The global smart transportation market was valued at USD 109.84 billion in 2022 and is expected to reach over USD 381.18 billion by 2032 with a registered CAGR of 13.3% from 2023 to 2032.
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Smart transportation is a term that refers to one of the most important and intelligent transportation system-based applications. The internet of things vertical technology is used to connect it wirelessly. The technology’s primary goal is to collect and control real time data while also enhancing performance.
The growing demand among transportation authorities to develop smart solutions to control traffic and improve road and passenger safety is driving the growth of the smart transportation market. To improve transportation infrastructure, the smart transportation systems incorporate multiple information and communication technologies such global positioning systems, vehicle-to-grid infrastructure, fiber optics, and the internet of things.
The urbanization and globalization have driven the demand for smart railway software, which provides passengers with safety, dependable modern services, and operational efficiency. As the frequency of rail accidents has increased, smart sensor technologies in railway coaches that can detect faults in wheels, bearings, and railway tracks have become more important in preventing accidents. The governments from a variety of countries are also taking steps to construct smart railway networks and applying new technologies.
The vehicles can communicate with their surroundings in real time, preventing traffic jams and collisions. The intelligent traffic control systems for example collect real time traffic data to assist traffic regulators in diverting traffic away from congested regions, preventing traffic jams and lowering collision risks. The government agencies’ rapid expenditure in smart city initiatives, with the goal of providing suitable infrastructure and intelligent transportation systems to all inhabitants, will drive the smart transportation market growth during the forecast period.
The use of internet of things and automation technologies to increase technological optimization, as well as the rise in government efforts and public private partnerships models for smart transportation, are accelerating the smart transportation market expansion. The smart transportation market is also influenced by ongoing technical improvements aimed at improving customer experience and an increase in the use of analytics in smart transportation.
Furthermore, the mobility of a service has a beneficial impact on the smart transportation sector due to an increase in urban population, rapid industrialization, high demographic rates, and a decrease in car ownership. Moreover, the surge in demand for autonomous vehicles, as well as the design and development of connected vehicles that are compatible with intelligent transportation systems, provide attractive potential for key market players of smart transportation market.
The high initial deployment costs and challenges in integrating with legacy systems and networks, on the other hand, are projected to stifle industry expansion. The smart transportation market is expected to be challenged by strict transportation regulatory laws and frameworks and a lack of standardized and universal technologies.
Scope of the Smart Transportation Market
|Market Size in 2023||USD 123.9 Billion|
|Market Size by 2032||USD 381.18 Billion|
|Growth Rate from 2023 to 2032||CAGR of 13.3%|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2023 to 2032|
|Segments Covered||Solution, Service, Transportation Mode, Application, Region|
|Companies Mentioned||Harris Corporation, IBM Corporation, Huawei Technologies Co. Ltd, Veson Nautical, Cubic Corporation, Bentley Systems, BASS Software, Amadeus IT Group SA, DNV GL, Toshiba|
Based on the solution, the traffic management systems dominate the smart transportation market during the forecast period. The traffic management system options include route guidance systems, smart traffic lights, and the integration of CCTV cameras to offer real time information. The demand for traffic management technologies will increase as traffic volumes increase and current road infrastructure is used inefficiently.
On the other hand, the parking management systems segment is expected to grow at rapid pace during the forecast period. Among the solutions are installing sensors in the parking facilities to direct cars to available spots and offering information about on-street parking on each block via an application. These solutions result in less traffic congestion and greater efficiency in terms of maximizing parking capacity and revenue generation. As a result, these elements will contribute to the segment’s growth.
By service, the professional services dominate the smart transportation market in 2022. The surge in demand for consulting services is expected to propel the professional services category to significant growth during the forecast period. They help to modernize current infrastructure systems by providing implementation support, strategy formulation, and design advice. As a result, these factors will contribute to the growth of the segment during the forecast period.
On the other hand, in 2022, the cloud services segment had the biggest market share. The rising difficulty of capturing and handling the massive amounts of data created by mobile technology and sensors will drive demand for cloud services.
In terms of technical acceptance and infrastructure development, Europe is the most advanced region in the world. It is a major player in the smart transportation market. European countries have made significant investments in rail infrastructure maintenance and upgrades. In 2022, Europe is expected to have the largest share of the global smart transportation market.
On the other hand, the Asia-Pacific region is expected to have a higher CAGR during the forecast period. It can be linked to regulatory policies that have aided the rapid development of smart transportation infrastructure in nations like South Korea and China.
The smart transportation industry is highly fragmented, with a small number of major market players holding a significant part of the market. In terms of market share, the smart transportation market is currently dominated by a few significant competitors. These main market companies are working on increasing their consumer base across international countries, while local governments are focusing on improving transportation infrastructure. The different types of developmental strategies such as joint venture, investments, acquisition, business expansion, new product launches, partnerships, and mergers fosters market growth and offers lucrative growth opportunities to the smart transportation market players. The main smart transportation industry players are concentrating their efforts on expanding their operations in emerging markets. These firms have a history of introducing creative and innovative solutions to expand their product offerings in the smart transportation market.
Some of the prominent players in the global smart transportation market include:
Segments Covered in the Report
By Transportation Mode
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