According to a new market research report “Smart Transportation Market by Transportation Mode (Roadways, Railways, Airways, and Maritime), Solution (Smart Ticketing, Traffic and Freight Management, PIS), Service, Application (Shared Mobility, Public Transport), and Region – Global Forecast to 2023“, published by MarketsandMarkets™, the market size is estimated to be USD 75.00 billion in 2018 and expected to reach USD 149.21 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 14.7% during the forecast period.
The major factors expected to drive the growth of the Smart Transportation Market include the rising urban population and high demographic rates, the growing adoption of connected and smart technologies in the transportation infrastructure, and the increasing free trade agreements. Government initiatives for smart cities and government authorities are adopting Public Private Partnerships (PPP) working models, which is also propelling the growth of the Smart Transportation Market.
Airways segment is expected to grow at the highest CAGR during the forecast period
The airways segment is expected to grow at the highest CAGR during the forecast period. With the growing urbanization across the globe, the airways industry has evolved over the years. The demand for aviation services has increased significantly in the last decade. With the improvement in living standards and reduction in the cost of air travel, the air transportation has become affordable to several people. It has increased the demand for commercial aircraft. New technologies and digitalization of services are driving the airlines’ industry to ensure smooth maintenance, reduce operating cost, and take advantage of the increasing air travel.
Solution subsegment in the roadways segment is expected to account for the larger market share during the forecast period
The solution subsegment in the roadways segment is expected to account for the larger market share during the forecast period. The solution subsegment includes passenger information, traffic management, smart ticketing, parking management, freight information, and vehicle telematics. Governments across the globe are focusing on making the vehicles efficient. As of now, several regional governments are focusing on deploying smart technologies in vehicles for ensuring safety. Moreover, the deployment of solutions helps in better fuel, operations, and route management, which in turn saves fuel, curbs additional carbon emission, and increases the life cycle of vehicle parts.
Asia Pacific is expected to grow at the highest CAGR during the forecast period
APAC is expected to be the fastest-growing region for the Smart Transportation Market during the forecast period, due to the increase in the adoption of new technologies, high investments for digital transformation, and rise in Gross Domestic Product (GDPs) of countries in the region. The majority of the potential economies in this region, such as Australia, Singapore, China, Korea, Hong Kong, and India, are said to be rapidly investing in the technological transformation for improving infrastructure and implementing various smart city projects. The competition in this region is fragmented and smart transportation solution providers are looking at expanding the base of their operations to most of the countries in the region. Untapped potential industries, high penetration of advanced technologies, growth in freight use in various industry verticals, and economic developments and government regulations are expected to drive the Smart Transportation Market growth at the highest rate during the forecast period.
Major vendors covered in the Smart Transportation Market include Thales (France), Huawei (China), Siemens (Germany), IBM (US), Cisco Systems (US), SAP (Germany), Cubic (US), ALSTOM (France), Bombardier (Canada), Toshiba (Japan), Harris (US), Saab (Sweden), Veson Nautical (Massachusetts), Advanced Navigation Positioning Corporation (ANPC) (Australia), BASS Software (Norway), BENTLEY SYSTEMS (US), Indra Sistemas (Spain), Trimble (US), TomTom (Netherlands), Amadeus (Spain), Conduent (US), Kapsch (Austria), Hitachi (Japan), The Descartes Systems (Canada), Accenture (Republic of Ireland), Rockwell Collins (US), and DNV GL (Norway).