Global Smart Transportation Market is expected to foresee the market size of $306 billion by 2026 from $114 billion in 2019; growing at a CAGR of 15.1% from 2019 to 2026. The smart transportation market is majorly driven by the following driving factors such as initiatives by governments, increasing demand for IoT & smart cities, an increasing number of vehicles, and concern over rising greenhouse gas. However, long downtime and high investments required for the construction might hinder the growth of the market. Furthermore, the increasing popularity of smart cities in emerging economies would provide growth opportunities for the market.
Service, solution, and geography are the key segments of the global smart transportation market. The product type segment has been segmented into professional services, cloud services, and business services. Cloud Service was the leading sub-segment with the highest market share in 2016 and it will continue to dominate the service segment over the forecast period 2016-2024. Additionally, solution segment includes traffic management system, parking management system, ticketing management system and integrated management system. Traffic management system and integrated supervision system dominated the applications segment, with a market share of 35% and 30% respectively in 2018.
The global smart transportation market by geography is bifurcated into North America, Europe, Asia-Pacific and RoW. Europe held the highest market share of approx 30% in 2018, driven by increasing adoption of various new technologies and concern for the environments. In terms of growth rate, the Asia-Pacific region is anticipated to grow at the fastest CAGR over the forecast period, owing to rapid technological advancement and initiatives by the government.
Various strategies have been adopted by the market players to boost their geographical presence and product portfolio. The major players in the smart transportation market include Accenture plc, Cubic Corporation, Kapsch TrafficCom AG, International Business Machines Corporation, Siemens AG, Alstom SA, Thales Group, Tomtom International Bv, General Electric Company and LG CNS Co., Ltd., among others.
Highlights of the report
Scope of Smart Transportation Market