According to a report by Zion Market Research, global smart transportation market was valued at approximately USD 58.28 billion in 2017 and is expected to reach approximately USD 236.06 billion by 2024, growing with a CAGR of around 22.12% between 2018 and 2024.
In smart transportation, information & communication technologies are applied to the road transport field that includes, traffic management, mobility management infrastructure, vehicles, and other modes of transport. Smart transportation includes numerous technologies such as signal control system, vehicle navigation, container management system, automatic vehicle number plate recognition system, and more. In addition, speed cameras include security CCTV system and other applications that integrate real-time data and feedback from other resources.
Smart transportation market is mainly driven by rising demand of passenger safety and concerns regarding environmental protection. Another key driver is government initiatives for smart cities due to the rising number of accidents and poor traffic management. However, high initial investment is hindering the growth of smart transportation market. Emerging technologies such as GPS, Internet of Thing (IoT) reduces the travel time, improves the safety of passengers; these factors are anticipated to fuel the demand of the smart transportation market. IoT is seen as the most advanced solution for next-generation transport networks by which transportation systems will be cost-effective, cleaner, and energy efficient.
The segmentation of smart transportation market is done on the basis of technology, solutions, services, and region. By technology, the market is divided into IoT, wireless technology, sensing technology, and GPS. In solutions segment, smart transportation market includes parking management systems, traffic management systems, ticketing management systems, and integrated supervisory systems. Parking management system guides in finding a number of empty slots available at parking and real-time vehicle counting. Traffic management systems are used to manage the flow of vehicle and improved safety. Services segment is fragmented into cloud services, professional services, and business services.
Region wise the smart transportation market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Europe held the largest share for smart transportation market due to the adoption of new technologies and several initiatives taken by the government. For instance, Horizon 2020 is the biggest Europe research and innovation program and it has allocated USD 7,350.42 million for the period 2014-2020 for more efficient, secure, and efficient transport. North America is anticipated to witness significant growth over the forecast period due to government funding and increased safety on roads. In addition, growing traffic congestions due to rising number of vehicles will increase the demand of smart transportation market in this region.
The Asia Pacific is anticipated to show a robust growth especially in developing countries such as India, China, and South Korea. For instance, the Intelligent Transport System Association of China has announced to invest about USD 30 billion in the intelligent transport solutions sector by 2020 in order to encourage green transport system and help to construct electronic charging systems. Apart from these proactive schemes, China has established a driver information management system national motor vehicle. The country has also planned to set up a platform for electronic charging systems. Moreover, the Indian Government has built a National Electric Mobility Mission Plan by 2020 in order to incentivize adoption of green vehicles and increase the manufacturing capacity of the automotive sector domestically. This would warrant the high adoption of intelligent traffic management, which will have an optimistic influence on the expansion of market share.
Latin America and the Middle East and Africa are expected to have significant growth during the forecast period for the smart transportation market. For instance, Dubai has joined hands with Hyperloop One Inc. in order to harness the prowess of transport technologies, change the conventional idea of mobility, and aid reinforcing its reputation as it is the major hub of global trade and tourism.
The key players operating in smart transportation market are Cisco Systems, Alstom AG, Thales Group, Kapsch TrafficCom AG, Siemens AG, LG CNS Co. Ltd., Cubic Corporations, GE Transportation, IBM, Indra Sistemas S.A., WS Atkins, and Accenture Plc., among others.