USD 110.53 Billion
Report ID:
SQMIG45E2164 |
Region:
Global |
Published Date: August, 2024
Pages:
197
|Tables:
64
|Figures:
75
Smart Transportation Market size was valued at USD 110.53 Billion in 2023 and is poised to grow from USD 124.9 Billion in 2024 to USD 332.04 Billion by 2032, growing at a CAGR of 13.0% during the forecast period (2025-2032).
The global smart transportation market growth is driven by growing advancements in urban projects, government initiatives aimed at reducing greenhouse gas emissions, and the increasing demand for technology integration in traffic control systems. Lack of good quality and safe public transportation, inadequate capacity to manage public transport, concerns about reduced road safety, poor traffic management, and parking problems are significant issues affecting most cities (including pedestrian walkways). Thus, demand for smart transportation systems is likely to witness significant growth soon. Factors such as urbanization, increased acceptance of IoT-based technology, and expansion of 5G-based connectivity make smart transportation infrastructure easier to execute.
Travel restrictions implemented to stop the transmission of disease hindered companies' capacity to move people. To enhance their offerings and regain consumer trust, travel organizations are keenly focused on data-driven decisions, as public transportation remains highly vulnerable to disease outbreaks.
The market expansion hinges on several key factors, including the escalating integration of advanced technologies into smart transportation systems, heightened investments in the development of transportation infrastructure, and the imperative for sustainable, clean, and high-speed transport solutions. These factors collectively drive innovation and growth within the smart transportation sector, facilitating more efficient and environmentally friendly modes of travel. The adoption of cutting-edge technologies not only enhances the overall functionality and safety of these systems but also aligns with the global shift toward sustainable practices. Moreover, increased investments in infrastructure signify a commitment to improving networks, which is crucial for economic development and societal progress.
Market snapshot - 2025-2032
Global Market Size
USD 110.53 Billion
Largest Segment
Traffic Management
Fastest Growth
Parking Management
Growth Rate
13.0% CAGR
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The global smart transportation market is segmented based on Transportation Mode, Railway, roadway, airway, maritime, communication technology, application, and region. In terms of Transportation mode the market is segmented into Roadway, Railway, Airway, and Maritime. With respect to segmentation by Railway, the market is segmented into Solution and services. By roadway, airway, and maritime, the market is segmented into solution and services. By communication technology, the market is segmented into Communication Technology in Roadways, Communication Technology in Railways, Communication Technology in Airways, and Communication Technology in Maritime. By application, the market is segmented into Mobility as a Service, Route Information and Route Guidance, Public Transport, Transit Hubs, Connected Cars, Video Management, and Other Applications. Based on region, the global smart transportation market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
As per global smart transportation market analysis, the traffic management segment accounted for the largest market share of over 38% in 2024 and is projected to remain dominant throughout the forecast period. Integrated monitoring systems, intelligent parking systems, transportation planning systems, and ticketing management solutions are among the essential marketable solutions. Traffic management systems are in demand due to features such as the high level of safety, effective management of traffic congestion, low energy consumption, and low pollution, among others. The system also promises to solve conventional difficulties such as delays in transit and provides additional security for citizens.
As per global smart transportation market outlook, parking management segment is anticipated to register the highest growth rate during the forecast period. These systems include exit ticket readers, decentralized payment collecting systems, and ticket dispensers at the entrance or exit. The adoption of cloud-based parking services and an increase in off-street parking are driving the segment growth. Smart parking management utilizes advanced technologies such as IoT sensors, real-time data analytics, and mobile applications to provide drivers with real-time information about parking availability. This reduces the time spent searching for parking spaces, which in turn decreases traffic congestion and fuel consumption. Additionally, these systems often integrate with payment platforms, enabling seamless cashless transactions and enhancing user convenience.
As per the global smart transportation market forecast, the cloud services segment dominated the market and accounted for the largest market share of over 45.4% in 2024. The segment is anticipated to retain its dominance over the forecast period owing to its capacity to handle the massive amounts of data created by mobile technology and sensors. With the advancement of technologies such as big data and cloud technology, these are becoming increasingly crucial in transportation systems. A safe storage facility and processing power are offered by the cloud platforms to help with traffic forecasts. The increased use and interest in machine learning/data analytics, IoT, and cybersecurity will impact smart transportation ventures during the forecast period.
The professional services segment continues to witness increased penetration in the global smart transportation industry. These also continue to significantly differ from each other, as they offer, among other things, design guidance, strategy formulation, and implementation support. These components will therefore support the segment's expansion. A rise in the demand for professional services is a result of the upgradation of outdated systems to more modern ones, made possible by the increased need for consulting services. With the help of expert services available in the market, traffic control, smart parking, and other options can be rapidly helped with better advice and can make smart decisions.
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North America accounted for over 36% of the market share in 2024. The region is the largest adopter of smart transportation solutions owing to a growing emphasis of regional governments on improving the transportation infrastructure, against the backdrop of congested highways, poor air quality, and growing highway accidents and fatalities. The region is the greatest adopter of smart transportation solutions due to a growing emphasis on improving the transportation infrastructure by regional governments and the rising number of highway accidents and fatalities. The United States is home to several large ICT companies that provide solutions for smart mobility.
The smart transportation market in Asia Pacific is anticipated to grow significantly during the forecast period. This growth is attributed to the increasing use of mobiles and tablets, rapid technological advancements, and the popularity of online streaming in emerging economies, such as China and India. The high adoption of mobility and cloud solutions to address information security. Apart from this, the economic growth of countries such as China and India, the growing adoption of smartphones, and the developing e-commerce sector are crucial factors fueling regional growth. The growing applications of face remembrance in security and surveillance systems in China are projected to drive market growth in the Asia Pacific.
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Smart Transportation Market Drivers
Increasing Volume of Traffic
Traffic problems are rising owing to an exponential increase in suburban and rural residents moving to cities and the equivalent surge in population density around urban areas. With rapid density growth, vehicular congestion in cities has also increased, aided by inadequate highway designs and poor urban planning. For instance, traffic congestion alone cost more than USD 200 billion in 4 developed economies (U.K., France, U.S., and Germany).
Ongoing Technological Advancements to Augment Growth
Internet of Things (IoT) based devices gather and transmit real-time data to people about traffic, weather, and incidents, among other activities, to plan their journeys more effectively. Increasing adoption by transit agencies in applications such as train control systems, toll collection systems, fleet telematics, and transport logistics has improved system capacity while minimizing operating costs.
Smart Transportation Market Restraints
Lack of Standardized Technology
Smart transportation combines various elements such as hardware, software, and mobile network components developed by multiple vendors, leading to compatibility issues due to the absence of a standardized approach. Furthermore, communication protocols also differ substantially across different countries, creating problems for manufacturers regarding the global adoption of their technologies.
High Initial Cost of Deployment
The initial cost involved in deploying smart transportation solutions is high. It requires huge initial investments to set up field-level devices, replace aging infrastructure, arrange for transmission networks between end users, and manage new and existing systems within the premises. High operational and maintenance costs post system deployment are also a huge concern for railway authorities. Moreover, limited budgets for railways pose a restraining factor in the deployment of advanced railway technologies and solutions by governments as well as private players.
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The competitive landscape of the smart transportation market is marked by intense competition among key players, driven by technological advancements and the growing need for sustainable and efficient mobility solutions. Leading companies such as Siemens AG, IBM Corporation, Cisco Systems, Thales Group, and Alstom are at the forefront, offering a wide range of innovative smart transportation solutions, including traffic management systems, intelligent transportation networks, and connected vehicle technologies. These players are heavily investing in research and development to enhance their offerings with advanced features such as IoT connectivity, artificial intelligence, and real-time data analytics.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to SkyQuest analysis, the evolution of IoT has enabled the exchange of information between different electronic devices without the need for direct human interaction. The convergence of IoT platforms with smart transportation solutions is expected to drive the market growth. The increasing demand for connected technologies, applications, and smart devices is expected to grow the smart transportation market. Smart transportation involves connecting multiple vehicles and infrastructure wirelessly with the help of sensors and applications. However, app-based mobility services have not been defined under legal entities across several countries regulating their operations. Also, taxi owners in several countries must obtain separate licenses and registration papers to carry out their operations, posing challenges for app-based mobility service providers as they do not own these vehicles. These stringent transportation regulatory policies make it difficult for vehicle operators to provide on-demand mobility services to users, thus affecting the growth of the services segment negatively. Governments worldwide have strong visions to improve the smart transportation segment and fulfill future mobility demands. They are undertaking several initiatives to provide better infrastructures, enhance security and safety, and offer seamless traffic flow. The augmented adoption of technologies in recent years has enabled better connectivity, resulting in the complete remodeling of the smart transportation ecosystem.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 110.53 Billion |
Market size value in 2032 | USD 332.04 Billion |
Growth Rate | 13.0% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Smart Transportation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Smart Transportation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Smart Transportation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Smart Transportation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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