Smart Transportation Market Size to Surpass USD 381.18 Bn by 2032

The global smart transportation market size is predicted to surpass around USD 381.18 billion by 2032 and expanding growth at a noteworthy CAGR of 13.3% from 2023 to 2032.

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Key Takeaway:

By solution, the traffic management segment has contributed a revenue share of around 33.7% in 2022. However, the parking management segment is growing at a notable CAGR during the forecast period.
By service, the cloud services segment has captured a revenue share of around 42.5% in 2022.
The North American market has held a 34% revenue share in 2022. The European region is poised to grow at a significant CAGR from 2023 to 2032.

Smart transportation, also known as intelligent transportation system, is a high-tech transportation infrastructure that aspires to provide cutting edge traffic, and transportation management services. This mode of transportation also allows multiple users to be better coordinated, informed, and makes safer and more intelligent use of transportation networks. Parking management and assistance, passenger information, and traffic management are all areas where smart transportation can be used on a large scale.

To improve safety and efficiency, smart transportation employs a variety of technologies to evaluate, monitor, and manage transportation systems. It makes commuting throughout a city more cost effective and convenient, and safer by utilizing innovative technologies. The factors such as increased acceptance of internet of things-based technology, rising urbanization, and the spread of 5G based connectivity make smart transportation infrastructure easier to deploy.

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Report Highlights

Based on the service, the cloud service segment is expected to grow at the fastest rate in the global smart transportation market in 2020. Smart transportation provides real time visibility and reliable data, allowing local transportation authorities and enterprises to improve efficiency and effectiveness, boosting the demand for cloud services.
Europe is the largest segment for smart transportation market in terms of region. In any city of the Europe region, urban transportation is becoming increasingly important for residents to have a higher quality of life. Currently, private and public road transportation is required for everyday travel in most European cities.
Asia-Pacific region is the fastest growing region in the smart transportation market. The lack of quality and safety in public transit, as well as poor traffic management in overcrowded road networks, an increase in theft, and increased parking challenges are factors driving market for smart highways, which, in turn, is fueling the smart transportation market in the Asia-Pacific region.

Scope of the Smart Transportation Market

Report Coverage	Details
Market Size in 2023	USD 123.9 Billion
Market Size by 2032	USD 381.18 Billion
Growth Rate from 2023 to 2032	CAGR of 13.3%
Largest Market	Europe
Fastest Growing Market	Asia Pacific
Base Year	2022
Forecast Period	2023 to 2032
Segments Covered	Solution, Service, Transportation Mode, Application, Region

Market Dynamics

Drivers

Surge in demand for efficient transportation

The artificial intelligence and information technology are used in smart transportation to efficiently manage and coordinate transportation networks. The use of smart transportation networks allows the traveling public to be more aware of traffic, allowing for improved coordination and driver safety. The increased traffic congestion caused by an increase in the number of automobiles drives up the demand for smart transportation in the market. Moreover, the growing desire for smart cities is a big contributor to this rise in demand for smart transportation. Thus, the surge in demand for efficient transportation is driving the growth of smart transportation market during the forecast period.

Restraints

Integration of technologies

Several technology components, including hardware, software, and network elements, are integrated into the smart transportation ecosystem, which involves multiple manufacturers. Due to the lack of an open interface and protocol difficulties, integrating smart technology aspects with legacy transportation systems is extremely difficult. As a result of these integration challenges, communication gaps between traditional and technologically advanced systems would emerge. In addition, upgrading outdated systems necessitates a significant financial investment. In the upcoming years, these difficulties are projected to stifle the smart transportation market expansion.

Opportunities

Technological advancements

People can use internet of things-based devices to gather and communicate real time information about traffic, climate, and accidents, to better plan their journeys. The increased use of technologies such as train control systems, toll collecting systems, fleet telematics, and transportation logistics by transportation agents has increased system capacity while lowering operational costs. Moreover, the requirement to manage the growing volume to data generated by the enormous number of internet of things sensors deployed in transportation infrastructure is generating major new revenue streams for service providers and independent software suppliers.As a result, the technological advancements is creating lucrative opportunities for the growth of the smart transportation market during the forecast period.

Challenges

Lack of standardization

Smart transportation systems are made up of a variety of components, including various technologies, hardware, and software from various vendors. As a result, there is a lack of standardization and uniformity in the solutions, which causes compatibility issues. Furthermore, different countries and regions have different communication and network standards and protocols, limiting vendors’ ability to offer global solutions. As a result, in order for traffic management solutions to be adopted globally, a common protocol for communication and workflow for traffic management systems is required. As a result, the absence of globally binding mandates, procedures, and specifications for the deployment of traffic management solutions acts as a market challenge. National mandates, procedures, and specifications for smart transportation systems may restrict the adoption of smart transportation solutions.

Some of the prominent players in the global smart transportation market include:

Harris Corporation
IBM Corporation
Huawei Technologies Co. Ltd
Veson Nautical
Cubic Corporation
Bentley Systems
BASS Software
Amadeus IT Group SA
DNV GL
Toshiba

Segments Covered in the Report

By Solution

Ticketing Management System
Parking Management & Guidance System
Integrated Supervision System
Traffic Management System

By Service

Business
Professional
Cloud Services

By Transportation Mode

Roadways
Railways
Airways
Maritime

By Application

Mobility as a Service
Route Information and Route Guidance
Public Transport
Transit Hubs
Connected Cars
Video Management
Others

By Geography

North America
- U.S.
- Canada
- Mexico
Europe
- U.K.
- Germany
- France
Asia-Pacific
- China
- India
- Japan
- South Korea
Latin America
- Brazil
- Rest of Latin America
Middle East & Africa (MEA)
- GCC
- North Africa
- South Africa
- Rest of Middle East & Africa