The global Smart Transportation Market is estimated to be valued at Us$ 1,027.5 Mn or 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.
The smart transportation market includes various forms of transportation and infrastructure that incorporate information, communication technologies (ICT) and artificial intelligence to improve safety and mobility efficiency. Advanced technologies are being incorporated into transport networks to enhance real-time traffic management, passenger information services, collision avoidance systems, electronic payment services, and commuter information. The growing adoption of artificial intelligence and IoT in transportation is helping drive efficiency, sustainability, and automation. Smart transportation helps reduce traffic congestion and fuel costs while improving passenger comfort and safety.
Market key trends:
One of the major trends driving growth in the smart transportation market is the adoption of stringent vehicle emission regulations across regions. Government agencies are promoting initiatives to optimize transportation networks and reduce traffic congestion and pollution levels. For instance, the European Commission has introduced stricter fuel efficiency and carbon emission performance standards for cars and commercial vehicles. Additionally, growing investments by public and private agencies in advanced traffic management systems, electric vehicles, and smart road infrastructure are supporting the adoption of smart mobility solutions. Developing autonomous and connected vehicle technologies is also poised to significantly transform transportation in the coming years.
Threat of new entrants: Low barrier of entry due to availability of mature & low-cost technologies protects existing players from threat of new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternate transport means.
Bargaining power of suppliers: Suppliers have low bargaining power due to availability of alternate suppliers in the market.
Threat of new substitutes: Low threat from substitutes due to lack of direct replacements for smart transportation solutions.
Competitive rivalry: High competitive rivalry exists among key players to gain higher market share through mergers, acquisitions and new product launches.
The global Smart Transportation Market is expected to witness high growth, exhibiting CAGR of 4.5% over the forecast period, due to increasing investments in developing smart city infrastructure. Safety concerns and need to reduce traffic congestion are major factors driving growth of smart transportation solutions.
North America dominates the global market, owing to significant investments made by governments in the region towards developing advanced transportation systems. Presence of major players and demand for reduced traffic & improved safety are other factors contributing to market growth in the region. Asia Pacific is expected to register fastest growth during the forecast period, supported by growing infrastructure development projects and adoption of smart technologies in countries such as China and India.
Key players operating in the smart transportation market are Thales Group, Huawei, Siemens, IBM, Cisco Systems, and SAP. These players are focusing on new product launches and partnerships with technology providers to consolidate their market positions. Adoption of IoT, cloud, and AI technologies are key strategies adopted by leading market players.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it