The global smart transportation market is growing at a significant CAGR of around 9.8% during the forecast period (2020-2026). Smart transportation refers to the integrated application of modern technologies and management strategies in transportation systems. Smart transportation includes the use of several technologies, from basic management systems such as car navigation; traffic signal control systems; container management systems; automatic number plate recognition or speed cameras to monitor applications, such as security CCTV systems; and to more advanced applications that integrate live data and feedback from a number of other sources. The evolution of intelligent transportation systems is providing a growing number of technology solutions for transportation managers, to operate and maintain the systems more efficiently and improve performance.

Moreover, there are several pivotal factors that are driving the global smart transportation market, which includes growing government initiatives and public-private partnerships (PPP) for the extension of smart transportation across the globe. This factor is further backed by several smart city projects in the emerging economies, such as China and India. Moreover, the adoption of IoT, analytics, and automation technologies will further offer growth opportunity to the smart transportation market during the forecast period. However, high cost of deployment and stringent regulatory policies will affect the market growth during the forecast period. 

Segmental Outlook  

The smart transportation market is classified on the basis of transportation mode and application. Based on transportation mode, the market is segmented into railways, airways, roadways, and maritime. Based on application, the market is segregated into ticketing management system, parking management system, traffic management system, and others. 

Global Smart transportation Market Share by Transportation Mode, 2019 (%)

Global smart transportation market is driven by roadways transportation mode

Roadways smart transportation contributes major share in the smart transportation market. The roadways smart transportation market is estimated to project a considerable CAGR during the forecast period. The growth of the segment is attributed to the large number of solutions offered by a number of key market players across the globe. IBM Corp. and SAP SE are some of the key players that have their smart transportation services and solutions for roadways. As per OMR analysis, over 35-40% of the share is contributed by the roadway’s smart transportation market. Moreover, the introduction of smart city projects will mainly focus on the enhancement of road services across the respective countries, which in turn, will further propel the market growth during the forecast period.

Regional Outlook 

The global smart transportation market is classified on the basis of geography, which includes North America, Europe, Asia-Pacific, and Rest of the World. North America holds a significant share in the global smart transportation market. The US held a dominant position in the geographic contribution of North America in global smart transportation market, attributing to the integration of advanced technologies in the US. The country is regarded as the major user of advanced technologies for the enhancement of public infrastructure. Moreover, the presence of some of the key players in the region, such as Intel Corp., IBM Corp., and Parsons Corp., are other factors that are significantly contributing in the regional market growth.

Global Smart transportation Market Growth, by Region 2020-2026

Asia-Pacific is expected to propel with a considerable growth rate in the global market

Asia-Pacific is estimated to project a considerable CAGR in the global smart transportation market. Countries in Asia-Pacific that are contributing to the market growth include China, India, and Japan. Among these economies, India is expected to propel with a fastest growth rate in Asia-Pacific smart transportation market. This growth is due to government funding for smart city projects in the country; the government has plans to build 90 smart cities by 2022. Moreover, with the rising shift of population in the cities further increases the demand for smart traffic management system. Therefore, the smart transportation will play one of the major roles in the smart city projects in the country. Moreover, the expansion of global market players into the emerging economies of Asia-Pacific, such as China and India will further offer a growth opportunity to Asia-Pacific smart transportation market during the forecast period.

Market Players Outlook

The key players in the smart transportation market are contributing significantly by providing advanced technology-based products and through expanding their geographical presence across the globe. The key players operating in the global smart transportation market include Cisco Systems, Inc., Siemens AG, Oracle Corp., IBM Corp., SAP SE, Huawei Technologies Co., Ltd., Intel Corp., and Parsons Corp. These market players adopt various strategies such as product launch, partnerships, collaborations, merger, and acquisitions to sustain a strong position in the market. 

The Report Covers

• Market value data analysis of 2019 and forecast to 2026.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global smart transportation market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.