The smart transportation market is expected to grow from USD 75.00 billion in 2018 to USD 149.21 billion by 2023, at a CAGR of 14.7% during the forecast period. Major factors that are expected to drive the growth of the smart transportation market across the globe include the rising urban population and high demographic rates, the growing adoption of connected and smart technologies in the transportation infrastructure, and the increasing free trade agreements. Government initiatives for smart cities and government authorities are adopting Public Private Partnerships (PPP) working models, which is also propelling the growth of the smart transportation market.
The scope of this report covers the analysis of the smart transportation market based on the transportation modes, applications, and regions. The transportation mode is further classified into railways, roadways, airways, and maritime. Designing and developing connected vehicles compatible with Intelligent Transportation Systems (ITS), evolution of semi-autonomous and autonomous vehicles, and decline in vehicle ownership with shared mobility are expected to offer growth opportunities for smart transportation vendors. With the advancements in technology, shared mobility services are gaining traction. Shared mobility services are widely adopted in the western countries, resulting in fuel and cost savings, and are witnessing adoption in other regions as well. Multiple app-based providers are shifting their focus from personal mobility to shared mobility. Shared mobility or on-demand mobility services enable citizens to choose from all modes of transport based on their needs. These solutions can act as feeder services and enhance access to public transportation, such as metro, rail, or bus services.
Under the transportation mode, the roadways segment is expected to lead the smart transportation market from 2018 to 2023. Significant growth in the volume of vehicular traffic across the globe over the last couple of decades and the inability of the existing transport infrastructure to overcome the traffic issues have increased the focus on the significance of monitoring and managing vehicular movement, and ensuring smooth flow of traffic. One of the major drivers for smart transportation solutions in roadways is to reduce the crash rate and increase road safety for drivers, passengers, and pedestrians. Highways are increasingly being equipped with the advanced radar and in-pavement warning lights that warn highway traffic to the turning motorists ahead. Additionally, Department of Transport (DOT) is churning out innovative solutions, such as ramp metering to reduce traffic congestion on roads.
APAC is expected to be the fastest-growing region for the smart transportation market during the forecast period, due to the increase in the adoption of new technologies, high investments for digital transformation, and rise in Gross Domestic Products (GDPs) of countries in the region. The majority of the potential economies in this region, such as Australia, Singapore, China, Korea, Hong Kong, and India, are said to be rapidly investing in the technological transformation for improving infrastructure and implementing various smart city projects. The competition in this region is fragmented, and the smart transportation solution providers are looking at expanding the base of their operations to most of the countries in the region. The untapped potential industries, high penetration of advanced technologies, growth in the freight use in various industry verticals, and economic developments and government regulations are expected to drive the smart transportation market growth at the highest rate during the forecast period.