The global transportation analytics market size was valued at USD 12,720.32 million in 2022. It is expected to reach USD 75,020.92 million by 2031, registering a CAGR of 19.4% over the forecast period (2023 – 2031).
Transportation analytics concerns the vast quantity of route data generated by distribution operations. Regardless of size, it can guide improved business decisions that ultimately benefit the operation. Moreover, transportation analytics provides valuable metrics for the entirety of the delivery process. It aids in identifying the organization's weakest and strongest aspects and provides reliable reports and deliverables that can be shared with clients. Moreover, supply chain management extensively uses big data analytics to evaluate operational risks, enhance communication, secure confidential data, and increase supply chain accessibility. This data is utilized in various ways, including predictive analytics and developing more efficient cloud-based platforms.
In predictive analytics, data mining, statistics, and machine learning predict future supply demands, inventory levels, and consumer behavior. It is anticipated that predictive analytics and data mining techniques will aid the transportation industry in finding solutions to transportation problems such as transport network congestion and global traffic. Massive quantities of information generated by various sources, such as train schedules, public transit data, and bus feeds, will reduce traffic and bottlenecks, plan routes, and assist individuals in efficiently traveling from one location to another.
Although transportation systems are critical for economic growth, uncontrolled growth in traffic volumes has triggered various issues, such as traffic congestion, delays, accidents, rising vehicular emissions, escalating fuel prices, and deteriorating quality of life in different parts of the world. Moreover, according to the UN Population Fund and Population Bureau, these issues are expected to aggravate further in line with the continued population growth and urbanization. Nevertheless, enhancing the safety and efficiency of transportation can help address these issues; and rolling out analytical solutions supported by big data analytics would be one of the potential measures to improve the efficiency and safety of transportation. Insights from analyzing the transportation data can also be utilized to ensure efficient transportation of people and goods.
Advancements in information and communication technologies have opened immense opportunities for developing sustainable Intelligent Transport Systems (ITS) capable of accessing and collecting vital data and accurately processing it. The data collected from the sensing platforms, particularly the intra-vehicular and urban sensing platforms, can be analyzed to obtain deeper insights into the movement of traffic, which forms the primary objective of transportation analytics. All these factors are expected to drive the adoption of transportation analytics over the forecast period.
The performance of the access devices is the key factor for health, and the functionality is critical for access devices classified as medical devices. Transradial access devices risk being recalled by the US Food and Drug Administration (FDA) and Health Canada if they provide inaccurate analyses. In October 2019, Medtronic started recalling all models of its 6 French Sherpa NX Active Guide Catheter because of a risk that outer material may separate from the device in fractured pieces that could be left in the patient's bloodstream. A total of 106,298 devices are being recalled in the US, and FDA identified the recall as Class I due to the potential for serious injury or death the device can cause.
In May 2020, Vascular Solutions, a subsidiary of Teleflex, also announced a recall of its Langston Dual Lumen Catheter in response to reports that the inner catheter may separate during use. These incidents pose a grave threat to patient lives as well as the brand image of the company in terms of the reliability and efficiency of the products it manufactures. These products are under stringent regulations by the authorities, and the number of product recalls is becoming a matter of concern for the manufacturers.
Implementation of big data analytics in transportation may have led to significant developments; however, a few difficulties need to be addressed to ensure sustainable growth in the long term. Transportation agencies' primary challenges while implementing analytics solutions include data collection and privacy. Big data analytics envisages collecting and processing large volumes of data to derive valuable insights using analytical tools. However, a major concern regarding the collection of transportation data is that it can be incomplete, inaccurate, or unreliable at times, particularly owing to the frequent movement of pedestrians and vehicles. Nevertheless, advances in data collection and sensing technologies can improve the quality and reliability of transportation data collection.
Addressing the growing concerns over data security and privacy protection are also emerging as potential challenges restraining the market's growth. Ideally, the data collected by transportation management systems must be non-personal, such as traffic flow and vehicle location data. However, concerns over privacy protection are rising as data collection by both private and public institutions has increased over time. Nevertheless, privacy protection and data security concerns can be addressed if transport departments regulate personal data, tighten the management of data security certification, and mandate the use of advanced algorithms to enhance data security levels. Advances in security technologies used in analytical solutions can also help address growing concerns over data security and privacy protection.
Information and communication technology (ICT) developments may be crucial for sustainable urban development. For instance, transportation analytics can enhance transportation networks' efficiency, safety, and reliability, particularly in metropolitan cities. Similarly, intelligent transport systems, such as Area Traffic Control, can also help adjust the traffic signal timings based on real-time traffic information. On the other hand, computer-aided bus dispatch, bus priority signals, and real-time passenger information systems can help improve bus services.
Open–source transport applications currently deployed in the US in Boston, New York City, and Manila, Philippines, are helping in collecting public transport routing data. This data can be used in improving the design of the transportation network, simulating vehicle sharing systems, assessing the accessibility of public transport, providing accurate time travel route data, and maintaining road safety data. These systems hold the potential to realize a digital infrastructure and transform urban mobility. Big data analytics is also used in different countries to analyze citizens' changing behavior and travel needs, identify patterns, and ease traffic congestion. Having realized that ICT solutions can play a vital role in fostering urban mobility, several governments worldwide are aggressively pursuing intelligent transportation initiatives, which bodes well for the growth of the transportation analytics market over the forecast period.
The global transportation analytics market is segmented into product, deployment, and application.
Based on the product, the global market is categorized into descriptive, predictive, and prescriptive.
The descriptive segment is the highest contributor to the market and is predicted to exhibit a CAGR of 17.7% during the forecast period. The descriptive segment has witnessed a steady demand owing to the adoption of smart cities and intelligent transportation concepts worldwide. The demand for descriptive segments is predicted to be driven by growing big data use, increased data generation volumes, and advances in digital technologies.
By deployment, the global market is segmented into cloud, on-premise, and hybrid.
The cloud segment dominates the global market and is expected to grow at a CAGR of 19.01% during the forecast period. One of the key elements that will elevate the utility of cloud technology in transportation analytics solutions is the scalability and flexibility it provides, along with security considerations and data center governance. It is projected that the popularity of smart parking systems will increase with the growing use of IoT-based cloud platforms that help operate mobile applications. The intelligent parking arrangement, which enables operators to make informed parking and payment choices, is known to drivers.
By application, the global market is segmented into traffic management, logistics management, planning and maintenance, and others.
The logistics management segment dominated the global transportation analytics market at a CAGR of 19.7% during the forecast period. Logistics management uses shipment tracking systems, the Internet of Things (IoT), Radio Frequency Identification (RFID), autonomous trucks and drones, enhanced GPS accuracy, and others to track and maintain the shipping flow through the companies. Hence, it has become one of the key analytic tools in the transportation industry. It has also increased its demand due to its ability to use real-time tracking of items and machines. For instance, Food Service Co, a food service in the UK, receives real-time access to its supply chain due to an IoT and Azure solution.
Region-wise, the global transportation analytics market is segmented as North America, Europe, Asia-Pacific, and LAMEA.
North America is the most significant global transportation analytics market shareholder and is expected to exhibit a CAGR of 17.6% over the forecast period. North America is the largest adopter of transportation analytics solutions due to the increasing focus of the government to improve the transportation infrastructure due to the growing congestion on highways and increased highway accidents and fatalities. The transportation industry in North America has taken advantage of new opportunities to incubate and implement transportation analytics solutions thanks to the region's rapid adoption of cutting-edge technologies such as big data, ML, the Internet of Things, and cloud computing. In addition, major regional organizations, such as the US Department of Transportation Research and Innovative Technology Administration (RITA) and ITS America, are pursuing various R&D initiatives to develop innovative and intelligent transportation systems.
Asia-Pacific is the fastest-growing region. As per the UN 2017 world broad prospects, Asia's population is expected to reach 5.26 billion by 2050, and around 64% of the region's population is expected to become urban. Several regional governments are focusing on improving the overall infrastructure to reduce the burden on the plummeting land-carrying capacity. Since transportation forms a crucial part of the overall infrastructure, the global market in Asia-Pacific is balanced for significant growth over the forecast period.
Traffic congestion in central Indian cities is expected to drive the demand for better transportation infrastructure and, subsequently, for adopting transportation analytics solutions. In 2015, the Indian government announced an objective to develop 100 smart city projects. Such objectives are anticipated to drive the demand for transportation analytics solutions in India. Similarly, in Japan, several urban and semi-urban areas are confronting an increase in vehicles, which is taking a severe toll on the country's transport infrastructure. Hence, the Japan Parking Association is collaborating with 19 regional parking associations to incorporate diverse activities to reduce traffic congestion across the country. Such initiatives are expected to boost the growth of the global market in the country.
Growth in the Latin American transportation analytics market is expected over the next few years as regional governments become more educated about the field. In Brazil, 86% of the population lives in urban areas. Establishing the National Urban Mobility Policy in 2012 is helping in reshaping the country's transportation landscape. Several factors, such as strong demand potential, increasing adoption of smart devices, increasing vehicular traffic, and aggressive investments in the digitalization of the transportation infrastructure in Argentina, are expected to contribute to the growth of the global market in the country. The growing presence of international players and the upcoming smart city projects in the Middle East and Africa region is expected to boost the market growth.
Additionally, Middle East countries, like Saudi Arabia and the UAE, are investing aggressively in adopting the advances in technology and modernizing the transportation industry. In 2019, the Modern Bus Company of Saudi Arabia awarded NEC Corporation of Japan a contract to implement an Intelligent Transportation System (ITS) to improve the city's bus traffic performance. The UAE has witnessed significant economic and population growth in recent years. Hence, the nation has been looking forward to adopting intelligent transportation systems to ensure adequate public transportation for all citizens.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
"Find new revenue generation opportunities"