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

Smart Transportation Market Size

Smart Transportation Market size estimated at over USD 41 billion in 2017 and is expected to witness 20% CAGR from 2018 to 2024.
 

The smart transportation market growth is driven by the growing need among transport authorities to create smart systems to manage traffic and improve road & passenger safety. The smart transportation systems combine several information and communication technologies such as Global Positioning Systems (GPS), Internet of Things (IoT), and fiber optics to improve the transportation infrastructure. Vehicles can connect with extended surroundings through real-time traffic navigation, avoiding traffic congestions and collisions. For instance, intelligent traffic control systems gather live traffic data to help the traffic regulatory authorities in diverting traffic away from busy areas, preventing traffic jams, and reducing the risks of collision. Rapid investments by government agencies in smart cities projects with an aim to provide proper infrastructure and intelligent transport systems to all citizens will spur market growth. For instance, in February 2016, the UK government invested USD 25.8 million in smart transportation for strengthening the UK’s position as a global leader for smart mobility.
 

Smart Transportation Market Analysis

The railways smart transportation market is expected to grow at a CAGR of around 30% over the forecast timeline. The trend of globalization & urbanization has accelerated the demand for smart railway software, offering safety, reliable advanced services, and operational efficiency to passengers. The rise in the number of rail accidents has also increased the need to implement smart sensor technologies in railway coaches that can detect defects in bearings, wheels, and railway tracks to avert accidents. The governments of various countries are also taking up initiatives and implementing advanced technologies for the development of smart railway systems. In June 2017, the Indian government planned to install Video and Voice Recording and Monitoring System (SLVR) in engines, microphones, video cameras, and recorders in engine cabins to monitor the railways.
 

The software segment is expected to grow at a CAGR of over 20% from 2018 to 2024 due to the rise in the usage of various smart transportation software including parking management, traffic management, security & surveillance, ticket management, and passenger information management. The security & surveillance software segment in smart transportation market estimated the fastest growth rate of over 25% to enable automated surveillance of passenger & freight vehicles, providing safety improvements and enhanced traffic performance. The connected vehicle technologies assist drivers in identifying potential crashes to reduce the accident rate and threat to lives. This feature alerts the driver with safety warnings during potentially dangerous situations such as icy roads, impending collisions, and dangerous curves.
 

The training & consulting service segment is projected to hold the major portion of the market share by 2024 to help its customers in the easy implementation of advanced transportation systems. The training service providers help their customers in implementing a wide range of solutions, tackling issues related to safety and enabling better network management. The service providers having expertise in applying traffic engineering principles, traffic signal systems, and ITS technologies are assisting agencies and transport companies globally to develop comprehensive solutions, which incorporate location-based services, social media, and telematics.
 

The on-premise deployment model is anticipated to hold a major portion of the smart transportation market share by 2024 as the majority of organizations are offering on-premise software as their customers are ready to invest more in buying the software rather than opting for a subscription model. They also offer higher flexibility in terms of configuration, data, modifications, and integration management, driving the market demand. However, due to cost-saving benefits associated with the deployment of cloud-smart transportation solutions, the market for the cloud deployment model will increase over the years.
 

The MEA smart transportation market is expected to grow at a CAGR of above 20% from 2018 to 2024 due to favorable government initiatives for the smart city development in the countries including Saudi Arabia, South Africa, and Qatar. For instance, the UAE government invested USD 6.81 billion on infrastructural projects under Dubai Expo 2020, increasing the demand for smart systems. In April 2017, the Ministry of Transport and Communications (MoTC) launched the Qatar Parking Master Plan aimed at developing smart parking software, multi-level automated parking systems, and geographic information systems. This new application will provide real-time information on parking availability, which will assist drivers in finding and reserving parking spaces.
 

Smart Transportation Market Share

Companies present in the smart transportation industry are involved in new product developments and strategic partnerships to cater to the needs of the modern transport infrastructure. For instance, in February 2017, Cisco partnered with Darva Networks for delivering smart transportation solutions in Swindon. Under this partnership, both companies worked together toward gathering & analyzing real-time data from data sources and sensors to improve safety & mobility across the town. In September 2018, Agero announced the launch of Driver360, an AI-based mobile telematics platform for automatic crash detection, prevention, and response without the requirement of any additional hardware. This software can be easily integrated with mobile apps of automobile manufacturers and insurance providers, delivering extensive mobile driver safety software.
 

Some of the key players in the market are:

• IBM Corporation, Inc
• Cisco Systems
• General Electric Company
• Cubic Corporation
• Siemens AG
• Accenture PLC
• Thales Group
• WS Atkins.
   

 Industry Background

Smart transportation systems have gained prominence in the transportation sector to focus on designing, inspecting, and controlling intelligent transport to meet the needs of cities. These systems combine sensor technologies and navigation systems to improve the efficiency of road transportation. The wide usage of ITS has already begun in the sector and with the growing investments in the smart city projects, the smart transport market will further observer a rapid growth over the forecast timeline. The steadily growing traffic volume and the rising need for vehicle & passenger safety have resulted in a surge in the demand for intelligent transport solutions.