Smart Transportation Market is Expected to Grow at a CAGR of 17.5% from 2021-2028 to Reach $33.62 Billion by 2028

According to a new market research report titled "Smart Transportation Market by Transportation Mode, Product Type (Solutions & Services), Application (Mobility as a Service, Route Information, Route Guidance, Public Transport, Transit Hubs, Connected Cars), and Geography-Global Forecasts to 2028", published by Meticulous Research®, the smart transportation market is expected to grow at a CAGR of 17.5% from 2021-2028 to reach $33.62 billion by 2028.

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Smart transportation can be defined as an advanced technology application that aims to provide innovative services associated with different modes of transport and traffic management. Smart transportation systems facilitate better informed, safer, more coordinated, and smarter use of transport networks. Smart transport systems use advanced information and communication technologies applied to vehicles and transport infrastructure to help improve traffic management, minimize congestion, improve safety, reduce the impacts of maintenance activities, and ultimately provide a more intelligent use of transport networks. Smart transportation is an integral part of modern-day smart city projects.
Government initiatives towards reducing greenhouse gas emissions, rising urbanization and demand for efficient transportation, and technological advancements are the major factors driving the growth of this market.

In addition, the advent of autonomous vehicles, increasing investments in smart city projects, the decline in vehicle ownership, and growth in mobility as a service (MaaS) are expected to offer prominent opportunities for the growth of this market.

However, the lack of technology standardization and uniformity hinders the growth of this market. In addition, high expenditures and longer downtime pose serious challenges for the deployment of smart transportation.
Impact of COVID-19 on the Smart Transportation Market

The COVID-19 pandemic adversely affected numerous economies globally. The nationwide lockdowns and quarantines imposed by governments to curb the spread of the disease significantly impacted businesses worldwide, including the smart transportation market. The effects of the COVID-19 pandemic were felt across the transportation sector. From maritime transportation to airlines, all modes of transportation felt the negative impacts of the pandemic. The travel restrictions that were imposed to minimize the spread of infection hindered the capability of companies to transport passengers. As a result, transportation revenues dropped significantly.

Countries worldwide placed restrictions on domestic transit while some closed border crossings for road freight transport services to curb the spread of the disease. The Maritime industry had largely proved resilient to the COVID-19 outbreak. Despite the crises, a vast majority of ports succeeded in staying open to cargo operations. However, most of them remain closed for passenger traffic. Despite the disruptions at ports, the shipping industry largely continued to operate worldwide, facilitating the movement of essential supplies and medicines needed to keep countries dealing with the global public health crisis. An estimation conducted by the UIC (University of Illinois) shows that in 2020, the rail passenger demand declined by 30% in revenues compared to 2019, while the freight sector declined an average of 10% in revenue compared to the previous year in the U.S.

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Transportation was among the most affected sectors globally and had to change its operations and business models. Transportation companies and governments faced several challenges to gain customer trust and safeguard their safety and security. Since the transport industry was among the most vulnerable and affected industries during the pandemic, it is anticipated to recover with a considerable growth rate during the forecast period.

Rising Urbanization and Demand for Efficient Transportation Expected to Drive Smart Transportation Market

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 (6.7 billion) than in rural settings (3.1 billion). The majority of the population in urban areas prefer to drive to work; this creates several traffic issues, such as traffic congestions, accidents, and noise pollution.

The challenge of congestion is a perennial issue for cities around the world and is consistently getting more complex with each 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, 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. Many cities are already reaping the benefits of smart transportation infrastructure. For instance, Seoul, South Korea, promoted smart public transport and raised their mass transit ridership from 30% to 70%. Implementation of programs, such as advanced intelligent transportation systems, bus management systems, and GPS has helped the city mitigate the age-old problem of traffic management.

Germany invested €9 billion to deploy and promote e-carsharing and EV fleets to counter traffic issues in Berlin. Similarly, Barcelona, Spain, is equipped with a complex network of intelligent traffic systems based on asphalt and infrastructure sensors. The city is all set to incorporate 5G connectivity with smart transportation systems and use big data for traffic-related issues by collecting data from smart cities, connected cars, and autonomous vehicles. Such incidences highlight the adoption of smart transportation systems for traffic issues.

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Meticulous Research® has segmented the overall smart transportation market based on transportation mode (roadways, railways, airways, and maritime), product type (solution [smart ticketing & toll, parking management, traffic management, passenger information, freight information, telematics, and others]) & (services [consulting, deployment & integration, support & maintenance], application [mobility as a service, route information and route guidance, public transport, transit hubs, connected cars, and others], and geography [Asia-Pacific, Europe, North America, Latin America, and the Middle East and Africa].

Based on the transportation mode, the roadways segment accounted for the largest share of the overall smart transportation market in 2021. However, the railways segment is expected to grow at the fastest CAGR during the forecast period. The trend of globalization & urbanization accelerates the demand for smart railway solutions that promote safe and reliable advanced services and operational efficiency to passengers. Furthermore, the rise in rail accidents has also endorsed the need to implement smart sensor technologies in railway coaches that can detect defects in bearings, wheels, and railway tracks to avert accidents. In addition, the initiatives by governments worldwide to implement advanced technologies to develop smart railway systems further drive the growth of this segment.
Based on product type, the solution segment accounted for the largest share of the smart transportation market in 2021. Increasing concerns associated with public safety, growing traffic congestion, favorable government initiatives for effective traffic management, increasing adoption of eco-friendly automobile technologies, and rising investments in smart city projects worldwide are expected to drive the growth of this segment. 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, technical support and up-gradation of smart transportation solutions to ensure optimum utilization of these solutions also support this segment's growth.

Based on the application, the route information and route guidance segment accounted for the largest share of the smart transportation market in 2021. However, the connected cars segment is expected to grow at the fastest CAGR during the forecast period. The rise in consumer demand for connectivity solutions, the growing need for constant connectivity, the increasing dependency on technology, and the upsurge in the tech-savvy population are the key factors that contribute to the growth of this segment.

Based on geography, Europe accounted for the largest share of the global smart transportation market in 2021. The growing government investments for improving urban transportation and traffic systems, especially in the U.K and France, enabled the region to emerge as the leading global smart transportation market. In addition, the increasing cross-border trade in the region resulting in traffic congestions also promotes the demand for smart transportation. However, Asia-Pacific is projected to grow at the highest CAGR of 19% during the forecast period.
The key players operating in the global smart transportation market are 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) among others.

To gain more insights into the market with a detailed table of content and figures, click here: https://www.meticulousresearch.com/product/smart-transportation-market-5199

Key questions answered in the report:
• Which are the high growth market segments in terms of technology, application, end-use industry, and country/region?
• What is the historical market for smart manufacturing across the globe?
• What are the market forecasts and estimates for 2022-2029?
• What are the major drivers, restraints, and opportunities in the global smart manufacturing market?
• Who are the major players in the global smart manufacturing market, and what shares do they hold?
• Who are the major players in various countries, and what shares do they hold?
• How is the competitive landscape?
• What are the recent developments in the global smart manufacturing market?
• What are the different strategies adopted by the major players in the market?
• What are the geographic trends and high growth countries?
• Who are the local emerging players in the global smart manufacturing market, and how do they compete with the other players?

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