The global smart transportation market size is estimated to reach USD 285.12 billion by 2024, according to a new study by Grand View Research, Inc., registering a CAGR of 22.5% during the forecast period. Rising number of on-road vehicles and ineffective existing transport infrastructure are expected to propel the need for efficient management systems. Favorable government initiatives for building better infrastructure and smooth running of existing transport systems are expected to boost industry growth.
Increasing investments in smart city projects are anticipated to open up new avenues for growth in the coming years as smart transportation is an integral part of any smart city. In addition, rising government focus on reducing greenhouse gas emissions and curbing alarming levels of traffic congestion is anticipated to drive industry growth over next few years. Increasing number of government mandates, such as those by the European Union (EU) and Directive on Intelligent Transport System, are also anticipated to favor the market during the forecast period.
On the flip side, need for massive capital for replacing existing infrastructure with smart technologically advanced systems is expected to hinder industry growth. Longer downtime for replacing existing systems may also pose a challenge to its growth and can affect daily commute.
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Further key findings from the study suggest:
- Key solutions available in the market include ticketing management systems, parking management systems, integrated supervision systems, and traffic management systems
- Integrated supervision systems are used for reducing traffic blocks, minimizing accidents, and providing better safety measures. This segment holds high growth potential
- The cloud service segment is anticipated to witness a surge in demand, owing to rising need for storage of data generated through these systems
- Professional service vendors offer consulting services and may witness an increase in demand over the next few years, owing to need for services to upgrade existing infrastructure
- The North America market accounted for over 27.0% of the global revenue in 2015; Asia Pacific, on the other hand, is estimated to be the fastest-growing segment, offering lucrative growth opportunities for industry players
- Government initiatives to enhance transport infrastructure are expected to favor the Europe market for smart transportation. The MEA market is also likely to be driven by increasing government investments in transport infrastructure
- Key industry participants include Accenture PLC; Alstom, SA; Cisco System, Inc.; Cubic Corporation; General Electric Company (GE); Indra Sistema S.A.; International Business Machine (IBM) Corporation; Kapsch; LG CNS Corporation; and Xerox Corporation.
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About Grand View Research:
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.