Smart Transportation Market Size, Share & Trends Report

Smart Transportation Market Size, Share & Trends Analysis Report By Solution (Parking, Traffic Management, Integrated Supervision), By Service (Cloud, Business, Professional), And Segment Forecasts, 2018 - 2024

  • Published Date: Apr, 2018
  • Base Year for Estimate: 2015
  • Report ID: GVR-1-68038-246-4
  • Format: Electronic (PDF)
  • Historical Data: 2015
  • Number of Pages: 61

Industry Insights

The global smart transportation market size was valued at USD 56.25 billion in 2016, expanding at a CAGR of 22.5% over the forecast period. The primary factor responsible for market growth is increasing focus of governments on building smart cities. This is anticipated to drive its demand as it is an integral part of smart city projects.

North America smart transportation market

Major issues affecting most cities around the globe include lack of good quality and safe public transportation, heightened road safety concerns, inadequate capacity of public transportation, poor traffic management, overcrowded road networks, theft, poor road conditions, parking issues, and lack of modal options (including pedestrian walkways).

These systems are expected to address challenges posed by growing number of megacities in both developing and developed regions and help in maintaining smooth traffic flow, safety, and an eco-friendly and sustainable urban environment.

In contrast, long downtime and massive capital required for replacing existing infrastructure are anticipated to obstruct industry growth. However, rising demand in developing economies such as India, Brazil, and China is anticipated to open new avenues.
Rising number of vehicles, growing population, and hyper-urbanization are also expected to create need for upgrading existing systems. Increasing number of smart cities and rising adoption of IoT are expected to open up new growth opportunities. Government initiatives to curb greenhouse emissions are also anticipated to boost industry growth over the forecast period.

Solution Insights

Key solutions available in the market include integrated supervision systems, parking management systems, traffic management systems, and ticketing management systems. Traffic management systems formed the most popular segment in the market. They are used for managing traffic in cities and minimizing traffic jams on roads.

Prominent traffic management solutions include smart signaling systems, traditional signaling and video surveillance systems, route guidance systems, and intelligent video management systems. Soaring traffic congestion in major cities across the globe owing to lack of proper parking space, rising number of vehicles, poor traffic management, and inefficient existing infrastructure and systems is anticipated to boost segment growth.

Parking management is another popular solution available in the market. It is an intelligent system used for optimizing parking programs and delivering convenient solutions for drivers. These systems include ticket dispensers either at entry or exit points, decentralized payment collection systems, and exit ticket readers. Well-known parking management solutions include access control, security, level-wise vehicle counting, guidance display systems, and ticketing and revenue management.

Service Insights

The smart transportation market, based on service, can be classified into business, cloud, and professional services. The cloud services segment dominated the market and was valued at USD 7.56 billion in 2016. The segment is anticipated to retain its dominance over the forecast period, attributed to rising demand for storage of large amounts of data generated on a daily basis.

Europe smart transportation market

The professional services segment is also expected to foresee substantial growth, owing to increasing need for consulting services. They facilitate upgradation of existing systems to newly advanced systems, thus propelling demand for professional services.

Regional Insights

North America accounted for over 27.0% of the global revenue in 2015. Rising government investments in transport infrastructure are expected to propel regional growth over the coming years.

The Asia Pacific market is anticipated to witness the fastest growth over the forecast period, owing to several government initiatives. Growth is relatively higher in China, India, South Korea, and Japan. The Indian government’s initiative to build 100 smart cities is anticipated to create new avenues for industry players.

Europe is expected to present significant opportunities for industry expansion, owing to early adoption of several new technologies and rising traffic congestion in major cities. Directive 2010/40/EU was adopted in July 2010 in European Union member countries in order to accelerate deployment of innovative transport systems across Europe. Such government regulations are expected to favor industry growth over the next few years.

Smart Transportation Market Share Insights

Key industry participants include Accenture PLC; International Business Machine (IBM) Corporation; Kapsch; Alstom, SA; Cisco System, Inc.; and General Electric Company (GE). Other prominent vendors include Indra Sistema S.A., LG CNS Corporation, Cubic Corporation, and Xerox Corporation. Alstom offers solutions that cater to transport ranging from high-speed trains to metros and tramways. It also offers associated modernization, maintenance, infrastructure, and signaling solutions.

In March 2016, Cubic Corporation announced the pilot trial of a new solution, NextAgent, with EssenerVerkehrs-AG (EVAG) in Germany. The system is a hybrid of a ticket vending machine with a video-linked call center and virtual walk-up ticket office.

In December 2015, Cubic Corporation announced the opening of a mobility innovation center in London with a focus on developing technology that could address the global transportation needs of the future.

Report Scope

Attribute

Details

Base year for estimation

2015

Actual estimates/Historical data

2015

Forecast period

2016 - 2024

Market representation

Revenue in USD Billion and CAGR from 2016 to 2024

Regional scope

North America, Europe, Asia Pacific, RoW

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2015 to 2024. For the purpose of this study, Grand View Research has segmented the global smart transportation market report based on solution, service, and region:

  • Smart Transportation Solution Outlook (Revenue, USD Billion, 2015 - 2024)

    • Ticketing management system

    • Parking management system

    • Integrated supervision system

    • Traffic management system

  • Smart Transportation Service Outlook (Revenue, USD Billion, 2015 - 2024)

    • Cloud services

    • Business services

    • Professional services

  • Smart Transportation Regional Outlook (Revenue, USD Billion, 2015 - 2024)

    • North America

    • Europe

    • Asia Pacific

    • RoW

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