Dublin, Ireland (Urban Transport News): A team of reserachers from Research and Markets has published a forecast titled "Smart Transportation Market by Transportation Mode, Product Type (Solutions & Services), Application (Mobility as a Service, Route Information, Route Guidance, Public Transport, Transit Hubs, Connected Cars), and Region - Global Forecast to 2028".
According to the report, the global smart transportation market is expected to reach $33.6 billion by 2028, growing at a CAGR of 17.5% during the forecast period of 2021 to 2028. The report is based on in-depth analysis of smart transportation market in five major geographies and emphasizes on the current market trends, market size, market share, recent developments, and forecast till 2028.
The growth of smart transportation market is attributed to the rapid urbanization and increasing demand for efficient transportation, rising government focus on reducing greenhouse gas emissions and curbing alarming levels of traffic congestion, and increasing investments in smart city projects.
In addition, the emergence of autonomous vehicles offers significant growth opportunities for the smart transportation market. However, the high initial cost of deployment and stringent transportation regulatory policies obstructs the growth of this market up to some extent.
Based on transportation mode, the smart transportation market is broadly classified into roadways, railways, airways, and maritime transportation. In 2021, the roadways segment is expected to command the largest share of the overall smart transportation market.
Rising need for better and sustainable roadways, increasing demand for safer roads, and reducing traffic congestion, government initiatives for smart roadways are driving the growth of this segment. In addition, the growing trend toward the adoption of smart cities is also expected to drive market growth. However, the railways segment is expected to grow at the highest CAGR during the forecast period.
Based on product type, the smart transportation market is broadly classified into solutions and services. In 2021, the solutions segment is expected to command the largest share of the overall smart transportation market. However, the services segment is expected to grow at the highest CAGR during the forecast period.
The growing concern of organizations to gain visibility for diagnosing and troubleshooting problems before they impact operations or end-user experiences will drive the adoption of smart transportation services. Furthermore, technical support and upgradation of smart transportation solutions are also necessary to ensure optimum utilization of these solutions, which supports the growth of the smart transportation services market.
Based on application, the smart transportation market is broadly classified into mobility-as-a-service, route information and route guidance, public transport, transit hubs, connected cars, and other applications. In 2021, the route information and route guidance segment is expected to command the largest share of the overall smart transportation market.
Optimization of routes can solve key issues associated with modern transportation systems such as monitoring, traffic management, and the growing number of road accidents. This has encouraged the need for route information and route guidance systems.
Geographically, Europe commanded the largest share of the global smart transportation market in 2020. The European region is the most advanced region in terms of technology adoption and infrastructure development. The European countries have been investing majorly in the modernization and upgradation of rail infrastructure.
Countries from Western Europe, such as the U.K, France, and Germany, have well-established transportation infrastructure, and several transportation operators in the region are using some of the advanced smart transportation solutions. Thus, the major factors contributing to the growth of the market include the rising government spending on improving the urban transport and traffic system of the region, especially in the U.K and France.
Moreover, the increasing cross-border trade has increased the region's traffic, leading to the rising demand for smart transportation in the European economies.