June 16, 2024
Smart Transportation Market

Smart Transportation Market is Estimated to Witness High Growth Owing to Increasing Investments in Smart City Projects

The smart transportation market involves transportation systems that integrate information and communication technology to improve operational efficiency, safety, and other aspects related to transport connectivity. Some of the common smart transportation systems include intelligent transportation systems, parking assistance systems, fleet management systems, and passenger information systems. These solutions provide services such as traffic management, vehicle tracking, fuel management, toll management, collision warning, and parking assistance using technologies like GPS, RFID, GIS, and cloud computing. The growing demand for advanced solutions to tackle issues of congestion and emissions has given rise to smart technologies that leverage IoT infrastructure for mobility applications. The adoption of smart transportation is expected to significantly improve traffic management while reducing environmental impact.

The Global smart transportation market is estimated to be valued at US$ 141.01 Bn in 2024 and is expected to exhibit a CAGR of 9.3% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the smart transportation market are AR Packaging Group AB, HUHTAMAKI GROUP, Mayr-Melnhof Karton Gesellschaft M.b.h., International Paper, DS Smith PLC, Amcor Limited, Rengo Co., Ltd., Pactiv Asia. These players are focusing on developing sustainable and digitally enabled transportation solutions to gain a competitive advantage.

The rise of smart cities and the focus on reducing carbon emissions present significant opportunities for vendors in the market. Many governments are investing heavily in developing connected infrastructure and integrating IoT-based solutions. This is expected to drive the adoption of smart transportation systems.

Globally, the market is witnessing increasing investment in smart city projects involving digitization of public transport and traffic management. Countries like China, Singapore, Germany, and the US are at the forefront of deploying transportation technologies. The growing global automotive production is also augmenting the deployment of fleet management solutions.

Market drivers

The increasing investments in smart city projects by governments worldwide is a key driver for the smart transportation market. Smart cities focus on integrating different aspects of infrastructure through digital technologies and IoT to provide efficient transportation, healthcare, security, energy management, and other civic services. Many cities are implementing intelligent traffic control systems, real-time passenger updates, electronic toll collection, and greenhouse gas monitoring as part of their smart initiatives. This is favoring the adoption of smart mobility solutions.

PEST Analysis

Political: The Smart Transportation Market Growth is affected by government policies and regulations related to transportation infrastructure development and environmental protection. Supportive government policies promote investments in advanced transportation technologies and smart city initiatives.

Economic: Growth of the overall economy and increasing income levels drive the demand for advanced transportation solutions from consumers. The need to optimize existing infrastructure spending encourages investments in smart transportation systems.

Social: Increasing population in urban areas is generating demand for efficient transportation options. Rising environmental awareness among public is positively impacting the adoption of clean energy vehicles and sustainable transportation modes.

Technological: Advancements in sensor technologies, wireless connectivity, AI and data analytics are enabling the development of intelligent transportation systems. Connected vehicles, autonomous driving technologies, and smart mobility solutions based on IoT are boosting market growth.

Geographical regions with high market concentration

North America holds the largest share of the global smart transportation market due to robust transportation infrastructure and advanced technological capabilities in the US and Canada. Major smart transportation projects and initiatives by city planners and municipal authorities in American and Canadian cities promote regional market growth.

Asia Pacific is emerging as the fastest growing regional market owing to the rapidly developing transportation infrastructure in major economies like China and India. Large investments by governments in smart city projects incorporating intelligent transportation systems contribute to the rising regional market revenues.

The fastest growing geographical region

Asia Pacific region is poised to witness the fastest growth in the global smart transportation market during the forecast period. Presence of emerging economies experiencing fast urbanization coupled with government initiatives supporting smart city development are fueling the adoption of smart transportation solutions. Increasing metro rail projects and expanding smart mobility services in densely populated Asian cities will further drive the Asia Pacific market for smart transportation in the coming years.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it