Smart Transportation Market Size, Share & Trends Analysis Report By Solution (Ticketing Management System, Parking Management System), By Service, By Region, And Segment Forecasts, 2022 - 2030

Smart Transportation Market Growth & Trends

The global smart transportation market size is estimated to reach USD 285.12 billion by 2030, growing at a CAGR of 12.6% from 2022 to 2030, according to a new study by Grand View Research, Inc. The need for an efficient management system is predicted to increase with the growing number of on-road cars and the reducing efficiency of existing transport infrastructure. Favorable government initiatives for building better infrastructure and smooth running of existing transport systems are expected to boost the market growth.

Artificial Intelligence (AI) and the Internet of Things (IoT) aid in balancing operations by responding to detailed data on ridership peaks and lows. Smart transportation technologies offer specific data such as real-time arrival information to consumers to avoid waiting at congested stations. They also provide details on the capacity of a train or a bus. Such factors are increasing the demand for these technologies. Furthermore, increasing investments in smart city projects are anticipated to create new growth avenues over the forecast period as smart transportation is an integral part of a smart city.

Many countries are investing in smart transportation solutions owing to the benefits offered by these solutions. For instance, Israel's transportation system was inefficient, dispersed, and dealt with single-occupancy rides, resulting in traffic bottlenecks, high pollution levels, and limited accessibility. To reinvent mass commuting during the pandemic, Israel conducted a large-scale study that combined on-demand transit with carpooling to promote low-occupancy travel. It involved routing buses using a custom algorithm to ensure efficient travel.

The requirement of massive capital for replacing the existing infrastructure with a technologically advanced system is expected to hinder the industry growth. The extended downtime for replacing the current system may also challenge the market development and affect daily commutation activities. Furthermore, a lack of standardization is expected to hinder the growth of the market. However, rising government focus on reducing greenhouse gas emissions and curbing alarming levels of traffic congestion is anticipated to drive the growth of the market.

Smart Transportation Market Report Highlights

• The parking management system segment is anticipated to emerge as the fastest-growing solution segment over the forecast period owing to the shift of population to urban areas and reducing real estate space
• The professional services segment is anticipated to emerge as the fastest-growing service segment over the forecast period as they help modernize existing infrastructure systems by providing implementation support and design advice
• The APAC market is estimated to grow at the highest CAGR owing to increased use of vehicles, which leads to increased parking issues, and the increased demand for efficient transportation