Smart Transportation Market

Smart Transportation Market

Smart Transportation Market Forecasts to 2028 - Global Analysis By Service (Professional Services, Cloud Services, Business Services), Product Type (Advanced Transportation Pricing Systems (ATPS), Advanced Public Transportation Systems (APTS), Other Product Types) and Others

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Published: 2023 ID: SMRC22269

This report covers the impact of COVID-19 on this global market

Years Covered


Estimated Year Value (2022)

US $116.04 BN

Projected Year Value (2028)

US $262.86 BN

CAGR (2022 - 2028)

14.6 %

Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

Asia Pacific

Highest Growing Market



According to Stratistics MRC, the Global Smart Transportation Market is accounted for $116.04 billion in 2022 and is expected to reach $262.86 billion by 2028 growing at a CAGR of 14.6% during the forecast period. Intermodal transportation systems and infrastructure capable of delivering high levels of intelligence or performance are considered smart transportation systems. In order to improve the safety and effectiveness of the transportation system, smart transportation systems combine cutting-edge technology including semiconductors, computers, information & telecommunication, and advanced sensors to offer information to consumers.

According to the European Green Deal, adoption of mobility strategy will cut 90% emission by 2050 and deliver smart, accessible, and safer transport systems.

Market Dynamics:


Rising Penetration of Technology

The rise of the Internet of Things (IoT), artificial intelligence (AI), plus machine-to-machine (M2M) connectivity are three examples of technological breakthroughs that are driving the global market for smart transportation. Additionally, smart transportation systems make it possible for people to travel more safely by integrating machine learning, the Internet of Things, and cellular connectivity like 4G or 5G into autonomous transportation systems, including cars and stationary infrastructure like intersections. This improves accuracy and safety while also accelerating the market growth of smart transportation. Additionally, advances in the automotive industry have led to self-driving cars with internet access and advanced sensors, which is promoting the development of the smart transportation sector.


High initial costs

The high initial cost of deploying smart transportation is preventing its acceptance. Market expansion is also being hampered by the complexity of network interconnection and legacy system integration. Smart transportation system adoption is hampered by strict rules and a lack of uniform policy.


Rising Demand for Technological Advancements

The multiple features of technology, including data connectivity, the cloud, adaptability, and sensors that together make up the Internet of Things (IoT) structure, are fundamental to the proper deployment of smart transportation solutions. Rapid technological advancements in these areas have recently made it possible for items to be more connected, which has led to the development of smarter ecosystems. The capabilities of systems and applications are always being improved by high-performance interaction technologies. Additionally, it is projected that developments in IoT technology would accelerate the demand for smart transportation. Smart connectivity and control devices are expected to develop into highly intelligent, self-governing systems with the current advances. By incorporating cloud technology, transportation systems will be able to store data from various sources and exchange it with a central control hub.


Lack of Standardized and Uniform Technology

Smart transportation systems are made up of a number of parts, including various technologies, hardware, and software that are offered by different traders. Due to the lack of standardisation and uniformity in the solutions, incompatibility problems emerge. Additionally, varied communication or network standards and norms across various nations and areas prevent dealers from offering their products on a global scale. To facilitate the global application of traffic management solutions, a mutual respect for communication and workflow for traffic regulating systems is necessary. As a result, the lack of globally enforceable orders, norms, and requirements for the layout of traffic regulating solutions serves as a market growth inhibitor. The adoption of smart transportation solutions may be hampered by national regulations, guidelines, and requirements for such systems. These statistics highlight the necessity of an international agreement for workflow and communication in smart transportation technologies.

Covid-19 Impact

As a result of Covid-19, the transportation industry saw a huge decrease as the majority of governments adopted isolationist policies. Governments in several regions announced complete lockdown as well as the temporary shutdown of industry, which led to border restrictions that hindered the passage of transportation or logistical services. However, due to substantial shifts in customer demand for technical services, a number of technology-related businesses have seen a growth in revenue. Additionally, both rich and developing nations have seen substantial technological advancements as a result of the pandemic. Additionally, the adoption of smart characteristics in the automobile industry is expanding, which is a major driver of this market's growth.

The cloud services segment is expected to be the largest during the forecast period

The cloud services segment is estimated to have a lucrative growth. The majority of commercial transportation companies use cloud services for smart transportation, which allows them to track containers as well as other data in real-time and directs them to take specific measures to improve performance. Additionally, cloud services enable distant access to the data, which increases their popularity in the market.

The Railways segment is expected to have the highest CAGR during the forecast period

The Railways segment is anticipated to witness the fastest CAGR growth during the forecast period. A number of countries are also introducing initiatives and passing laws to support the growth of the smart railway system. The rail traffic management system manages bands of track switches or signals along a section of railroad tracks from a central location. No matter what technologies were utilised to build the signalling systems, the system is intended to operate them consistently. Centralized traffic control systems are in charge of overseeing the operational performance of the whole railway network. To gather crucial real-time data on network traffic density, the system integrates contemporary technology with fast communication routes.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period. Countries have a significant influence on the growth of the region. The government in these nations is putting numerous smart city development programmes into action, which is helping the expansion of the smart transportation business. Growing expenditures in smart city efforts are anticipated to fuel the market size for smart transportation because smart transportation is a crucial component of any smart city.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period. It is the most advanced region in the implementation of new technologies and creating infrastructure. It has a substantial influence on the market for smart transportation. The European rail transport market is expected to be driven by the projected investments to modernise the traffic with urban transportation infrastructures. Additionally, urban transportation is developing into a crucial pillar for improving the quality of life for city residents. Commercial and public road transportation is currently the most important means of transportation in the majority of European cities. The market for smart roads is, however, growing as a result of factors such the inadequate safety and quality of public transit, poor traffic management in the region's congested road network, an increase in theft, an increase in parking concerns, etc.

Key players in the market

Some of the key players profiled in the Smart Transportation Market include Hitachi Ltd., General Electric Company, IBM Corporation Inc., Harris Corporation, Huawei Technologies Co., Ltd., Oracle Corporation, Bombardier, Accenture, ALSTOM, SAP SE, Bentley Systems, Cisco Systems, Siemens AG and Thales Group.

Key Developments:

In March 2021, Thales Group is focusing to develop digital solutions and services for the rail transportation by providing supervised operation with accurate awareness about the situation and by optimizing the transport services with the help of the AI, IoT, cloud services, data analytics and 5G technologies.

In January 2020, Siemens partnered with Arm, a global semiconductor IP leader, to accelerate the future of mobility by redefining design capabilities for complex electronic systems. Through the partnership, Arm automotive IP and software within Siemens’ PAVE360 digital twin environment empowers automakers and suppliers to develop and validate differentiated safety enabled systems, Integrated Circuits and software solutions in the context of the entire vehicle.

In December 2019, Thales Group, a French multinational company that designs and builds electrical systems signed strategic agreement MTR Corporation, a Hong Kong-based company. This agreement is expected to facilitate the company in expanding the Central Control and Communication Systems for the Sydney Metro to City and Southwest (SMCSW) project.

Services Covered:
• Professional Services
• Cloud Services
• Business Services
• Other Services

Product Types Covered:
• Advanced Transportation Pricing Systems (ATPS)
• Advanced Public Transportation Systems (APTS)
• Advanced Transportation Management Systems (ATMS)
• Cooperative Vehicle Systems
• Other Product Types

Solutions Covered:
• Traffic Management System
• Ticketing Management System
• Integrated Supervisory System
• Parking Management System
• Other Solutions

Transportation Modes Covered:
• Maritime
• Roadways
• Airways
• Railways
• Other Transportation Modes

Applications Covered:
• Connected Cars
• Mobility as a Service
• Video Management
• Route Information and Route Guidance
• Transit Hubs
• Public Transport
• Traffic Management
• Automotive Telematics
• Road Safety and Security
• Parking Management
• Freight
• Other Applications

Deployment Mode Covered:
• Hybrid
• On Premises
• Cloud

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Product Analysis
3.7 Application Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Smart Transportation Market, By Service
5.1 Introduction
5.2 Professional Services
5.3 Cloud Services
5.4 Business Services
5.5 Other Services

6 Global Smart Transportation Market, By Product Type
6.1 Introduction
6.2 Advanced Transportation Pricing Systems (ATPS)
6.3 Advanced Public Transportation Systems (APTS)
6.4 Advanced Transportation Management Systems (ATMS)
6.5 Cooperative Vehicle Systems
6.6 Other Product Types

7 Global Smart Transportation Market, By Solution
7.1 Introduction
7.2 Traffic Management System
7.3 Ticketing Management System
7.4 Integrated Supervisory System
7.5 Parking Management System
7.6 Other Solutions

8 Global Smart Transportation Market, By Transportation Mode
8.1 Introduction
8.2 Maritime
8.3 Roadways
8.4 Airways
8.5 Railways
8.6 Other Transportation Modes

9 Global Smart Transportation Market, By Application
9.1 Introduction
9.2 Connected Cars
9.3 Mobility as a Service
9.4 Video Management
9.5 Route Information and Route Guidance
9.6 Transit Hubs
9.7 Public Transport
9.8 Traffic Management
9.9 Automotive Telematics
9.10 Road Safety and Security
9.11 Parking Management
9.12 Freight
9.13 Other Applications

10 Global Smart Transportation Market, By Deployment Mode
10.1 Introduction
10.2 Hybrid
10.3 On Premises
10.4 Cloud

11 Global Smart Transportation Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa

12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies

13 Company Profiling
13.1 Hitachi Ltd.
13.2 General Electric Company
13.3 IBM Corporation Inc.
13.4 Harris Corporation
13.5 Huawei Technologies Co., Ltd.
13.6 Oracle Corporation
13.7 Bombardier
13.8 Accenture
13.10 SAP SE
13.11 Bentley Systems
13.12 Cisco Systems
13.13 Siemens AG
13.14 Thales Group

List of Tables
1 Global Smart Transportation Market Outlook, By Region (2020-2028) ($MN)
2 Global Smart Transportation Market Outlook, By Service (2020-2028) ($MN)
3 Global Smart Transportation Market Outlook, By Professional Services (2020-2028) ($MN)
4 Global Smart Transportation Market Outlook, By Cloud Services (2020-2028) ($MN)
5 Global Smart Transportation Market Outlook, By Business Services (2020-2028) ($MN)
6 Global Smart Transportation Market Outlook, By Other Services (2020-2028) ($MN)
7 Global Smart Transportation Market Outlook, By Product Type (2020-2028) ($MN)
8 Global Smart Transportation Market Outlook, By Advanced Transportation Pricing Systems (ATPS) (2020-2028) ($MN)
9 Global Smart Transportation Market Outlook, By Advanced Public Transportation Systems (APTS) (2020-2028) ($MN)
10 Global Smart Transportation Market Outlook, By Advanced Transportation Management Systems (ATMS) (2020-2028) ($MN)
11 Global Smart Transportation Market Outlook, By Cooperative Vehicle Systems (2020-2028) ($MN)
12 Global Smart Transportation Market Outlook, By Other Product Types (2020-2028) ($MN)
13 Global Smart Transportation Market Outlook, By Solution (2020-2028) ($MN)
14 Global Smart Transportation Market Outlook, By Traffic Management System (2020-2028) ($MN)
15 Global Smart Transportation Market Outlook, By Ticketing Management System (2020-2028) ($MN)
16 Global Smart Transportation Market Outlook, By Integrated Supervisory System (2020-2028) ($MN)
17 Global Smart Transportation Market Outlook, By Parking Management System (2020-2028) ($MN)
18 Global Smart Transportation Market Outlook, By Other Solutions (2020-2028) ($MN)
19 Global Smart Transportation Market Outlook, By Transportation Mode (2020-2028) ($MN)
20 Global Smart Transportation Market Outlook, By Maritime (2020-2028) ($MN)
21 Global Smart Transportation Market Outlook, By Roadways (2020-2028) ($MN)
22 Global Smart Transportation Market Outlook, By Airways (2020-2028) ($MN)
23 Global Smart Transportation Market Outlook, By Railways (2020-2028) ($MN)
24 Global Smart Transportation Market Outlook, By Other Transportation Modes (2020-2028) ($MN)
25 Global Smart Transportation Market Outlook, By Application (2020-2028) ($MN)
26 Global Smart Transportation Market Outlook, By Connected Cars (2020-2028) ($MN)
27 Global Smart Transportation Market Outlook, By Mobility as a Service (2020-2028) ($MN)
28 Global Smart Transportation Market Outlook, By Video Management (2020-2028) ($MN)
29 Global Smart Transportation Market Outlook, By Route Information and Route Guidance (2020-2028) ($MN)
30 Global Smart Transportation Market Outlook, By Transit Hubs (2020-2028) ($MN)
31 Global Smart Transportation Market Outlook, By Public Transport (2020-2028) ($MN)
32 Global Smart Transportation Market Outlook, By Traffic Management (2020-2028) ($MN)
33 Global Smart Transportation Market Outlook, By Automotive Telematics (2020-2028) ($MN)
34 Global Smart Transportation Market Outlook, By Road Safety and Security (2020-2028) ($MN)
35 Global Smart Transportation Market Outlook, By Parking Management (2020-2028) ($MN)
36 Global Smart Transportation Market Outlook, By Freight (2020-2028) ($MN)
37 Global Smart Transportation Market Outlook, By Other Applications (2020-2028) ($MN)
38 Global Smart Transportation Market Outlook, By Deployment Mode (2020-2028) ($MN)
39 Global Smart Transportation Market Outlook, By Hybrid (2020-2028) ($MN)
40 Global Smart Transportation Market Outlook, By On Premises (2020-2028) ($MN)
41 Global Smart Transportation Market Outlook, By Cloud (2020-2028) ($MN)

Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.

Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.

For more details about research methodology, kindly write to us at

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