The global smart transportation market is expanding rapidly due to factors such as growth in demand for efficient transportation networks, time efficiency, and smooth flow of traffic. However, huge database requirements for road networks and high capital investment restrain the market expansion to some extent. Nevertheless, the arrival of parking management systems and investment in advanced ideas for smart cities will offer remunerative growth opportunities. The global smart transportation market size was valued at $96.6 billion in 2020, and is projected to reach $251.0 billion by 2030, growing at a CAGR of 10.2% from 2021 to 2030. Smart transportation refers to the integrated application of the latest technologies and management strategies that aim to provide innovative services related to different modes of transport & traffic management systems. Smart transportation facilitates a smarter transport network, by giving real-time information about vehicle performance & traffic congestion problems to increase efficiency and reduce emissions. It comprises of several technologies, such as car navigation, traffic signal control systems, automatic number plate recognition, and speed cameras. Key Market Players: ALSTOM SA, Siemens AG, MSR Traffic GmbH, ibm corporation, TomTom International, Iteris, Inc., ACCENTURE PLC, Cisco Systems Inc., Thales Group, Cubic Corporation. Factors such as rise in demand for efficient transportation networks across the world, government initiatives for the development & promotion of green fuels, and increased demand due to surge in road safety & traffic congestion issues are expected to drive the growth of the smart transportation market. In addition, the adoption of smart transportation systems in railways and the rise in adoption of cloud services in transportation are some of the major factors anticipated to boost the market's growth. However, high capital investments, large database requirements of the road network, and lack of standardized & uniform technology restrain the market growth. Furthermore, investments in emerging ideas of smart cities and the introduction of parking management systems provide lucrative growth opportunities for the market players. The market segmentation is based on solution, service, transportation type and region. By solution, the market is classified into ticketing management system, parking management & guidance system, integrated supervision system, and traffic management system. By service, the market is segmented into business services, professional services, and cloud services. By transportation type, the market has been classified into roadways, railways, airways and maritime. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In addition, smart transportation market has witnessed significant growth in recent years, owing to rise in urban population and traffic across the globe. Furthermore, the increase in demand for autonomous vehicles and the development of connected vehicles compatible with intelligent transportation systems (ITS) extend profitable opportunities to the market players during the forecast period. The companies operating in the market have adopted partnerships, product launches, acquisitions, and R&D to increase their market share and expand their geographical presence. For instance, in April 2019, Iteris, Inc. entered into a partnership with Lindsay Corporation, a leading global manufacturer & distributor of irrigation and infrastructure equipment & technology, to support the Federal Highway Administration’s (FHWA) Smarter Work Zone campaign to reduce traffic congestion and improve safety in work zones using intelligent transportation systems (ITS) solutions. KEY FINDINGS OF THE STUDY By transportation type, the airways segment is expected to register a significant growth during the forecast period. Depending on solution, the parking management & guidance system segment is anticipated to exhibit significant growth in the near future. On the basis of services, the professional segment is projected to lead the global smart transportation market owing to higher CAGR. Asia-Pacific is anticipated to register the highest CAGR. In terms of solution, the traffic management system segment grabbed the highest share in 2020, accounting for nearly one-third of total market revenue. Integration of smart traffic systems and smart cities and swift urbanization drive the expansion of the segment. The parking management and guidance system segment, however, is projected to witness an accelerated growth with 11.7% CAGR from 2021 to 2030. The growth is attributed to enhanced collaboration between transportation and parking, accelerating demand for electronic cashless payment systems, and advanced technologies that enhance payment automation and access control. As per the regional analysis in the report, Europe region contributed to the highest revenue of around one-third of the global smart transportation market share in 2020. The development of smart infrastructure and smart cities across the region propels the growth of the North America market. Moreover, the Asia-Pacific region is estimated to grow at the fastest rate with 11.7% CAGR from 2021 to 2030, owing to technological advancements and rise in production and sales of automobiles across the region.

Smart Transportation Market Revenue Growth, Qualitative Analysis till 2030

The global smart transportation market is expanding due to increased demand for efficient transportation networks, time efficiency, and smooth traffic flow. Despite restraints such as high database requirements and capital investment, the market is projected to grow from $96.6 billion in 2020 to $251.0 billion by 2030, at a CAGR of 10.2%. Key players include ALSTOM SA, Siemens AG, MSR Traffic GmbH, IBM Corporation, TomTom International, Iteris, Inc., Accenture PLC, Cisco Systems Inc., Thales Group, and Cubic Corporation. The market is segmented by solution, service, transportation type, and region. Professional services are expected to lead the market, and Asia-Pacific is anticipated to register the highest growth.