Smart Transportation Industry

The global smart transportation market size was valued at USD 110.53 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 13.0% from 2023 to 2030.

The market growth is driven by growing advancements in urban projects, government initiatives aimed at reducing greenhouse gas emissions, and the increasing demand for technology integration in traffic control systems. Lack of good quality and safe public transportation, inadequate capacity to manage public transport, concerns about reduced road safety, poor traffic management, and parking problems are significant issues affecting most cities (including pedestrian walkways). Thus, demand for smart transportation systems is likely to witness significant growth in the near future. Factors such as urbanization, the increased acceptance of IoT-based technology, and the expansion of 5G-based connectivity make smart transportation infrastructure easier to execute.

Gather more insights about the market drivers, restrains and growth of the Global Smart Transportation market

Smart Transportation Market Segments:

Solution Insights

The traffic management segment accounted for the largest market share of over 32% in 2022 and is projected to remain dominant throughout the forecast period. Integrated monitoring systems, intelligent parking systems, transportation planning systems, and ticketing management solutions are among the essential marketable solutions. The traffic management system remains the most well-known option in the market.

Service Insights

The cloud services segment accounted for the largest market share of over 42.4% in 2022. The segment is anticipated to retain its dominance over the forecast period owing to its capacity to handle the massive amounts of data created by mobile technology and sensors. With the advancement of technologies such as big data and cloud technology, these are becoming increasingly crucial in transportation systems. A safe storage facility and processing power are offered by the cloud platforms to help with traffic forecasts. The increased use and interest in machine learning/data analytics, IoT, and cybersecurity will impact smart transportation ventures during the forecast period.

Regional Insights

North America accounted for over 33% of the global market share in 2022. The region is the largest adopter of smart transportation solutions owing to a growing emphasis of regional governments on improving the transportation infrastructure, against the backdrop of congested highways, poor air quality, and growing highway accidents and fatalities. Major companies in the ICT sector that are suppliers of smart transportation solutions are established in the U.S.

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Key Companies & Market Share Insights

The market is highly competitive, with several players catering to different sectors. The presence of established players is a crucial factor deterring potential players from entering the market. However, the increasing development of differentiated smart transportation solutions and services in the market is expected to create growth opportunities for new entrants. Market players are focusing on expanding their businesses and strengthening their market positions through collaborations and partnerships.

Key players are adopting strategic approaches to dominate the market share and expand their dominance globally. One of the best strategies is to build a novel system or service that buyers and end-users continue to demand. For instance, in October 2022, Iteris, Inc. announced that it received approval from the City of Anaheim to enforce its recently unveiled set of managed services as part of an ongoing deal for a regional smart mobility, security, and sustainability program. The effective management of major transportation operations using Iteris' cloud-enabled managed services reduces traffic congestion, boosts safety, and creates a more robust, egalitarian, and sustainable transportation infrastructure. Some prominent players in the global smart transportation market include:

• Accenture PLC
• Alstom, SA
• Cisco System, Inc.
• Cubic Corporation
• General Electric Company (GE)
• Indra Sistema S.A.
• International Business Machines Corporation
• Kapsch
• LG CNS Corporation
• Xerox Holdings Corporation

Segments Covered in the Report

Grand View Research has segmented the global smart transportation market based on solution, service, and region.

Smart Transportation Solution Outlook (Revenue, USD Billion, 2018 - 2030)

• Ticketing Management System
• Parking Management System
• Integrated Supervision System
• Traffic Management System

Smart Transportation Service Outlook (Revenue, USD Billion, 2018 - 2030)

• Cloud Services
• Business Services
• Professional Services

Smart Transportation Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
• Asia Pacific
  • China
  • India
  • Japan
• Latin America
  • Brazil
• Middle East & Africa

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