Traffic Management Segment is Expected to Dominate the Global Smart Transportation Market
Congestion and
Traffic Management and Environmental Concerns are the factors propelling the
market growth.
According
to TechSci Research report, “Global Smart Transportation Market - Industry
Size, Share, Trends, Competition Forecast & Opportunities, 2028”. Global Smart Transportation is
anticipated to project robust growth in the forecast period with a CAGR of 6.03%
through 2028. Increasing traffic volume, government initiatives aimed at
decreasing the effects of greenhouse emissions, rising city projects, and the
rise of megacities, urbanization, and population are some factors driving the
market growth. Increasing urbanization reflects the growing complexities in
cities worldwide, with transportation needs being one of them. One of the
primary issues the transportation market faces is resolving this complexity.
The trend of a rising number of IoT and linked devices is projected to continue
with smart city projects during the projection period. The increased use of
linked products like smart homes, smart meters, smart transportation, and smart
lighting, among others that use IoT to communicate with one another, is
expected to drive market expansion.
One
of the primary objectives of innovative city development is smart mobility,
which includes transportation. Creating efficient, flexible, and integrated
transportation networks is vital to smart mobility. Smart mobility is a
significant development driver in modern urban centers and may improve
tourists' and inhabitants' everyday lives. By 2040, cities are expected to
accommodate 65% of the world's population. Healthy modes of transportation,
such as walking and cycling, are prioritized in urban mobility management.
Mobility management also minimizes carbon emissions and provides communities
with optimal traffic flow analysis. Traffic
congestion is increasing due to exponential growth in suburban and rural
populations relocating to cities and an equivalent increase in population
concentration around metropolitan centers. Vehicle congestion in cities has
increased as cities have grown in density, assisted by insufficient roadway
designs and bad urban planning. For example, in 2022, the average American
motorist wasted 51 hours in traffic congestion, or approximately an hour each
week. This is 15 hours longer lost to traffic than in 2021, and all that time
squandered in traffic jams costs the typical American motorist USD 869 in lost
time, according to the mobility analytics firm Inrix's 2022 Global Traffic
Scorecard.
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Based
on Application, Traffic Management is expected to hold the largest share of Smart
Transportation market for during the forecast period, The population growth,
coupled with the increasing urbanization rate and megacities, is the primary
factor driving the market. Moreover, as the population grows and urbanizes,
many cities will face transportation challenges, thus driving the demand for smart
transportation. For instance, according to the data from the World Bank, the
total population of the World increased from 7 billion in 2011 to 7.84 billion
in 2021.
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 indicates the rising
complexities in the transportation of cities worldwide. Resolving these
complexities is one of the significant challenges faced by the transportation
markets across these regions. For instance, according to the United Nations,
people living in urban areas are expected to reach 68% by 2050.
Urban
population growth will significantly pressure public transport infrastructure.
Residents of big cities will expect public transport that is fast, efficient,
affordable, safe, and environmentally friendly. Delivering such transportation
infrastructure will be one of the critical challenges confronting future
cities. Furthermore, rapid urbanization has brought heavy traffic congestion,
serious safety issues, and growing urban inequality. Smart transportation
solutions have been gaining significant traction in the past few years across
many highly urbanized cities to overcome such challenges by delivering travel
and traffic information in real time with resilient network control.
Based
on Region, Asia Pacific will dominate the market, China outlined a new
comprehensive transportation system in the 14th Five-Year Plan (2021-2025).
According to the circular, by 2025, China will have made achievements in
pursuing intelligent and green transportation, as well as significant advances
in overall competence, service quality, and efficiency of the transportation
industry. This plan aims to improve the transportation industry's roads,
trains, ports, and waterways, as well as the technology and human resources
involved. As a result, this will support growth in urbanization, consumer
demand, and factor supply movements.
With
the introduction of smart transportation networks, such as the internet of
things (IoT), smart transportation is quickly expanding in Japan. Smart
transportation networks require IoT architecture, which includes technologies
such as the cloud, sensors, and data communication. Rapid improvements in
recent years have made it feasible to enhance device communication.
Australia
has been developing traffic management technologies interacting with drivers
and infrastructure operators to reduce traffic congestion and enhance safety
and traffic conditions. The country has a diverse and complex transportation
infrastructure network, creating an opportunity for the market players in the
country due to the increasing demand for smart transportation technologies.
The
rest of Asia-Pacific consists of many emerging countries, including Singapore,
India, and South Korea. The emergence of smart cities in these countries is
increasing the adoption of intelligent technologies in transportation to
enhance traffic efficiencies, creating a market opportunity for technology
providers.
Countries
in the region are also helping each other by investing and partnering in the
market adoption in Asia-Pacific. For instance, in December 2022, India and
South Korea agreed to a loan of Rs 1,495 crore (~USD 183.14 million) from the
Economic Development Cooperation Fund (EDCF) of the Republic of Korea to
construct an intelligent transport system on the Nagpur-Mumbai Expressway.
Key
market players in the Global Smart Transportation Market are following: -
- Cisco
Systems Inc.
- SAP
SE
- IBM
Corporation
- AVEVA
Group PLC
- Siemens
Corporation
- Oracle
Corporation
- Alstom
- Advantech
Co. Ltd
- Orange
SA
- Huawei
Technologies Co. Ltd
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“The
global smart transportation market is driven by several key factors, including
rapid urbanization, the need for efficient traffic management, environmental
concerns, and technological advancements. Urbanization is increasing
congestion, making smart solutions essential. Advanced technologies, such as
IoT and AI, enable real-time data collection and traffic optimization. Concerns
about environmental sustainability push the adoption of eco-friendly
transportation options. Additionally, government initiatives, the growth of
public transportation, and consumer demand for convenient and tech-savvy
mobility solutions are propelling the smart transportation market forward.
These drivers collectively aim to enhance transportation efficiency, safety,
and sustainability in an increasingly interconnected world.” said Mr. Karan
Chechi, Research Director with TechSci Research, a research-based global management
consulting firm.
Smart
Transportation Market – Global
Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Application
(Traffic Management, Road Safety, and Security, Parking Management, Public
Transport, Automotive Telematics, Freight), Product Type (Advanced Traveler
Information Systems (ATIS), Advanced Transportation Management Systems (ATMS),
Advanced Transportation Pricing Systems (ATPS), Advanced Public Transportation
Systems (APTS), Cooperative Vehicle Systems), By Region, By Competition
2018-2028 has
evaluated the future growth potential of Global Smart Transportation Market and
provides statistics and information on market structure, size, share, and
future growth. The report is intended to provide cutting-edge market
intelligence and help decision makers take sound investment decisions. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities present in the Global Smart
Transportation Market.
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