The rising need for transport authorities to develop smart systems to improve passenger & road safety and manage traffic is driving the demand for smart transportation market in the past few years. The smart transportation system incorporates various information & communication technologies that include the Internet of Things (IoT), Global Positioning Systems (GPS), and fiber optics to enhance the transportation infrastructure. Automobiles can connect with extended environments via real-time traffic navigation, thus evading traffic collisions and congestions.
It’s being expected that by 2029, the Rapid urbanization and increasing government investments in public safety and security is fuelling growth in smart transportation demand market cap will hit USD 243.70 billion at a CAGR growth of about 11.1 %.
For example, the intelligent traffic control systems collect live traffic information to enable traffic regulatory bodies in distracting traffic away from busy areas, decreasing the risks of collision, and preventing traffic jams. Heavy investments by government organizations in smart city schemes with a goal to facilitate intelligent transport systems and proper infrastructure to all citizens is likely to spur the industry growth. For example, In 2018, the Government of India has planned to construct 599 highway projects throughout the nation allocating over USD 14 billion in the next five years.
Implementation of smart and connected technologies within the transportation infrastructure to drive the smart transportation Market
The rise in the implementation of smart and connected technologies within the transportation structure, backed by growth in free trade agreements, various government organizations are deploying Public Private Partnerships (PPP) functioning models. Regulations with strict transportation mandatory policies, recovering Return of Investments from legacy systems, along with lack of standardized and uniform technology is likely to hinder the growth of smart transportation market.
Roadways segment is amongst the emerging type for the smart transportation market
The roadways segment is anticipated to possess the largest share within the smart transportation market in 2019. One of the key factors encouraging smart transportation solutions in roadways is to enhance road safety for pedestrians, passengers, and drivers, along with decreasing crash rates occurring in day-to-day life. Highways are growingly being incorporated with the advanced in-pavement warning lights and radar that caution highway traffic to the turning drivers ahead. Furthermore, the transport authorities are churning out pioneering solutions, that include ramp metering to decrease traffic congestions and blockages on road.
Asia-Pacific will lead the growth in this market
The North American region is likely to possess the largest share within the smart transportation in 2019. This is attributed owing to the availability of supportive infrastructure along with well-advanced transportation facilities within the region. However, the Asia-Pacific region is projected to witness a substantial growth rate in the next five years due to the increasing government initiatives for advanced smart solutions for safe and smooth transportation. The rise of smart transportation solutions is comparatively higher in China, Japan, and India in the region.
Key Market Players
• Thales Group
• Cisco Systems
• Veson Nautical
• Advanced Navigation and Positioning
smart transportation market scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2029||USD 243.70 billion|
|Growth Rate||CAGR of 11.1 % during 2021-2029|
|Segment Covered||By Transportation Mode, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Accenture PLC; Alstom, SA; Cisco Systems, Inc.; Cubic Corporation; General Electric Company (GE); Indra Sistema S.A.; International Business Machines Corporation; Kapsch; LG CNS Corporation; Xerox Holdings Corporation|
Key Segment Of The smart transportation market
Transportation Mode, 2022-2029 (USD Million)
Application, 2022-2029 (USD Million)
• Mobility as a Service
• Route Information and Route Guidance
• Public Transport
• Transit Hubs
• Connected Cars
• Video Management
Regional Overview, 2022-2029 (USD Million)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and South Africa
Major Market Movements
- High development in sophisticated technologies, connected devices, besides escalating population and urbanization are estimated to remain beneficial for smart transportation market growth.
- Increased funding schemes and growing initiatives amongst emerging and developed economies to remain a crucial determinant.
- Advances such as smart automobile technology, emerging driverless cars, and pipeline diversification are poised to reciprocate thumping growth in smart transportation market
- In the realm of smart transportation innovation is the game changer. FLIR a frontline provider of thermal imaging devices has recently added its smart thermal traffic sensor that is envisioned to lend real time data to city organizers and transportation managers for better road connectivity and transportation capabilities.
Key Deliverables: Smart Transportation Market
- The report is poised to study and analyze smart transportation market through the forecast tenure, 2018-25.
- The market is likely to grow at a CAGR of xx% and is expected to supersede its initiation valuation of xx billion USD in 2018 to xx billion USD in 2025.
- To render a broad geographical overview and emphasis on dynamics such as drivers, threats, challenges, and trends in smart transportation market. The report also includes a detailed rundown on untapped market opportunities.
- A section on competition analysis has also been tagged in the report to encourage lucrative business decisions.