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The Smart Transportation Market size is estimated to grow by USD 206.9 billion, at a CAGR of 21.88% between 2023 and 2028. The market's expansion hinges on several key factors, including the escalating integration of advanced technologies into smart transportation systems, heightened investments in the development of transportation infrastructure, and the imperative for sustainable, clean, and high-speed transport solutions. These factors collectively drive innovation and growth within the smart transportation sector, facilitating more efficient and environmentally friendly modes of travel. The adoption of cutting-edge technologies not only enhances the overall functionality and safety of these systems but also aligns with the global shift toward sustainable practices. Moreover, increased investments in infrastructure signify a commitment to improving networks, which is crucial for economic development and societal progress.
Market Forecast 2024-2028
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The roadways segment will account for a major share of the market's growth during the forecast period. Roadways are considered the most important mode of transport for transporting passengers and goods for short and medium distances. Time-saving in the mobility of passengers and goods is made possible through the deployment of smart technologies such as the Internet of Things(IoT), big data, artificial intelligence, or other roadways.
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The roadways segment was valued at USD 26.00 billion in 2018. Smart transportation, with a particular emphasis on IoT and machine learning techniques, will enhance the roadways and improve the efficiency of commuting. Increasing government investments in developing roadway infrastructure are expected to increase demand for smart transport on the roads. Therefore, the roadways segment will grow in the market during the forecast period.
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North America is estimated to contribute 32% to the growth by 2028. Technavio's analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Factors such as the growing demand, increasing environmental concerns, and stringency of regulatory frameworks are driving the sector in the region. In particular, as regards the quality of service, transport demand is continuing to increase.
Moreover, the growing traffic congestion has added to the need for a more efficient transportation mode. As three-fourths of the European Union (EU) population stays in urban areas, urbanization, and growing competition due to globalization are bringing a significant change in the sector in the region. In the EU, digitalization programs have been introduced over the past three years by rail operators and government agencies in various Member States. Therefore, the market in the region will grow during the forecast period.
The market is evolving rapidly with the advent of future mobility solutions and advanced electronic devices. Transportation management control systems are integrating sensors to efficiently manage multiple vehicles. App-based mobility services and on-demand mobility services are transforming commuting patterns, reducing latency, and enhancing user experience. In international trade, international eCommerce is driving demand for efficient commercial aircraft operations, leading to a focus on optimizing fleet size. Open payment systems and smart card readers are simplifying transactions in transportation, while NFV systems are enhancing network efficiency. In maritime transport, marine software applications are improving operations and reducing greenhouse gas emissions. They also address urban challenges like traffic control systems, parking problems, and public transportation optimization, leveraging 5G-based connectivity and promoting autonomous vehicles and mobility as a service (MaaS) for sustainable and efficient smart mobility solutions.
Technological advances and the adoption of advanced technologies are major factors driving the growth of the market. All modes of transport can increase operational efficiency and improve services to commuters in a quicker manner by applying modern technologies. Advanced technologies such as automation, AI, and machine learning have the potential to revolutionize transportation.
In addition, data analytics can speed up the root cause analyses, which will reduce the number of man-hours spent on such tasks. In the information provided by operators, advances in technology have led to standardization, transparency, and scalability that enable them to make more informed decisions on how assets are performing. Operators realizing the benefits of advanced technologies will drive adoption and support the growth of the market.
The sector generates a vast amount of big data from interconnected stakeholders. The data are of fundamental importance and can be used for improved passenger security and the efficiency of stations and freight operations. As transportation networks become smart, there are ample sources from where data is generated. In addition, in several functions within the transport industry, operators have become more and more interested in IoT and Big Data.
Moreover, the monitoring process can be performed at remote locations, helping to identify any problems that may occur while the vehicle is operating. Hence, the use of IoT and big data will benefit the sector and shape its future. Thus, the involvement of IoT and big data is expected to boost the growth of the market during the forecast period.
The high investments required for initial infrastructure hinder the adoption of smart transportation. For countries whose budgetary constraints, transportation projects can pose an enormous burden and governments may take loans from international agencies, which will increase the debt of the governments and the companies involved in managing transportation.
Moreover, the post-deployment failure of any infrastructure element owing to some technical error or the problems of integration can have a serious impact, such as the loss of life or substantial replacement costs. It is estimated that the high initial cost of deployment will hinder the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture Plc- The company offers smart transportation solutions such as cloud infrastructure, mobility solutions, digital platforms, 5G connectivity, artificial intelligence, and machine learning.
We also have detailed analyses of the market's competitive landscape and offer information on 19 market companies, including ALE International, ALSTOM SA, Cisco Systems Inc., Digi International Inc., General Electric Co., Hitachi Ltd., Indra Sistemas SA, Infinera Corp., Intel Corp., International Business Machines Corp., Kapsch TrafficCom AG, NEC Corp., NExT S.R.L., Parsons Corp., Schneider Electric SE, Siemens AG, Thales Group, and WSP Global Inc.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is leveraging connected devices and analytical computation processes to enhance transportation systems. It relies on centralized storage systems and edge analytics for efficient data processing. For surveillance, Closed-Circuit Televisions (CCTVs) and surveillance cameras are deployed, along with field-level devices and speed transmission networks. Railway authorities are adopting advanced railway technologies for improved rail traffic management and centralized supervision. Aviation services utilize POS terminals and a power air transport network.
In maritime transport, international maritime transport faces challenges such as customs duties and requires efficient operations by shipping companies. Traffic management is critical, necessitating traffic planning and operation management systems. The market also focuses on energy consumption and pollution, promoting public transit and electric vehicles. To manage transportation efficiently, intelligent parking systems and transportation planning systems are essential, along with decentralized payment collecting systems and cloud-based parking services for smart parking.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 21.88% |
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Market growth 2024-2028 |
USD 206.9 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
16.24 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 32% |
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Key countries |
US, Germany, China, UK, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture Plc, ALE International, ALSTOM SA, Cisco Systems Inc., Digi International Inc., General Electric Co., Hitachi Ltd., Indra Sistemas SA, Infinera Corp., Intel Corp., International Business Machines Corp., Kapsch TrafficCom AG, NEC Corp., NExT S.R.L., Parsons Corp., Schneider Electric SE, Siemens AG, Thales Group, and WSP Global Inc. |
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Market dynamics |
Parent market analysis, market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Transportation
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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