The global smart transportation market size is expected to reach around US$ 35.3 Bn by 2026 growing at a CAGR of around 5.5% over the forecast period 2019 to 2026.
Smart transport system also called an intelligent transport system (ITS) is an advanced transportation infrastructure that provides innovative services for transport management systems and traffic. This transport also helps users to be better informed, more coordinated, and make smarter and safer use of transport networks. Smart transportation is also applicable in passenger information, parking management & guidance, and management of traffic. Hence, ITS can be used in any transportation mode such as roadways, railways, maritime, and airways.
The growing population across the world has led to rapid expansion which results in many problems, such as safety and congestion issues on roads. The time and fuel-saving ability of this smart transportation infrastructure help to counter these problems and hence gaining traction around the world. The emergence of cloud-based technologies and advances in vehicle-to-vehicle (V2V) and vehicle-to-grid infrastructure (V2I) are making smart transportation a reality.
Strict government regulations and supportive initiatives such as funding are the key drivers for the growth and development of the smart transportation system market. With growing road safety concerns and increasing auto thefts, various governments, especially in the United States, Russia, Europe, China, and Brazil, are directing the installation of factory-fitted safety devices and telematics in vehicles.
The need for higher capital investment may limit the growth of the market particularly in low and middle-income countries in the coming years. However, entry of multinational market players in developing region and collaboration with government bodies help to enhance the penetration of smart transportation in these regions as well and minimizes the negative impact on the market.
Based on the transportation mode, the market has been segmented into roadways, railways, airways, and maritime. In 2018, roadways accounted for the largest share of the market in 2018. Decrease in crash rate due to an increase in the safety for passengers, drivers, and pedestrians. Well-equipped highways such as in-pavement warning lights that warn highway traffic to the turning motorists and advanced radar system help to reduce accidents and traffic congestion on roads. However, the railway segment is anticipated to boost the market at the fastest rate during the forecast period. This can be attributed to increasing railways connectivity across the world. This can be attributed to reduced operating expenses and complexities, improved and standardize rail infrastructure, improved profitability and cash flow, simplified project planning and execution, improved resource productivity, and streamlined project life cycle. Based on the application, the smart transportation market has been segmented into shared mobility, transit hubs, route information and route guidance, autonomous/driverless vehicles, video management, and others.
Europe is accounted for the largest share of the market in 2018 and is expected to maintain its dominance during the forecast period. This can be attributed to high funding from the government and private organizations for smart transportation and already established good infrastructure for transportation in developed countries. For instance, in January 2019, European Commission has set a TEN-T investment action plan of USD 14.5 billion to improve connectivity and thereby economic growth in the Eastern Partnership (EaP) countries such as Armenia, Belarus, Azerbaijan, Republic of Moldova, Georgia, and Ukraine. The plan is aiming to complete about 4800 kilometers of rail and road, 6 ports, and 11 logistics centers. The investments include both short-term projects which are expected to complete by 2020 and long-term projects aiming to improve transport by 2030. However, Asia Pacific is expected to observe the fastest growth during the forecast period. This can be attributed to growing funding and adoption of smart transportation in developed and emerging countries such as China, India, Japan, and Singapore.
The market research study on “Smart Transportation Market – Global Industry Analysis, Market Size, Opportunities and Forecast, 2019 – 2026”, offers a detailed insight on the global smart transportation market entailing insights on its different market segments. Market dynamics with drivers, restraints, and opportunities with their impact are provided in the report. The report provides insights into the global smart transportation market, its transportation mode, application, and major geographic regions. The report covers basic development policies and layouts of technology development processes. Secondly, the report covers global smart transportation market size and segment markets by transportation mode, application, and geography along with the information on companies operating in the market. The smart transportation market analysis is provided for major regional markets including North America, Europe, Asia Pacific, Latin America and Middle East and Africa. For each region, the market sizes for different segments have been covered under the scope of the report.
The companies profiled in the global smart transportation report are Accenture PLC, Advanced Navigation Positioning Corporation, BASS Software, Cisco Systems, Cubic Corporation, Huawei, General Electric Company, IBM Corporation, Inc., Siemens AG, Thales Group, Toshiba, Veson Nautical, and WS Atkins. Leading market players are involved in the development of innovative technologies and strategic partnerships & acquisitions to cater the need of modern infrastructure and enhance their share in the global smart transportation industry.
By Transportation Mode
Middle East & Africa
According to Acumen Research and Consulting, the smart transportation market value is anticipated to be around US$ 35.3 Bn in 2026.
The smart transportation market is anticipated to grow over 5.5 % CAGR during the forecast period 2019 to 2026.
Europe held maximum share in 2018 for smart transportation market.
Accenture PLC, Advanced Navigation Positioning Corporation, BASS Software, Cisco Systems, Cubic Corporation, Huawei are the top players operating in the smart transportation market.