Smart Transportation Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

Smart Transportation Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

The smart transportation market is expected to reach USD 311 billion by 2026, at a CAGR of 18.68% over the forecast period (2021-2026). The growing population of the world has led to rapid urbanization, resulting in many problems, such as congestion and safety issues on roads. The need to formulate a sustainable solution to counter these problems is gaining traction across the world. The emergence of cloud-based technologies and advances in vehicle-to-vehicle (V2V) and vehicle-to-grid infrastructure (V2I) are making smart transportation a reality.

• As the global population continues to grow, an increasing number of cities are experiencing the challenges of accommodating residents as well as visitors. Issues, like congested roadways and increased emissions, impact the health and well-being of city dwellers.
• Government regulations and initiatives are the most important drivers for the growth and development of the intelligent transportation system market. With growing road safety concerns and increasing auto thefts, governments across the world, especially in the United States, Europe, Russia, China, and Brazil, are mandating the installation of factory-fitted telematics and safety devices in vehicles.
• Smart transportation IoT solutions, augmented with smart city solutions, enable government organizations and their partners to create safer, efficient transport infrastructure in cities by improving community resources and transportation for everyone. IoT solutions, for smart transportation, offer real-time visibility and accurate data, allowing the concerned city transport authorities and organizations to improve efficiency, while creating smarter, greener cities for its dwellers.

• More than half the world’s urban population resides in Asia, where some countries, like India and China, already have about a billion people living in cities alone. The other regions with relatively high urban populations are North America, Europe, and Africa.
• Increasing urbanization is an indication of the rising complexities in the cities across the world, with transportation requirements being one of those issues. Resolving these complexities is one of the major challenges faced by the transportation markets across these regions.
• Technological innovations have brought about a major change in the way everything operates. The Internet of Things has made developing connected networks feasible in almost all major functioning sectors, today. The integration of this transportation system has resolved most of the transportation-related complexities. The rising growth rate of megacities worldwide and multiple innovations taking place in the field of technology are expected to open up a number of opportunities.

• Approximately 233 million connected cars are expected to be on roads by 2020, globally. Europe is expected to hold the majority share in the production of connected cars, during the forecast period. The connected car market is expected to increase four-fold in 2020, compared to the current market state. Connected technologies in the automotive sector may boost the smart solutions market in the transportation sector.
• Moreover, urban transportation is becoming essential for a better quality of life for citizens in any city. Currently, in most European cities, private and public road transportation are essential for everyday commuting. However, the lack of safety and the quality of public transportation, as well as poor traffic management in overcrowded road networks, rise of theft, increasing parking issues, etc., are boosting the market for smart highways, which, in turn, is boosting the market growth in the region.

The smart transportation market is moderately competitive and comprises few market players, who enjoy a significant market share. In terms of market share, a few major players dominate the market, currently. These major players, with prominent shares in the market, are focusing on expanding their customer base across foreign countries, with the local governments focusing on strengthening the transport infrastructure.

The drive to improve efficiency has been critical for demand and has impacted the competition. Market vendors are expected to use partnerships and collaborations as the primary strategy to make the solutions suitable for use on different platforms. The addition of analytical and AI capabilities is expected to help in managing the huge volume of data flow and create a sustainable solution, which may be easily replicated, and is modular. Innovative solutions are expected to emerge, as improving communication technology acts as an enabler in the market.

• April 2019 - Cisco and Dimension Data announced a new co-innovation agreement, to develop a deeper collaboration environment and framework to jointly solve clients’ business needs.

• March 2019 - Siemens upgraded its smart transportation product portfolio. The new eHighway system, according to the company, is twice as efficient as conventional internal combustion engines. This Siemens Mobility innovation supplies trucks with power from an overhead contact line.

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