Smart Transportation Market Share, Size, Trends, Industry Analysis Report, By Transportation Mode (Railways, Roadways, Airways, Maritime); By Solution; By Services; By Region; Segment Forecast, 2024 - 2032
- Published Date:Jan-2024
- Pages: 117
- Format: PDF
- Report ID: PM3979
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global smart transportation market is projected to witness robust growth. It was valued at USD 120.15 billion in 2023 and is projected to grow to USD 368.48 billion By 2032, exhibiting a CAGR of 13.30% the forecast period 2024 – 2032
Smart transportation refers to the application of cutting-edge and emerging technologies aimed at enhancing the effectiveness, safety, and eco-friendliness of transportation systems. This encompasses advancements like live traffic monitoring, predictive vehicle maintenance, intelligent transportation systems, and interconnected autonomous vehicles. The primary objective of smart transportation is to establish a unified, seamlessly functioning, and resource-efficient transport network that alleviates traffic congestion, enhances mobility, and minimizes the ecological footprint of transportation.
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Smart transportation solutions promote efficient transportation through driver assistance, asset tracking, and the management of traffic and vehicle flow. This not only enhances safety and convenience for travelers but also finds application in monitoring commercial fleets and aiding organizations in cost-effective compliance with regulations.
For instance, Kapsch TrafficCom AG unveiled a seamless All-Electronic Tolling (AET) solution for the New Hampshire Transportation Department (NHDOT), offering toll-free passage at plazas. This cutting-edge system enables video tolling for vehicles lacking a toll transponder, thanks to the AET's advanced technology, including license plate recognition cameras, sensors, and in-pavement treadles.
Smart transportation refers to the strategic incorporation of information technology into the realm of transportation, encompassing infrastructure, vehicles, and user interactions. Its primary objective is to provide inventive services across diverse modes of transportation. Key components of smart transportation encompass a range of technologies, including traffic signal management systems, vehicle navigation, security surveillance through automated number plate recognition, CCTV, and more. This technology empowers users to navigate transportation systems with greater safety and efficiency while also setting the stage for the evolution of more intelligent infrastructure to address future needs.
The COVID-19 pandemic had a significant impact on smart transportation systems globally. While there was a sharp decline in transportation demand, it also highlighted the importance of smart transportation solutions. Many cities and regions turned to these systems to adapt to the new normal, including real-time data on social distancing, adjusting routes, and enhancing contactless payment options. The pandemic also accelerated telecommuting, leading to discussions about the long-term implications for smart transportation.
The pandemic underscored the importance of smart transportation solutions. Many cities and regions turned to these systems to adapt to the new normal. This included real-time data on social distancing in public transport, adjusting routes based on shifting demand patterns and enhancing contactless payment options to reduce physical touchpoints. Moreover, the integration of artificial intelligence and data analytics in smart transportation systems proved invaluable in managing resources more efficiently during times of uncertainty.
Remote working and reduced business travel accelerated the adoption of telecommuting and virtual meetings. This shift in work culture has led to ongoing discussions about the long-term implications for smart transportation, with some experts predicting a more balanced approach to urban planning, incorporating fewer office commutes and a greater emphasis on last-mile solutions and micro-mobility options.
Industry Dynamics
Growth Drivers
Increasing Adoption of Advanced Technologies such as Artificial Intelligence, Iot Associated with Machine Learning and Bigdata Analytics is Driving the Market Growth
Rising adoption of advanced technologies such as artificial intelligence, IoT associated with machine learning and bigdata analytics is driving the market growth. The growing integration of cutting-edge technologies in smart transportation is revolutionizing the way users experience travel. These innovations enable travelers to bypass frustrating waits at crowded transportation hubs by providing comprehensive information on real-time arrivals and departures. Furthermore, the application of these technologies in the automotive sector is significantly elevating user satisfaction and convenience. They accomplish this by managing functions like lane keeping, lane changes, and precise GPS-guided navigation towards the intended destination.
The integration of cutting-edge technologies like Artificial Intelligence (AI) in the transportation industry has streamlined the implementation of predictive analytics, effectively minimizing human errors on the road. This capability enables vehicles to anticipate the movements of objects in their vicinity, thereby lowering the risk of accidents. Additionally, the integration of intelligent transportation Internet of Things (IoT) solutions into smart city initiatives has empowered government entities to enhance urban transport infrastructure. This improvement contributes to the overall efficiency and safety of transportation systems, benefiting both residents and communities.
Report Segmentation
The market is primarily segmented based on transportation mode, solution, services, and region.
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By Transportation Mode |
By Solution |
By Services |
By Region |
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By Transportation Mode Analysis
The Roadways Segment Held the Largest Revenue Share in 2022
In 2022, the Roadways segment held the largest revenue share. Several factors contribute to the reduction of crash rates and the enhancement of road safety for drivers, passengers, and pedestrians. Highways are progressively integrating advanced radar systems and in-pavement warning lights that effectively notify oncoming traffic about the presence of vehicles ahead. Moreover, the Department of Transportation (DOT) is continuously devising inventive solutions like ramp metering to alleviate road congestion, consequently boosting the appeal of various modes of transportation via roadways.
On the other hand, the railway segment is expected to witness substantial growth throughout the forecast period. It handles an enormous volume of both freight and passenger transportation annually, driving the advancement of efficient and intelligent rail infrastructure and technologies. Various governments around the world have taken proactive measures, introducing regulations and initiatives aimed at fostering the development of smart railway systems.
By Solution Analysis
The Hybrid Ticketing Management Segment Accounted for the Highest Market Share in 2022
The hybrid ticketing management segment accounted for the highest market share. Due to the upsurge in mobile device adoption and the growing preference for digital payment options are key drivers behind the increasing penetration of the ticketing management system. This system seamlessly incorporates onboard ticketing, online ticketing, mobile ticketing, and smart card ticketing. By leveraging this comprehensive ticketing solution, transport management systems can enhance customer services, offering convenient access to transportation details like routes, fare information, and available services throughout the journey.
On the other hand, parking management and guidance segment is anticipated to experience significant growth throughout the forecast period. Installing sensors in parking facilities to guide vehicles to open spaces and providing on-street parking information through a mobile application are among the proposed solutions. These measures aim to reduce traffic congestion, enhance parking capacity utilization, and boost revenue generation efficiency. Consequently, these initiatives are expected to foster the growth of this segment.
Regional Insights
Asia-Pacific Dominated the Largest Market in 2022
Asia-Pacific dominated the largest market contributor in the smart transportation market. The demand for smart transportation solutions has risen due to the challenges posed by air pollution and rapid urbanization in countries such as China and India. Additionally, the surge in e-commerce and the widespread adoption of last-mile delivery services have underscored the necessity for more advanced transportation solutions. This growth in the smart transportation sector is further propelled by increasing governmental backing for smart city initiatives in the region.
North America region is anticipated to for the fastest growth in the forecast period. To enhance safety, reduce traffic congestion, and mitigate carbon emissions, local governments are actively promoting the adoption of intelligent transportation solutions. With an already well-established transportation infrastructure, the region is poised for market growth driven by the increasing adoption of electric vehicles and the implementation of innovative smart parking solutions.
Key Market Players & Competitive Insights
The market is characterized by intense competition, with established players relying on advanced technology, high-quality products, and a strong brand image to drive revenue growth. These companies employ various strategies such as research and development, mergers and acquisitions, and technological innovations to expand their product portfolios and maintain a competitive edge in the market.
Some of the major players operating in the global market include:
- Alstom S.A.
- Cisco Systems, Inc.
- Cubic Corporation
- General Electric Company
- IBM Corporation
- Indra Sistemas, S.A.
- SAP SE
- Siemens AG
- Thales Group
- TomTom International BV
- Traffic Tech Middle East
Recent Developments
- In March 2022, Europe's foremost rail innovation initiative incorporated Indra Sistema S.A and Talgo. These companies are actively engaged in the advancement of Digital Twin technology, CyberRail IoT, Big Data analytics, Artificial Intelligence, Satellite ERTMS, and intelligent platforms. Their investments aim to foster a holistic and multi-modal perspective within the rail sector.
- IIn March 2021, Thales unveiled innovative digital services tailored for railway transportation. Leveraging the SelTra G8 test metro signaling system, operators can experience decreased maintenance and installation expenses while enhancing system capabilities to address passenger needs such as safety and service reliability. Additionally, this advancement enables operators to offer real-time passenger density information using CCTV cameras strategically placed at railway stations, achieving an accuracy rate surpassing 90%.
- In October 2021, Siemens Mobility made public its successful acquisition of Sqills, a Dutch company. Under this agreement, Sqills will operate as an independent legal entity and become a wholly-owned subsidiary of Siemens Mobility. This strategic move position Sqills to strengthen its dominant role in delivering cutting-edge, intelligent, and all-encompassing mobility solutions. Sqills holds a prominent global position in offering cloud-based inventory management, ticketing software, and reservation solutions to public transport operators worldwide.
Smart Transportation Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 135.84 billion |
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Revenue forecast in 2032 |
USD 368.48 billion |
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CAGR |
13.30% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments Covered |
By Transportation Mode, By Solution, By Services, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region, and segmentation. |
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