Market Overview:
The Smart Transportation Market was estimated at USD 95.84 Billion in 2021 and is anticipated to reach USD 241.15 Billion by 2028, growing at a CAGR of 14.09% globally.
The integrated application of current technology and management strategies in transportation systems is referred to as smart transportation, an important internet of things vertical application. These technologies are designed to deliver novel services related to various modes of transportation and traffic management, allowing users to be better informed and make safer and “smarter” use of transportation networks. "Intelligent Transportation Networks (ITS) use a variety of technologies to monitor, evaluate, and manage transportation systems to improve efficiency and safety," according to the US Department of Transportation. Smart transportation is safer, better managed, more efficient, cost-effective, and gives immediate insights, among other benefits of smart technology and the advantages they provide to transportation within a smart city. In addition, transport delays waste around three billion gallons of gasoline and nearly seven billion hours of people's time. According to estimates from 2015, Americans squander approximately 75 billion hours in traffic, and smart transportation may save US$507 billion in productivity, US$488 billion in accident reduction, and US$138 billion in productivity savings due to reduced vehicle congestion. All of these reasons are expected to fuel the growth of the smart transportation industry in the coming years.
Major Key Players for Smart Transportation Market:
- Toshiba (Japan)
- Harris Corporation (US)
- Saab AB (Sweden)
- Veson Nautical (Massachusetts)
- BASS Software (Norway)
- Siemens AG (Germany)
- IBM Corporation (US)
- Cisco Systems Inc. (US)
- Thales Group (France)
- Huawei Technologies Co. Ltd. (China)
- Bombardier Inc. (Canada)
- SAP (Germany)
- Cubic Corporation (US)
- Alstom (France)
- Bentley Systems (US)
Market Dynamics and Factors:
Smart transportation enables traffic management systems to swiftly assess traffic congestion on city streets and divert traffic accordingly. Smart transportation has shown to be more efficient due to variables such as railway timetable adjustments that can help increase fill rates and bus facilities that can efficiently service customers if stops are scheduled according to population density by area. Furthermore, smart transportation provides the user with a navigation system that allows them to choose the most appropriate path based on real-time conditions. Users can take public transportation buses, which when they arrive, turn red traffic lights green. It also provides information on road conditions, weather crises, and how to manage fuel use for travelers. All of these reasons are expected to boost the smart transportation market's growth in the next years.
Smart Transportation Market Report Highlight:
- By transportation mode, the highways category is expected to dominate the market over the projected period, owing to factors such as improved road safety for drivers, pedestrians, and passengers, as well as a reduction in accident rates in densely populated areas.
- By technology used, owing it aids in making transportation modes safer and more comfortable, the artificial intelligence segment is likely to dominate the market.
- By Solution, during the projected period, the traffic management sector is expected to have the largest market share. Congestion, air pollution, and an increase in traffic accidents have all been exacerbated by the increased number of automobiles on the road.
- By Application, the Smart Transportation Market is projected to be dominated by public transportation. Consumers are increasingly aware of global warming and the inconvenience caused by a high number of private vehicles, which is encouraging them to use public transportation.
- Due to the general increasing number of smart transportation system deployments, Europe is expected to lead the Smart Transportation Market throughout the forecast period. Furthermore, to address transportation difficulties, governments and the private sector in this region are turning to information and communication technologies.
Key Industry Development:
In October 2021, Siemens Mobility has completed the acquisition of Sqills, a firm based in the Netherlands. Sqills will operate as a separate legal entity and a wholly-owned division of Siemens Mobility as a result of the acquisition, which will allow Sqills to further solidify its leadership position in providing innovative, smart, and complete mobility solutions. Sqills is a global leader in providing public transportation operators with cloud-based inventory management, ticketing software, and reservation services.
In January 2019, Cisco and Iteris teamed up to create connected highways using IoT technology. For this collaboration, the two companies worked with the City of Las Vegas, Nevada, to deploy an edge-processing IoT solution that combined data feeds from the Iteris Vantage Next video detection platform with the Cisco Kinetic software solution to analyze multimodal data from vehicles, bicycles, and pedestrians for a variety of high-value use cases to improve traffic flow and reduce congestion.
Smart Transportation Market Segmentation:
By Transportation Mode
- Roadways
- Railways
- Airways
- Maritime
By Technology Used
- Cloud Computing
- Artificial Intelligence
- Internet of Things
By Solutions
- Ticket Management System
- Parking Management and Guidance System
- Traffic Management System
- Freight Management
- Road Safety and Security
- Others
By Application
- Public Transport
- Transit Hubs
- Connected Cars
- Video Management
For this report, Introspective Market Research has segmented the Smart Transportation Market based on region:
Regional Outlook (Revenue in USD Million; Volume in Units, 2022-2028)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Turkey
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Indonesia
- Vietnam
- Thailand
- Rest of Asia-Pacific
- Middle East & Africa
- Saudi Arabia
- South Africa
- Iran
- Rest of MEA
- Latin America
- Brazil
- Argentina
- Rest of LATAM
