The global transportation analytics market size was valued at USD 9.66 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 21.6% from 2023 to 2030. Factors such as the growing adoption of smart transportation initiatives and Advanced Traffic Management Systems (ATMs) undertaken worldwide are the primary drivers of market growth. Reduction in fuel consumption, traveling time, and air pollution are some of the benefits offered by these analytics solutions. A shift toward automation of operational processes using Artificial Intelligence (AI) and Machine Learning (ML) will likely foster market growth.
Transportation analytics systems, compared to Intelligent Transportation Systems (ITS), make traffic monitoring easy, reducing road accidents and harmful carbon emissions. As per the Texas Transportation Institute, U.S. drivers waste more than 3 billion gallons of fuel per year, and an average commuter spends approximately 42 hours a year stuck in traffic, which accounts for a total regional expenditure of USD 160 billion, equivalent to USD 960 per commuter. The rising population and urbanization in emerging economies will influence the demand for traffic solutions, thus driving growth in the near future.
The market expansion is driven by various government initiatives to develop smart cities, which will further contribute to the adoption of transportation analytics solutions for intelligent transport systems. For instance, the U.S. Department of Transportation provided over USD 63 billion to major transportation infrastructure projects across the U.S. in 2018. An increase in the number of passenger and commercial vehicles has contributed to traffic congestion. The use of analytics in intelligent transport systems will help reduce traffic jams, divert traffic, and minimize collision risks. However, data security and privacy are some challenges that need to be addressed by analytics vendors.
China's Intelligent Transport System Association aimed to invest USD 30 billion in the intelligent transport industry by 2020. On similar lines, under the initiative of Dubai Plan 2021, the government aims to transform infrastructure concerning transportation and other physical amenities in Dubai. In January 2019, Cellint Corporation was selected by Translink, a Canadian regional transportation authority, to provide travel pattern analytics for its expensive North Shore Transportation Planning project. Thus, smart city and smart transportation initiatives undertaken worldwide would boost the application of transportation analytics in the coming years.
Today's data collection and analytics solutions provide various functionalities, including traffic volume counts, vehicle classification counts, travel time and delay studies, and parking studies. In order to ensure better connectivity and safety of commuters, city planners are recording traffic volume and other parameters to build models to optimize public transportation and traffic movement.
For instance, under 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, many algorithms were 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, analytics applications will benefit operational and managerial functions rapidly in the transport industry over the forecast period.
The descriptive analytics segment held the largest market share of 49.1% in 2022, owing to the increasing adoption of big data, leading to rising volumes of data generated and advancements in digital technology. Most vendors offer descriptive, predictive, and prescriptive analytics solutions as an integrated suite. However, transportation companies concerned only with optimizing their sales and operations functions and refraining from huge investments are instrumental in solely deploying descriptive analytics.
The prescriptive segment is expected to expand at a fastest CAGR of 23.3% over the forecast period. To have a competitive edge, transport companies and other stakeholders use advanced analytics to support them in forecasting future trends. This allows companies to make informed decisions, thus increasing their profitability, easing traffic congestion, carbon emissions, and improving road safety. Moreover, traffic information has become the central element in the emerging Advanced Traffic Management Systems (ATMS) marketplace. The commercial traffic data and information industry analysis can provide valuable insights into future ATMS types and service prospects.
The application segment is classified into traffic management, logistics management, planning and maintenance, and other applications. The traffic management segment dominated the market with a revenue share of 37.9% in 2022. Solutions such as video management software with integrated video analytics help address traffic congestions and accidents caused due to lack of proper traffic management. Moreover, analytics in traffic management help reduce vehicle carbon emissions, thus providing environment-friendly traffic solutions.
The logistics management segment is expected to witness the fastest CAGR of 22.8% over the forecast period. Transportation analytics solutions offer real-time visibility and tracking of goods in transit, providing organizations with accurate information about the location, condition, and status of shipments. This level of visibility helps logistics managers make informed decisions, address potential bottlenecks, and proactively manage exceptions or delays.
The planning and maintenance segment is expected to grow significantly over the forecast period. Asset planning, management, and maintenance are becoming critical functions for the transport industry to improve operational and financial health in the long term. For instance, with the help of IBM, a major rail operator with 20,000 miles of track length has deployed thousands of wayside sensors to monitor the condition of the wheels and axles of trains. With machine learning and predictive modeling, the company can now conduct proactive inspections and repairs and reduce operational equipment failure.
The cloud segment dominated the market with the highest revenue share of 45.9% in 2022. The scalability and flexibility of the cloud technology, security aspects, and control over data center are some of the major factors that will boost the utility of the cloud deployment technology in the utility of transportation analytics solutions.
On the other hand, the on-premise segment is expected to expand at a significant CAGR of 20.6% over the forecast period. The transportation industry handles sensitive logistics, operations, and customer information data. Some organizations prefer to keep this data within their infrastructure to maintain greater control over security and ensure compliance with data protection regulations. On-premise deployment gives them direct control over data security measures and maintains privacy.
A hybrid cloud with an integrated environment, including public, private cloud, and on-premise, will present promising growth avenues during the forecast period. Cloud computing is helping make business more effective, and the consolidation of cloud and analytics is aiding companies to store, process, and interpret their data to better meet their customers' needs.
In the transportation industry, data has been captured from various sources, such as data collection points and onboard sensors introduced by vehicle location systems, passenger counting systems, and ticketing and fare collection systems. Cloud computing and analytics have the unprecedented potential to derive insights regarding planning and managing transportation networks over a period of time.
North America dominated the market with the largest revenue share of 39.5% in 2022. North America is a major global trade and commerce hub, resulting in complex logistics and supply chain networks. Transportation analytics can provide valuable insights into optimizing supply chain operations, route planning, demand forecasting, and inventory management. By leveraging transportation analytics, companies can enhance efficiency, reduce delivery times, optimize resource allocation, and streamline logistics operations. The need for efficient logistics and supply chain management in North America's vibrant business environment is driving the growth of the transportation analytics market.
The Asia Pacific region is expected to expand at the fastest CAGR of 23.3% during the forecast period. The regional growth is driven by the increasing smart city and smart transportation initiatives. Countries such as Japan, China, South Korea, Australia, and Taiwan are anticipated to lead transport and traffic management initiatives.
Governments across the Asia Pacific region actively promote smart city initiatives and invest in transportation infrastructure and technology. This includes deploying intelligent transportation systems (ITS), smart traffic management, and data-driven decision-making processes. Transportation analytics support these initiatives by providing data-driven insights for better planning, optimization, and managing of transportation networks.
Partnerships, strategic mergers, and acquisitions are anticipated to be the most effective way for industry players to gain quick access to emerging markets and enhance technological capabilities. Also, type differentiation and upgradation are expected to pave the way for developing companies in the market. Rapidly growing transport analytics startups such as TERAKI, Populus.ai, Sixgill, Conduent, UrbanLogiq, MOTIONTAG, IoTium, Immense Simulations, CyberOwl, Emu Analytics, and B-Line Transportation, among others, offer potential competition.
In January 2020, Sisense merged with Periscope Data, being then branded and sold as Sisense for cloud data teams. The merger of the two companies is expected to help bring together an independent, unified, and end-to-end data analytics platform for their customers.
In June 2023, AFWERX developed an Uncrewed Aircraft System Traffic Management (UTM) system at the Eglin Air Force Base in Florida in partnership with the Air Force Research Laboratory's Information Directorate. The primary objective of this implementation is to ensure the safety of drones and electric vertical takeoff and landing (eVTOL) aircraft while they take flight. By establishing a robust UTM infrastructure, the initiative directly addresses the safety concerns arising from the growing presence of unmanned aerial vehicles and eVTOL aircraft in the skies
In March 2022, The Airports Authority of India (AAI), as part of the "Make in India" initiative, achieved a significant milestone by partnering with Bharat Electronics Limited (BEL), a Navratna Defence Public Sector Undertaking (PSU). This collaboration aims to jointly develop indigenous systems for air traffic management and aircraft surface movement at airports nationwide. The strategic agreement departs from the previous practice of importing such systems, aligning with the government's vision to promote domestic manufacturing and self-reliance in critical infrastructure development
In February 2022, Eve UAM, a subsidiary of Embraer, and Skyports, a prominent eVTOL infrastructure provider, established a partnership to support the Japan Civil Aviation Bureau (JCAB) in developing a new Concept of Operations (CONOPS) for Advanced Air Mobility (AAM) and Urban Air Mobility (UAM). The primary goal is to create a shared vision encompassing airspace design, operational procedures, infrastructure requirements, and other necessary elements to facilitate AAM's safe and efficient operation in Japan
Market size value in 2023
USD 10.94 billion
Revenue forecast in 2030
USD 43.00 billion
CAGR of 21.6% from 2023 to 2030
Base year for estimation
2017 - 2021
2023 - 2030
Revenue in USD million and CAGR from 2023 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Type, deployment, application, region
North America; Europe; Asia Pacific; Latin America; MEA
U.S.; Canada; UK; Germany; France; Japan; China; India; Australia; South Korea; Brazil; Mexico; Saudi Arabia; South Africa; UAE
Key companies profiled
IBM Corporation; Sisense Ltd.; Oracle; Cubic Corporation; INRIX; Cellint; Alteryx; Hitachi, Ltd.; SmartDrive Systems, Inc.; Omnitracs
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global transportation analytics marketreport on the basis of type, deployment, application, and region:
Type Outlook (Revenue, USD Million, 2017 - 2030)
Deployment Outlook (Revenue, USD Million, 2017 - 2030)
Application Outlook (Revenue, USD Million, 2017 - 2030)
Planning & Maintenance
Regional Outlook (Revenue, USD Million, 2017 - 2030)
Middle East & Africa
b. The global transportation analytics market size was estimated at USD 9.66 billion in 2022 and is expected to reach USD 10.94 billion in 2023.
b. The global transportation analytics market is expected to witness a compound annual growth rate of 21.6% from 2023 to 2030 to reach USD 43.00 billion by 2030.
b. The descriptive type segment held the largest share of 49.1% in 2022, owing to the increasing adoption of big data, leading to the rising volumes of data generated and advancements in digital technology. Most vendors offer descriptive, predictive, and prescriptive analytics solutions as an integrated suite.
b. Some key players operating in the transportation analytics market include IBM Corporation, Sisense Ltd., Oracle Corporation, Cubic Corporation, INRIX, Cellint, Alteryx, Hitachi, Ltd, SmartDrive Systems, Inc., and Omnitracs, among others.
b. Factors such as the growing adoption of smart transportation initiatives and the Advanced Traffic Management Systems (ATMs) undertaken worldwide are the primary drivers of market growth.
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