The rising urban population and high demographic rates, the growing adoption of connected and smart technologies in the transportation infrastructure, and the increasing free trade agreements. Furthermore, government initiatives for smart cities and government authorities are adopting Public Private Partnerships (PPP) working models, which is also propelling the growth of the smart transportation market.
The smart transportation market size is estimated to be USD 75.00 billion in 2018 and expected to reach USD 149.21 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 14.7% during the forecast period. The major factors that are expected to drive the growth of the smart transportation market include the rising urban population and high demographic rates, and adoption of connected and smart technologies in the transportation infrastructure. The smart transportation market has been demonstrating considerable growth, but recovering Return on Investment (RoI) from legacy systems, compliance with the stringent transportation regulatory policies, and lack of standardized and uniform technology may restrain the growth of the market.
Roadways segment is estimated to account for the largest market share in 2018
The roadways segment is estimated to account for the largest market share in 2018. One of the major drivers for smart transportation solutions in roadways is to reduce the crash rate and increase road safety for drivers, passengers, and pedestrians. Highways are increasingly being equipped with the advanced radar and in-pavement warning lights that warn highway traffic to the turning motorists ahead. Additionally, the Department of Transport (DoT) is churning out innovative solutions, such as ramp metering to reduce traffic congestion on roads.
Services subsegment in the railways segment is expected to grow at a higher CAGR during the forecast period
The service subsegment in the railways segment is expected to grow at a higher CAGR during the forecast period. The service providers help in implementing rail solutions. The benefits of employing smart transportation in railway services are improved rail operations performance, reduced complexities and operating expenses, standardized and improved rail infrastructure, improved engagement cash flow and profitability, maximized strategic value of the rail solutions, simplified project planning and execution, streamlined project life cycle, and improved resource productivity.
Europe is estimated to account for the largest market share in 2018
Europe is estimated to hold the largest market share in 2018. The European Commission has put forward an investment plan worth USD 13 billion in the transport infrastructure for 276 transport projects, selected under the Connecting Europe Facility (CEF). These planned investments to improve urban transport and traffic infrastructures in France and the UK are expected to drive the European railway transportation industry. In terms of CAGR, APAC is expected to account for the highest growth potential in the smart transportation market during the forecast period. This growth can be attributed to the increasing transportation spending and the adoption of the smart transportation technology in China and India.
The break-up profiles of the primary participants are given below:
- By Company: Tier 1 (38%), Tier 2 (41%), and Tier 3 (21%)
- By Designation: C-Level (28%), Director Level (40%), and Others (32%)
- By Region: North America (33%), APAC (32%), Europe (22%), and RoW (13%)
The following key smart transportation vendors are profiled in the report:
Thales (France), Huawei (China), Siemens (Germany), IBM (US), Cisco Systems (US), SAP (Germany), Cubic (US), ALSTOM (France), Bombardier (Canada), Toshiba (Japan), Harris (US), Saab (Sweden), Veson Nautical (Massachusetts), Advanced Navigation Positioning Corporation (ANPC) (Australia), BASS Software (Norway), BENTLEY SYSTEMS (US), Indra Sistemas (Spain), Trimble (US), TomTom (Netherlands), Amadeus (Spain), Conduent (US), Kapsch (Austria), Hitachi (Japan), The Descartes Systems (Canada), Accenture (Republic of Ireland), Rockwell Collins (US), and DNV GL (Norway).
MarketsandMarkets segments the smart transportation market by transportation mode, application, and region. A detailed analysis of regions has been done to provide insights into the potential business opportunities across regions. In addition, the strength of services portfolio and business excellence strategies are some of the important analysis included in the report.
Reasons To Buy the Report
The report would help leaders/new entrants in the smart transportation market in the following ways:
- The report comprehensively segments the smart transportation market and provides the closest approximations of the revenue numbers for the overall market and its subsegments across different regions.
- The report helps stakeholders understand the pulse of the market and provides them with the information on the key market drivers, restraints, challenges, and opportunities.
- The report helps stakeholders understand strategies of their competitors and gain more insights to better their positions in the market.