by The Smart Transportation Market is estimated to be valued at Us$ 1,027.5 Mn in 2022 and is expected to exhibit a CAGR Of 4.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The smart transportation system comprises intelligent transportation systems that integrate technologies with transportation infrastructure and vehicles. It primarily focuses on developing innovative services related to different modes of transport and traffic management and enables various users to be better informed and make safer, more coordinated, and ‘smarter’ use of transport networks. Some key applications of smart transportation include smart ticketing, traffic management, passenger information system, freight information system etc.
Market Dynamics:
Growing deployment of IoT devices and increasing adoption of connected cars are expected to be the major drivers for the growth of the smart transportation market over the forecast period. According to IoT Analytics, the number of connected cars on roads is projected to grow from 153 million in 2018 to 225 million globally by 2020. Growth in vehicular traffic has fuelled the demand for real-time traffic updates to avoid congestions. On the other hand, growing urbanization has increased the pressure on transport infrastructure and public transport systems. Smart transportation solutions help in optimizing the usage of existing infrastructure and resources. This enables monitoring traffic flows as well as managing transportation disruptions efficiently. Further, favorable government policies supporting investments in smart city initiatives are promoting the growth of smart transportation globally.
Segment Analysis
The global smart transportation market is dominated by the roadways segment, which is expected to account for over 60% share of the overall market by 2030. The growth of this segment can be attributed to the increasing adoption of intelligent transportation systems (ITS) across major cities and highways. Various smart transportation solutions such as smart traffic management, automatic number plate recognition, and vehicle to infrastructure communication are being implemented on roads and highways globally to optimize transportation infrastructure utilization and manage traffic congestion.
PEST Analysis
Political: Governments across countries are coming up with supportive policies and initiatives to modernize transportation systems. They are investing heavily in deploying smart technologies.
Economic: The overall smart transportation market is expected to grow at a significant rate during the forecast period driven by the rising GDP levels and increased disposable incomes in developing countries. Government investments are also contributing to market growth.
Social: Rapid urbanization and increasing congestion levels are prompting citizens as well as authorities to adopt smart mobility solutions for better transportation experiences.
Technological: Emerging technologies such as IoT, AI, and 5G networks are enabling the development of advanced smart transportation solutions, which is fueling the adoption of these systems. Continuous technology advancements are also making these solutions more efficient and cost-effective.
Key Takeaways
The global Smart Transportation Market size is expected to witness high growth, exhibiting CAGR of 4.5% over the forecast period, due to increasing investments by governments worldwide in developing intelligent transportation infrastructure. The market was valued at US$ 1,027.5 Mn in 2022.
Regional analysis
North America accounted for the largest share of over 35% of the global smart transportation market in 2022 and is expected to continue its dominance over the forecast period. This can be attributed to significant investments by governments in the US and Canada in deploying advanced technologies to modernize their transportation infrastructure and systems.
Key players
Key players operating in the smart transportation market include Stringent regulatory guidelines associated with medical electrodes, Biocompatibility issues with medical electrodes. They are focusing on developing innovative and advanced solutions to strengthen their market position. For instance, Stringent regulatory guidelines associated with medical electrodes has recently launched new smart traffic management platforms integrated with advanced sensors and IoT.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
