Growth of the smart transportationmarket can be attributed due to the technological advancement to enhance customer experience and the growing government initiatives and PPP models for smart transportation
The smart transportation market size is projected to grow from USD 94.5billion in 2020 to USD 156.5 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 10.6% during the forecast period. The major factors drivingthe growth of the smart transportation market include technological advancements to enhance customer experience, growing government initiatives and PPP models for smart transportation, rising urban population and high demographic rates, and growing adoption of IoT and automation technologies to enhance technological optimization.
Airways transportation mode to grow at a higher CAGR during the forecast period
The smart tarnsportationmarket is segmented into four transportation mode: roadways, railways, airways and maritime. Air transportation is an important transportation mode in the global smart transportation market. With the growing urbanization across the globe, the airways industry has evolved over the years. The demand for aviation services has increased significantly in the last decade. New technologies and digitization of services are driving the airline industry to ensure smooth maintenance, reduce operating costs, and take advantage of the increasing air travel. Several disruptive technologies, such as AI/ML, IoT, blockchain, big data and analytics, AR, biometrics, and robotics, provides the potential to improve the customer experience and enhance the operational efficiency both on the ground and in-flight.
Solutions in the roadways transportation mode to lead the market during the forecast period
The solution segment of the roadways transportation mode of the smart transportation market includes smart ticketing, parking management, traffic management, passenger information, freight information, and vehicle telematics and others (GIS tracking, commercial vehicle operations, and security). With the growing government initiative related to the enhancement of vehicle efficiency across the globe has led to the growth of the solution segment if the roadways transportation mode. As of now, several regional governments are focusing on deploying smart technologies in vehicles for ensuring safety. The deployment of roadways solutions helps in better fuel, operations, and route management, which, in turn, saves fuel, curbs additional carbon emission, and increases the life cycle of vehicle parts.
Smart ticketing solution segment of the railways transportation mode to grow at a higher CAGR during the forecast period
The smart ticketing solution is an intelligent solution, which includes integrated ticketing, onboard ticketing, online ticketing, mobile application ticketing, and smart card system. It enables smooth passenger flow by enabling a comfortable passenger experience. It reduces dependence on cash and other payment methods, which aid in smooth transitions and improve journey time. Smart ticketing will help contribute to the overall improvement of the railway transport network level of services, images, and accessibility, to facilitate and/or increase the use of railway transport. The incraesing demand of the ticketing process to simplify the process drives the demand for smart ticketing solutions.
Air traffic management in the airways transportation mode to lead the market during the forecast period
Air Traffic Management (ATM) is dynamic and integrated management of air traffic and airspace involving airborne and ground-based functions to provide safe, economical, and efficient airspace management and Air Traffic Flow Management (ATFM). The introduction of new technologies, such as GPS-based navigation and landing digital air-ground data link communication, and Automatic Dependent Surveillance Broadcast (ADS-B), is expected to boost the growth of ATM
Vessel tracking solution segment of the maritime transportation mode to grow at a higher CAGR during the forecast period
A vessel tracking system plays an important role by bringing about long-range connectivity not only between ships and coast guards of countries but also among ships as well. With the increasing connectivity technologies, such as IoT, vessel tracking systems have managed to incorporate internet connectivity as a part of their core objective, providing a much better service. Vessel tracking helps manage the entire life cycle of vessels/containers in export/import. It is one of the critical software used by the professional mariner to keep track of all assets (vessel, containers, cargo, and buoys) and monitor positions of the vessels. Advancements of communication technologies in the maritime transportation mode provides the connectivity from ship-to-ship communication and ship-to-shore communication.
Europeto lead the market share in 2020
Europe is the largest regional market in terms of revenue, and the UK is the most developed economy, contributing significantly to the smart transportation market. The European countries have been investing majorly in the modernization and upgradation of rail infrastructure. Social and trade agreements among the European Union (EU) countries have promoted large-scale, cross-border trade and passenger traffic in Europe. The dynamics of the transportation industry in Europe is changing rapidly with new freight and passenger management systems. To boost the efficiency of the existing infrastructure, several European countries are expected to adopt to new smart transportation solutions. Europe has a conducive environment for the implementation of smart transportation systems, as the government has planned investments for improving the public transportation modes in this region.
- By Company Type: Tier 1 – 62%, Tier 2 – 23%, and Tier 3 – 15%
- By Designation: C-level – 38%, Directors – 30%,and Others – 32%
- By Region: North America – 40%,Europe– 15%, APAC– 35%,MEA – 5%, Latin America– 5%.
Some prominent players profiled in the study include Thales Group (France), Huawei Technologies Co., Ltd. (China), Siemens AG (Germany), IBM Corporation (US), Cisco Systems, Inc. (US), SAP (Germany), Cubic Corporation (US), Alstom (France), Bombardier Inc. (Canada), Toshiba (Japan), Harris Corporation (US), Saab AB (Sweden), Veson Nautical (Massachusetts), BASS Software (Norway), Bentley Systems (US), Indra Sistemas (Spain), Trimble (US), TomTom International BV. (Netherlands), Amadeus IT Group SA (Spain), Conduent (US), Kapsch (Austria), Hitachi Ltd. (Japan), Descartes (Canada), Accenture (Ireland), and DNV GL (Norway).
The market studycoversthe smart transportationmarket across different segments. It aims at estimating the market size and the growth potential of this market across different segments, such as transportation modes (roadways, railways, airways, maritime), communication technology, applications, and regions. Each of the transport modes has been further divided into solutions and services associated with them. The communication technology covers different communication technologies used across all the transportation modes in the smart transportation market. The application segment covers different applications of the smart transportation. The applications are common to all modes of transportation and comprise route information and route guidance, transit hubs, autonomous/driverless vehicles, video management, and others (transport infrastructure management, asset management, road safety and security, and public safety). The regional analysis of the smart transportation market covers North America, Europe, APAC, MEA, and Latin America. The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key benefits of buying the report
- The report is expected to help the market leaders/new entrants in this market by providing them information on the closest approximations of the revenue numbers for the overall smart transportationmarket and its segments.
- This report is also expected to help stakeholders understand the competitive landscape and gain insights to improve the position of their businesses and plan suitable go-to-market strategies.
- The report also aims at helping stakeholders understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.