Global Smart Transportation Market Size, Share & Industry Trends Analysis Report By Component (Solution and Services), By Transportation Type, By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Smart Transportation Market
Market Report Description
The Global Smart Transportation Market size is expected to reach $190.6 billion by 2028, rising at a market growth of 9.9% CAGR during the forecast period.
Smart transportation IoT solutions, along with smart city solutions, enable government organizations and their partners to improve community resources and transportation for everyone, resulting in a safer, more efficient transportation infrastructure in cities. In addition, smart transportation IoT solutions provide real-time visibility and reliable data, allowing city transportation authorities and companies to enhance efficiency while also creating smarter, greener cities for their residents. Smart transportation is defined as the vertical application of IoT capabilities in transportation systems and hence refers to the integrated use of current technologies and management tactics. These technologies are targeted at delivering cutting-edge services in the areas of transportation and traffic management. It allows consumers to be better informed and to use transportation networks in a safer and more efficient manner.
The most important factors for the growth and development of the Smart transportation system industry are government laws and initiatives. Governments all over the world, particularly in the United States, Europe, Russia, China, and Brazil, are legislating the installation of factory-fitted telematics and safety systems in vehicles as a result of rise in the road safety concerns and auto thefts.
Rapid urbanization has resulted from the world's rising population, causing a slew of issues such as traffic congestion and road safety concerns. The need to provide a long-term solution to these issues is gaining popularity around the world. Smart transportation is becoming a reality due to cloud-based technology and advancements in vehicle-to-vehicle (V2V) and vehicle-to-grid infrastructure (V2I). As the world's population continues to rise, a growing number of cities are finding it difficult to accommodate both residents and visitors. Congested streets and higher pollution have an influence on city people’s health and well-being.
COVID-19 Impact Analysis
The COVID-19 pandemic wreaked havoc on all markets and dealt a serious blow to the transportation industry. The transportation business has suffered a significant loss as a result of most governments adopting isolation policies. Governments in many regions declared complete lockdown and temporary industry shutdowns, resulting in border restrictions that hampered the movement of transportation and logistics services. Toll and fare collections have been discontinued in nations like China and the United States. For cars conveying emergency supplies and vital personnel, China is likewise introducing a no-stop, no-check, toll-free regime. With an increase in demand for proper traffic management systems and increased transportation infrastructure amenities for passenger safety, industry players have embraced creative methods to increase growth potential in the worldwide smart transportation market.
Market Growth Factors
High need for the consistent flow of traffic and time-efficiency
One such essential feature is smart transportation, which attempts to deliver innovative services connected to various forms of transportation and traffic control systems. It makes transportation easier and faster by utilizing Smart systems like sensing technologies, wireless communications, real-time data, and computing technologies. This saves time in transportation solutions such as traffic management and ticket management systems. Furthermore, fleet operators are progressively adopting novel information and communication technology (ICT) applications like fiber optics, a global positioning system (GPS), and the Internet of Things (IoT), among others, due to their significant benefits.
Efforts towards the development and support of green fuels
To accomplish economic growth, social development, and decreased environmental losses, effective transportation systems are required for national prosperity. In Asia, more than half of the world's urban population lives in cities, with some nations, such as India and China, having more than a billion people living in cities alone. According to the Chinese Ministry of Infrastructure Development, a contemporary national comprehensive transportation network that is fast, cost-effective, green, Smart, advanced, and reliable is scheduled to be mostly finished by 2035. Furthermore, to meet the European Union's (EU) aim of a 37.5 percent reduction in emissions by 2030, the French government is relying on electric and hydrogen vehicles and aircraft.
Market Restraining Factors
Absence of centralized and uniform technology.
Smart transportation systems are made up of a variety of components, such as different technologies, hardware, and software, all of which are available from a variety of vendors. As a result, there is a lack of standardization and uniformity in the solutions, which causes compatibility problems. Moreover, different countries and regions have distinct communication and network standards and protocols, which makes it difficult for vendors to sell their products worldwide. For example, in the European region, rules are inconsistent or non-existent when it comes to collecting and analyzing data flow. To facilitate the global adoption of traffic management technologies, a uniform protocol for communication and workflow for traffic management systems is required.
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). The Services segment held a significant revenue share of the Smart Transportation Market in 2021. In a competitive market, unplanned downtime and application failure can result in a customer's trust being lost. To boost the agility, compatibility, and availability of smart transportation solutions, industry players are cooperating with support and maintenance service providers. The rapidly changing dynamics of the marketplace are prompting businesses to choose support and maintenance services in order to provide their clients with superior transportation solutions.
Transportation Type Outlook
Based on Transportation Type, the market is segmented into Roadways, Railways, Airways, and Maritime. The Roadways segment held the maximum revenue share of the Smart Transportation Market in 2021. This is because of the technology's capacity to reduce traffic congestion and increase road safety by effectively monitoring and managing vehicular traffic. Reduced crash rates and increased road safety for drivers, passengers, and pedestrians are two primary driving factors for smart transportation systems on highways. Highways are increasingly being outfitted with modern radar and in-pavement warning lights that alert approaching motorists. The Department of Transportation (DOT) is churning out new ways to relieve traffic congestion on roads, such as ramp metering.
|Market size value in 2021||USD 100.2 Billion|
|Market size forecast in 2028||USD 190.6 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 9.9% from 2022 to 2028|
|Number of Pages||275|
|Number of Tables||453|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Component, Transportation Type, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2021, the Asia-Pacific garnered the maximum revenue share of the Smart Transportation Market. This is because of the increased use of new technologies, rising investments in digital transformation, and rising GDP in APAC countries. Australia, Singapore, China, Hong Kong, Korea, and India are among the region's most promising economies, with each promising to spend heavily on technological transformation. Because the competition in this region is fragmented, smart transportation solution providers are trying to expand their operations to include the majority of the countries in the region. The smart transportation market is predicted to grow at the fastest rate throughout the forecast period due to untapped prospective markets, increasing penetration of modern technologies, increasing freight usage in many industries, economic advancements, and government restrictions.
Free Valuable Insights: Global Smart Transportation Market size to reach USD 190.6 Billion by 2028
KBV Cardinal Matrix - Smart Transportation Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; IBM Corporation, Cisco Systems, Inc., Accenture PLC and Siemens AG are the forerunners in the Smart Transportation Market. Companies such as Cubic Corporation, ALSTOM Holdings and Iteris, Inc. are some of the key innovators in the Market.
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.
Recent Strategies Deployed in Smart Transportation Market
» Partnerships, Collaborations and Agreements
- Apr-2022: Alstom came into a partnership with ENGIE, a French multinational utility company. Under this partnership, the companies would provide a solution for the decarbonization of mainline operations in the rail freight sector by substituting diesel-powered locomotives with hydrogen versions. Moreover, ENGIE would deliver renewable hydrogen for this solution through the implementation of an innovative supply chain.
- Apr-2022: Iteris expanded its partnership with Total Traffic & Weather Network, a leading provider of traffic, transit and weather information. Under this partnership, the companies would provide the most comprehensive mobility intelligence solutions to the commercial enterprise and public sector.
- Feb-2022: TomTom came into a partnership with Webfleet Solutions, a leading vendor of telematics solutions. Under this partnership, the companies would launch TomTom GO Fleet App and WEBFLEET Work App. Moreover, the companies would integrate their expertise in order to develop a single source for the fleet manager as well as drivers to address the diverse set of difficulties, such as on-time deliveries, route compliance, and safety concerns.
- Dec-2021: Alstom came into an agreement with Iarnród Éireann, the operator of the national railway network of Ireland. Under this agreement, the companies would introduce up to 750 new X’trapolis commuter rail cars for Ireland’s Dublin Area Rapid Transit network, or DART.
- Dec-2021: Alstom signed a MoU with MOL, a leader in oil and gas. Under this agreement, the companies aimed to form a cooperation in analyzing the utilization of hydrogen technology in rail transportation. In addition, it would also help companies in decarbonizing the rail transport network of Hungary.
- Oct-2021: Yunex TraffiC expanded its partnership with HERE Technologies, a multinational group. Through this expanded partnership, the companies aimed to offer proactive traffic management solutions to cities and public transportation agencies for the urban mobility market.
- Sep-2021: Alstom signed an agreement with Airbus CyberSecurity, a developer and provider of innovative cyber security solutions. Following this agreement, the companies would focus on rail transport cybersecurity. This partnership would enable the companies to deliver services and solutions to rail operators.
- Sep-2021: Thales teamed up with Ritek, a Norwegian mechanical engineering company. With this collaboration, the companies aimed to expand their footprint in the radars' domain and complement the development of an important SME in the defense value chain in Norway.
- Aug-2021: Iteris came into an agreement with Wejo, a leader in connected vehicle data. Under this agreement, the companies aimed to deliver improved connected vehicle data content to commercial customers and the public sector of Iteris across North America.
- Jul-2021: Siemens came into an agreement with Expleo, a global engineering, technology, and consulting service provider. Following this partnership, the companies would integrate their capabilities to introduce TAF in order to provide a simpler methodology to their customers in order to help them in testing their deployments across their IT environment.
- Jun-2021: TomTom signed an agreement with GreenMile, a logistics software company. Under this agreement, TomTom Maps APIs would be incorporated into GreenMile’s solutions in order to improve vehicle monitoring and real-time route planning of its customers.
- Jun-2021: Cubic entered into a partnership with CVEDIA, an artificial intelligence solutions provider. Following this partnership, the companies would focus on improving Cubic's GRIDSMART products. Moreover, CTS would leverage the synthetic data technology of CVEDIA in order to continue the rapid-scale deep learning models for GRIDSMART omnidirectional cameras.
- Apr-2021: Iteris joined hands with Continental, a global mobility supplier. Following this partnership, the companies would explore intelligent infrastructure solutions for North American communities in order to ensure more efficient and safer mobility.
- Jun-2020: Cubic came into an agreement with Vixionere SAPI, a cloud-based smart mobility electronic devices and solutions provider. With this agreement, the companies would deploy advanced traffic management technologies across the city of Merida.
- Jan-2020: Thales partnered with Confidex, a leader in designing and supplying short-range wireless identification solutions. Following this partnership, the companies would develop a flexible smart media for systems based on Calypso. Moreover, Thales would offer a Gemalto’s Operating System to Confidex that complies with the Calypso Light application.
» Acquisitions and Mergers
- May-2021: Siemens took over Padam Mobility, a technology company. With this acquisition, the company aimed to streamline the transit operators to deliver more efficient transportation across rural and urban areas.
- Jan-2021: Alstom acquired Bombardier Transportation, a manufacturer of rail transport and rolling stock. Through this acquisition, the company would leverage its clear Alstom in Motion strategy along with its robust financial trajectory and operational fundamentals in integration with Bombardier Transportation's capabilities to strengthen its position in the growing sustainable mobility market.
- Dec-2020: Iteris acquired TrafficCast International, a privately held company. This acquisition aimed to strengthen Iteris's position in the smart mobility infrastructure management market. Moreover, TrafficCast's best-in-class software and IoT devices would expand the capabilities of ClearMobility Platform of Iteris.
- Jul-2020: Siemens acquired Avatar, a leader in developing place and route software. Under this acquisition, the companies aimed to optimize performance, area, and power for complex chips with lesser resources. In addition, Siemens would incorporate Avatar’s technology in its Xcelerator portfolio as part of the IC suite of software of Mentor in order to capitalize on the increasing segment of place and route.
» Product Launches and Product Expansions
Dec-2021: Iteris launched Vantage Fusion, a hybrid traffic detection system. This launch aimed to allow real-world vehicle-to-everything applications as well as advanced intersection visualization for smarter, safer, and more sustainable roadways.
Scope of the Study
Market Segments Covered in the Report:
- Traffic Management System
- Parking Management & Guidance System
- Ticketing Management System
- Integrated Supervision System
- Cloud Services
By Transportation Type
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- 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)
- Iteris, Inc.
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