Global Smart Mobility Market Grows Steadily at a CAGR of 14.04%

Introduction

The rapid growth of the global smart mobility market is being driven by a mix of regulatory support, technological progress, and shifting consumer behaviors. Governments across the globe are encouraging the adoption of sustainable transport solutions by offering subsidies, tax incentives, and investing heavily in infrastructure to curb emissions and address climate concerns. The surging popularity of shared mobility services, such as ride-hailing, car-sharing, and bike-sharing, is transforming urban commuting, especially among younger, tech-oriented users who favor affordable and flexible travel options.

Moreover, expanding investments in electric vehicle (EV) infrastructure, including fast-charging stations and smart grid integration, are making EVs more practical within smart mobility frameworks. The ongoing digitalization of transportation, with innovations like mobile ticketing, real-time transit information, and unified payment systems, is also improving user convenience and boosting public transit usage. Collectively, these factors are propelling the shift toward cleaner, smarter, and more user-focused urban transportation networks.

Market Dynamics

Urbanization and congestion reduction need drive the global market

Rapid urban growth is placing immense pressure on existing transportation networks, highlighting the urgent need for intelligent mobility solutions. As urban populations continue to expand, the necessity for efficient, eco-friendly, and interconnected transport systems becomes more critical. The United Nations reports that in 2023, over 56% of the world’s population lived in urban areas, a number expected to climb to 68% by 2050. This urban influx has led to a surge in traffic congestion. Traditional transportation models are increasingly inadequate, resulting in elevated pollution levels, economic setbacks, and a decline in overall living standards.

• For example, the 2024 Global Traffic Index revealed that congestion intensified worldwide, with 76% of major cities witnessing reduced average travel speeds. Istanbul recorded the highest traffic delays, with drivers losing 105 hours annually, closely followed by New York City and Chicago at 102 hours each.

In response to these issues, smart mobility is emerging as a transformative solution, propelling the growth of the global smart transportation market.

5G and V2X communication adoption create tremendous opportunities

The adoption of 5G and Vehicle-to-Everything (V2X) communication is opening new avenues for innovation in the global smart mobility market. These advanced technologies enable seamless, real-time data exchange between vehicles, infrastructure, and networks, improving road safety and traffic flow.

• In May 2025, the 5G Automotive Association (5GAA) conducted live demonstrations in Paris showcasing 5G-V2X Direct and satellite-enabled Non-Terrestrial Network (NTN) capabilities. During these trials, vehicles successfully shared sensor data to detect concealed pedestrians and transitioned to satellite networks for transmitting emergency alerts. Commercial rollout of satellite-based connectivity is anticipated by 2027.

Such advancements are set to enhance situational awareness, reduce accident risks, and support the deployment of autonomous transport systems. As infrastructure develops, the integration of 5G and V2X is expected to become a cornerstone of smart mobility worldwide.

Regional Analysis

North America holds a significant position in the smart mobility market, driven by robust technological infrastructure and strong governmental support. The U.S. Department of Transportation’s Smart City Challenge and Canada’s Smart Cities Challenge have encouraged large-scale smart transport initiatives. Cities like Columbus, Ohio and Toronto are adopting connected traffic systems, autonomous shuttles, and app-integrated public transport.

Additionally, the rise of the adoption of electric vehicle (EV), supported by the Inflation Reduction Act in the U.S., is also fueling the demand for integrated EV mobility solutions. Tesla and General Motors continue to advance smart EV ecosystems with real-time navigation, autopilot features, and app-based controls. Furthermore, companies like Uber and Lyft are expanding micro-mobility offerings such as e-bikes and scooters with real-time tracking features. With ongoing 5G deployment and V2X pilot programs, North America is poised to lead innovations in seamless, data-driven transportation systems.

Key Highlights

• The global smart mobility market size was valued at 55.67 billion in 2024 and is estimated to grow from USD 63.49 billion in 2025 to reach USD 181.61 billion by 2033, growing at a CAGR of 14.04% during the forecast period (2025–2033).
• The global smart mobility market is segmented by element into ride sharing, car sharing, and bike commuting. The ride sharing segment dominated the market.
• By solutions, the market is categorized into management of traffic, management of parking, management of mobility, and others. The management of traffic segment held the largest market share.
• By technology, it is divided into 3G and 4G, Wi-Fi, GPS, RFID, embedded system, and others. The RFID segment held the dominant share of the global market.
• By end user, the market includes civil work, business development, academics, municipal sectors, and others.
• North America is the highest shareholder in the global market.

Competitive Players

1. Siemens AG
2. IBM Corporation
3. Cisco Systems, Inc.
4. TomTom International BV
5. Robert Bosch GmbH
6. Hitachi, Ltd.
7. Ford Smart Mobility LLC
8. Uber Technologies Inc.
9. DENSO Corporation
10. BMW Group
11. Toyota Motor Corporation

Recent Developments

• In July 2025, EVeium Smart Mobility, the electric two-wheeler division of Ellysium Automotives, revealed plans to increase localisation in its manufacturing operations. This strategic shift is intended to lower production expenses and enhance the affordability of its high-end electric scooters for Indian buyers. The brand’s leading models, Cosmo, Comet, and Czar, are being relaunched with updated designs and improved features.

Segmentation

1. By Element
   1. Ride sharing
   2. Car sharing
   3. Bike commuting
2. By Solutions
   1. Management of traffic
   2. Management of parking
   3. Management of mobility
   4. Others
3. By Technology
   1. 3G and 4G
   2. Wi-Fi
   3. GPS
   4. RFID
   5. Embedded system
   6. Others
4. By End User
   1. Civil work
   2. Business Development
   3. Academics
   4. Municipal sectors 
   5. Others
5. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa