Smart Transportation Market

[427 Pages Report] The smart transportation market size is projected to grow from USD 122.4 billion in 2023 to USD 248.7 billion by 2028, at a CAGR of 15.2% during the forecast period. The primary factor driving the growth of smart transportation market is the increasing government spending and initiatives to establish smart transportation developments. 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.

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Smart Transportation Market Dynamics

Driver:  Adoption of IoT and automation technologies to enhance technological optimization

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 help drive the market's growth. Smart devices integrated for better connectivity, automation, and control are expected to become more self-governing and intelligent in terms of sharing data with transportation management control centers and the cloud. The increasing demand for connected technologies, applications, and smart devices is expected to grow the smart transportation market.

Restraint: Stringent transportation regulatory policies

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 have to 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.

Opportunity: Penetration of analytics in smart transportation

The use of analytics in smart transportation would fasten the decision-making capacity and control of smart transport systems. It decreases the latency in decision-making for connected devices and provides great scalability. The analytical computation process is done at the edge of devices without waiting for the data to be received at the centralized storage system and then processed analytically. Smart transportation is a dense ecosystem of all the modes of transportation, and edge analytics would empower Closed-Circuit Televisions (CCTVs) and surveillance cameras with instant analysis capabilities.

Challenge:  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.

Smart Transportation Market Ecosystem

Prominent companies in this market include well-established, financially stable provider of smart transportation solutions and services. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Thales Group (France), Huawei Technologies Co., Ltd. (China), Siemens AG (Germany), Alstom (France), and Hitachi (Japan).

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By Railway, the rail traffic management segment to hold the largest market size during the forecast period

The rail traffic management system allows centralized supervision and traffic control of the entire rail network. It is used for controlling groups of track switches and signals along a stretch of railway tracks from a central office. The system is fabricated to operate signaling systems uniformly, regardless of the technology on which they are built. The operational performance of the entire railway network is managed through centralized traffic control solutions. The features of the rail traffic management system include traffic planning, operation management system, power supply and infrastructure, operation information for passengers, maintenance support, and driver-only and driverless operation.

By Airway, the air traffic management segment to hold the largest market size during the forecast period

The airways industry has evolved over the years with the growing global urbanization. The demand for aviation services has increased significantly in the last decade. With the increased demand for international eCommerce and the reduced cost of air transit, air transportation has become affordable for several people. It has increased the demand for commercial aircraft. Airlines are continuously increasing their fleet size to cater to the increasing popularity of air transport. Advancement in technologies in the smart ticketing system with the collaboration with open payment systems, smart card readers, NFV systems, and POS terminals, is expected to offer increased connectivity with the air transport network.

By Maritime, the maritime software segment to hold the largest market size during the forecast period

More than 80% of world trade is carried by sea, constituting the most important means of transport of goods. The international maritime transport costs tend to be, between two to three times as high as the customs duties of importing countries. The marine software applications enable shipping companies to improve operational efficiency and deliver accurate data between the vessel and office to avoid dependence on manual synchronization between both sites and enable ships and offices to make informed decisions. These software are essential for shipping companies because the software improve operational efficiency and reduces operation and maintenance costs.

Europe is expected to hold the largest market size during the forecast period.

Europe is witnessing a large number of investment opportunities in the smart transportation sector. In Western Europe, Spain has seen a huge amount of investments in smart transportation recently. Germany and Romania are also experiencing good investments in the smart transportation market. In the UK, the government is focused on investing in the smart transportation market; for instance, Central London Congestion Charging, FREVNUE, and Efficient Consumer Response are some of the associated programs. The European countries have been investing majorly in the modernization and upgradation of rail infrastructure. Social and trade agreements among the European Union (EU) countries have promoted large-scale, cross-border trade and passenger traffic in Europe. High growth is expected in the region, especially in communication technology, as the European Telecommunications Standards Institute (ETSI) has formed a separate committee to focus on M2M communication privacy standardization and high trading standards. The smart transportation is gaining popularity in this region owing to its ability to ease congestion and improve road safety by monitoring and managing vehicular traffic effectively.

Market Players:

The major players in the smart transportation market are Alstom (France), Hitachi Ltd. (Japan), Thales Group (France), Huawei Technologies Co., Ltd. (China), Siemens AG (Germany), IBM Corporation (US), Cisco Systems, Inc. (US), SAP (Germany), Cubic Corporation (US), Toshiba (Japan), Saab AB (Sweden), Veson Nautical (Massachusetts), BASS Software (Norway), Bentley Systems (US), Indra Sistemas (Spain), Trimble (US), TomTom International BV. (Netherlands), Amadeus IT Group SA (Spain), Conduent (US), Kapsch (Austria), Descartes (Canada), Accenture (Ireland), and DNV GL (Norway). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and product enhancements, and acquisitions to expand their footprint in the smart transportation market.

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Scope of the Report

This research report categorizes the smart transportation market to forecast revenues and analyze trends in each of the following submarkets:

Based on Transportation Mode:

• Roadway
• Railway
• Airway
• Maritime

Based on Roadway:

• Solutions
  • Smart Ticketing
  • Parking Management
  • Traffic Management
  • Passenger Information
  • Freight Information
  • Vehicle Telematics
  • Other Solution in Roadway
• Services
  • Consulting
  • Deployment and Integration
  • Support and Maintenance

Based on Railway:

• Solutions
  • Smart Ticketing
  • Passenger Information
  • Freight Information
  • Rail Traffic Management
  • GIS Tracking Solutions
  • Other Solution in Railway
• Services
  • Consulting
  • Deployment and Integration
  • Support and Maintenance

Based on Airway:

• Solutions
  • Smart Ticketing
  • Passenger Information
  • Ramo Management
  • Freight Information System
  • Air Traffic Management
  • Other Solution in Airway
• Services
  • Consulting
  • Deployment and Integration
  • Support and Maintenance

Based on Maritime:

• Solutions
  • Port Operations Management
  • Vessel Tracking
  • Maritime Software
  • Other Solution in Maritime
• Services
  • Consulting
  • Deployment and Integration
  • Support and Maintenance

Based on Communication Technology:

• Communication Technology in Roadways
• Communication Technology in Railways
• Communication Technology in Airways
• Communication Technology in Maritime

Based on Application:

• Mobility as a Service
• Route Information and Route Guidance
• Public Transport
• Transit Hubs
• Connected Cars
• Video Management
• Other Applications

By Region:

• North America
  • United States (US)
  • Canada
• Europe
  • United Kingdom (UK)
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • ANZ
  • China
  • Japan
  • India
  • Singapore
  • Rest of Asia Pacific
• Middle East and Africa
  • KSA
  • Qatar
  • UAE
  • South Africa
  • Egypt
  • Rest of Middle East and Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In February 2023, AURA AERO has signed an agreement with Thales to develop a new generation connected avionics solution adapted to electric and hybrid regional aviation.
• In  January 2023, BASS has launched BASSnet 2.11 Service Pack with new features that includes new Carbon Intensity Indicator (CII) calculator, e-signature for work and rest hours, enhanced efficiency with ihm material declaration automation.
• In November 2022, Trimble Viewpoint Vista, an ERP solution within the Trimble Construction One suite integrated with Hilti Group’s Hilti ON!Track asset management system. Providing a solution for unified tool tracking and more accurate, automatic job allocation, giving contractors one source of truth for tracking and managing their tools and equipment.
• In June 2021, TomTom and GreenMile announced a new multi-year agreement. TomTom Maps APIs will be combined with GreenMile’s solutions, enhancing its customers’ vehicle monitoring and real-time route planning.

Frequently Asked Questions (FAQ):

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