GLOBAL SMART TRANSPORTATION MARKET FORECAST 2018-2026

The global smart transportation market was valued at $86 billion in 2017 & is estimated to generate net revenue of approximately $645.91 billion by 2026, growing at a CAGR of 25.11%.  For the market study of Smart Transportation, the base year considered is 2017 and the forecast period is 2018 -2026. Some of the factors that are responsible for driving the market growth are:

• Increasing number of vehicles on the urban roads
• Growing need for efficient Traffic management
• Rising necessity of road safety
• Environmental concerns arising from vehicles
• Growing number of smart city projects

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Increased number of vehicles plying on the roads, due to booming automotive industry, which increases the need for efficient traffic and transportation management is the primary driver which is augmenting the growth of the Smart Transportation market. Additionally, increasing number of smart city projects is being undertaken in numerous developing countries, which is also considerably contributing to the growth of the market.

The Passenger Information System is currently leading the market. It captured a significant market share of around XX% in the year 2017. Passenger information system (PIS) is a key communication link between transportation operators and passengers. The Passenger information system is one of the key solutions of the smart transportation system. Alongside framework dependability, security, and outward presentation, passenger information system enables the administrators to give exact, current, even real-time data on the arrival and parting times and entryways data, which travellers need to continue moving efficiently. The Traffic Management system segment is anticipated to grow at the fastest CAGR as compared to other segments.

With the increased adoption of Smart Transportation, newer challenges have been introduced in the market. Lack of interoperability & standardization, lack of awareness, government regulations and protocols, difficulties in data gathering & its management, and the threat of cyber-attacks are some of the factors that are restricting the growth of this market. The companies operating in the market are facing hurdles in minimizing the licensing and maintenance costs, along with training cost of personnel.

The smart transportation market is primarily segmented into smart transportation solutions and smart transportation services. The smart transportation solutions consist of physical devices, equipments, and softwares, whereas the services segment comprises of services that support and boost the solutions segment.

By Solutions;

• Traffic Management Systems
• Integrated Supervision Systems
• Passenger Information Systems
• Ticketing Systems
• Parking Management Systems

By Services;

• Support & Maintenance Services
• Cloud Services
• Business Analytics Services

On the basis of geography, global smart transportation market has been segmented into four major regions;

• Smart Transportation North America Market: United States & Canada.
• Smart Transportation Europe Market: United Kingdom, France, Germany, Spain, Italy, & Rest of Europe.
• Smart Transportation Asia Pacific Market: China, India, Japan, South Korea, Australia, & Rest of Asia Pacific.
• Rest of world: Latin America, Middle East & Africa.

The European smart transportation market held the largest market share in 2017. Europe consists of economies which are becoming increasingly stable and strong after the recent economic crisis and political instability. Moreover, the region is home to a big number of automotive and technology companies which are operating in the Smart Transportation market. The European region as a whole is also very open to the adoption of latest Smart Transportation systems, despite having a complex network of transport systems which are somewhat difficult to implement with modern technology. This is due to the increasing number of smart city projects being undertaken by the governments in this region. The fastest growing region in the global smart transportation market is expected to be the Asia Pacific. The growth of the smart transportation market in the Asia Pacific region may be attributed to the numerous smart city projects undertaken by various governments in the region, especially in India and China. The large population and the increasing urbanization in the region have also largely contributed to the growth of the market.

The Global smart transportation market is segmented into smart transportation solutions and smart transportation services. Smart transportation Solutions segment consists of Traffic Management Systems, Integrated Supervision Systems, Ticketing Systems, Passenger Information Systems and Parking Management Systems. Further, the Smart transportation services segment consists of Cloud Services, Business Analytics Services, support & Maintenance Services.

The global Smart Transportation market is competitive in nature. There are a number of players present in the market. Some of the key players in the market are:

• Alstom SA
• Cisco Systems, Inc.
• Cubic Corporation
• Gemalto NV
• Siemens AG
• International Business Machines Corporation (IBM)
• And others.

All these companies try to cater to new customers and fulfil their fast shifting requirements. These companies also aim at acquiring startups and entering into partnership agreements to gain a competitive advantage. For example, In February 2017, Cubic Transportation Systems secured a five-year contract from the University of Maryland to upgrade its NextBus fleet management system. In March 2016, INRIX Inc. launched its ‘Next-Generation Traffic App’ which integrates with a user’s calendar and learns their driving habits to create a personalized itinerary that includes automatic alerts, anticipated trips, favourite destinations and preferred routes.

Key findings of the global Smart Transportation market:

• Europe accounted for the largest market share in 2017.
• The Asia Pacific is expected to be the fastest growing regional market in the global smart transportation market.
• The smart transportation services segment held a larger market share as compared to solutions segment, and is anticipated to continue the trend throughout the forecast period.
• Traffic management solutions are expected to be the fastest growing sub-segment in smart transport solutions over the forecast period.
• The fastest growing category of smart transportation services is the business analytics. This trend is seen due to the surge in the growth of big data analytics capabilities and the required expertise.
• The interoperability of the smart transportation systems with other aspects of smart cities to boost the growth of the smart transportation market.