What Has Been the Growth Trajectory of the Smart Transportation Market?
The smart transportation market has seen considerable growth due to a variety of factors.
• In recent years, the smart transportation market has seen swift expansion. The predictions indicate an increase from $158.49 billion in 2024 to $181.77 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 14.7%.
The historic growth of this market is chiefly due to factors like greater urbanization and city congestion, implementation of intelligent systems for traffic management, a rise in the need for real-time tracking and monitoring within transportation, technological advancements in vehicle sensors and connectivity, along with government strategies encouraging the adoption of smart city and transportation solutions.
What Does the Future Hold for the Smart Transportation Market?
The smart transportation market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for smart transportation is anticipated to undergo swift expansion in the upcoming years. It is forecasted to reach $335.95 billion in 2029, having a compound annual growth rate (CAGR) of 16.6%.
The increase in the predicted term can be related to the growing acceptance of electric and autonomous automobiles, the integration of 5G technology for enhanced and dependable communication, a heightened focus on sustainable and green transport solutions, development within the shared mobility and rideshare sector, and the broadening of smart transportation architecture in rising economies. Key movements observed in the forecast duration entail development of integrated mobility-as-a-service (maas) systems, emphasis on predictive upkeep for transport fleets, employment of artificial intelligence for traffic prediction and optimization, incorporation of blockchain technology for secure and transparent dealings, partnerships between vehicle manufacturers and tech firms for connected vehicle solutions.
What Main Forces Are Fueling Expansion In The Smart Transportation Market?
The spur in government activities and guidelines is a prime contributor to the growth of the smart transportation market. Government institutions in burgeoning and evolving economies are directing their attention towards investments in cutting-edge transportation solutions. The goal is to alleviate jam-packed roadways, uphold transport safety measures, and minimize motor accidents. A case in point is the UK Government, which in October 2023, rolled out the most recent phase of the Transport Research and Innovation Grant (TRIG) innovation contest, making over £1.8 million ($2.18 million) available in backing. These funds are intended for corporations that are advancing projects centered on airport carbon neutrality and the utilization of AI to streamline and economize transportation. Consequently, the escalation of government initiatives and regulations is set to fuel the demand for smart transportation in the anticipated period.
What Are The Primary Segments In The Global Smart Transportation Market?
The smart transportation market covered in this report is segmented –
1) By Product Type: Advanced Traveler Information Systems (ATIC), Advanced Transportation Management Systems (ATMS), Advanced Transportation Pricing Systems (ATPS), Advanced Public Transportation Systems (APTS), Cooperative Vehicle Systems
2) By Transportation Mode: Roadways, Railways, Airways, Maritime
3) By Application: Traffic Management, Road Safety And Security, Parking Management, Public Transport, Automotive Telematics, Freight
Subsegments:
1) By Advanced Traveler Information Systems (ATIS): Real-Time Traffic Information Systems, Route Planning Applications, Mobile Travel Apps, Dynamic Message Signs
2) By Advanced Transportation Management Systems (ATMS): Traffic Signal Control Systems, Incident Management Systems, Traffic Monitoring Systems, Fleet Management Solutions
3) By Advanced Transportation Pricing Systems (ATPS): Congestion Pricing Solutions, Toll Collection Systems, Parking Management Systems, Dynamic Pricing Applications
4) By Advanced Public Transportation Systems (APTS): Smart Bus Systems, Automated Fare Collection Systems, Real-Time Passenger Information Systems, Demand-Responsive Transport Solutions
5) By Cooperative Vehicle Systems: Vehicle-To-Vehicle (V2V) Communication Systems, Vehicle-To-Infrastructure (V2I) Systems, Connected Vehicle Technologies, Automated Driving Systems
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Which Key Trends Are Driving Changes In The Smart Transportation Market?
To maintain a competitive advantage in the market, leading businesses in the smart transportation sector are developing novel platforms like the road synergy platform. This technology or system aims to establish a synergistic, cohesive environment for elements tied to road infrastructure and transport. For example, SenseTime, a Chinese firm specializing in artificial intelligence, unveiled their SenseAuto V2X Vehicle-Road Synergy Platform in September 2022. Its purpose is to foster safer, more productive urban mobility by melding 'smart cars, intelligent roads, and collaborative clouds.' The platform grants a comprehensive analysis and decision-making solution by merging and analyzing both vehicle and roadside data.
Who Are the Key Players in the Smart Transportation Market?
Major companies operating in the smart transportation market include:
• Cisco Systems Inc.
• Toshiba Corporation
• Siemens Corporation
• SAP SE
• Thales Group
• Alphabet Inc.
• Tesla Inc.
• Uber Technologies Inc.
• Mobileye
• NVIDIA Corporation
• Siemens Mobility
• TomTom N. V.
• IBM Corporation
• Qualcomm Inc.
• Intel Corporation
• General Motors Company
• Ford Smart Mobility
• Daimler AG
• Bosch Group
• Continental AG
• Cubic Corporation
• Aptiv PLC
• Trimble Inc.
• HERE Technologies
• Velodyne Lidar Inc.
• ChargePoint Inc.
• NXP Semiconductors
• TransCore Holdings Inc.
• WSP Global Inc.
• Cryoport Inc.
What Is The Most Dominant Region In The Smart Transportation Market?
North America was the largest region in the smart transportation market in 2024. Asia-Pacific is expected to be the fastest growing region in the forecast period. The regions covered in the smart transportation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
