DUBLIN--(BUSINESS WIRE)--The "Smart Transportation Market by Transportation Mode, Solution, Service, Application, and Region - Global Forecast to 2023" report has been added to ResearchAndMarkets.com's offering.
The smart transportation market is expected to grow from USD 75 billion in 2018 to USD 149.21 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 14.7% during the forecast period.
The market is expected to witness massive growth, due to factors, such as the rising urban population and high demographic rates, the increasing adoption of connected and smart technologies in the transportation infrastructure, and the increasing free trade agreements.
Furthermore, government initiatives for smart cities and government authorities are adopting Public Private Partnerships (PPP) working models, which is also propelling the growth of the smart transportation market. The designing and developing connected vehicles compatible with Intelligent Transportation System (ITS), declining vehicle ownership with shared mobility, and advancing semi-autonomous and autonomous vehicles are expected to provide growth opportunities for smart transportation vendors.
The smart transportation market has been demonstrating considerable growth, but recovering Return on Investment (ROI) from legacy systems, compliance with stringent transportation regulatory policies, and lack of standardized and uniform technology may restrain the growth of this market.
Smart transportation is an array of technologies that efficiently manage the existing, as well as new transportation systems to increase operational efficiencies, provide better safety, and ease the transportation needs of commuters at a low and efficient cost. The smart transportation technology comprises solutions and services for all the modes of transport roadways, railways, airways, and maritime. The improving technological advancements in the transport industry are having a significant impact on the transport industry. The adoption of smart technologies in the transport industry is widely adopted to digitally transform the conventional transportation systems to smart transportation systems.
Smart transportation is an integral part of the smart cities. It contributes 9-10% of the total smart cities industry share. Smart cities across the globe have already deployed transportation solutions, along with the infrastructure to support the transportation systems of the future. These solutions have proven to be proficient in diminishing traffic congestion issues.
Even though ITS have been existing in the industry since 1994, the contemporary solutions have advanced tools for traffic estimation, parking guidance, passenger information, consulting services, data analytics and decision support, fare collection, smart ticketing, and insurance telematics. These solutions are having an impact on the quality and accessibility of the information for delivering an enhanced passenger experience. Whereas the impact of smart technologies is already extensive in several systems, there is a potential for a much strong impact during the forecast period.
A major module of the smart cities initiative is creating and developing an efficient urban mobility and the mass transport system, providing a variety of transport alternatives. To fulfil this objective, the specific regional authorities have invested in several large projects within the realm of the urban infrastructure development.
Almost USD 30 billion is projected to be spent in the next 15 years on the application of Internet of Things (IoT) technology in the global railway industry. Currently, USD 2 billion is spent every year by the railway industry over smart rail projects and connected trail technologies. These investments continue to increase at a high rate.
Among transportation modes, the airways segment is expected to grow at the highest rate during the forecast period, mainly due to the increasing traffic of passengers and fleet preferring the faster mode of transportation. Among overall transport modes, the solutions segment is expected to grow at the highest CAGR during the forecast period, due to the increase in the adoption of various smart technology solutions to modernize the modes of transportation. In the overall transportation, the services segment is projected to grow at the highest CAGR during the forecast period, due to the need for deployment and integration services to complement the smart transport solution adoption.
Market Dynamics
Drivers
- Rising Urban Population and High Demographic Rates
- Government Initiatives for Smart Cities and PPP Working Model
- Adoption of Connected and Smart Technologies in Transportation Infrastructure
- Free Trade Agreements
Restraints
- Recovering RoI From Legacy Systems
- Compliance With Stringent Transportation Regulatory Policies
- Lack of Standardized and Uniform Technology
Opportunities
- Designing and Developing Connected Vehicles Compatible With ITS
- Decline in Vehicle Ownership With Shared Mobility
- Evolution of Semi-Autonomous and Autonomous Vehicles
Challenges
- Synthesizing Raw Data From Several Touchpoints
- Integration Complexities Over Legacy Systems and Networks
- Low Penetration of DSRC Protocol
- Accenture
- Advanced Navigation and Positioning
- Alstom
- Amadeus
- Bass Software
- Bentley Systems
- Bombardier
- Cisco Systems
- Conduent
- Cubic
- Descartes
- DNV GL
- Harris
- Hitachi
- Huawei
- IBM
- Indra Sistemas
- Kapsch
- Rockwell Collins
- Saab
- SAP
- Siemens
- Thales Group
- Tom Tom
- Toshiba
- Trimble
- Veson Nautical
Key Topics Covered
1 Introduction
2 Research Methodology
3 Executive Summary
4 Premium Insights
5 Market Overview and Industry Trends
6 Smart Transportation Market, By Transportation Mode
7 Market By Roadways
8 Smart Transportation Market, By Railways
9 Smart Transportation Market, By Airways
10 Market By Maritime
11 Smart Transportation Market, By Application
12 Smart Transportation Market, By Region
13 Competitive Landscape
14 Company Profiles
15 Key Players, By Application
For more information about this report visit https://www.researchandmarkets.com/research/l6zwz8/smart?w=4
