presence in the defense sector, securing order for the U.S. Army National Guard bases and achieving inclusion on the Department of Defense Information Network (DoDIN) Approved Products List. These milestones reflect Actelis’ growing role in national security and critical infrastructure resilience.
• European Deployments: Actelis’ success in Germany and Italy highlights its ability to adapt its solutions for international markets. Recently announced projects include upgrades to ITS infrastructure in German municipalities and Italian motorways, demonstrating Actelis’ versatility and global reach.

The Broader Market Perspective: Growing Market and Budgets for Smart Cities Alongside Increased Cyber Threats to Critical Infrastructure

The global smart cities market is experiencing remarkable growth, projected to expand from $767.75 billion in 2024 to $4.65 trillion by 2032, representing a staggering annual growth rate of 25.2%. This transformation is fueled by rapid urbanization, increased investment in IoT technologies, and advancements in 5G infrastructure. At the heart of this revolution are, among other things, Intelligent Transportation Systems (ITS), a critical segment anticipated to grow to $65.33 billion by 2032. These systems depend on secure, high-speed connectivity to manage traffic flow, enhance public safety, and reduce urban congestion—all areas where Actelis’ technology excels.

Actelis’ hybrid-fiber networking solutions seem to directly address these challenges by offering fiber-grade performance while leveraging existing copper infrastructure. This approach significantly reduces deployment costs and accelerates timelines, making it an essential solution for cities constrained by budgets or facing urgent modernization demands. The cyber-hardened nature of Actelis’ networking technology ensures that critical infrastructure, including ITS and urban IoT systems, remains secure against escalating cyber threats. Recent deployments in Seattle and Washington, D.C., underscore the company’s capability to provide scalable, resilient solutions tailored to modern urban infrastructure needs.

Actelis’ cyber hardening capabilities alongside its cyber-aware networking initiative gain further importance amidst the growing sophistication of cyber threats targeting critical infrastructure is intensifying. Globally, cyberattacks on essential systems increased by 30% in 2023, with sectors like energy, telecommunications, and transportation being primary targets. The interconnected nature of these systems amplifies the risk, as vulnerabilities in one area can cascade into others. These challenges are compounded by geopolitical tensions, as highlighted by recent reports from the House Committee on Homeland Security.

2024: A Transformative Year

Actelis’ financial achievements in 2024 underscore its strong growth trajectory. In Q3 2024, the company reported revenue of $2.54 million, a 200% increase from Q3 2023. Year-to-date revenue reached $6.7 million, a 46% year-over-year increase. Gross margins surged to 69%, up from 27% the previous year, driven by high-margin software and hybrid-fiber solutions.

Key to this success was a $1.4 million renewal contract with a major North American client, $1.1 million of which was recognized in Q3. Additionally, Actelis reduced operating expenses by 12% and narrowed its net loss by 41% to $0.51 million. These results indicate that Actelis is steadily moving toward profitability while maintaining disciplined cost management. The company’s robust performance since is complemented by its strategic wins in Seattle, Washington, and other key markets, demonstrating its ability to continue receiving large-scale projects and gaining the confidence of major city’s and local governments.

Looking Ahead

Actelis Networks seems to be at the forefront of critical infrastructure modernization, driving advancements in secure, scalable networking solutions. With its innovative hybrid copper-fiber technology, AI-driven cybersecurity measures, and strong financial performance, Actelis is poised for sustained growth in the rapidly evolving markets of smart cities, transportation, and defense. As cities and governments increase their focus on IOT, smart city investments, infrastructure modernization and cyber resilience, it seems like Actelis may be well-positioned to lead the way.

Future Markets Research is a digital research and coverage brand, offering commentary and exploration into the current and future states of emerging and innovative industries and companies around the globe.

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Important disclaimers and disclosures: This update may include speculative forward looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The cyber, smart city, IOT and other industries and or markets mentioned are volatile and risky and readers are advised to seek out professional advice in the relevant fields from licensed professionals. This report is for informational purposes only and is not intended to serve as financial, investment or any form of professional advice, recommendation or endorsement. Please review the full documentation detailing financial compensation disclosures and disclaimers the article is subject to. [https://justpaste.it/ecto7/pdf]. Future Markets Research is a commercial digital brand operated for IR purposes compensated by the issuer aforementioned to provide coverage of news and developments related to innovative companies as detailed in the full documentation and it is thus subject to conflicts of interest.

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