CAGR: 10.6%Current Market Size: USD 97.6 BillionFastest Growing Region: North America
Largest Market: EuropeProjection Time: 2022-2029Base Year: 2021
The Global Smart Transportation market is expected to grow from USD 97.6 billion in 2021 to USD 218.5 billion by 2029, at a CAGR of 10.6% during the Projection period 2022-2029. The growth of this market is mainly driven owing to the growing increasing use of smart features in the automotive industry.
The phrase "smart transportation" describes how contemporary technology and managerial techniques are applied in concert with transportation infrastructures. You're probably closer to it than you realize. Simple management systems like automatic number plate recognition, traffic signal control, and speed cameras are examples of what is generally referred to as "smart transportation." Intelligent Transportation Systems (ITS) "use a variety of technologies to monitor, evaluate, and manage transportation systems to promote efficiency and safety," according to the US Department of Transportation. This definition can be condensed into the following ideas for smart transportation: management, efficiency, and safety. For the time being, we will set aside notions of transportation in the style of science fiction. The implementation of smart transportation in various cities today is not simply a notion for the future; the successes and failures of these implementations are being used to develop systems in new locations. You might be first surprised by some of the cities introducing innovative transportation technologies. Of course, major cities with high urban intelligence, like New York City, have adopted smart transportation. Wyoming's rural areas, however, serve as a key testing ground for linked automobiles. Due to the fact that the cowboy state is a significant freight corridor, autonomous freight transit across the nation has the potential to significantly increase supply chain efficiency and decrease the need for long-haul truckers who must balance strict deadlines with their desire for rest.
Sample Request: - Global Smart Transportation Market
Market Dynamics:
Drivers:
The many components of technology, including data connectivity, cloud, mobility, and sensors that collectively make up the IoT architecture, are crucial for the effective deployment of smart transportation systems. Rapid progress in these areas in recent years has made it possible for items to be more connected, leading to the creation of smarter ecosystems. The advent of Internet Protocol version 6 (IPv6) made it possible for practically every device to connect to the internet in the real world. This object connectedness encourages a better knowledge of consumer behavior, which leads to better decision-making. Solutions and applications include rail and road traffic management systems, rail operations management systems, incident management systems, travel assistance systems, and toll collection systems are all benefit from high-performance networking technology. The market for smart transportation is anticipated to rise as a result of improvements in IoT technology. Smart connectivity and control devices are anticipated to develop into extremely intelligent, self-governing systems with continued technological breakthroughs. Using the cloud, transportation systems will gather data from many sources and exchange it with a central control hub.
Restraints:
Smart transportation systems are made up of a variety of components, including hardware, software, and various technologies that are provided by numerous vendors. This results in a lack of uniformity and standardization in the solutions, which causes compatibility problems. Additionally, diverse communication and network standards and protocols across various nations and regions prevent businesses from marketing their products internationally. For instance, rules are inconsistent or occasionally nonexistent when it comes to gathering and analyzing data traffic in the European region. To facilitate the widespread adoption of traffic management technologies, a common protocol for communication and workflow for traffic management systems is required. Therefore, the absence of internationally enforceable norms, practices, and specifications for the deployment of traffic management technologies hinders the expansion of the market. The implementation of smart transportation technologies may be constrained by national regulations, guidelines, and standards. This emphasizes the requirement for a standard protocol for communication and workflow in smart transportation technologies to enable widespread adoption.
Opportunities:
Vehicles that are autonomous or semi-autonomous are evolving quickly thanks to significant technological developments. Automatic cars operate with little or no assistance from humans. The transportation sector is experiencing a trend toward the development of driverless cars. Semi-autonomous vehicles are anticipated to be introduced by a number of transport operators in the future, even if the widespread adoption of autonomous vehicles would take some time. Some businesses that offer mobility-on-demand services are now using semi-autonomous vehicle technologies in automobiles. Because autonomous vehicles don't need drivers and would save mobility service providers money, their deployment is essential for the development of the smart transportation industry. The development of autonomous vehicles is still ongoing; Some industry participants for smart transportation are already making progress in this direction. For instance, Thales purchased DAS in May 2018, which is intended to aid the business in developing autonomous trains. Vendors of smart transportation solutions have numerous potential for growth as a result of the development of automated cars.
Challenges
The ecosystem for smart transportation includes several technological components, including network, software, and hardware components. Due to the lack of an open interface and protocol difficulties, integrating smart technology components with legacy transportation systems is extremely difficult. Communication gaps between conventional and technologically advanced systems would result from these integration problems. Additionally, upgrading legacy systems requires significant financial outlays. In the upcoming years, the market expansion is anticipated to be constrained by these difficulties.
Segmentation Analysis:
The global smart transportation market has been segmented based on Vessel, applications, and regions.
By Solution
The solution segment is a ticketing management system, integrated supervision system, parking management system, and traffic management system. The traffic management system segment led the largest share of the smart transportation market with a market share of around 32.3% in 2021. High levels of safety and traffic congestion management are made possible by traffic management systems, which also minimize energy use, pollution, and transit delays, and promote public safety. Intelligent signaling, route guiding, conventional signaling & video surveillance, and intelligent video management are important traffic management systems.
By Transportation
The transportation segment includes roadways, airways, railways, and maritime. The roadways segment led the smart transportation market with a market share of around 34.8% in 2021. Given that technology may reduce traffic congestion and increase road safety by effectively monitoring and managing vehicle traffic, smart transportation is growing in popularity. Increasing road safety for drivers, passengers, and pedestrians is one of the main driving forces behind smart transportation solutions for highways. In-pavement warning lights and sophisticated radar are increasingly being installed on highways to alert cars driving forward.
By Service
The service segment includes cloud services, business services, and professional services. The cloud service segment led the smart transportation market with a market share of around 42% in 2021. As it becomes increasingly difficult to collect and manage the enormous volumes of data produced by mobile technologies and sensors, the cloud services market is expected to maintain its lead over the course of the Projection period. With the aid of cloud technology, smart transportation systems gather data from numerous sources and exchange it with a central control hub. Over the course of the Projection period, it is anticipated that the increased use of IoT, cybersecurity and machine learning/data analytics will have a favorable effect on smart transportation projects.
By Regional Analysis:
The regions analyzed for the smart transportation market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Europe region dominated the smart transportation market and held a 42.1% share of the market revenue in 2021.
Global Smart Transportation Market- Country Analysis:
Germany's smart transportation market size was valued at USD 2.6 billion in 2021 and is expected to reach USD 4.38 billion by 2029, at a CAGR of 9.9% from 2022 to 2029. Due to Germany's established transportation infrastructure and the use of some cutting-edge smart transportation solutions by several regional transportation operators, the market is growing in the country.
China smart transportation’s market size was valued at USD 5.04 billion in 2021 and is expected to reach USD 12.21 billion by 2029, at a CAGR of 11.7% from 2022 to 2029. China is working to develop multilayered, integrated, and comprehensive transportation hubs as well as a smart transportation system that is competitive internationally and supports the infrastructure's transformation into one that is intelligent, digital, and networked. This stimulates the local market.
India's smart transportation market size was valued at USD 4.82 billion in 2021 and is expected to reach USD 11.26 billion by 2029, at a CAGR of 11.2% from 2022 to 2029. The nation's requirement for smart transportation is predicted to rise dramatically due to the public's increased awareness of road safety. Additionally, it is anticipated that the Indian government's ambition to develop 100 smart cities will open up new company expansion opportunities.
Key Industry Players Analysis:
To increase their market position in the global smart transportation business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
10.6% |
Market Size |
97.6 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Solution, By Transportation, By Service |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Accenture PLC, Veson Nautical, Alstom, SA, Cisco Systems, Inc., Bombardier Inc., LG CNS Corporation, Xerox Holdings Corporation, Thales Group, Cubic Corporation, General Electric Company (GE), Indra Sistema S.A., Siemens AG, Amadeus IT Group SA, Conduent, Kapsch, Hitachi Ltd., Descartes, DNV GL, International Business Machines Corporation, Kapsch, and among others. |
By Solution |
|
By Transportation |
|
By Service |
|
Regional scope |
|
Scope of the Report
Global Smart Transportation Market by Solution:
Global Smart Transportation Market by Transportation:
Global Smart Transportation Market by Service:
Global Smart Transportation Market by Region:
Global Smart Transportation market is expected to grow from USD 97.6 billion in 2021
Europe region dominated the smart transportation market and held a 42.1% share of the market revenue in 2021
China smart transportation’s market size was valued at USD 5.04 billion in 2021 and is expected to reach USD 12.21 billion by 2029
Global smart transportation market is expected to reach USD 218.5 billion by 2029, at a CAGR of 10.6% from 2022 to 2029.
Leading market players active in the global smart transportation market are Accenture PLC, Veson Nautical, Alstom, SA, Cisco Systems, Inc., Bombardier Inc., LG CNS Corporation, Xerox Holdings Corporation, Thales Group, Cubic Corporation, General Electric Company (GE), Indra Sistema S.A., Siemens AG, Amadeus IT Group SA, Conduent, Kapsch, Hitachi Ltd., Descartes, DNV GL, International Business Machines Corporation, Kapsch, and among others.
Political Factors- The factors that can affect a smart Transportation Company's long-term profitability in a particular nation or market are heavily influenced by political issues. With operations in more than a dozen nations, smart transportation market players are exposed to various political systems and environmental concerns such as the Risk of military invasion, Favored trading partners, Mandatory employee benefits, and Intellectual property protection. Diversifying the systematic risks of the political environment is necessary to succeed in such a dynamic industry as trucking across numerous nations.
Economical Factors- The aggregate demand and investment in an economy are determined by the macroenvironmental factors, such as the inflation rate, savings rate, interest rate, foreign exchange rate, and economic cycle. While microenvironmental elements like industry norms have an impact on the firm's competitive edge. Smart Transportation companies can Projection the growth trajectory of not only the transportation sector but also that of the organization by using country-level economic factors like growth rate, inflation, and industry-level economic indicators like trucking industry growth rate, consumer spending, etc.
Social Factor- The way of life and culture of the society affect the organizational culture in a given setting. Swift Transportation Company's marketers will understand the clients of a given market and build the marketing message for trucking sector consumers based largely on the populace's shared ideas and attitudes. Government subsidies are anticipated to increase their acceptance across several nations. It should be noted, though, that EV sales are still sluggish in many emerging and developing nations, where the few models already on the market are still too expensive for the mass market. In Brazil, India, and Indonesia, only a small portion of all vehicles sold are electric, despite recent sales growth in India (IEA, 2022).
Technological Factors- Numerous industries are being rapidly disrupted by technology. The transportation sector is a wonderful example to demonstrate this idea. The industry has been changing quite quickly over the past five years, not even giving established firms a chance to adapt. Uber and Lyft are currently the dominant players in the taxi market. Technology companies like Google are driving the automation of the automotive sector, while Tesla, which has declared an electrical car revolution, is upending production. The term "technological environment" refers to all technological factors influencing business. It involves knowledge, techniques, tools, and machinery. The technology comprises the forces that develop new technologies, opening up new markets and services. Technology is the factor influencing people's lives most dramatically.
Environmental Factors- Different markets have various norms or environmental requirements, which might affect an organization's profitability. States frequently have differing liability and environmental regulations even within the same nation. For instance, in the United States, Florida and Texas have differing liability provisions for accidents or environmental catastrophes. Similarly, many European nations offer substantial tax incentives to businesses engaged in the renewable energy industry. Businesses always create new technology to offer the greatest products on the market. Intelligent organizations identify the best suitable technology for their operations and implement it. In transportation, this is especially true.
Legal Factors- Many nations' institutions and legal systems are not strong enough to safeguard an organization's intellectual property rights. Before entering such markets, a company should carefully consider its options because doing so could steal its secret competitive advantage. In addition to abiding by the law, ethical companies work to raise the bar above the bare minimum. A variety of legal considerations must be considered by public transportation. Political and legal developments that have an impact on business are closely related. Government policy is often the cause of changes in the law. The government's regulatory organization for transportation services, the Department of Transport Management (Dotm), used to suggest the transportation fare.
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