Smart Transportation Market: High Preference for Smart Services to Act as a Ladder for Market Development

The global smart transportation market is fragmented in nature and is proliferated with numerous companies, as per Transparency Market Research (TMR). The names of these companies are IBM, Alstom S.A, Accenture Plc., GE Transportation, and Cisco Systems. Although the smart transportation market needs huge investments and huge infrastructure, still it is predicted to present good return in the coming years.

The global smart transportation market stood at US$45.10 bn in 2014 and is poised to touch US$176.49 bn by 2021, rising at a whopping 18.50% CAGR over the forecast period. In terms of solution, the segment of traffic management systems represented a share of around 35.7% in the market. Traffic management systems are characterized by the utilization of smart freight management services and smart tolling systems. The reason for the dominance of these systems is the growing concerns on traffic congestion. In addition, the utilization of smart traffic management systems also makes sure of daily commuters’ safety by presenting real time data regarding the road conditions, hence eliminating traffic congestion. The global traffic management systems market is predicted to touch US$63.08 bn by 2021, expanding at a remarkable 18.50% CAGR between 2015 and 2021.

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Large Data Storing Capacities to Shift User Preference toward Cloud Services

In terms of service, the global smart transportation market is led by cloud services and this segment constituted a share of 43.56% in the market in 2014. Cloud services are extensively utilized for storing significant data for remote access by numerous organizations. Cloud services have gained popularity as they can store large amount of data and the stored data can be accessed from different locations, which help in tackling parking related issues and for managing traffic. This segment is poised to rise at a whopping 18.70% CAGR between 2015 and 2021 and will reach US$76.88 bn by 2021

On the basis of geography, the Europe smart transportation market held the dominant share of 32% in 2014. This market is predicted to slowly evolve owing to the rising demand for smart transportation-based services in traffic networks. This region is expected to maintain its superiority all through the forecast period. The region of North America trailed Europe and held the second position in the market and constituted a share of 25.4% in the same year. On the other hand, Asia Pacific is poised to rise at the swiftest growth rate of 22.84% over the forecast period.

Huge Cost of Initial Investment May Curtail Market Growth

“The global smart transportation market is fuelled by the increasing requirement for enhanced connectivity, security, and safety”, says a TMR analyst. This is owing to the fact that this type of transportation comprises the utilization of numerous components and sensors for the creation of smart connectivity via numerous devices. In addition, the growing concept of smart cities in numerous regions will also provide impetus to the development of the market for smart transportation.

On the other hand, factors such as the huge cost of initial investment may come up as prime restraint in the development of this market. Regions such as the Middle East and Asia Pacific are not able to adopt expensive technologies and thus will not be able to upgrade traffic management systems with smart devices. In addition, the absence of data availability may also pose a negative impact on the growth of the market for smart transportation. Nonetheless, the rising demand for smart services in numerous regions will also bring in new opportunities in the global smart transportation market, states a TMR analyst.

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This release was published on openPR.