The global smart transportation market was valued at US$ 95.1 bn in 2020 and expected to reach US$ 155.1 bn by 2027, growing at a CAGR of 11.2% during the forecast period.
The Global Smart Transportation Market Definition:
Smart transportation refers to the integration of management strategies and modern technologies in the transportation systems. These technologies aim at providing innovative services relating to several modes of traffic and transport management by continuously monitoring, evaluating, and managing transportation systems. Smart transportation system help users to be better informed and make smarter and safer use of transport networks.
The Global Smart Transportation Market Dynamics:
The growing adoption of advanced technologies such as IoT combined with machine learning, artificial intelligence and bigdata analytics is majorly driving the growth in the smart transportation market. The increased adoption of these advanced technologies in smart transportation is helping users to avoid unnecessary waiting at jam-packed traveling stations by facilitating them with detailed transportation records like real-time arrival and departure information. The use of these technologies in automotive is also helping in enhancing the user experience and convenience by performing various functions such as switching lanes, staying in the lane, and following the GPS to get to the final destination. For instance, Tesla’s autopilot is capable to check the meeting schedule and drive the user to their final destination. These technologies in automotive provide the creation of several advanced driver assistance systems (ADAS) features in a vehicle such as guiding, parking and driving the vehicle. Owing to these benefits, the rising adoption of these advanced technologies in the transportation industry is expected to positively drive the smart transportation industry.
Moreover, stringent government regulations to improve the safety in vehicles due to growing road accidents is further expected to propel the growth in the smart transportation market. The Global Status Report on Road Safety and Accident 2018, shows that the deaths due to road traffic crashes have increased to 1.35 million a year which is approximately 3,700 people dying from road accidents every day across the globe. Due to the growing road accident death rate and auto thefts, many nations including United States, Russia, Europe, Brazil, and China among others have mandated the installation of factory-fitted safety and telematics devices in automotive, which is thereby driving the smart transportation market.
The incorporation of advanced technologies such as AI in the transportation sector has facilitated in providing predictive analytics that is useful in decreasing human errors on the road. This feature helps vehicles in predicting the movements of objects surrounding the vehicle and thus reduces the chances of accidents. Further, smart transportation IoT solutions added to smart city projects have enabled government organizations to cater to efficient and safe transport infrastructure in cities by enhancing transportation and community resources for everyone.
The Global Smart Transportation Market Segmentation:
Company Profiles and Competitive Intelligence
The key players operating in the smart transportation market are:
The unique insight provided by this report also includes the following:
Based on application, the traffic management segment held the largest share in 2020 to overcome several challenges in the transportation sector such as traffic congestion, accidents, and pollution in many urban areas
Based on application, the smart transportation market is segmented into road safety and security, traffic management, parking management, automotive telematics, freight, public transport, and other applications. Among these, the traffic management segment held the largest share in the year 2020 and is expected to hold a similar position during the forecast period. The growth of this segment is mainly attributed to the increasing challenges in the transportation sector such as traffic congestion, accidents, and pollution in many urban areas. Therefore, to overcome these challenges, several nations across the globe are increasingly deploying traffic management solutions. For instance, in January 2018, Chinese traffic management authorities in partnership with Didi Chuxing, a China-based firm, announced the launch of a smart city traffic management solution “DiDi Smart Transportation Brain”. This smart transportation solution uses artificial intelligence to facilitate traffic flow measurements and traffic management programs for system assessments and maintenance schedules. Additionally, in 2018, the Indian government approved funding amounting to USD 8.9 Bn for using AI to monitor violations and decongest traffic.
Based on transportation mode, roadways transportation mode is expected to hold the largest share in the smart transportation market during the forecast period due to the increasing demand for sustainable and improved roadways
Based on transportation mode, the smart transportation market is segmented as railways, roadways, maritime, and airways. Among these, roadways transportation mode is expected to hold the largest share in the smart transportation market during the forecast period. The increasing demand for sustainable and improved roadways along with the rising need for reducing traffic congestion and safer roads are propelling the smart transportation market growth in this segment. In addition, several government initiatives for smart roadways to reduce carbon emissions are also helping in the growth of this segment. For instance, in 2018, the U.K. government introduced its “Road to Zero Strategy” which aims for at least 50% of new car sales in the country to be ultra-low emission by 2030. The strategy also plans to expand green infrastructure across the country and reduce emissions from the existing vehicles on the UK’s roads, and drive the uptake of zero-emission in cars, trucks, and vans. Such favourable strategies are supporting the growth of the roadway transportation mode sector and thereby driving the smart transportation industry growth.
Based on region, the Asia-Pacific region is expected to witness the fastest growth in the smart transportation industry during the forecast period due to several smart city development initiatives taken by the government in this region
Based on region, the smart transportation market is fragmented as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Among these, the Asia-Pacific region is expected to witness the fastest growth in the smart transportation industry during the forecast period. The growth in the region is majorly influenced by countries such as India and China. The government in these countries is implementing various initiatives for smart city development which is thereby positively impacting the smart transportation industry growth. For instance, in 2015, India launched its Smart Cities Initiative (SCI) to develop 100 smart cities across the country making them citizen-friendly and sustainable. In addition, China's smart cities initiatives plan to move 250 million people to its new megacities by 2025. As smart transport is an integral part of every smart city, increasing investments in smart city initiatives are projected to drive the smart transportation market size.
The report also provides an in-depth analysis of market dynamics such as drivers, restraints opportunities and challenges
Note: Challenges along with in-depth market dynamics analysis is mentioned in the report.
The report also provides an in-depth analysis of key market trends
|1||The increasing demand for autonomous and semi-autonomous cars is positively driving the smart transportation market. These vehicles offer several benefits such as traffic reduction, decreased travel span, increased lane capacity, reduced running and maintenance costs, and lesser road accidents. These benefits are rising the demand for autonomous and semi-autonomous and are thereby expected to positively drive the smart transportation industry||Positive|
|2||The growing air trafficking rate is expected to propel the growth of the smart transportation market. According to the report of The International Air Transport Association (IATA) published in April 2018, air transport passenger is projected to double and reach 8.2 Bn by 2037. Smart transportation systems facilitate safety spacing in aircraft by providing optimal aircraft movements and parking positions based on the planned and actual traffic. Owing to this, the growing air trafficking rate is expected to increase the need for smart transportation solutions in the airways and therefore improve the smart transportation market demand||Positive|
The report also provides an in-depth analysis of recent News Developments and Investments
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