Global Smart Transportation Market By Type (Maritime, Roadways, Railways, and Airways), By Solution, By Service, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Smart Transportation Market size is expected to be worth around USD 274.1 Billion by 2032 from USD 105.4 Billion in 2022, growing at a CAGR of 10.30% during the forecast period from 2023 to 2032.

Smart transport or intelligent transport is an advanced transportation infrastructure that aims to provide innovative traffic and transport management systems services. It has various applications such as parking management & guidance, passenger information, and traffic management. Intelligent transportation systems (ITS) are superior applications that provide ground-breaking services related to transport and traffic management modes.

It enables multiple users to be more coordinated and better informed using several technologies such as car navigation, traffic signal control systems, speed cameras, and other real-time data & computational technologies. This smart transportation information can be achieved through improvements in infrastructure, legislative provisions toward sustainable fuels for public transport vehicles, and the implementation of schemes to efficiently provide mobility services to ever-expanding cities.

Transportation Type Analysis:

Roadways, railways, airways, and maritime are the various transportation modes contemplated in the global market. The segment to accounts for the largest market size is roadways. Roadways are the medium of transportation done by the means of the road to reach from one place to another. Vehicles utilized in road transportation are 2,3, or 4-wheeled vehicles such as motor vehicles, cars, vans, and trucks respectively.

Increasing quandaries by traffic congestion leading to pedestrians and passengers inconvenience is one of the major drivers emerging to serve the steady evolution of the global smart transportation market. With the increase in traffic congestion, smart ticketing, parking management, traffic management, and passenger information are proving to be the solutions to intensify the consumer experience traveling via roadways. The implementation of roadway solutions can be associated with an increase in manufacturing units of smartphones in countries like India, Singapore, and China.

Solution Analysis:

Traffic Management System Segment to Dominate Owing to Increasing Pressure on Current Infrastructure

By solutions, the market is segmented into ticketing management systems, parking management systems, integrated supervision systems, and traffic management systems. The traffic management system (TMS) is expected to dominate the market during the forecast period. Smart traffic lights, route guidance systems, and integration CCTV cameras to provide real-time information are prominent TMS solutions. Growing traffic volumes and inefficient usage of existing road infrastructure will propel the demand for traffic management solutions.

The parking management segment is also expected to show considerable growth in the market. It includes equipping parking facilities with beacons & sensors to lead drivers to available spots and providing information regarding on-street parking on any block through an app, among other solutions. These solutions directly lead to reduced vehicle congestion, reduced cruising, and more efficiency in terms of utilizing maximum capacity and revenue generated by the parking facility. Hence, these factors will fuel the growth of this segment.

Service Analysis:

Cloud Services Segment Dominated in 2022 Fueled by High Volume of Data Generation

Based on service, the market is segmented into business, professional, and cloud services. The professional services segment is anticipated to exhibit substantial growth during the forecast period propelled by the surge in demand for consulting services. They provide implementation support, design advice, and strategy development, among other functions for various subsystems, and help upgrade existing infrastructure systems. Hence, these factors will fuel the growth of this segment.

The cloud services segment held the largest share of the market in 2022. The increasing complexity of harnessing and managing the large amount of data generated through mobile technologies and sensors will propel the demand for cloud services.

Key Market Segments:

Based on the Transportation Type

• Maritime
• Roadways
• Railways
• Airways

Based on Solution

• Ticketing Management System
• Parking Management and Guidance System
• Integrated Supervision System
• Traffic Management System

Based on Service

• Cloud Services
• Business Services
• Professional Services

Driving Factors

Increasing Volume of Traffic to Drive Growth of This Market

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.

It leads to a high number of accidents, money & time lost in commuting, and overall loss of economic growth & productivity. However, through remote sensors, autonomous vehicles, 5G networks, vehicle-sharing services, dynamic traffic signals, and better infrastructure, automotive safety, and efficiency can be increased. Hence, these factors are driving the demand for smart transportation networks.

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.

Furthermore, the need to manage the increasing amount of data generated through the vast number of IoT devices used in the transport infrastructure is also creating significant new revenue streams for service providers and independent software vendors, among other solution providers. Hence, technological advancements in the current transportation infrastructure will drive the smart transportation market growth.

Restraining Factors:

Lack of Standardized Technology to Restrain Growth

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.

Growth Opportunity:

Autonomous vehicles to provide growth opportunities for smart transportation solution providers

Semi-autonomous and autonomous vehicles are witnessing a rapid evolution with substantial technological advancements. Automatic vehicles drive themselves with minimal or no human intervention. The trend of developing driverless vehicles can be observed throughout the transportation industry. Though the large-scale adoption of autonomous vehicles would take significant time, several transportation operators are expected to introduce semi-autonomous vehicles in the future.

Semi-autonomous vehicle technology is currently deployed in cars by some companies, which provide mobility-on-demand services. The deployment of autonomous vehicles is crucial for the growth of the smart transportation industry, as these vehicles do not require drivers and would result in cost reduction for mobility service providers. Autonomous vehicles are still being developed; some players in the smart transportation market are already working in this direction.

Trending Factors:

Increasing Focus on Interoperability of Systems is a Prominent Smart Transportation Market Trend

A key area of focus for key players in the market including mobile network operators and automakers is increasing the coordination of communication protocols that different organizations have developed independently.

For instance, the Dutch Ministry of Infrastructure and Water Management developed the Transport Operator to Mobility as a Service (MaaS) Provider – Application Programming Interface (TOMP API). It is a standardized interface that allows communication regarding booking, support, and end-user-specific multimodal trip payments. Such a system enhances interoperability between participating companies in the intelligent transportation ecosystem. Hence, these factors will positively influence the growth of the market.

COVID-19 Impact Analysis

The pandemic of COVID-19 has had a huge impact on the smart transportation market. The increase in COVID-19 cases has wreaked havoc on the transportation industry. The transportation business has suffered a significant loss as a result of most governments adopting isolation policies. However, in the post-COVID scenario, the smart transportation market is projected to be positively impacted.

Regional Analysis

Europe held the largest share of the market and stood at US$ 38.99 billion in 2022. It can be attributed to the substantial funding for infrastructure through grant programs such as the Connecting Europe Facility (CEF), which has facilitated more than 763 projects with up to US$ 22 billion in funding. For instance, in March 2021, the European Council and the European Parliament reached an agreement to renew the CEF with a budget of 25.8 billion euros to fund transport projects between 2021 & 2027. Hence, these factors will fuel the growth of the market in this region.

Asia Pacific is anticipated to exhibit a higher CAGR during the forecast period. This can be attributed to the supportive regulatory measures that have facilitated the rapid advancement of smart transportation infrastructure in countries such as China and South Korea. For instance, in 2018, in China, the Ministry of Transport issued a Notice on Accelerating the New Generation of National Traffic Control Networks and Smart Highway Pilots. It focuses on infrastructure digitization, new national traffic control networks, and integrated management of road networks based on big data, among other areas.

Hence, several provinces implemented pilot projects that included Guangdong, Hebei, and Beijing, among others. Furthermore, to provide substantial support for smart transport applications, the National Intelligent Transportation System Standardization Technical Committee has issued more than 90 communication standards. Hence, these factors are driving the growth of the market in this region.

North America is also expected to show good growth in the market. In the US, cooperation between federal and state authorities has increased over policy guidance and financing, hence accelerating road testing and software development. For instance, in 2018, Pittsburgh piloted intelligent traffic signals in 50 intersections across the city. Idling time declined by more than 40%, and travel time was reduced by around 25%. Hence, infrastructure expansion, particularly in the U.S., will drive the growth of the market in this region.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis:

Numerous players are catering to various industries in the market, which is extremely competitive. Potential players are discouraged from entering the market by the presence of established players. However, it is anticipated that new entrants will benefit from the expanding market for differentiated smart transportation solutions and services. Through partnerships and collaborations, market participants are concentrating on strengthening their market positions and expanding their businesses.

Market Key Players:

Listed below are some of the most prominent smart transportation industry players.

• Accenture PLC
• Alstom, SA
• Cisco System, Inc.
• Cubic Corporation
• General Electric Company (GE)
• Indra Sistema S.A.
• International Business Machines Corporation
• Xerox Holdings Corporation
• Thales Group
• Huawei Technologies
• Siemens AG
• Other Key Players

Recent Developments:

• February 2023: According to the Road Transport and Highways Ministry, India and Japan will collaborate on digital transformation projects in the areas of eco-friendly mobility and Intelligent Transport Systems (ITS). February 2023: According to the Road Transport and Highways Ministry, India and Japan will collaborate on digital transformation projects in the areas of eco-friendly mobility and Intelligent Transport Systems (ITS).
• October 2022: Teal’s Express, an LTL carrier based in Watertown, New York, was acquired by Pitt Ohio. Quality Cartage, based in Chicago, was acquired by Ward Transport and Logistics. Quest Global was purchased by KLLM Transport Services.

Report Scope