The Europe Smart Transportation Market would witness market growth of 9.4% CAGR during the forecast period (2022-2028).
The smart transportation market is expected to grow due to factors such as increased demand for efficient transportation networks around the world, government initiatives for the development and promotion of green fuels, and rising demand due to a rise in road safety and traffic congestion issues. In addition, the rise in the use of cloud services in transportation and the implementation of smart transportation systems in railways would help the market to grow further. However, industry growth is constrained by significant capital investments, huge database requirements for the road network, and a lack of standardized and uniform technologies. Furthermore, investments in new smart city concepts and the implementation of parking management systems create profitable growth potential for market participants.
Information technology and artificial intelligence are used in smart transportation to efficiently manage and coordinate sophisticated public transportation networks. In Germany, for example, artificial intelligence is being used to improve traffic signal control and minimize intersection wait times. The use of a smart transportation network allows the traveling public to be more aware of traffic, allowing for improved coordination and driver safety. Globally, traffic congestion has continued to rise over the last decade.
The regional market is characterized by significant infrastructure funding through grant programs like the Connecting Europe Facility (CEF), which has facilitated over 763 projects worth up to USD 22 billion. The European Council and the European Parliament, for example, agreed in March 2021 to renew the CEF with a budget of 25.8 billion euros to fund transportation projects between 2021 and 2027.
Due to the early adoption of various new technologies and increased traffic congestion in key cities, Europe is likely to present considerable potential for industry expansion. In July 2010, European Union member countries enacted Directive 2010/40/EU to speed up the deployment of innovative transportation systems across Europe.
By 2020, around 233 million linked automobiles are estimated to be on the road worldwide. During the projected period, Europe is expected to account for the bulk of connected car manufacturing. When compared to the existing market situation, the connected car market is predicted to grow fourfold by 2020. The market for smart transportation solutions may be boosted by connected technology in the automotive sector.
The Germany market dominated the Europe Smart Transportation Market by Country in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $15,771.6 million by 2028. The UK market is experiencing a CAGR of 8.4% during (2022 - 2028). Additionally, The France market would exhibit a CAGR of 10.2% during (2022 - 2028).
Based on Component, the market is segmented into Solution (Traffic Management System, Parking Management & Guidance System, Ticketing Management System, and Integrated Supervision System) and Services (Business, Professional, and Cloud Services). Based on Transportation Type, the market is segmented into Roadways, Railways, Airways, and Maritime. Based on countries, the market is segmented into Germany, UK, France, Russia, Spain, Italy, and Rest of Europe.
Free Valuable Insights: The Global Smart Transportation Market Size will Hit $190.6 Billion by 2028, at a CAGR of 9.9%
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Cisco Systems, Inc., Accenture PLC, Cubic Corporation, ALSTOM Holdings, Siemens AG, Thales Group S.A., TomTom N.V., MSR-Traffic GmbH (MSR-Group GmbH), and Iteris, Inc.
By Component
By Transportation Type
By Country
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