Smart Transportation Market Size to exceed $130bn by 2024
Published Date: August 30, 2019 Authors: Ankita Bhutani, Preeti Wadhwani
Smart Transportation Market size is set to exceed USD 130 billion by 2024; according to a new research report by Global Market Insights, Inc.
The smart transportation market growth is due to rising adoption of connected vehicle technologies to assist in public safety. The rise in traffic congestion due to the growth of passenger & commercial vehicles market and the increasing road accidents has led to the rise in demand for real-time traffic navigation and control systems to promote road safety. According to the World Health Organization (WHO), around 1.35 million people die each year due to traffic crashes. In 2017, as per the National Safety Council, around 40,000 people were killed in road accidents with an increase of around 6% from 2015. The rapid surge in the number of passenger and commercial cars in the countries including the U.S., China, Japan, Germany, India, and South Korea has accelerated the need for the deployment of smart transport solutions such as smart parking and smart traffic management. These solutions are widely adopted by transport authorities to bring improvements to the infrastructure.
The airways segment in smart transportation market is expected to exhibit a growth rate of over 20% due to factors such as technological advancements and rising affluence in developing & developed economies. Airways is the most preferred mode of long-distance transportation for both passengers and freight as they help in covering larger distances in lesser time and provide traveling convenience. The increased adoption of advanced software to provide real-time information such as arrival time, check-in line, and flight booking acts as a major factor for the growth of the smart airways market.
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The passenger information systems market will observe a growth rate of over 20% from 2018 to 2024. The number of vehicles residing on the roads has increased substantially, leading to traffic congestion, due to which the adoption of public vehicles offering real-time information has become a necessity. These systems provide information including news broadcast, entertainment, scheduling, and emergency communication services to passengers through voice, visual or any other media. The rising trend of smart cities worldwide and the integration of digital information and communication technologies with smart cities are also driving the smart transportation market revenue.
Browse key industry insights spread across 370 pages with 214 market data tables & 24 figures & charts from the report, “Smart Transportation Market Size By Mode of Transportation (Roadways, Railways, Airways), By Component (Software [Telematics, Parking Management, Ticket Management, Traffic Management, Security and Surveillance, Passenger Information System], Services [Training and Consulting Service, Integration Service, Support and Maintenance Service]), By Deployment Model (On-Premise, Cloud, Hybrid), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2018 - 2024” in detail along with the table of contents:
The support and maintenance service segments are expected to witness the fastest growth rate over the forecast timeline due to the rapid adoption of connected vehicle technologies. To effectively implement and integrate these technologies in existing transport systems, the need for support & maintenance service providers increases.
The cloud deployment model is projected to hold a smart transportation market share of above 2% by 2024 due to the rising inclination from on-premise solutions to cloud-based smart transport solutions. Cost-effectiveness and high scalability associated with these platforms make them preferable options for deploying smart solutions. Also, these platforms can store a large amount of vehicular data, resulting in market growth.
The Europe smart transportation market is expected to grow at a CAGR of above 10% between 2018 and 2024. The major factors driving the market include the presence of numerous automobile market giants and various smart city projects undertaken by the government. The government agencies in the region are also providing their support for the development of new smart transport solutions. In October 2017, the UK government invested USD 112 million to introduce smart ticketing rail software by the end of 2018. This program will ensure that every passenger would travel without a paper ticket that will enable faster & easier travel, and better value-added services.
Companies operating in the smart transportation market are involved in entering into partnerships and acquisitions to expand their existing portfolio and develop new capabilities to meet the market needs. For example, in 2016, the company entered into a partnership with Fluidmesh to improve Wi-Fi on subways and trains. The two companies worked together to enable onboard video security, ticketing, infotainment, and vehicle diagnostics. In February 2018, the company acquired Syncromatics, a company specializing in providing software in the cloud for intelligent transport systems. This has assisted the company in expanding its presence in the U.S. and cementing its position in the market.
Some of the key players operating in the market include Siemens AG, Cubic Corporation, General Electric Company, Accenture PLC, IBM Corporation, Cisco Systems, Inc., Thales Group, and WS Atkins.
The smart transportation market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue in USD million from 2013 to 2024, for the following segments:
By Mode of Transportation
- Parking management
- Ticket management
- Traffic management
- Security and surveillance
- Passenger information system
- Training and consulting service
- Integration service
- Support and maintenance service
By Deployment model
The above information has been provided for the following regions and countries:
- North America
- South Korea
- South East Asia
- Latin America
- Saudi Arabia
- South Africa