The smart transportation market is expected to reach USD 262.1billion by 2025, at a CAGR of 18.68% over the forecast period. The ever-increasing population of the world is leading to rapid urbanization leading to many problems, such as congestion and safety issues on the road. The need for sustainable solutions to counter these problems is gaining importance across the world. The emergence of cloud-based technologies and advances in Vehicle-to-Vehicle (V2V) and Vehicle-to-Grid infrastructure (V2I) are making smart transportation a reality.
- As the global population continues to grow, an increasing number of cities are experiencing the challenges of accommodating its residents as well as the visitors. Congested roadways to increased emissions, these issues impact the health and well-being of its residents.
- Government regulations and initiatives are the most important drivers for the growth and development of the intelligent transportation system market. With growing road safety concerns and increasing auto thefts, governments across the world, especially in the US, Europe, Russia, China, and Brazil, are mandating the installation of factory-fitted telematics and safety devices in vehicles.
- Smart transportation IoT solutions augmented with smart city solutions enable government organizations and their partners to create safer, efficient transport infrastructure in cities by improving community resources and transportation for everyone. IoT solutions for smart transportation offers real-time visibility and accurate data, allowing the concerned city transport authorities and the organizations to improve efficiency while creating smarter, greener cities for its dwellers.
Scope of the Report
Smart transportation is considered as the vertical application of IoT capabilities, and therfore refers to the integrated application of modern technologies and management strategies in the transportation systems. These technologies are aimed at providing innovative services related to different modes of transport and traffic management. It enables the users to be better informed and make safer and better use of transport networks.
Key Market Trends
Rise in Urbanization, Increasing Mega Cities and Population
- More than half the world’s urban population resides in Asia where some countries, like India and China, already have about a billion people living in the cities alone. The other regions with relatively high urban population are North America, Europe, and Africa.
- The growing urbanization is an indication of the rising complexities in the cities across the globe with transportation requirements being one of those issues. Resolving these complexities is one of the major challenges faced by the transportation market across these regions.
- Technological innovations have brought about a major change in the way everything operates. The Internet of Things has made developing connected networks feasible in almost all major functioning sectors today. Integration of this transportation system has resolved most of the transportation-related complexities. The rising growth rate of megacities worldwide and multiple innovations taking place in the field of technology are expected to open up a number of opportunities.
Europe Holds the Largest Share Owing to Government Support
- It is expected that approximately 233 million connected cars would be on the road by 2020, globally, and Europe is holds the majority of the percentage in the production of connected cars during the forecast period. The connected cars market is expected to increase by four times in 2020 compared to the current market state. These connected technologies in the automotive sector might boost the smart solutions market in the transportation sector.
- Moreover, urban transportation is becoming an important pillar for a better quality of life of citizens in a city. Currently, in most of the cities in Europe, private and public road transportations are the vital mode of commuting. However, the lack of safety and the quality of the public transportation as well as the poor traffic management in overcrowded road network, the rise of theft, increase in parking issues, etc., are boosting the market for smart highways which, in turn, is boosting the market growth in the region.
The smart transportation market is moderately competitive and consists of a few market players enjoying a significant market share. In terms of market share, a few major players currently have the dominance in the market. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries with the local government focussing on strengthening the transport infrastructure,
The drive to improve its efficiency has been critical for demand and has been impacting the competition. Partnerships and collaborations are expected to remain a major strategy for the market vendors to make the solutions suitable for use on different platforms. Addition of analytical and AI capabilities to handle a huge volume of data flow and help create a sustainable solution that may be easily replicated and is modular in nature. innovative solutions are expected to emerge due to improving communication technology acting as an enabler in the market.
- April 2019- Cisco and Dimension Data announced a new co-innovation agreement, to develop a deeper collaboration environment and framework to jointly solve clients’ business needs.
- March 2019 Siemens.upgraded its smart transportation product portfolio. The new eHighway system, according to the company, is twice as efficient as conventional internal combustion engines. This Siemens Mobility innovation supplies trucks with power from an overhead contact line.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client’s requirements
- 3 months of analyst support