Smart Transportation Market Analysis

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.

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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.
 

TThe 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.