Spending on China's smart cities initiatives is forecast to beat $38.92 billion by 2023, according to a report published by the International Data Corporation (IDC).

Last year, Beijing, along with Shanghai, ranked fifth in terms of spending on smart cities worldwide, the IDC report said.

The prioritized fields, including resilient energy and infrastructure projects, data-driven public safety and intelligent transportation, will attract more than half of all smart cities spending during 2019-2023 period, according to the report.

However, the share of spending on those fields is predicted to decline from 43 percent in 2019 to 37 percent in 2023, data from the report showed.

The company forecasts that smart cities would diversify in the coming five years, with capital growing fast in vehicle-to-everything connectivity, digital twin and open data.

The IDC, founded in 1964, is a global provider of market intelligence, advisory services, and events in information technology, telecommunications and consumer technology markets.