Global Statistics Representing Smart Transportation Market Scenario
Smart transportation refers to the management strategies and integrated application of modern technologies in transportation systems relating traffic and transport management so as to enable users to make ‘smarter’ use of transport networks. Globally, smart cities are taking the help of this technology to develop such seamless and connected transportation systems. The United States has initiated the United Smart Cities program to develop and scale up the concept. In China, over 500 cities began their transition to smart cities in 2017.
Rapid urbanization is one of the major factors driving the growth of the smart transportation market during the forecast period. Urban density has been steadily increasing around the globe, which has been translating to an increase in the global vehicle parc. For instance, as per the estimation of World Health Organization (WHO), the global urban population is expected to grow approximately 1.84% per year between 2015 and 2020 and 1.63% per year between 2020 and 2025. In addition, increasing demand for efficient transportation networks worldwide is also boosting growth of the smart transportation market. Smart transportation systems utilize advanced technologies such as the Internet of things (IoT) and artificial intelligence to efficiently manage and coordinate transportation systems. Therefore, increasing demand for efficient transportation systems is slated to fuel the growth of the smart transportation market in the coming years. Growth of the logistics and transportation sector for movement of large goods in several developing economies across the globe is also projected to have a positive influence on the smart transportation market in coming years. The smart transportation market is expected to create significant opportunities for system integrators, independent software vendors (ISVs), service providers, and other solution providers by automating roadways, railways, and airways, and reshaping the way cargo are tracked and delivered.
The smart transportation market is expected to grow at a CAGR of 12% during the forecast period 2019-2026.
By geography, the smart transportation market has been segmented into North America, Europe, Asia Pacific, and LAMEA.
North America is expected to hold the largest market share in the smart transportation market, owing to rapid deployment of smart transportation solutions. The two major countries in this region, i.e. the U.S. and Canada, are technologically advanced and continue to grow their technological capabilities, which further provides impetus to market growth.
Europe is projected to grow at a significant rate in the transportation market, due to the various smart city projects undertaken by governments in countries such as UK, Germany, and France. Furthermore, the growing adoption of advanced smart transportation systems and presence of several key market players in this region are slated to drive market growth in the coming years.
Asia Pacific is anticipated to grow at the highest rate, due to the smart city and smart infrastructure projects underway in this region. Japan, China, South Korea, and India are the major growth engines in the region. For instance, in 2015, the Government of India launched the "100 Smart Cities Mission". In addition to this, key markets in Asia Pacific have already implemented smart transportation projects. For instance, Smart City Blueprint for Hong Kong (Blueprint), released in December 2017 by the Government, has four major strategies to deploy smart transportation projects: intelligent traffic system and traffic management, public transport interchange/bus stops and parking, smart airport initiative and environment-friendly transport system.
The LAMEA region is projected to grow at a healthy growth rate in the smart transportation market as the ICT sector in the Middle East and Africa is gearing up for heavy digital growth over the next few years with advanced transportation developments, such as driverless Dubai Metro, automated Salik tolls and taxis with Wi-Fi. Driverless transport, in particular, is pegged to become commonplace in Dubai by 2020, which is further driving the growth of the smart transportation market in the LAMEA region.
The smart transportation market has been segmented on the basis of product type, solution, transportation mode, and geography.
On the basis of product type, the smart transportation market has been segmented into, advanced transportation management systems, advanced traveler information systems, and advanced transportation pricing systems. By transportation mode, the market has been segmented into roadways, railways, airways, and maritime. On the basis of solution, the smart transportation market has been segmented into smart ticketing, traffic and freight management, and PIS. By geography, it has been segmented into North America, Europe, Asia Pacific, and LAMEA.
Some of the major player in the smart transportation market are Thales (France), Huawei (China), Siemens (Germany), IBM (U.S.), Cisco Systems (U.S.), SAP (Germany), Cubic (U.S.), ALSTOM (France), Toshiba (Japan), Harris (U.S.), Saab (Sweden), BENTLEY SYSTEMS (U.S.), Kapsch (Austria), Hitachi (Japan), The Descartes Systems (Canada), Accenture (Republic of Ireland), Rockwell Collins (U.S.), and DNV GL (Norway).
In January 2019, Cubic Corporation made acquisition of Gridsmart Technologies Inc. a company that offers video tracking in the Intelligent Traffic Systems (ITS).
Smart Transportation Market
By Product Type
By Transportation Mode
Why Buy This Report?
In many developed countries, transportation accounts for 6-12% of the gross domestic product (GDP). Smart transportation systems are trending in the Internet of Things area and are considered as a modern solution for tradition transportation problems. Moreover, many governments across the world have realized the importance of smart transportation systems and have started implementing these solutions in various cities as a part of smart city projects.
In October 2017, GE Transportation marked a critical milestone with the digitalization of locomotives by delivering 10,000 Trip Optimizer units ordered and 10,000 GoLINC modules.
This report offers key insights pertaining to the smart transportation market with emphasis on recent developments across geographies and development strategies adopted by prominent market participants. The following sections have specifically been covered in the report.