Transportation Analytics Market - By Component (Solution, Services), By Type (Descriptive Analytics, Predictive Analytics, Prescriptive Analytics), By Deployment Model (On-premises, Cloud), By Mode of Transport, By Application & Forecast, 2024 - 2032
The transportation analytics market is anticipated to record more than 18% CAGR during 2024 and 2032 as urbanization intensifies and the need for sustainable & efficient transportation systems becomes paramount. The increasing volume of data generated by transportation networks, coupled with the rise of smart cities, demands sophisticated analytics solutions to optimize traffic flow, enhance safety, and reduce congestion.
Furthermore, the integration of advanced technologies such as Internet of Things (IoT) and artificial intelligence (AI) in transportation systems is unlocking new possibilities for predictive analytics, empowering stakeholders to make data-driven decisions. In November 2023, Ericsson launched a new cloud-native transport controller that uses AI and ML for maximizing mobile transport network efficiency.
Transportation analytics market is classified based on component, type, deployment model, mode of transport, application, and region.
The services segment is predicted to witness substantial growth through 2032 as they encompass a spectrum of offerings, including data management, predictive modeling, and real-time monitoring. The demand for these services is escalating as organizations recognize the importance of extracting actionable insights from vast datasets. Service providers are poised to play a critical role in assisting businesses and governments in optimizing their operations, improving safety, and ultimately delivering enhanced user experiences.
The on-premise deployment model segment will generate massive revenue in the market by 2032 as it offers tailored and secure solution. It caters to organizations with specific regulatory or security requirements. As data privacy concerns continue to rise, the on-premise model gains traction, providing stakeholders with the confidence that their sensitive transportation data is managed within their own infrastructure.
Europe transportation analytics industry size is expected to expand significantly over the forecast period owing to the region’s proactive approach towards urban planning and transportation infrastructure. European countries are investing significantly in smart city initiatives, driving the adoption of transportation analytics solutions to enhance mobility, reduce environmental impact, and ensure the efficient operation of transportation networks. As regulatory frameworks evolve to support innovation, Europe is expected to maintain its position as a lucrative avenue for market players.