Smart Transportation Market (2024-2031)
The Smart Transportation Market is expected to reach $52.1 billion by 2031, at a CAGR of 18.3% from 2024 to 2031.
- Published
- Jun 2024
- Pages
- 250
- Format
- PDF + Excel
- Report ID
- MRICT - 104506
- Base year
- 2023
- 2031 · FORECAST
- $52.10B
- 2031
- $52.10B
- CAGR 2024–2031
- 18.3%
2023 baseline · 2024–2031 forecast at 18.3% CAGR · hover a bar for the value
Key highlights
By Transportation Mode: In 2024, the Roadways Segment to Dominate the Smart Transportation Market
By Offering: In 2024, the Solutions Segment to Dominate the Smart Transportation Market
By Application: In 2024, the Connected Cars Segment to Dominate the Smart Transportation Market
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 250 |
| Format | |
| Forecast Period | 2024–2031 |
| Base Year | 2023 |
| CAGR | 18.3% |
| Market Size (Value) | USD 52.1 Billion by 2031 |
| Segments Covered | By Transportation Mode · Roadways · Railways · Airways · Maritime · By Offering · Solutions · Smart Ticketing & Toll · Parking Management · Traffic Management · Passenger Information · Freight Information · Telematics · Other Solutions · Services · Consulting Services · Deployment and Integration Services · Support and Maintenance Services · By Application · Mobility as a Service · Route Information and Route Guidance · Public Transport · Transit Hubs · Connected Cars · Other Applications |
| Countries Covered | North America (U.S. and Canada), Europe (Germany, U.K., France, Italy, Spain, Sweden, Denmark, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Singapore, Malaysia, Indonesia, and Rest of Asia-Pacific), Latin America (Brazil, Mexico, and Rest of Latin America), and Middle East & Africa (UAE, Israel, Rest of Middle East & Africa) |
| Key Companies | Thales Group (France), Huawei Technologies Co., Ltd. (China), Siemens AG (Germany), IBM Corporation (U.S.), Cisco Systems, Inc. (U.S.), SAP SE (Germany), Cubic Corporation (U.S.), Alstom (France), Bentley Systems, Inc. (U.S.), Toshiba Corporation (Japan), Harris Corporation (U.S.), Saab AB (Sweden), Veson Nautical (U.S.), BASS Software Ltd. (Norway), and Indra Sistemas (Spain). |
Report overview
Segments covered: mode, offering, application. Regions: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa.
The growth in this market is driven by factors such as rising government initiatives for reducing greenhouse gas emissions, rising urbanization, and demand for efficient transportation and technological advancements to enhance customer experience. In addition, the emergence of autonomous vehicles, increasing investments in smart city projects, and decline in vehicle ownership with the advancement of MaaS are expected to provide opportunities for market growth. However, the lack of standardized and uniform technology is expected to restrain the growth of the market. The high initial cost of deployment challenges market growth.
Report infographic
Market dynamics
4 factors across 3 forcesRising Government Initiatives for Reducing Greenhouse Gas Emissions
The transportation sector is a significant contributor to greenhouse gas emissions, with demand consistently growing worldwide and expected to increase further in the coming years. According to the International Energy Agency (IEA) in its Energy Technology Perspectives report, global transport is projected to double by 2070, car ownership rates are anticipated to rise by 60%, and the demand for passenger and freight aviation is expected to triple. These trends are likely to result in a substantial increase in transport emissions, adversely impacting the environment.
Recognizing this serious challenge, governments around the globe are implementing robust initiatives to deploy smart transportation systems aimed at reducing greenhouse gas emissions. For example, in 2021, the Finnish government introduced measures to reduce emissions from aviation, focusing on renewable aviation fuels and carbon pricing. Similarly, the Dutch government has taken significant steps to combat climate change, such as enacting the Climate Act and the National Climate Agreement, which aim to make all new passenger cars emission-free by 2030. Additionally, initiatives to promote electric vehicles through tax relaxations and the development of approximately 1.8 million charging points by 2030 are some of the proactive measures being undertaken to support smart transportation systems.
Governments worldwide are also modernizing existing public transportation systems and enhancing navigational tools to address emission issues effectively. These promising steps to reduce greenhouse gas emissions are driving the demand for smart transportation solutions.
Rising Urbanization and Demand for Efficient Transportation
Presently, more than half of the world’s population lives in urban areas, and the migration towards cities is expected to continue at an even faster pace over the next few decades. By 2050, the global population is projected to reach around 9.8 billion, and it is estimated that more than twice as many people in the world will be living in urban areas (6.7 billion) than in rural settings (3.1 billion). Most of the population in urban areas prefer to drive to their respective work; this creates several traffic issues such as jams, accidents, noise pollution, and loss of valuable time, especially during rush hours.
The challenge of congestion is a perennial issue for cities around the world and is consistently getting more complex with every passing year. The increasing population in cities is straining urban transportation systems. People who live and work across major cities of the world are faced with increasing levels of congestion, delays, total travel time, costs, frustration, accidents, and loss of life. Smart transportation utilizes information technology and artificial intelligence to efficiently manage and coordinate urban transportation systems. Smart transportation networks allow travelers to be aware of the traffic for better coordination and to ensure the safety of the drivers. Thus, all such factors are expected to drive the market growth in the forecast period.
Table of contents
11 chapters · 119 sections · 250 pages · click to expandSegmental analysis
| Segment | Largest share (2024) | Fastest growth (2024–2031) |
|---|---|---|
| By Transportation Mode | Roadways | Railways |
| By Offering | Solutions | Services |
| By Application | Connected Cars | Connected cars |
By Transportation Mode
- The Roadways Segment to Dominate the Smart Transportation Market
- The roadways segment is expected to account for the largest share of above 55.7% of the global smart transportation market.
- The large share of this segment is attributed to the rising need for better and sustainable roadways, increasing demand for safer roads, the rising need to reduce traffic congestion, and government initiatives for smart roadways.
- In addition, the growing trend toward the adoption of smart cities is also expected to drive segment growth.
- However, the railways segment is expected to grow at the highest CAGR during the forecast period.
- The trend of globalization & urbanization accelerated the demand for smart railway solutions, promoting safe and reliable advanced services and operational efficiency to passengers.
- Besides, the rise in the number of rail accidents and increasing initiatives by governments worldwide to implement advanced technologies for the development of smart railway systems are also expected to drive the segment growth.
By Offering
- The Solutions Segment to Dominate the Smart Transportation Market
- The solutions segment is expected to account for the largest share of above 63.8% of the global smart transportation market.
- The large share of this segment is attributed to the growing concerns toward public safety, growing traffic congestion, favorable government initiatives towards effective traffic management implementation, the rising investment in smart cities across the world, and the rising focus of market players to launch innovative smart transportation solutions.
- However, the services segment is expected to grow at the highest CAGR during the forecast period.
- The growing concern of organizations to gain visibility for diagnosing and troubleshooting problems before hampering operations or end-user experiences is expected to drive the adoption of smart transportation services.
- Furthermore, the rising need for technical support and upgradation of smart transportation solutions to ensure optimum utilization of these solutions is also supporting the growth of the smart transportation services market.
By Application
- The Connected Cars Segment to Dominate the Smart Transportation Market
- The connected cars segment is expected to account for the largest share of above 29.2% of the global smart transportation market.
- The large share of this segment is attributed to the rise in consumer demand for connectivity solutions, a surge in the need for constant connectivity, an increase in dependency on technology, and the upsurge in the tech-savvy population.
- Moreover, the connected cars segment is expected to grow at the highest CAGR during the forecast period.
Geographic analysis
Europe
Largest shareIn 2024, Europe is expected to account for the largest share of above 29.6% of the smart transportation market. The large share of the region is attributed to the well-established transportation infrastructure, increasing passenger transport and the rising government spending on improving the urban transport and traffic system of the region. Moreover, flourishing cross-border trade is promoting traffic in the region, leading to the rising demand for smart transportation in the European economies.
Asia-Pacific
Fastest growthHowever, the Asia-Pacific region is expected to grow at the highest CAGR of above 20.0% during the forecast period. The growth of the market is attributed to the increasing investment by countries such as India, Japan, and China in megacities to modernize their transportation networks to facilitate enhanced trade exchanges, growing number of vehicles, and rising demand for road safety and traffic management.
Competitive landscape
- February 2024
Indra Sistemas (Spain) partnered with Parsons (U.S.) to expand the global reach of advanced sustainable mobility solutions to strengthen their position in markets that offer significant growth opportunities, such as North America, the Middle East, and Latin America.
- July 2021
The Hellenic Civil Aviation Authority (Greek) partnered with Thales Group (France) to support the modernization of the Greek civil aviation Navigation Aids infrastructure.
- July 2021
The Saudi Ministry of Transport partnered with Huawei Technologies Co., Ltd. (China) to enhance future mobility and technology adoption in the transport and logistics sector by exploring the prospects of utilizing advanced technologies such as 5G, AI, and Big Data.
- March 2021
Egyptair Tourism and Duty-Free Co. (Egypt) signed a new agreement with IBM Corporation (U.S.) to scale and modernize Egyptair Duty-Free’s back-end operations and host its SAP travel retail system.
- Thales Group · France
- Huawei Technologies Co., Ltd. · China
- Siemens AG · Germany
- IBM Corporation (U.S.)
- Cisco Systems, Inc. (U.S.)
- SAP SE · Germany
- Cubic Corporation (U.S.)
- Alstom · France
- Bentley Systems, Inc. (U.S.)
- Toshiba Corporation · Japan
- Harris Corporation (U.S.)
- Saab AB · Sweden
- Veson Nautical (U.S.)
- BASS Software Ltd. (Norway) and Indra Sistemas · Spain
Frequently asked questions
The Smart Transportation Market focuses on innovative technologies and services aimed at enhancing the efficiency, safety, and sustainability of transportation systems through IoT, autonomous vehicles, and data analytics.
Cite this report
Meticulous Research. (2024). Smart Transportation Market - Global Opportunity Analysis and Industry Forecast (2024-2031) (Report No. MRICT - 104506). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/smart-transportation-market-5199