Global Smart Transportation Market Size, Share, Trends, Growth Drivers, Challenges, Key players, Competitive Background, Regional Market Analysis by Components (Hardware, Software, Platform) & by Region with Forecast 2017-2030

Smart Transportation Market Overview

Advanced technologies are taking people way ahead of time where unconnected traveling is transforming into a new world of connected transportation. Nowadays, vehicles are connected with Wi-Fi or sensors so that they can not only use internet connectivity but it can also guide traffic and vehicle management. As of 2015, North America has successfully provided in-flight connectivity to over 3,000 aircraft out of 5,500 commercial aircraft with the help of aircraft connection companies Gogo, Global Eagle, Thales/LiveTV, and Panasonic. Internet of Things (IoT) is changing the vision of transportation and ensuring the safety of people. Vehicles such as buses, trains, connected cars, and planes are providing internet connectivity to deliver efficient services to consumers. For instance, Paris launched Autolib which is an electric-car program in 2011. This program facilitates the drivers to select the public parking space and also to track the connected vehicles which are embedded with sensors using GPS tracker. The utilization of smart technologies with a concept to build up a smart city is fanatically expanding across the globe. Over 1 billion connected things are installed across the globe under smart city projects in 2015. Smart transportation is a part of a smart city where smart infrastructures are providing a platform to implement connected vehicles. Rising urbanization and investments in smart cities are strengthening the market of smart transportation. Around USD 160 billion for smart cities solutions is invested by the US Department of Transportation in 2017. These projects are intending to provide better parking and traffic management with the aim of pedestrian and driver safety.

Smart Transportation Market Segmentation

The segmentation of the global smart transportation market can be done on the following basis:

Based on Components

• Hardware

Sensors

RFID Tags

GPS Trackers

Portable Computers

Others (Industrial monitor devices, box computers)

• Software

Data Management Software

Network Management Software

Security Software

Remote Monitoring Software

Real-Time Streaming Analysis Software

• Platforms

Connectivity/M2M Platforms

Infrastructure-as-a-Service (Iaas) Backend Platforms

Hardware specific software Platforms

Consumer/Enterprise Software Extension Platforms

Based on Application

• Vehicle Management
• Mobility Management
• Traffic Management
• Parking Management
• Safety Assistance
• Others(Driver assistance, Infotainment, Wellbeing)

Based on Geography

• North America (U.S. & Canada) {Market Size (USD Billion), Growth Analysis (%) and Adoption Rate (%)}
•  Latin America (Brazil, Mexico & Rest of Latin America) {Market Size (USD Billion), Growth Analysis (%) and Adoption Rate (%)}
•  Europe (The U.K., Germany, France, Italy, Spain, Poland, Sweden & RoE) {Market Size (USD Billion), Growth Analysis (%) and Adoption Rate (%)}
•  Asia-Pacific (China, India, Japan, Singapore, South Korea, Australia, New Zealand, Rest of Asia) {Market Size (USD Billion), Growth Analysis (%) and Adoption Rate (%)}
•  The Middle East & Africa (GCC, South Africa, North Africa, RoMEA) {Market Size (USD Billion), Growth Analysis (%) and Adoption Rate (%)}
•  Rest of World {Market Size (USD Billion), Growth Analysis (%) and Adoption Rate (%)

Trends, Drivers & Challenges to Market Growth

World wide acceptance of cloud-based technologies and solutions are advancing smart transportation technology. The automotive industry is adopting cloud technology for navigation, infotainment, social connection, etc. Moreover, the storage of data is enhancing the qualitative analysis of current transportation infrastructure and helps in the implementation of smart technologies. The market of smart transportation business is driven due to upsurge in the demand for improvement in public transport facilities and safety. High penetration of connected cars is transforming the automotive industry by its high efficiency, productivity, and safety. An emerging trend of smart technology is boosting the acceptance of smart vehicles. Smart parking market is projected to grow at a CAGR of 10.9% during the forecast period through the end of 2030. The demand for smart parking is increased due to huge traffic congestion and lack of parking space caused by an increasing number of automobiles.  The use of smart sensors and parking meters helps the drivers to check for free parking space and reserve it in advance.

What's new in the market?

Automakers such as BMW, Tesla, Toyota, Hyundai, Daimler, etc. are adopting Bluetooth and WiFi technologies in their cars which is impelling the adoption rate of connected cars in developed countries. Emerging economies such as China and India are also registering positive business opportunities for smart transportation in the region.

Market Share by Region

North America

North America is the dominating region for the smart transportation market and accounted for 43% of the market share in 2016. U.S. federal government is immensely investing in smart cities projects. Road transportation is a major necessity of Canada. In 2015, over 30 million vehicles were registered in Canada.  An increasing number of vehicles are driving the demand for smart cities and smart transportation in Canada. As per the study performed in 2015 by AT&T Drive Studio and Ericsson, around 80% of the US and Canadian population are aware of connected cars.

Europe & Asia Pacific (APAC)

On the other hand, Europe and the Asia-Pacific region are expected to witness remarkable growth in the smart transportation market. Europe's smart transportation market was valued at USD 23.29 billion in 2016 and is expected to reach nearly USD 100 billion over the forecast period i.e. 2016-2024. A growing number of auto sales in the United Kingdom and Germany are going to mount the connected car services in the region. Asia-Pacific region is anticipated to hold a 24% share of the global smart transportation market in 2024. Nearly 10% of the total revenue of connected cars was generated from Japan and South Korea in 2016.

Latin America and Middle East & Africa (MENA)

Latin America and Middle East & Africa together are projected to hold approximately a 5% share of the smart transportation market in 2030. The number of auto-sale is increased in Brazil and Mexico from the past few decades. However, due to the lack of efficient transport infrastructure and awareness among the population is limiting the market for smart transportation in the region. Latin America's smart transportation market accounted for nearly USD 1.4 billion in 2016. Owing to the rising government investment for improvement and enhancement of transport infrastructure is expected to boost the market of smart transportation in the Middle East & Africa region.

Market Dynamics

Factors Increasing Demand for Smart Transportation Solutions

Rising population and urbanization across the globe is increasing the need for improvement in the public and private transportation system. The strong involvement of the government in the development of transportation facilities is increasing the investment in smart technology-based projects. Smart transportation is ensuring the safety of people as prior availability of traffic and speed-related information is reducing the delay and number of accidents. Smart transportation is environment friendly and helps in keeping the ecosystem clean and safe. A smart vehicle reduces the harmful vehicle emission which is a step towards safe environment. These are some of the key factors which are driving the market for smart transportation across the globe.

Major Barriers to Market Growth

The high initial investment in improving the infrastructures of the existing transportation industry is obstructing the growth of the smart transportation market. Improvement of existing roads or rail projects requires a long time period which creates an obstacle for pedestrian and day to day communication gets affected. The long span of projects with huge financial investment is also a major challenge for the smart transportation market players. The complexity of infrastructure and limited availability of data that can monitor the transportation system is restraining the adoption of smart technology in the transportation industry. Lack of internet penetration in developing and underdeveloped countries is a challenging factor to expand the market and increase the adoption rate of smart transportation.

Market Opportunities for the Existing and Entry Level Players

• Smart transportation facilities for elderly consumers and people with a physical disability will increase the adoption rate of technology in the near future
• Real-time data accessibility about current traffic condition and parking space is expected to bring better business opportunities for smart transportation
• Increasing adoption of the rate of green fuel is aiming to reduce vehicle emissions and enhance environmental safety. High productivity of vehicles is boosting the sales of connected cars

Key Market Players

Priorities of the Key Players

Key industry players are also participating in accelerating the deployment of innovative and advanced transportation systems, globally. Cubic Corporation merged with a German transportation company EssenerVerkehrs-AG to go for pilot trial of NextAgent Solution in March 2016. extent system is a transport ticketing vending machine which can interact with customer linking video call. Whereas, Alstom, France based transportation solution company, is contributing to the progression of rail transportation by providing advance solutions for metro and high-speed trains. Top market players are targeting to launch new products and adopting strategic investments through acquisitions partnerships, which raise the competition in the transportation industry. This competitiveness in business is likely to drive the smart transportation market during the forecast period i.e. 2017-2030.

Major Players Covered in the Report

• Cisco Systems, Inc
• General Electric Company
• Siemens AG
• IBM Corporation
• Alstom
• Cubic Corporation

Covered in this Global Smart Transportation Market Report

Market Synopsis

Market Segmentation

The global smart transportation market is segmented as follows:

• By Components (Market Size, Demand Analysis, and Growth Analysis)
• By Application (Market Size, Demand Analysis, and Growth Analysis)

By Regions

• North America (U.S., Canada) {Market Size, Growth Analysis, and Opportunity Analysis}
• Latin America (Argentina, Mexico, Brazil and Rest of Latin America) {Market Size, Growth Analysis, and Opportunity Analysis}
• Europe (Germany, Italy, Spain, France, The U.K., Netherlands, Sweden, Hungary, Russia, Poland, Rest of Europe) {Market Size, Growth Analysis and Opportunity Analysis}
• Asia-Pacific (China, India, Singapore, Japan, Hong-Kong, Australia, New Zealand, South Korea and Rest of Asia Pacific) {Market Size, Growth Analysis and Opportunity Analysis}
• The Middle East and North Africa (MENA) {Market Size, Growth Analysis, and Opportunity Analysis}
• Rest of World  {Market Size, Growth Analysis, and Opportunity Analysis}

Market Dynamics: Growth Drivers, Restraints and Opportunities

• Risk Factors
• Regional Variations
• Recent Trends and Developments

Key Market Players

• Synopsis
• Business Strategy
• Product Portfolio
• SWOT Analysis

Porter’s Five Force Model

Market Landscape: Competition and Beyond

Market outlook for business players and entry-level players to ascertain their business in a dynamic ecosystem

Expert Analysis

Concluding Remarks

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Why Buy the Report

• To build a business strategy by identifying the high growth and attractive Smart Transportation market categories
• To identify the growth drivers, opportunities, potential target countries and challenges of the smart transportation market
• To develop a competitive strategy based on the competitive landscape of the major players
• To design capital investment strategies based on forecasted high potential segments
• To identify potential business partners, acquisition targets and business buyers
• To plan for a new product launch and inventory in advance
• To extract the vital information to grow/establish a business with competitive situation and trends, concentration rate of mergers & acquisitions and expansion provided in the report