Smart Transportation 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:

Driver:

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.

Restraint:

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.

Opportunity:

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.

Threat:

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 UAE
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