Smart Transportation Industry Overview

The global smart transportation market size was valued at USD 110.53 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 13.0% from 2023 to 2030.

The market growth is driven by growing advancements in urban projects, government initiatives aimed at reducing greenhouse gas emissions, and the increasing demand for technology integration in traffic control systems. Lack of good quality and safe public transportation, inadequate capacity to manage public transport, concerns about reduced road safety, poor traffic management, and parking problems are significant issues affecting most cities (including pedestrian walkways). Thus, demand for smart transportation systems is likely to witness significant growth in the near future. Factors such as urbanization, the increased acceptance of IoT-based technology, and the expansion of 5G-based connectivity make smart transportation infrastructure easier to execute.

Gather more insights about the market drivers, restrains and growth of the Smart Transportation Market

In 2018-2019, to improve traffic management, boost safety, lessen maintenance costs, and enable more efficient use of transportation networks, the market experienced a tremendous expansion in the application of current technology in cars and transportation infrastructure. Furthermore, the introduction of autonomous vehicles, increased expenditures on smart city initiatives, the fall in vehicle ownership, and the expansion of mobility as a service (MaaS) will likely provide significant growth opportunities for players in the smart transportation industry.

For instance, in September 2022, Indra Sistema S.A. announced a partnership with Masmovil Group, a broadband service provider, to create an advanced ecosystem that will fuel the growth of smart 5G services and solutions for the transportation sector. The partnership aims to develop and test innovative solutions based on the 5G communications standard, promoting smarter, more connected, and sustainable mobility.

Travel restrictions implemented to stop the transmission of disease hindered companies' capacity to move people. Total revenues, growth, and people’s income in the transportation sector reduced drastically, as a result. To enhance their offerings and regain consumer trust, travel organizations are keenly focused on data-driven decisions, as public transportation remains highly vulnerable to disease outbreaks. These factors are expected to boost the demand for private transportation services during the forecast period.

The prolonged downtime and substantial capital costs associated with rebuilding the current infrastructure will hinder industry growth over the forecast period. Smart transportation integrates a variety of elements, including hardware, application, and mobile network parts made by various manufacturers, leading to compatibility issues since there is no defined approach. Additionally, communication norms differ greatly across nations, which present difficulties for businesses looking to market their products internationally. However, it is anticipated that expanding demand in developing countries such as China, Brazil, and India would open up new opportunities.

Browse through Grand View Research's Automotive & Transportation Industry Research Reports.

• The global automotive 3PL market size was estimated at USD 219.16 billion in 2023 and is projected to grow at a CAGR of 8.9% from 2024 to 2030.
• The global postal services market size was estimated at USD 245.82 billion in 2023 and is projected to grow at a CAGR of 1.4% from 2024 to 2030.

Smart Transportation Market Segmentation

Grand View Research has segmented the global smart transportation market based on solution, service, and region.

Smart Transportation Solution Outlook (Revenue, USD Billion, 2018 - 2030)

• Ticketing Management System
• Parking Management System
• Integrated Supervision System
• Traffic Management System

Smart Transportation Service Outlook (Revenue, USD Billion, 2018 - 2030)

• Cloud Services
• Business Services
• Professional Services

Smart Transportation Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
• Asia Pacific
  • China
  • India
  • Japan
• Latin America
  • Brazil
• Middle East & Africa

Key Companies profiled:

• Accenture PLC
• Alstom, SA
• Cisco System, Inc.
• Cubic Corporation
• General Electric Company (GE)
• Indra Sistema S.A.
• International Business Machines Corporation
• Kapsch
• LG CNS Corporation
• Xerox Holdings Corporation

Key Smart Transportation Company Insights

The market is highly competitive, with several players catering to different sectors. The presence of established players is a crucial factor deterring potential players from entering the market. However, the increasing development of differentiated smart transportation solutions and services in the market is expected to create growth opportunities for new entrants. Market players are focusing on expanding their businesses and strengthening their market positions through collaborations and partnerships.

Key players are adopting strategic approaches to dominate the market share and expand their dominance globally. One of the best strategies is to build a novel system or service that buyers and end-users continue to demand. For instance, in October 2022, Iteris, Inc. announced that it received approval from the City of Anaheim to enforce its recently unveiled set of managed services as part of an ongoing deal for a regional smart mobility, security, and sustainability program. The effective management of major transportation operations using Iteris' cloud-enabled managed services reduces traffic congestion, boosts safety, and creates a more robust, egalitarian, and sustainable transportation infrastructure.

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About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.