Smart Transportation Industry Overview
The global smart transportation market size was valued at USD 101.26 billion in 2021 and is estimated to reach USD 285.12 billion by 2030, growing at a CAGR of 12.6% during forecast period.
The market growth is driven by increasing innovative city projects, government programs toward reducing the effects of greenhouse gases, and the need for technology in traffic management systems. Lack of safe public transportation, poor management of public transportation, increased road safety concerns, and poor traffic management are some of the factors significantly driving the demand for smart transportation.
Gather more insights about the market drivers, restrains and growth of the Global Smart Transportation Market
Smart transportation is a cutting-edge technological application that provides various transportation and traffic management services. It has become an integral part of everyday life due to increased accidents and traffic in different countries. Smart transportation systems make it easier to use more informed, safer, coordinated, and smart transportation networks. The market has witnessed significant growth in applying modern technologies in vehicles and transportation infrastructure to help enhance traffic management, increase safety, and facilitate a more intelligent use of transportation networks.
The COVID-19 pandemic had a negative impact on several economies across the world. Government-imposed nationwide lockdowns and quarantines to reduce the spread of the virus negatively affected enterprises worldwide, including the smart transportation market. Companies’ ability to transport people was hampered by travel restrictions enforced to prevent the spread of the virus. As a result, transportation revenues plummeted. However, travel businesses are increasingly focused on data-driven decisions to improve their services and re-establish rider trust.
The extended downtime and high capital required for replacing existing infrastructure are anticipated to hinder the market growth over the forecast period. Due to the lack of a standardized strategy, smart transportation combines numerous aspects, such as hardware, software, and mobile network components developed by multiple manufacturers, resulting in compatibility concerns. Furthermore, communication protocols differ significantly between countries, posing challenges for firms seeking global adoption of their products.
Smart Transportation Market Segmentation
Based on the Solution Insights, the market is segmented into ticketing management system, parking management system, integrated supervision system and traffic management system.
- The traffic management segment accounted for the largest market share of over 33% in 2021 and is projected to remain dominant throughout the forecast period.
- Traffic management systems facilitate a high level of safety and management of traffic congestion, lower energy consumption, reduce pollution, reduce delays in transit, and increase the security of citizens in the city.
- A critical traffic management system includes an intelligent signaling system, route guidance system, traditional signaling & video surveillance system, and intelligent video management system.
- The parking management segment is anticipated to grow at the highest CAGR over the forecast period. These systems include ticket dispensers either at entry or exit, a decentralized payment collection system, and an exit ticket reader.
Based on the Service Insights, the market is segmented into cloud services, business services and professional services.
- The cloud services segment accounted for the largest market share of over 42% in 2021. The cloud services segment is anticipated to retain its dominance over the forecast period owing to the rising difficulty of capturing and handling massive amounts of data generated by mobile technology and sensors.
- The demand for professional services in the market is increasing significantly as they provide implementation support, design advice, and strategy formulation, among others.
Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- The North American market accounted for over 33% of the global market share in 2021. Growing government investments in transportation infrastructure are likely to boost the regional market growth over the forecast period.
- The Asia Pacific market is expected to grow at the highest CAGR over the forecast period owing to government initiatives.
- The European region is expected to present significant opportunities for industry expansion owing to the early adoption of technology and rising traffic congestion.
Market Share Insights:
- May 2020: Lancaster City Council restored parking charges in some of its off-street parking lots.
- March 2022: Indra Sistema S.A. and Talgo joined Europe’s Rail, the largest rail innovation program in the region. Both firms are investing in CyberRail IoT, digital twin, big data, satellite ERTMS, artificial intelligence, smart maintenance, and intelligent platforms that integrate transportation data to enable a crossover and multi-modal vision.
Key Companies Profile:
The market is highly competitive with several players catering to different sectors. The presence of established players is a crucial factor deterring potential players from entering the market. However, the increasing development of differentiated smart transportation solutions and services in the market is expected to create growth opportunities for new entrants. The market players are focusing on expanding their business and strengthening their market position through collaborations and partnerships.
Some prominent players in the global smart transportation market include:
- Accenture PLC
- Alstom, SA
- Cisco Systems, Inc.
- Cubic Corporation
- General Electric Company (GE)
- Indra Sistema S.A.
- International Business Machines Corporation
- LG CNS Corporation
- Xerox Holdings Corporation
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