Global Smart Transportation Market Overview, 2024-29

Global Smart Transportation Market Overview, 2024-29

The global smart transportation industry is at the vanguard of a disruptive period, propelled by increased urbanization, technological innovation, and an increasing need for sustainable mobility solutions. Smart transportation refers to a broad range of technologies, tactics, and projects aimed at optimizing transportation systems, increasing mobility, and improving the entire travel experience for people and commodities. One of the distinguishing features of the worldwide smart transportation business is its emphasis on harnessing innovative technologies to meet the complex difficulties confronting modern transportation networks. Cities and transportation authorities are turning to innovative solutions such as real-time data analytics, artificial intelligence (AI), and Internet of Things (IoT) sensors to optimize traffic flow, reduce congestion, and improve safety on roadways. These technologies enable dynamic traffic management, adaptive signal control, and predictive maintenance, allowing transportation systems to respond more effectively to changing conditions and improve the efficiency of travel for commuters and freight. Furthermore, the rise of connected and autonomous vehicles (CAVs) is transforming how people and products are transported, with the potential for safer, more efficient, and more comfortable mobility experiences. CAVs use advanced sensing, communication, and processing technology to drive roads autonomously, interact with other vehicles and infrastructure, and provide passengers with increased comfort and convenience. As CAV technology matures and gains acceptance, it has the potential to reduce traffic accidents, alleviate congestion, and improve accessibility for people with restricted mobility. Furthermore, the notion of mobility-as-a-service (MaaS) is gaining popularity as a comprehensive approach to mobility that combines diverse means of transportation into a unified, user-centric experience. MaaS platforms give travelers access to a variety of transportation options, including public transit, ride-sharing, bike-sharing, and car-sharing services, through a single digital interface. By offering personalized trip planning, real-time information, and integrated payment solutions, MaaS aims to make it easier and more convenient for people to navigate cities and choose the most efficient and sustainable travel options for their needs.

According to the research report, “Global Smart Transportation Market Outlook, 2029” published by Bonafide Research, the market is anticipated to cross USD 115 Billion by 2029, increasing from USD 70.14 Billion in 2023. The market is expected to grow with 9.52% CAGR by 2024-29. The global smart transportation industry is undergoing a significant change toward electrification, with electric vehicles (EVs) gaining ground as a sustainable alternative to traditional fossil fuel-powered vehicles. Governments, automakers, and consumers are increasingly adopting electric vehicles (EVs) as a way to decrease emissions, combat air pollution, and promote energy independence. Public-private partnerships (PPPs) are increasingly being used to fund and implement smart transportation initiatives. PPPs allow government agencies, private sector enterprises, and other stakeholders to share resources, knowledge, and risk, promoting the creation of new transportation solutions that benefit society as a whole. Smart transportation technology provides major economic benefits to civilizations worldwide. Smart transportation solutions help boost economic growth and competitiveness by reducing traffic congestion, boosting transportation network efficiency, and increasing productivity. As of their adaptability and flexibility, market transportation networks are naturally more resilient to disruptions and calamities. In the event of natural catastrophes, pandemics, or other emergencies, smart transportation technology allows for swift responses, traffic rerouting, and emergency service coordination to reduce interruptions and assure the continuity of key services. Building resilience into transportation networks allows cities and communities to better endure unforeseen obstacles while maintaining mobility for residents and companies.

Market Drivers
• Urbanization and population growth: Rapid urbanization and population expansion are major drivers of the global smart transportation market. As more people move to cities, the demand for efficient and environmentally friendly transportation solutions grows. Smart transportation solutions solve urban mobility issues by optimizing traffic flow, improving public transportation systems, and reducing congestion, making them critical instruments for managing urban expansion and increasing the quality of life for city people.
• Demand for seamless mobility: The demand for seamless mobility solutions is a major driver of the global smart transportation industry. Consumers are increasingly expecting easy, integrated transportation solutions that allow them to transition effortlessly between modes of transportation. Mobility-as-a-Service (MaaS) platforms, ride-sharing apps, and digital payment systems allow travelers to easily plan and pay for multimodal journeys, increasing convenience and flexibility. As the need for seamless mobility experiences develops, so will the market for smart transportation systems that enable interconnected, user-centric transportation networks.

Market Challenges
• Cybersecurity risks: As smart transportation systems become more networked and reliant on digital technologies, they face an increasing variety of cybersecurity risks and vulnerabilities. Malicious actors may target transportation networks, vehicles, and infrastructure with cyber-attacks, data breaches, or ransom ware attacks, endangering passenger safety, privacy, and operational continuity. To safeguard vital infrastructure and sensitive data from unwanted access and modification, strong cybersecurity solutions such as encryption, authentication, intrusion detection systems, and secure communication protocols must be implemented.
• Infrastructure integration challenges: The integration of smart transportation technology into existing infrastructure presents substantial problems due to old systems, fragmented data, and complex regulatory regimes. Retrofitting existing infrastructure with smart sensors, communication networks, and data analytics capabilities necessitates careful planning, investment, and collaboration among a variety of stakeholders, including government agencies, transportation authorities, and private-sector partners. Furthermore, ensuring interoperability and seamless integration of various modes of transportation, such as public transportation, ride-sharing, and autonomous vehicles, presents additional technical and logistical challenges that must be addressed in order to fully realize the potential of smart transportation initiatives.

Market Trends
• Rise of electric and autonomous vehicles: Another key trend impacting the global smart transportation industry is the increased usage of electric and self-driving cars (AVs). Governments, automakers, and technology companies are investing extensively in EV and AV technology research, motivated by worries about air pollution, climate change, and road safety. Electric vehicles are a cleaner and more sustainable alternative to traditional internal combustion engine vehicles, whereas self-driving cars promise to transform the way people and commodities are carried. This trend is pushing innovation in battery technology, charging infrastructure, and AV software, paving the way for a more environmentally friendly, safer, and more efficient transportation future.
• Embrace of smart infrastructure and IoT connectivity: The use of smart infrastructure and Internet of Things (IoT) connections is altering the worldwide smart transportation market, allowing for the creation of more intelligent and responsive transportation systems. Smart infrastructure elements such as networked traffic lights, digital signage, and sensor-equipped highways are being used to collect real-time traffic data, monitor road conditions, and improve safety and efficiency. IoT connectivity offers seamless communication between vehicles, infrastructure, and other devices, allowing for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication to improve situational awareness and danger detection.

Covid-19 Impacts

As public transportation systems are extremely susceptible to disease outbreaks, transit agencies increasingly focus on data-driven decisions to adapt services and restore rider trust. Technologies such as AI (Artificial Intelligence) and IoT (Internet of Things) can help in balancing operations by adjusting to comprehensive data offered on ridership peaks and lows. Technologies used in smart transportation will provide users with detailed transport data such as real-time arrival information to avoid waiting at crowded stations and how full a train or a bus is, among other benefits. Transit agencies and cities can optimize their services by integrating real-time information and mobile fare payments to provide sustainable transport alternatives and avoid people reverting to single-car usage. For instance, the transportation system in Israel is severely lagging. It relies considerably on fragmented and inefficient public transport and single-occupancy rides. It results in high pollution levels, traffic jams, and poor access. To reinvent mass commuting during the pandemic, Israel introduced a large-scale pilot to facilitate low-occupancy traveling by combining on-demand transit with private carpooling. It uses a tailored algorithm to rout buses and provide the most efficient ride. More than 250 modes of transportation ranging from cars and buses were used to take over 75,000 trips within three weeks of its introduction. Hence, the pandemic will accelerate the modernization of the current transportation infrastructure.

Based on solution segment market includes traffic management system, ticketing management system, parking management and guidance system and integrated supervision system. Among them traffic management system solution segment is expected to lead the global smart transportation market. Based on application segment market includes Mobility as a Service, route information and route guidance, public transport, transit hubs, connected cars, video management and other applications. Mobility as a Service is expected to remain major application for smart transportation globally.

Traffic congestion is a common problem in cities around the world, resulting in lost productivity, higher fuel consumption, environmental pollution, and a lower quality of life for people. TMS systems provide a variety of tools and technologies to reduce congestion and increase traffic flow efficiency, including traffic signal optimization, dynamic route guidance, and congestion pricing. TMS solutions improve transportation efficiency by using data analytics, predictive modelling, and real-time monitoring to dynamically control traffic flow and respond to shifting demand patterns. TMS systems improve the overall efficiency of transportation networks by minimizing delays, lowering travel times, and maximizing the utilization of transportation infrastructure. They also improve the accessibility and reliability of transportation services. TMS solutions are essential components of smart city programs that use technology to improve urban living conditions, increase mobility, and promote sustainable development. TMS technologies help smart cities achieve essential goals like economic competitiveness, environmental sustainability, and social equality by optimizing traffic flow, decreasing congestion, and boosting transit accessibility. MaaS provides passengers with a seamless travel experience by combining many means of transportation, such as public transit, ride-sharing, bike-sharing, and car-sharing, into a single platform or application. This integrated approach streamlines trip planning, booking, and payment processes, allowing travelers to access a variety of transportation alternatives quickly and easily. MaaS encourages multimodal connectivity by allowing customers to mix and match various means of transportation to get to their destinations. MaaS satisfies varied mobility demands and preferences by providing a variety of short- and long-distance travel options, making it an appealing solution for commuters, tourists, and residents of both urban and rural locations.

Based on transportation mode segment market is categorised into roadway, railway, airway and maritime. Roadway is expected to remain major revenue source in global smart transportation market. Based on services segment market is divided into business, professional and cloud services. Cloud services are expected to lead the global smart transportation market.

Roadways are the principal form of transportation for both people and goods in many parts of the world. The wide road networks connect metropolitan centers, rural areas, and industrial zones, allowing people and commodities to move more easily. As a result, investments in smart transportation solutions for roadways remain critical to optimizing traffic flow, increasing safety, and improving overall transportation efficiency. Urbanization trends are increasing the need for road infrastructure and transportation services in metropolitan areas. As populations rise, cities encounter issues such as traffic congestion, pollution, and mobility. Smart transportation solutions for roadways, such as traffic management systems, intelligent signaling, and adaptive infrastructure, are essential for controlling urban mobility and promoting sustainable urban growth. Cloud services operate on a pay-as-you-go basis, removing the need for large initial investments in infrastructure and technology. This cost-effectiveness is especially appealing to transportation agencies and organizations with restricted budgets, allowing them to use innovative technologies and capabilities without incurring significant capital costs. Cloud services are scalable and flexible, allowing transportation authorities and service providers to easily increase their infrastructure and resources in response to demand. This scalability is critical for dealing with variable traffic numbers, changing transportation needs, and deploying new smart transportation applications and services globally. Cloud services enable real-time cooperation and information exchange among stakeholders involved in global smart transportation efforts, such as government agencies, transportation operators, technology vendors, and third-party developers. This alliance promotes innovation, interoperability, and the advancement of integrated transportation solutions that address complex mobility challenges on a global scale.

Based on report market includes five major regions North America, Europe, Asia-Pacific, South America and Middle East & Africa. Among them Asia-Pacific region is expected to grow at fastest rate in global smart transportation market.

The Asia-Pacific region is rapidly urbanizing, with millions of people moving from rural areas to cities in quest of better prospects. This urban population development is creating a greater demand for efficient and sustainable transportation solutions to solve congestion, pollution, and mobility issues in densely populated cities. Smart transportation programs are being prioritized by governments in the Asia-Pacific region as part of larger efforts to modernize infrastructure, improve public services, and improve citizens' quality of life. Significant investments are being made in smart city initiatives, intelligent transportation systems, and novel mobility solutions to address urban mobility concerns while also promoting economic growth. Many countries in the Asia-Pacific region are experiencing a surge in demand for personal mobility and urban transportation services as their middle classes and discretionary income expand. As more individuals enter the middle class, there is a larger need for private vehicles, ride-sharing services, and other mobility solutions, which is propelling growth in the smart transportation market. The Asia-Pacific region is undertaking significant infrastructure development and urbanization initiatives in order to support rapid population growth and economic expansion. New transportation infrastructure, such as metro systems, high-speed rail networks, and smart highways, is being created to connect cities and improve connectivity, efficiency, and safety. The Asia-Pacific region is experiencing an increase in demand for effective last-mile connectivity solutions as e-commerce and the gig economy expand in popularity. Smart transportation technologies, such as micro-mobility options like electric scooters and bike-sharing services, are emerging as viable solutions to the last-mile connectivity challenge, especially in densely populated urban areas where traditional modes of transportation may be less efficient or convenient.

The market is highly competitive, with several players catering to different sectors. The presence of established players is a crucial factor deterring potential players from entering the market. However, the increasing development of differentiated smart transportation solutions and services in the market is expected to create growth opportunities for new entrants. Market players are focusing on expanding their businesses and strengthening their market positions through collaborations and partnerships. Key players are adopting strategic approaches to dominate the market share and expand their dominance globally. One of the best strategies is to build a novel system or service that buyers and end-users continue to demand. These main market companies are working on increasing their consumer base across international countries, while local governments are focusing on improving transportation infrastructure. The different types of developmental strategies such as joint venture, investments, acquisition, business expansion, new product launches, partnerships, and mergers fosters market growth and offers lucrative growth opportunities to the smart transportation market players. The main smart transportation industry players are concentrating their efforts on expanding their operations in emerging markets. These firms have a history of introducing creative and innovative solutions to expand their product offerings in the smart transportation market.
• In February 2023, AURA AERO has signed an agreement with Thales to develop a new generation connected avionics solution adapted to electric and hybrid regional aviation.
• In January 2023, BASS has launched BASSnet 2.11 Service Pack with new features that includes new Carbon Intensity Indicator (CII) calculator, e-signature for work and rest hours, enhanced efficiency with ihm material declaration automation.
• In November 2022, Trimble Viewpoint Vista, an ERP solution within the Trimble Construction One suite integrated with Hilti Group’s Hilti ON!Track asset management system. Providing a solution for unified tool tracking and more accurate, automatic job allocation, giving contractor’s one source of truth for tracking and managing their tools and equipment.
• In January 2022, Kapsch TrafficCom AG provided a free-flow AET at toll plazas by introducing All-Electronic Tolling (AET) to the New Hampshire Transportation Department (NHDOT). For vehicles without a toll transponder, video tolling will be possible because of the AET's license plate reading cameras, sensors, and in-pavement treadles. The free new roadways at all NHDOT toll locations will also give drivers more convenience and quicker travel times.
• In October 2022, Iteris, Inc. announced that it received approval from the City of Anaheim to enforce its recently unveiled set of managed services as part of an ongoing deal for a regional smart mobility, security, and sustainability program. The effective management of major transportation operations using Iteris' cloud-enabled managed services reduces traffic congestion, boosts safety, and creates a more robust, egalitarian, and sustainable transportation infrastructure.
• In June 2021, TomTom and GreenMile announced a new multi-year agreement. TomTom Maps APIs will be combined with GreenMile’s solutions, enhancing its customers’ vehicle monitoring and real-time route planning.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Smart Transportation market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Solution
• Traffic Management System
• Ticketing Management System
• Parking Management and Guidance System
• Integrated Supervision System

By Transportation Mode
• Roadway
• Railway
• Airway
• Maritime

By Services
• Business
• Professional
• Cloud Services

By Application
• Mobility as a Service
• Route Information and Route Guidance
• Public Transport
• Transit Hubs
• Connected Cars
• Video Management
• Other Applications

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Smart Transportation industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.