July 16, 2024
Smart Transportation Market

Growth in Adoption of AI and IOT projected to boost the growth of Smart Transportation Market

The smart transportation market involves the integration of advanced technologies in vehicles, roads, and transport hubs for delivering smarter transportation services. This integration helps in efficient transportation of goods and people through better traffic management, transport infrastructure monitoring and transportation analysis. The smart transportation system aids in effective incident management, passenger information management, toll collection management, and parking management. Increasing penetration of advanced technologies like AI, IoT, 5G networks, and growing environmental concerns are key drivers fostering growth of the global smart transportation market.

The global Smart Transportation Market is estimated to be valued at US$ 122.4 Bn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends witnessed in the smart transportation market is growth in adoption of electric and hybrid vehicles. Rising environmental concerns along with government policies and incentives promoting adoption of electric vehicles are fueling demand for electric and hybrid vehicles globally. This in turn is increasing the need for development of smart charging stations and smart grids to efficiently power these vehicles. Another major trend is the deployment of smart signaling and traffic management systems across major cities. Technologies like AI and IoT are enabling cities to develop smart monitoring of roads and transport infrastructure which helps manage traffic congestion and optimize transport systems.

Porter’s Analysis

Threat of new entrants: The smart transportation market requires significant capital investments and technological expertise. This poses barriers for new players entering the market.

Bargaining power of buyers: The presence of numerous players operating in the smart transportation market gives buyers sufficient choice and bargaining power.

Bargaining power of suppliers: A few large technology companies control key technologies for smart transportation solutions like communication technologies, sensors etc. This gives them strong bargaining power over buyers.

Threat of new substitutes: Alternatives like non-smart public transport are available. However, the unique value proposition of smart transportation solutions in terms of efficiency and convenience makes the threat of substitutes relatively low.

Competitive rivalry: The global smart transportation market is highly competitive with the presence of numerous global and regional players offering differentiated products.

Key Takeaways

The global Smart Transportation Market Demand is expected to witness high growth, exhibiting a CAGR of 15% over the forecast period, due to increasing urbanization and the need for sustainable transportation solutions. The market size for 2023 is estimated to be US$ 122.4 Bn.

Regional analysis: North America dominates the global smart transportation market currently. However, Asia Pacific is expected to witness the fastest growth due to rising government initiatives for developing smart cities and increasing adoption of advanced technologies in the region. China, India and other developing Asian countries will be the major contributors to the regional market growth.

Key players: Key players operating in the smart transportation market are Thales Group, Alstom, Huawei, Hitachi, Siemens, Cisco Systems, IBM, Microsoft, Intel, Qualcomm. Thales Group and Alstom together control over 30% of the global rail signaling market. Huawei is a leader in 5G connectivity solutions for transportation. The other players are focusing on integrated smart transportation platforms and IoT based solutions.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it