According to a new market research report, the Smart Transportation Market size is projected to grow from €80.3bn in 2020 to €133.1bn by 2025, at a Compound Annual Growth Rate (CAGR) of 10.6%.
The new market research report “Smart Transportation Market by Transportation Mode (Roadways, Railways, Airways, and Maritime), Solution (Smart Ticketing, PIS, Freight Management), Service, Communication Technology, Application, and Region – Global Forecast to 2025”, was published by MarketsandMarkets in July 2020.
The major factors driving the growth of the Smart Transportation Market include technological advancements to enhance customer experience, growing government initiatives and PPP models for smart transportation, rising urban population and high demographic rates, and growing adoption of IoT and automation technologies to enhance technological optimisation.
Road transport tops bill
By transportation mode, the roadways segment is set to lead the market during the forecast period. With the growing adoption of intelligent mobility solutions in major cities across the globe, the Smart Transportation Market in the field of road transportation has been growing in recent years. Significant growth in the volume of vehicular traffic across the world over the last couple of decades and the inability of the existing transport infrastructure to support this are increasing the focus on the monitoring and managing of vehicular movement and ensuring smooth traffic flow. In addition to the advent of these smart technologies, a remarkable increase in governmental patronage and financial support toward revamping the transportation industry can be accredited to the rapid progression of this business space.
Passenger information solutions are an important link between passengers and transit service providers. They provide real-time information on transit services, such as current location, estimated arrival and departure time, and the causes for disruption. A smart passenger information system includes GPS-enabled devices, strong wireless networks, and Computer-Aided Dispatch/Automatic Vehicle Location (CAD/AVL) software. The upgradation of aging passenger information solutions with advanced passenger information solutions that provide real-time information about the transportation system is a major growth factor for the smart passenger information systems and solutions. The exponential growth in smartphone usage and advancements in network infrastructure enable transport authorities to provide timely status and update in a cost-effective way.
Rail traffic management in the railways transportation mode to lead the market during the forecast period
The rail traffic management system allows centralised supervision and traffic control of an entire rail network. Entire rail operations can be regularised from a central control system. The central administration system uses real-time data over high-speed communication links across trains and rail infrastructures to automate the traffic. The adoption of smart communication solutions across varied applications of railway management will improve timely decision-making for issues, such as asset deployment, utilization, and maintenance.
Smart ticketing solutions in air transport to grow at a higher CAGR during the forecast period
The smart ticketing solution is an innovative method for ticketing and the related processes in the aviation industry. With the growth of various smart technologies and other transport systems, the smart ticketing in aviation is also witnessing various developments globally. It comprises other solutions, such as ticket machine, eTicket, eKiosk, smart ticketing system, eToll, request tracker, and other solutions. The deployment of smart ticketing technology equips airlines with efficient features, such as self-boarding and self-luggage handling, and helps the airport authority to handle manual operations at peak hours. Hence, the convenience associated with smart ticketing solutions is expected to influence the airline industry during the forecast period.
Specific software solutions in maritime transport to lead the market during the forecast period
Maritime software is the specially designed enterprise software for the shipping companies. It is a completely integrated software that enables the shipping lines to perform ship management and fleet management operations. The software takes care of all shipping activities involved in waterway transportation, such as marine accounting and Management Information System (MIS), vessel performance, claim and insurance, bunkering, voyage estimation, dry docking, risk management, and crewing. These systems are the most important software for the shipping companies because the software enhances operational efficiency and reduces the operation and maintenance cost.
Asia Pacific holds highest market share during the forecast period
APAC is expected to be the fastest-growing region in the Smart Transportation Market, due to the increasing adoption of new technologies, rising investments for digital transformation, and growing GDP in APAC countries. A majority of the potential economies in the region include Australia, Singapore, China, Korea, Hong Kong, and India, which are said to rapidly invest in technological transformation. 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 markets, high penetration of advanced technologies, growing freight usage in various industries, and economic developments and government regulations are expected to drive the Smart Transportation Market growth at the highest rate during the forecast period.