Exploring the Application of Smart City Concepts in New Town Development: A Case Study of Zhongyang Road, Hsinchu City, Taiwan

Abstract

This study investigates the application and transformation potential of smart city concepts along Zhongyang Road in Hsinchu City, Taiwan. By introducing evaluation mechanisms such as the Smart City Maturity Index (SCMI) and the Composite Key Performance Indicator (CKPI), the research systematically analyzes the effectiveness of implementations across areas including transportation, energy, governance, and citizen engagement. Furthermore, Formula (1) is applied to assess the improvement in average delay time after the integration of smart technologies, while Formula (2) quantifies the annual energy savings achieved by replacing conventional streetlights with solar-powered ones, demonstrating tangible energy-saving and carbon-reduction benefits. The findings indicate that cross-sector collaboration and technological integration can significantly enhance urban operational efficiency and sustainability, providing valuable insights for the development of other new towns.

1. Introduction

1.1. Research Background

With the rapid advancement of global urbanization, cities are increasingly facing challenges such as uneven resource allocation, traffic congestion, environmental pollution, and overloaded public services. In response to these issues, cities around the world have actively pursued the development of smart cities by integrating information and communication technologies (ICT), big data, the Internet of Things (IoT), and artificial intelligence (AI). These technologies aim to enhance city governance, resource management, and public service delivery, ultimately improving urban resilience and the quality of life for residents [1,2,3]. It is also worth noting that the smart city field is continuously evolving, with new technologies and innovative applications emerging rapidly. This dynamic process requires ongoing adaptation of urban strategies to ensure that cities remain responsive to societal and technological changes.

Internationally, regions such as the European Union, the United States, Singapore, and Japan have formulated comprehensive smart city strategies and implementation frameworks. These efforts are often supported by cross-sector collaboration and robust public policies, yielding exemplary smart city models. Taiwan has also made significant strides since 2014, led by national initiatives such as the “Smart City Development Program,” the “Asia Silicon Valley Plan,” and the “Digital Nation and Innovative Economic Development Program.” These initiatives support local governments in deploying smart governance, transportation, construction, and healthcare applications, fostering a diverse and locally adapted model of smart city development. In addition to local challenges, Taiwan’s urban transformation is strongly influenced by broader external forces such as global and regional economic integration, urban competitiveness across East Asia, and the mounting pressures of climate change. These factors create both opportunities and constraints for implementing smart city strategies in Hsinchu.

In this context, new towns have emerged as a crucial strategy for urban expansion and population distribution [4]. Their planning and development directly affect the functionality and sustainability of urban systems and residents’ lifestyles. Therefore, applying smart city principles to new town development—to ensure intelligent infrastructure, digital governance, and high-quality living environments—has become an essential topic in contemporary urban strategies [5,6].

1.2. Research Motivation

As a high-tech hub in Taiwan, Hsinchu City is home to the Hsinchu Science Park and several top universities, playing a critical role in innovation and industrial upgrading. However, rapid population growth and industrial expansion have imposed significant pressure on urban spaces, resulting in transportation bottlenecks, housing shortages, and aging public infrastructure [7].

The Zhongyang Road area in Hsinchu’s East District has recently become a focal point for urban renewal and new town development. While the area holds considerable potential for residential, commercial, and industrial growth, it is also confronted with outdated urban planning, insufficient infrastructure, and a lack of smart governance mechanisms [8]. Therefore, integrating smart city concepts and technologies into this area is crucial to enhancing urban functionality and improving residents’ quality of life.

This study uses Zhongyang Road as a case study to explore the feasibility and strategic application of smart city principles in new town development. It aims to propose a replicable development model that can serve as a reference for similar urban initiatives.

The study hypothesizes that the integration of ICT-based smart transportation and renewable energy infrastructure significantly reduces urban congestion and improves energy efficiency. Therefore, this study explicitly hypothesizes that the integration of ICT-based smart transportation and renewable energy infrastructure will significantly reduce congestion, improve energy efficiency, and enhance residents’ quality of life in Zhongyang Road, serving as a replicable model for new town development.

1.3. Research Objectives and Scope

This study first clarifies the core concepts and global development trends of smart cities, identifying the key components and technological applications of urban construction [9]. It then analyzes the current urban development conditions of Zhongyang Road in Hsinchu, assessing its challenges and potential in areas such as transportation, housing, energy, environment, and social services.

Additionally, the research reviews both domestic and international smart city practices to identify successful models and key success factors in new town development. Based on the local context and development potential of the Zhongyang Road area, the study proposes an innovative and feasible smart city transformation plan. This plan encompasses smart transportation, intelligent buildings, smart energy management, community engagement mechanisms, and governance innovation.

1.4. Research Methodology

To ensure comprehensive data collection and in-depth analysis, this research adopts a multi-method approach. First, a literature review is conducted to synthesize theories, policies, and practical cases related to smart cities and new town development, forming the theoretical foundation of the study. Secondly, case study analysis is used to compare representative domestic and international smart city examples, identifying applicable strategies and practices [10].

A field investigation is also carried out in the Zhongyang Road area, examining land use, traffic flows, public facility distribution, and community needs. These findings provide empirical support for needs assessment and strategic planning. Furthermore, interviews with local government officials, urban planning experts, and smart infrastructure professionals offer valuable insights and validation of the proposed strategies. Interviews were conducted with 12 stakeholders, including local government officials (n = 4), urban planning experts (n = 4), and smart infrastructure professionals (n = 4). Participants were selected using purposive sampling to ensure relevant expertise. Findings were validated through cross-checking with field observation data and secondary reports.

Finally, a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is employed to evaluate the internal and external conditions affecting smart city implementation in the Zhongyang Road area. The results of this assessment serve as the basis for the development of targeted strategic recommendations.

2. Literature Review

2.1. Smart Cities

2.1.1. Overview of Smart Cities

A smart city represents an urban development model that combines advanced technology with data-driven applications to optimize urban operations, enhance residents’ quality of life, and achieve sustainable development. It spans multiple domains and integrates technologies to create a more efficient, livable, and safe urban environment [11,12,13] (Figure 1).

• Infrastructure: Includes autonomous vehicles, shared mobility solutions, and smart traffic signals integrated with real-time information systems [14]. Energy aspects involve renewable energy sources, smart grids, and energy-efficient buildings [15]. Communication infrastructure relies on 5G and IoT to handle massive data streams.
• Urban Management: Involves e-government services, digital identity frameworks, and integrated data platforms to enhance decision-making and public service quality [16]. Environmental monitoring uses sensors for air, water, and noise levels, while smart waste management and carbon-reduction measures bolster urban resilience.
• Smart Living: Enhances healthcare, education, and social services through telemedicine, online learning, and smart elderly care, making technology more accessible in daily life. Smart economies foster innovation through entrepreneurship support, shared economy platforms, and fintech, fueling urban transformation.
• Smart Society: Emphasizes citizen participation and digital inclusion, ensuring equitable access to smart technologies across all demographic groups [17]. Public safety and disaster preparedness are enhanced via smart policing, surveillance, risk detection, and cybersecurity measures.
• Urban Mobility: Real-time navigation and smart parking systems improve traffic flow and green mobility supports public transit and electric vehicles for low-carbon transition. Supporting technologies—IoT, AI, and blockchain—provide data collection, analysis, and security support.

The realization of smart cities depends on close collaboration among governments, the private sector, and citizens, and requires planning that is tailored to local conditions in order to achieve a human-centered, sustainable environment. It is important to note that smart city development is not limited to technological deployment but requires a reconfiguration of urban functions, governance, and community life to align with contemporary societal needs.

2.1.2. Key Success Factors in Smart City Implementation

Beyond the division of technical functions, certain critical success factors and challenges must be addressed to ensure effective smart city implementation (Figure 2):

• Citizen-Centered Design: Smart city design should begin with addressing citizens’ real needs—improving convenience, safety, and sustainability [18].
• Technology Integration: Integration of IoT, AI, big data, 5G, and other systems are essential, requiring cross-departmental and cross-system collaboration [3,19,20].
• Data Governance and Privacy: As urban data scale grows, policies must ensure data security, privacy protection, and prevent misuse or leakage.
• Infrastructure Upgrades: Legacy systems—including power, transport, and communication networks—must be modernized to support digital and intelligent services.
• Policy and Regulatory Support: Governments must establish data-sharing, standardization, and privacy regulations to guide smart city development.
• Public–Private Partnerships (PPP): Collaboration between the government and private sector accelerates deployment by combining technical capacity and financial resources.
• G. Citizen Education and Engagement: Increasing public understanding and acceptance through outreach and participatory activities is critical.
• H. Sustainability Focus: Smart cities must balance economic, social, and environmental needs, with goals including resource efficiency, emissions reduction, and long-term resilience development.

2.1.3. Challenges in Smart City Development

Key pressures experienced during smart city deployment include (Figure 3):

• Funding Constraints: High initial costs may burden municipal budgets, with challenges in securing private investment and ensuring return on investment.
• Technology Monopolies: Dependence on single vendors can limit openness and interoperability.
• Digital Divide: Vulnerable groups—such as seniors, low-income residents, and remote communities—may be excluded from service equity.
• Data Security and Privacy: Large-scale data collection heightens privacy risk and vulnerability to cyberattacks.
• Coordination Barriers: Fragmented departmental systems and poor data sharing impede collaboration across agencies.
• Rapid Technological Obsolescence: High turnover of new technologies risks rendering solutions outdated quickly.
• Cultural and Social Resistance: Skepticism or reluctance to adopt new technologies may slow implementation.

2.1.4. Smart City Development Trends

Emerging trends in smart city evolution are summarized in Figure 4 [21]:

• Digital Twin Technology: Virtual city modeling for simulation and optimization improves planning efficiency.
• Carbon Neutrality Goals: Smart cities aim to reduce emissions through energy optimization and low-carbon technologies.
• Integrated Smart Services: Moving from siloed functions (e.g., transport) toward holistic smart services.
• Enhanced Citizen Participation: Blockchain-based systems support transparent civic engagement and governance.
• Global Collaboration and Standardization: International knowledge-sharing and harmonized standards accelerate global adoption.

Smart cities represent a key stage in urbanization, transforming cities into more efficient, livable, and sustainable spaces through advanced technology and innovation. Successful implementation requires balanced collaboration across technologies, policies, societies, and economies [22].

2.2. New Town Development

New town planning and construction is a multidisciplinary endeavor encompassing economic, social, environmental, and cultural dimensions. Long-term urban objectives require integrating land use, public amenities, transportation, and residential space. Effective planning involves:

• Transport and Mobility: Multi-tier road networks and public transit (metro, light rail, buses), bicycle, and pedestrian pathways to support low-carbon mobility. Smart technologies such as real-time navigation and signal optimization enhance overall traffic efficiency.
• Housing and Community: Diverse housing options to accommodate multiple income groups, integrated with schools, healthcare, retail, and green spaces to foster cohesive neighborhoods.
• Economic and Industrial Planning: Defining core urban functions and promoting industry diversification—including high-tech, creative, and service sectors—to balance employment and living needs. Green infrastructure, renewable energy, energy-efficient buildings, and waste management are essential for sustainable land use.
• Social and Cultural Planning: Preservation of local heritage, provision of cultural institutions (e.g., museums, libraries), and inclusive amenities for all age groups. High-quality educational and healthcare infrastructures are foundational.
• Smart and Innovative Technology: Incorporation of smart transportation, energy management, e-government, and digital community platforms supported by big data and IoT. Financial planning includes public funding, PPPs, and cost-control mechanisms to ensure fiscal discipline.
• Regulations and Governance: Clear land-use policies and planning regulations, cross-department coordination, flexible future adaptation, risk-mitigation strategies, and public engagement are fundamental for sustainable acceptance [23].

In sum, successful new town development depends on harmonizing diverse resources and needs to achieve economic prosperity, social inclusion, and ecological balance, resulting in resilient and forward-looking cities.

2.3. Linking Smart Cities and New Town Development

Smart city technologies and frameworks offer a powerful foundation for new town development [24]. Since new towns are planned with greater flexibility than existing urban districts, they allow for the integration of innovative smart features while still being shaped by past urban design traditions. Since new towns are planned from scratch, they allow for seamless integration of innovative smart features, avoiding many of the constraints of retrofitting old urban areas.

Table 1. Smart City Components vs. New Town Development Elements.

Domain	Key Focus	Description
Smart Infrastructure Development	Digital and Intelligent Facilities	Deploy 5G, IoT, and sensors; implement smart traffic lights, parking systems, and waste management.
Smart Mobility and Transportation [25]	Integrated Transit and Data Coordination	Optimize public transit and walk/bike-friendly environments; use big data for traffic forecasting and flow management.
Smart Community Development	Intelligent Living and Governance Platforms	Promote smart homes and health management; build digital platforms for community governance and services.
Smart Energy and Environmental Management	Green Energy Integration and Real-Time Monitoring	Introduce renewable energy, smart grids, and building energy-saving technologies; deploy air and water quality monitoring systems.
Smart Economy and Innovation	Innovative Industries and Digital Economy	Develop AI and IoT industrial parks; promote e-payment, sharing economy, and innovation incubation.
Smart Governance and Participation	Data Platforms and Civic Engagement	Establish central city management platforms; enable citizen participation in governance via mobile apps.
Smart Education and Healthcare	Remote Learning and Smart Healthcare	Implement digital education, virtual classrooms, and telemedicine systems; integrate electronic health management.
Smart Security and Public Services	Intelligent Security and Integrated E-Governance	Deploy smart surveillance and disaster prevention systems; provide efficient online public services and resource allocation.
Sustainable Development Strategy	Carbon Neutrality and Circular Economy	Construct low-carbon new towns; promote resource recycling and smart waste management.
Resilient and Future-Oriented Design	Digital Twin and Modular Development	Apply modular design with space for future technology upgrades; strengthen new town adaptability.

Source: Authors’ own elaboration.

provides a summary of key linkages between smart city components and new town development.

Global empirical studies, such as Neirotti et al. [26], demonstrate that smart city strategies should be tailored to local economic, geographic, and governance contexts. New towns can serve as ideal testing grounds for context-appropriate smart urbanization.

McArthur and Jofeh (2016) [27] further emphasize that “smartness” must be aligned with urban resilience—evaluated using integrated performance indicators across sustainability, inclusivity, governance, and adaptability. The proposed SCMI and CKPI metrics in this study respond to these theoretical demands by enabling quantitative evaluation of smart governance and sustainable outcomes [28].

2.4. Implementation Strategies for Applying Smart City Concepts in New Town Development

By applying the key content and concepts of smart cities to the implementation of new town construction, we can integrate smart technologies and concepts into the design, construction, operation, and management of new towns through multi-faceted systematic planning and deployment [24].

Table 2. Strategies for Implementing Smart City Concepts in New Town Development.

Implementation Area	Key Strategies
Overall Planning and System Design	Define smart development goals, integrate urban systems, and set digital planning standards.
Smart Transportation	Build intelligent transportation systems, promote low-carbon mobility, and optimize transport using data.
Smart Energy and Infrastructure	Deploy smart grids, renewable energy, green buildings, and water resource management systems.
Smart Environment and Sustainability	Monitor environmental quality, implement smart waste management, and pursue carbon neutrality goals.
Smart Governance and Citizen Services	Develop e-governance, data-driven platforms, and strengthen channels for civic engagement.
Smart Economy and Industrial Development	Establish smart industrial clusters, support startups, and foster local digital economies.
Smart Education and Healthcare	Build smart campuses and remote healthcare systems, and integrate AI-based platforms.
Security and Emergency Management	Utilize AI surveillance, smart firefighting, and emergency response systems.
Digital Citizen Life	Provide inclusive digital services, smart housing, and virtual cultural facilities.
Future-Oriented Resilient Design	Adopt modular infrastructure and digital twin technologies for flexible planning.

Source: Authors’ own elaboration.

outlines key implementation strategies to embed smart city components into new town development:

The core concepts of smart cities provide a comprehensive framework and toolkit for new town development. Effective deployment requires aligning technology with urban needs, citizen-centered planning, sustainability, and innovative governance for high-performing and future-ready communities [29].

McArthur and Jofeh (2016) [27], from the perspective of urban sustainability and resilient governance, proposed that smart cities should not only emphasize technological integration but also adopt systematic indicators to assess urban resilience. These indicators include sustainability, inclusiveness, collaborative governance, and future adaptability. They further argue that “Smartness” and “Resilience” must be equally prioritized, cautioning against an overly technology-centric approach that may neglect the social dimensions and human-centric needs of urban development.

In response to this integrative vision, the Smart City Maturity Index (SCMI) and the Composite Key Performance Indicator (CKPI) proposed in this study reflect McArthur and Jofeh’s [27] call for multi-dimensional assessment frameworks. By incorporating data-driven metrics such as average delay time and quantified energy-saving benefits, this study offers a performance-based evaluation mechanism that captures both the tangible contributions and the long-term sustainability potential of smart governance strategies.

2.5. Theoretical Foundations and Evaluation Models

2.5.1. Systematic Evaluation Frameworks

Relevant frameworks include ISO 37122 (Sustainable cities and communities—Indicators for smart cities. International Organization for Standardization: Vernier, Switzerland, 2019) [30] for city service and quality of life indicators, the Smart City Index (SCI) for facets such as health, governance, mobility, activity, and opportunity. Giffinger et al. (2007) [3] proposed a six-dimensional model—smart economy, people, governance, mobility, environment, and living—that underpins many European city evaluations [2,3,26]. These provide the theoretical basis for this study’s assessment framework.

2.5.2. Smart City Maturity Index (SCMI)

The development of smart cities involves the integration and coordination of multiple sectors. To effectively assess a city’s relative position and development stage in its smart transformation, both academia and industry have proposed various maturity evaluation models. Among these, the Smart City Maturity Index (SCMI) is one of the most representative. Proposed by Neirotti et al., the SCMI framework integrates six key domains—transportation, energy, environment, information and communication technologies (ICT), governance, and quality of life—by aggregating weighted Key Performance Indicators (KPIs) from each domain. This composite index reflects both the breadth and depth of smart city implementation across these domains [26].

The SCMI framework serves not only as a tool for horizontal comparisons between cities, but also as a basis for longitudinal assessments within a single city, measuring the progress before and after the implementation of smart city projects. Some studies further recommend adjusting the weightings of individual KPIs based on local conditions to enhance the relevance and decision-making value of the evaluation results [31]. In this study, the existing SCMI model structure is adapted and localized to reflect the unique characteristics of Taiwanese municipal governments and the specific needs of the Zhongyang Road district. This serves as a basis for policy formulation and performance evaluation.

Moreover, the SCMI is not only referenced in this study as a descriptive index in the literature review, but also plays a critical role in the quantitative evaluation of the proposed urban renewal strategies. We introduce the concept of “SCMI Average Delay Time (D)” as Formula (1) to evaluate the impact of different development plans on the speed of smart city adoption. This enables the transformation of abstract maturity assessments into quantifiable time-based indicators, thereby providing a concrete and actionable foundation for decision-making and enhancing the practical value of the research. It is acknowledged that the SCMI framework is originally intended for city-wide assessments. In this study, the Zhongyang Road area is treated as a case-based application that demonstrates how specific components of SCMI can be adapted at a smaller spatial scale without implying a full downscaling of the entire framework. However, the SCMI also faces limitations, including the use of fixed weightings that may not reflect local urban priorities and the static nature of the model that struggles to capture rapidly changing urban dynamics. Future studies should consider dynamic weighting schemes and scenario-based models to strengthen policy relevance and flexibility.

2.5.3. Composite Key Performance Indicator (CKPI)

In the evaluation of smart city performance, a single metric often fails to fully capture the multidimensional nature of urban development [32]. To address this, the Composite Key Performance Indicator (CKPI) has emerged as a comprehensive quantitative tool that integrates multiple sub-indicators. Rooted in performance management theory, CKPI aggregates various multidimensional indicators through weighted averages or statistical analyses to produce a unified index, thereby representing the overall performance of a city in its smart transformation journey [27].

The CKPI enables both cross-sectoral comparisons and provides policymakers with a clearer understanding of overall governance effectiveness and priority areas for resource allocation. The literature suggests that the construction of a reliable CKPI should consider the measurability, relevance, and representativeness of its sub-indicators. Commonly used weighting methods include expert scoring, Analytic Hierarchy Process (AHP), and Principal Component Analysis (PCA) [33]. CKPI is also frequently employed to assess the aggregate effectiveness of specific smart city domains, such as transportation efficiency, energy sustainability, or digital governance. While CKPI provides an integrated perspective, its reliance on expert judgment and aggregation methods may introduce subjectivity and bias. Transparent weighting processes and the inclusion of empirical data are recommended to improve representativeness and comparability.

Given its high level of integration and adaptability, this study proposes a CKPI calculation model in the subsequent section, “Innovative Transformation Strategies,” to evaluate the effectiveness of smart city initiatives in the Zhongyang Road district of Hsinchu.

Furthermore, the CKPI is employed in this research as a performance measurement framework, particularly applied to energy efficiency scenarios. For example, Formula (2) quantifies the annual amount of electricity saved by replacing traditional streetlights with solar-powered alternatives. The calculation integrates factors such as lighting energy consumption, solar generation efficiency, and maintenance frequency, thus forming an applied case of CKPI. This implementation not only demonstrates the CKPI’s utility in evaluating green infrastructure performance but also underscores this study’s practical contribution to energy-saving strategies within smart city development. The CKPI in this study is not applied as a complete city-level index, but rather as a demonstration case focusing on energy-saving benefits (e.g., solar streetlights). This illustrates how CKPI principles can inform localized interventions, while maintaining the original intent of the framework at broader scales.

3. Research Design

3.1. Research Scope

This study focuses on the Zhongyang Road area in Hsinchu City, located in the Eastern District and adjacent to the Hsinchu Science Park and major transportation hubs. The area possesses advantageous geographic conditions and significant development potential. Zhongyang Road integrates residential, commercial, and public infrastructure along its corridor, forming a critical part of Hsinchu’s urban functionality. However, due to rapid population growth and increasing land use density, the area is facing challenges such as aging infrastructure, traffic congestion, fragmented community functions, and insufficient smart infrastructure development.

The study area is delineated as the Zhongyang Road corridor and its surrounding built-up area within an approximately 1 km radius. This includes major urban arterials, secondary roads, key public facilities, open spaces, and residential communities. Through comprehensive analysis of the area’s development status, local conditions, and potential issues, the study aims to assess the feasibility of smart city implementation and propose strategic directions for its transformation.

Key factors influencing the area’s development include: (1) the population concentration and rising housing demand driven by its locational advantage; (2) pressure on traffic and resources arising from surrounding industrial parks and commercial activities; (3) the urgent need for urban renewal and infrastructure upgrades; and (4) the degree of governmental support and technical integration for smart city policies. These factors constitute the foundational considerations for evaluating and planning smart city applications in this research.

3.2. Current Condition Analysis

To understand the actual conditions and development needs of the Zhongyang Road area in Hsinchu City (Figure 5), this study analyzes the status quo from four key dimensions: urban development, transportation, environment, and technological application.

In terms of urban development, the land surrounding Zhongyang Road is predominantly used for mixed residential and commercial purposes, with a high population density. However, some areas face issues of uneven development density and insufficient public facilities. The demographic profile is composed mainly of young families and professionals in the technology sector, resulting in high demand for convenience and smart services. Regarding infrastructure, while basic systems such as water supply, drainage, and electricity are functional, their scalability and intelligent management capabilities require further enhancement.

In terms of transportation, Zhongyang Road serves as a major urban arterial, accommodating heavy commuting and school-related traffic. It frequently experiences congestion. The public transportation network is primarily bus-based, but the service frequency and convenience remain suboptimal. Facilities for non-motorized transport are underdeveloped, with sidewalks and bicycle paths fragmented and lacking continuity, hindering the promotion of low-carbon mobility options.

From an environmental perspective, green space is sparsely and unevenly distributed, with a lack of large-scale public open spaces, contributing to a noticeable urban heat island effect. Air quality fluctuates due to traffic volume, and energy usage remains reliant on traditional power sources. Green energy installations and energy management systems are not yet widely adopted, leaving a gap with regard to sustainability goals.

Regarding technology applications, some smart traffic signals and intersection surveillance systems have been installed. Smart poles and environmental sensors have been deployed along certain road segments. However, overall smart infrastructure remains at an early stage, lacking integration and real-time data platforms, and has yet to form a comprehensive smart city service network.

3.3. SWOT Analysis

Based on the findings above, a SWOT analysis was conducted for the Zhongyang Road area in Hsinchu City as follows (Table 3):

• Strengths: Advantageous geographical location near the science park; stable population and industrial base; high public acceptance of smart technologies; proactive government resource support.
• Weaknesses: Aging infrastructure; uneven spatial distribution; insufficient public services and traffic management functions; low integration of smart construction.
• Opportunities: National policies promoting smart cities; mature technologies such as 5G and IoT; potential for simultaneous smart infrastructure implementation alongside urban renewal [35].
• Threats: Intense competition for resources; limited policy execution efficiency; high initial costs of smart infrastructure; public participation and social consensus yet to be fully established.

In this study, the SWOT analysis is not only used as a general situational assessment but also as a validation step to confirm the relevance of the proposed strategies. For example, the identified weaknesses (aging infrastructure and insufficient public facilities) and opportunities (national smart city policies and mature 5G/IoT technologies) directly guided the prioritization of smart infrastructure upgrades and intelligent transportation planning. These findings directly guided the formulation of strategies presented in Section 3.4.

Table 3. SWOT Analysis of Smart City Implementation on Zhongyang Road, Hsinchu [2,26,36].

Category	Internal/External Factors	Details
Strengths	Geographic and Policy	Strategic location near Hsinchu Science Park and major transport hubs Strong government support for smart city initiatives
	Social	Young demographic and high-tech workforce with high acceptance of smart technologies Strong academic–industry collaboration potential
	Infrastructure	Existing ICT pilot projects (smart poles, surveillance) provide a foundation for scaling
Weaknesses	Infrastructure	Aging basic infrastructure (roads, sewage, lighting, street furniture) Limited smart integration of water, energy, and public facilities
	Transportation	Severe peak-hour traffic congestion Fragmented public transport system (bus-dominated, low frequency) Insufficient non-motorized transport facilities (sidewalks, bicycle lanes)
	Social and Services	Uneven distribution of community facilities (elderly, healthcare, childcare) Limited citizen engagement mechanisms
	Environment	Insufficient green space and poor connectivity between existing parks Noticeable urban heat island effect
Opportunities	Policy and Technology	National smart city programs promoting 5G, IoT, and AI Mature smart transportation and renewable energy technologies available for deployment
	Economic	Rising demand for diversified housing and services Potential for local economic growth via digital and green industries
	Environment and Sustainability	Opportunity to integrate green infrastructure (parks, rooftop PV, rainwater harvesting) Growing public awareness of sustainability and carbon reduction
Threats	Financial	High upfront investment costs and uncertain funding continuity Potential competition for limited municipal resources
	Social	Risks of uneven participation across different social groups Rising housing costs may lead to inequality and social exclusion
	Environmental	Air pollution from industrial and transport sources Climate risks (heat waves, flooding) may intensify pressure on infrastructure

Table 3. SWOT Analysis of Smart City Implementation on Zhongyang Road, Hsinchu [2,26,36].

Category	Internal/External Factors	Details
Strengths	Geographic and Policy	Strategic location near Hsinchu Science Park and major transport hubs Strong government support for smart city initiatives
	Social	Young demographic and high-tech workforce with high acceptance of smart technologies Strong academic–industry collaboration potential
	Infrastructure	Existing ICT pilot projects (smart poles, surveillance) provide a foundation for scaling
Weaknesses	Infrastructure	Aging basic infrastructure (roads, sewage, lighting, street furniture) Limited smart integration of water, energy, and public facilities
	Transportation	Severe peak-hour traffic congestion Fragmented public transport system (bus-dominated, low frequency) Insufficient non-motorized transport facilities (sidewalks, bicycle lanes)
	Social and Services	Uneven distribution of community facilities (elderly, healthcare, childcare) Limited citizen engagement mechanisms
	Environment	Insufficient green space and poor connectivity between existing parks Noticeable urban heat island effect
Opportunities	Policy and Technology	National smart city programs promoting 5G, IoT, and AI Mature smart transportation and renewable energy technologies available for deployment
	Economic	Rising demand for diversified housing and services Potential for local economic growth via digital and green industries
	Environment and Sustainability	Opportunity to integrate green infrastructure (parks, rooftop PV, rainwater harvesting) Growing public awareness of sustainability and carbon reduction
Threats	Financial	High upfront investment costs and uncertain funding continuity Potential competition for limited municipal resources
	Social	Risks of uneven participation across different social groups Rising housing costs may lead to inequality and social exclusion
	Environmental	Air pollution from industrial and transport sources Climate risks (heat waves, flooding) may intensify pressure on infrastructure

3.4. Application of Mathematical Models for Smart City Transformation Assessment

Building upon the situational analysis and SWOT findings, this study proposes four innovative strategies. For instance, the weakness of outdated infrastructure corresponds to the recommendation of LED and sensor-based streetlight systems, while the opportunity of national policy support underpins the feasibility of 5G infrastructure deployment.

Based on the expanded SWOT, the following interventions were prioritized because they address multiple dimensions simultaneously (traffic congestion, lack of green space, and insufficient community facilities). First, in the realm of smart transportation planning, it is recommended to implement intelligent traffic signal systems capable of dynamically adjusting signal timing using real-time traffic flow data. This measure aims to improve road utilization efficiency. Additionally, the deployment of autonomous shuttle services and shared mobility solutions is proposed to supplement existing public transportation and enhance first- and last-mile connectivity within the community. In addition to adaptive signal control, the plan also considers selective traffic restrictions along specific corridors, prioritizing pedestrian and bicycle traffic where appropriate. Dedicated and continuous cycling lanes, along with walkable streets, are proposed to encourage sustainable mobility and enhance safety.

Second, smart infrastructure upgrades include the comprehensive replacement of conventional streetlights with LED lighting systems integrated with smart sensors. These upgrades would be linked to an intelligent energy-management platform for real-time power monitoring and load balancing. Moreover, the introduction of smart sensors for underground infrastructure—such as pipelines and electrical cables—is proposed to improve operational efficiency and enhance emergency response capabilities.

Figure 6 illustrates the integration of multiple technologies within a smart city framework, including IoT-based monitoring, smart lighting, intelligent parking systems, and public safety applications.

In the domain of green building and sustainable development, this study encourages both new and existing buildings to integrate photovoltaic (PV) solar systems and energy-efficient equipment. Additionally, the implementation of rainwater harvesting systems and building greening initiatives are promoted to achieve low-carbon development goals. These measures are intended to enhance environmental resilience and reduce urban carbon emissions, aligning with broader sustainability objectives.

Finally, in terms of smart community development, it is proposed to introduce intelligent security systems, public Wi-Fi, and digital information platforms to improve daily convenience and encourage civic participation. These measures are not only technological enhancements but also functional transformations that reshape urban living—such as creating walkable and bicycle-friendly streets, reconfiguring public spaces, and embedding citizen participation into local governance. In addition to technological interventions, this study also emphasizes community-oriented measures. These include expanding sidewalks and bicycle lanes for safer non-motorized mobility, upgrading neighborhood green spaces to improve public well-being, and establishing digital platforms for citizen participation, which enable residents to contribute feedback and engage with local governance. Among the identified alternatives, the integrated strategy was prioritized because it simultaneously addresses multiple pressing issues—traffic congestion, infrastructure aging, energy inefficiency, and insufficient community services—while aligning with opportunities such as national policy support and emerging smart technologies. This ensures that the proposed solution is not fragmented but optimized to deliver the greatest overall benefit to the Zhongyang Road area. Together, these innovative strategies collectively provide a feasible pathway for achieving sustainable and inclusive smart city transformation in the Zhongyang Road area.

4. Research Results

4.1. Benefits of Smart City Applications on Zhongyang Road, Hsinchu

Based on the analysis of the current status and the proposed innovative transformation plans, this study summarizes four major benefits of smart city implementation along Zhongyang Road in Hsinchu:

First, regarding traffic improvement and efficiency enhancement, the introduction of intelligent traffic signal systems enables dynamic adjustments to traffic light durations based on real-time traffic flow, thereby alleviating peak-hour congestion. Additionally, unmanned shuttle services and shared transportation systems can supplement inadequacies in the current public transport network, improving commuting convenience and overall system performance. Smart parking information platforms and sensor-based parking space detection technologies can also effectively reduce time and fuel consumption spent searching for parking, thereby easing internal traffic pressure in the area. Beyond easing vehicle congestion, the prioritization of pedestrian- and bicycle-friendly routes enhances accessibility, promotes healthy lifestyles, and fosters a safer and more attractive urban environment. The integration of smart lighting systems and expanded green areas further strengthens the livability and environmental sustainability of Zhongyang Road.

Second, smart city initiatives contribute to urban environmental optimization. Smart lampposts equipped with air-quality sensors, noise detectors, and adaptive lighting controls allow real-time monitoring of environmental conditions and automatic adjustment of brightness and operating modes, minimizing energy waste and light pollution. Smart waste management systems and neighborhood greening efforts further enhance the cleanliness and aesthetic quality of public spaces, strengthening citizens’ sense of identification with the urban environment [37].

Third, in the realm of green energy and sustainable development, the installation of solar-powered streetlights and rooftop photovoltaic systems in buildings can reduce dependency on conventional electricity while serving as demonstrative tools for energy conservation. The integration of rainwater harvesting systems and green building technologies help mitigate urban water consumption and the heat island effect, thereby improving ecological resilience and fostering regional sustainability.

Finally, smart city transformations significantly enhance residential comfort and citizen satisfaction. Intelligent security systems bolster community safety, while public Wi-Fi networks and digital information displays improve information dissemination and everyday convenience. Smart community platforms encourage resident participation in community governance and public decision-making, fostering a human-centered and interactive living environment. Beyond technical improvements, it is critical to address inclusivity. Smart transportation and digital service platforms must consider vulnerable groups—such as the elderly, people with disabilities, and low-income households—ensuring equitable access. Recent frameworks (Shi et al., 2025) using immersive simulations for accessibility evaluation provide useful guidance on embedding citizen-centered perspectives into smart city planning [38]. In addition to technological advancements, the proposed measures enhance community quality of life by improving access to green areas, supporting social inclusion through smart healthcare services, and strengthening participatory governance through digital engagement platforms.

4.2. Cost and Benefit Analysis

To assess the practicality and effectiveness of the proposed smart city transformation strategies, this section evaluates both the technological implementation costs and the anticipated economic and social benefits.

In terms of technological application costs, the implementation of smart transportation, intelligent lighting, environmental sensors, and ICT platforms require upfront investment in hardware infrastructure and system integration. Among these, intelligent traffic signals and 5G infrastructure entail relatively higher initial costs. However, due to technological maturity and the benefits of economies of scale from large-scale deployment, unit costs are expected to decrease progressively over time. Additionally, smart energy and green building systems—such as solar-powered streetlights and rainwater harvesting systems—can utilize government subsidies or public–private partnership (PPP) models to offset early-stage financial burdens.

From the perspective of economic and social benefits, smart city systems are projected to reduce municipal operation and maintenance expenses in the long term. For example, smart lighting systems can lower electricity bills and maintenance labor costs, while intelligent waste management can reduce collection frequency and minimize resource waste. On the social front, benefits include increased citizen satisfaction, enhanced perceptions of residential safety, improved environmental health, and strengthened community cohesion. These intangible gains are likely to positively impact local attractiveness and real estate values.

Moreover, by enhancing infrastructure efficiency and traffic flow, the smart transformation can attract industrial investment and stimulate employment, thereby contributing to overall economic development. Consequently, considering both comprehensive social benefits and implementation costs, smart city initiatives exhibit strong potential for medium- to long-term positive returns.

4.3. Innovative Transformation Plan

To evaluate improvements in intersection efficiency resulting from the deployment of smart traffic systems, this study introduces the Average Delay Time (D) derived from the Smart City Maturity Index (SCMI) as a performance metric, defined as follows [26]:

$$D={\displaystyle \frac{{\sum }_{i=1}^n\left(T_i-T_{free}\right)}{n}},$$

(1)

Among them, $T_i$ denotes the actual passing time of the i-th vehicle, $T_{free}$ represents the theoretical passing time under free-flow traffic conditions, and n is the total number of vehicles analyzed. Based on simulation analysis, the implementation of adaptive smart signal control reduced the average delay time during peak hours on Zhongyang Road’s main corridor by approximately 18.4%. These applications should be interpreted as illustrative case-based adaptations of the SCMI and CKPI frameworks, rather than a complete re-scaling of these models to the micro-urban level.

In addition, this study estimated the annual electricity savings of solar-powered streetlights in comparison to conventional lighting systems as follows [39]:

$$E_{saving}=N·(P_{trad}-P_{solar})·H_{year},$$

(2)

Among them, N denotes the number of installed streetlights, $P_{trad}$ and $P_{solar}$ represent the power consumption (in watts) of traditional and solar-powered luminaires, respectively, and $H_{year}$ is the average annual lighting hours. Based on the planned installation of 500 solar-powered streetlights along Zhongyang Road, the system is projected to save over 35,000 kWh of electricity annually.

In this calculation, the vehicle sample (n = 500) was drawn from peak-hour traffic counts along Zhongyang Road. Free-flow travel time was defined as the 85th percentile speed under uncongested conditions. For energy savings, the traditional luminaire power consumption was set at 250 W compared to 100 W for solar-powered alternatives, with average annual operating hours of 3500. Long-term solar panel efficiency was assumed to degrade at 0.5% per year.

This study adopts the Smart City Maturity Index (SCMI) and Composite Key Performance Indicator (CKPI) as the core evaluation frameworks and incorporates two performance assessment models into the proposed innovative retrofit schemes:

• SCMI Average Delay Time (Equation (1)): Used to measure the effectiveness of proposed interventions in accelerating smart city development, and serves as a comparative metric among different planning strategies.
• CKPI for Renewable Energy Substitution (Equation (2)): Evaluates the actual substitution effect of applying renewable energy in public lighting scenarios, representing a quantifiable performance indicator for green energy implementation.

Through the development and application of these two indicator models, this research bridges the gap between theoretical indices and practical performance assessments, thereby enhancing the scientific rigor and feasibility of the proposed policy recommendations.

Table 4. Comparative Analysis of International Smart City Initiatives. [2].

City	Key Characteristics	Smart Technologies	Relevance to Hsinchu
Sejong City, South Korea	Planned as the new administrative capital; strong government investment	Smart traffic signals, integrated platforms	Policy-driven model of rapid growth
Singapore (Marina Bay)	High-density urban planning integrated with infrastructure	Internet of Things (IoT), Artificial Intelligence (AI), Smart grid	Compact and highly efficient land use planning
Amsterdam Smart City	Public–private partnerships; emphasis on sustainability	Energy monitoring, mobile applications	Civic engagement and green energy development
Zhongyang Road, Hsinchu	Smart upgrades implemented within traditional urban fabric	Smart streetlights, surveillance systems, 5G planning	Improving existing urban landscape with new technologies

presents a comparative analysis of international smart city programs and the Zhongyang Road project in Hsinchu, highlighting key differences and similarities in strategic development and technological integration [1,2,26].

Although these international cases provide reference points, their applicability to Taiwan is moderated by differences in governance capacity, cultural expectations, and institutional structures. As such, strategies proposed for Zhongyang Road prioritize localization and adaptive transfer of best practices rather than wholesale replication.

The application of mathematical models to Zhongyang Road demonstrates tangible benefits from the proposed smart city strategies. Using Equations (1) and (2), the results show that adaptive traffic signal control can significantly reduce vehicle delays during peak hours. The simulation indicates that average intersection delays are lowered by more than 15%, while overall traffic flow efficiency improves noticeably.

In addition, the introduction of smart street lighting and renewable energy systems generates considerable energy savings. Photovoltaic integration into streetlights reduces electricity consumption by up to 20%, while intelligent lighting control systems further optimize efficiency. These quantitative results confirm that the combination of smart transportation and sustainable infrastructure can directly contribute to energy efficiency and improved mobility performance in the Zhongyang Road area.

4.4. Feasibility of Smart City Transformation on Zhongyang Road, Hsinchu

While the quantitative outcomes demonstrate the effectiveness of smart city interventions, their feasibility depends on broader enabling conditions. Several factors strengthen the practicality of applying these strategies in the Zhongyang Road context:

• Policy Support: Taiwan’s national and local governments actively promote smart city programs, providing funding mechanisms, regulatory frameworks, and pilot projects that support the integration of ICT-based urban systems. This policy environment ensures institutional backing for implementation.
• Demographic Readiness: Hsinchu’s population, strongly linked to the high-tech industry, shows high acceptance of new digital services and strong adaptability to innovation. This demographic advantage facilitates citizen engagement and accelerates adoption of smart solutions.

Comparative International Experience: Global precedents such as Songdo in South Korea and Marina Bay in Singapore demonstrate how integrated planning and strong governance can transform urban districts into sustainable smart communities. While differences in scale exist, the transferable lessons—such as coordinated infrastructure planning, cross-sector collaboration, and long-term investment strategies—support the applicability of the proposed solutions in Hsinchu.

In summary, with effective integration of government support, advanced technologies, and civic engagement, Zhongyang Road could serve as a benchmark for smart new town development and provide a replicable model for other urban districts across the country. For example, Singapore’s Marina Bay successfully demonstrates how compact urban planning integrates smart grids and IoT-based services, while Amsterdam Smart City illustrates the effectiveness of public–private partnerships in promoting sustainability. These cases provide comparative evidence that supports the applicability of the strategies proposed for Zhongyang Road.

4.5. Discussion

The findings of this study suggest that smart city strategies can effectively enhance transportation efficiency, environmental quality, and community well-being in the Zhongyang Road area. However, several broader considerations must be addressed. First, while adaptive traffic signals and smart lighting systems significantly reduce congestion and energy consumption, their success depends on continuous maintenance and integration with city-wide platforms. Second, the prioritization of pedestrian and bicycle traffic improves safety and accessibility, but may generate resistance from drivers and local businesses accustomed to car-oriented planning. Third, environmental benefits such as energy savings and carbon reduction are substantial, yet their long-term impact requires consistent monitoring and policy support.

From a social perspective, the introduction of digital platforms and smart healthcare services improves inclusivity, but challenges remain in ensuring equal access for elderly or disadvantaged groups. Economically, the upfront investment costs are high, and sustainable financing mechanisms such as PPPs are critical. Governance-wise, successful implementation requires cross-sector coordination and transparent citizen engagement to avoid fragmented or top-down decision-making.

These reflections highlight that smart city transformation must balance efficiency with inclusivity, technology with governance, and immediate gains with long-term resilience. The discussion also underscores the limitations of applying SCMI and CKPI at the micro-urban scale, and the need for broader comparative studies to validate the transferability of the findings. It must also be noted that smart infrastructure cannot replace the foundational role of traditional urban design. While technologies such as adaptive traffic signals or smart grids can address certain deficiencies, they should be integrated with coherent land use planning, spatial design, and community-oriented urban form. Over-reliance on technological fixes risks neglecting the long-term physical and social structures that shape urban resilience. Therefore, the strategies proposed for Zhongyang Road are framed as complementary measures, designed to enhance rather than substitute traditional planning approaches.

Beyond the Zhongyang Road case, evidence from successful international initiatives reinforces the relevance of the proposed strategies. For instance, Singapore’s Marina Bay demonstrates the integration of smart grids and IoT in a compact district, Amsterdam Smart City highlights the role of public–private partnerships in advancing sustainability, and Songdo in South Korea illustrates the feasibility of large-scale planned smart communities. These cases collectively provide comparative validation and underline that while contexts differ, the fundamental principles of integrated planning, citizen engagement, and adaptive governance are transferable.

5. Conclusions and Recommendations

5.1. Research Conclusions

This study demonstrated that applying smart city concepts to the Zhongyang Road area in Hsinchu City can substantially improve transportation efficiency, modernize infrastructure, strengthen environmental sustainability, and enhance citizen well-being. By employing the Smart City Maturity Index (SCMI) and Composite Key Performance Indicator (CKPI) as evaluative tools, the research provided quantifiable evidence of reduced traffic delays and significant energy savings through smart infrastructure upgrades. These results confirm both the feasibility and replicability of smart city transformation at the micro-urban scale, offering valuable insights for similar districts in Taiwan and beyond.

5.2. Policy Recommendations

To ensure successful implementation, policy actions must not only be locally grounded but also adaptable to different governance systems. While the following recommendations are tailored to Hsinchu’s context, their core principles—strategic roadmaps, data governance, cross-sector collaboration—are designed to be transferable across diverse urban and political environments.

• Strategic Roadmaps—Establish phased implementation strategies that integrate smart city development with urban renewal policies.
• Data Governance and Security—Develop robust regulations for data sharing, privacy protection, and cybersecurity to build public trust.
• Public–Private Partnerships (PPP)—Encourage cross-sector collaboration to share infrastructure costs, promote innovative applications, and accelerate deployment.

At the same time, academia should act as a common platform for initiating collective efforts, enabling comparative research, sharing best practices, and building universal frameworks for smart city transformation. Such collaboration ensures that recommendations are not confined to single contexts but can be meaningfully applied in cities worldwide.

5.3. Future Research Directions

Future research should further explore the integration of advanced technologies such as AI, 5G, and blockchain into new town development. Comparative studies across multiple Taiwanese new towns (e.g., Tamsui, Linkou, Shalun) are encouraged to identify region-specific strategies and establish adaptive models. Additionally, more work is needed to investigate how digital platforms can foster inclusive citizen participation, ensuring that smart city transformation remains human-centered and socially equitable.