Transportation Analytics Market Size, Share & Trends Analysis Report By Type (Descriptive, Predictive, Prescriptive), By Deployment, By Application, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global transportation analytics market size was valued at USD 7.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 15.6% from 2020 to 2027. Factors such as growing adoption of smart transportation initiatives and Advanced Traffic Management System (ATMS) undertaken across the world are the primary drivers fostering the market growth. Reduction in fuel consumption, travelling time, and air pollution are some of the benefits offered by these analytics solution. A shift toward automation of operational processes with the use of Artificial Intelligence (AI) and Machine Learning (ML) is likely to foster the market growth.

Use of transport analytics systems vis-à-vis Intelligent Transportation Systems (ITS) makes traffic monitoring easy, thereby reducing road accidents and harmful carbon emissions. As per the Transportation Institute, U.S., drivers waste more than 3 billion gallons of fuel per year, commuters spend approximately 42 hours a year stuck in traffic, having a total regional expenditure of USD 160 billion, equivalent to USD 960 per commuter. Moreover, rising population and rapid urbanization in emerging economies are expected to influence the demand for traffic solutions. These factors are expected to foster the growth prospects in near future.

The market growth is likely to be driven by various government initiatives for the development of smart cities, which will further contribute to the adoption of transportation analytics solutions in relation to intelligent transport systems. For instance, the U.S. Department of Transportation has provided more than USD 63 billion to major transportation infrastructure projects across U.S. in 2018. Also, an increase in the number of passenger and commercial vehicles has contributed to traffic congestion. The demand for analytics in intelligent transport systems will assist in reducing traffic jams, diverting the traffic away, and minimizing the risk of collisions. However, data security and privacy are some of the primary challenges that need to be addressed by the analytics vendors in the coming years.

Under various smart city initiatives undertaken by various countries across the world, China’s Intelligent Transport System Association has aimed to invest USD 30 billion in intelligent transport industry by 2020. On similar lines, in Dubai, under the initiative of Dubai Plan 2021, the government aims to transform infrastructure with respect to transportation and other physical amenities. Moreover, in January 2019, Cellint Corporation was selected by Translink, a Canadian regional transportation authority to provide travel pattern analytics for its North Shore Transportation Planning Project worth billions of dollars. Thus, the smart cities and smart transportation initiatives undertaken worldwide will certainly boost the applications of transportation analytics over the coming years.

Data collection and analytics solutions available in the market today provide a host of functionalities, including traffic volume counts, vehicle classification counts, travel time and delay studies, and parking studies. To ensure better connectivity and safety of commuters, city planners are recording traffic volume and other parameters to build models in order to optimize the public transportation and traffic movement. For instance, in regards to Citi Logik and Vodafone’s project with Transport for London (TfL), over 10 billion data points were collected. With the help of these data points, a large number of algorithms was used to create journey matrices of around 1.2 billion trips and the same data was used to complement the existing roadside sensor network data for other operations. Thus, applications of analytics will benefit the operational and managerial functions rapidly in the transport industry over the forecast period.

Type Insights

In the transportation analytics market, the descriptive and predictive type segment has witnessed a steady demand owing to adoption of smart city and smart transportation concept across the world. Descriptive analytics accounted for the largest market share in 2019 owing to increasing adoption of big data that has led to the rising volumes of data generated and advancements in digital technology. Most of the vendors are offering descriptive analytics along with predictive and prescriptive analytics solutions as an integrated suite. However, transportation companies that are concerned only to optimizing their sales and operations functions and refrain from huge investments are instrumental in deploying descriptive analytics.

To have competitive edge, transport companies and other stakeholders use advanced analytics (predictive and prescriptive) to support them in forecasting future trends. The forecasting allows companies to make informed decisions, thus increasing their profitability, easing the traffic congestion, carbon emissions, and improving the road safety. Moreover, traffic information has become the central element in the emerging Advanced Traffic Management Systems (ATMS) marketplace. Analysis of the commercial traffic data and information industry can provide valuable insights into the prospects for future ATMS products and services.

Application Insights

The application segment is segmented into traffic management, logistics management, planning and maintenance, and other applications. The market is dominated by the traffic management segment and is likely to register significant CAGR of 15.1% over the forecast period. Solutions such as video management software with integrated video analytics will help in addressing the traffic congestions and accidents caused due to lack of proper traffic management. Moreover, analytics in traffic management will also help reduce carbon emissions from vehicles, thus providing environment-friendly traffic solutions.

Planning and maintenance segment is expected to grow significantly over the forecast period. Asset planning, management, and maintenance are becoming critical functions of the transport industry to improve the operational and financial health in the long term. For instance, with the help from IBM, a major rail operator with 20,000 miles of track has deployed thousands of wayside sensors to monitor the condition of wheels and axles of train. With the use of machine learning and predictive modelling, the company is now able to conduct proactive inspection and repairs, and reduce operational equipment failure.

Deployment Insights

On-premise, cloud and hybrid are the types of deployment methods used by industry players. Cloud deployment is the most prefered way for deployment of this technology, and is predicted to maintain its dominance over the next eight years. The scalability and flexibility of the cloud technology, security aspects, and control over the data center are some of the prime factors that will boost the utility of cloud technology in utility of transportation analytics solutions. As per the tech industry experts, around 60% of workloads are run on a hosted cloud service as of 2019.

Hybrid cloud with integrated environment including public, private cloud and on-premise will present significant growth rate during the forecast period. Cloud computing is helping make business more effective and the consolidation of both clouds and analytics are aiding companies to store, process, and interpret their data to better meet their customer’s needs. In transportation industry, there has been surge of data captured from various sources such as data collection points and on-board sensors introduced by vehicle location systems, passenger counting systems, and ticketing and fare collection systems, among others. Cloud computing and analytics has the unprecedented potential to derive insights regarding planning and managing transportation networks over the period of time.

Regional Insights

North America and Europe are anticipated to be the key regions over the forecast period owing to early adoption of transportation analytics solutions. Asia Pacific is anticipated to be the fastest growing regional market driven by growing smart city and smart transportation initiatives undertaken in the region. Countries such as Japan, China, South Korea, Australia, and Taiwan are anticipated to lead in transport and traffic management initiatives. For instance, in February 2017, China announced its 13th Five-Year Plan for Modern Comprehensive Transportation System with the aim of establishing an efficient, green, safe, and modern integrated transport system by 2020.

The governments across the globe at the state and county level are actively pursuing many initiatives to enhance intelligent transportation practices. For instance, in 2013, the city of Los Angeles, U.S., implemented the Automated Traffic Surveillance and Control, which has around 4,500 traffic signals across 469 square miles. It has become one of the most elaborate systems for mitigating traffic and ultimately curbing the congestion over the period of time. Such initiatives worldwide will boost the utility of transportation analytics services in the long run and enhance the sustainability of transport infrastructure.

Key Companies & Market Share Insights

Partnerships, strategic mergers, and acquisitions are anticipated to be the most effective way for industry players to gain quick access in emerging markets and enhance technological capabilities. Also product differentiation and upgradation is expected to pave the way for development of companies in the market. Moreover, the rising startup culture and transport analytics startups such as TERAKI, Populus.ai, Sixgill, Conduent, Urbanlogiq, Motion tag, IoTium, Immense simulations, Cyberowl, Emu Analytics, and B-Line Transportation, among others will pose potential competition.

In January 2019, Cubic acquired GRIDSMART Technologies Inc., which makes video tracking products for intelligent traffic systems market. GRIDSMART Technologies Inc. is specialized in video detection at traffic intersections using computer vision modelling and machine learning, which in turn will boost the product portfolio and customer base of Cubic Corporation. Similarly, in January 2020, Sisense merged with Periscope Data, which is now branded and sold as Sisense for cloud data teams. The merger of the two companies will help bring together an independent, unified, and end-to-end data analytics platform for their customers. Some of the prominent players in the transportation analytics market include:

• IBM Corporation

• Cubic Corporation

• Sisense Inc.

• Oracle Corporation

• Inrix Corporation

• Cellint Corporation

• Alteryx Inc.

• Hitachi Ltd.

• SmartDrive Systems Inc.

• Omnitracs LLC

Transportation Analytics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global transportation analytics market report on the basis of type, deployment, application, and region:

• Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Descriptive

  • Predictive

  • Prescriptive

• Deployment Outlook (Revenue, USD Million, 2016 - 2027)

  • On-premise

  • Cloud

  • Hybrid

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Traffic Management

  • Logistics Management

  • Planning & Maintenance

  • Others

• Regional Outlook (Revenue, USD Million, 2016-2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa