Smart transportation is one of the major internets of things vertical applications. It works by integrating the application of modern technologies and management strategies in transportation systems. Smart transportation comprises of many technologies starting from basic management systems such as, traffic signal control systems, car navigation, automatic number plate recognition, speed cameras, container management systems, and more progressive applications that communicate live data and feedback from numerous sources. Smart transportation systems do not only save time but also lower business loss and improves transport safety.
Global Smart Transportation Market: Growth factors
Key factors augmenting the growth of the global smart transportation market include increasing traffic congestion problems, rising concerns toward public safety, favorable government initiatives for effective traffic management, growing preferences for eco-friendly automobile technologies, and smart cities initiatives around developing countries. With the growing implementation of digital technologies, small and mid-sized companies are now focusing on intelligent transport solutions to reduce the losses during the goods transport and increase the safety of people. Also, several governments around the world are focusing on the development of efficient transport solutions. Combinedly, these all factors will provide a better growth opportunity for the global smart transportation market. On the other hand, the high cost associated with the smart transportation systems may hamper the growth of the market. Smart transportation systems require a centralized traffic management center that can work with real-time data and provides feedback to operators in order to take correct decisions. However, to set such a sophisticated system, high investment is required that cannot be afforded by small enterprises.
COVID 19 pandemic hit several industries around the world and transportation is one the severely affected sector among them. Strict regulations on transportation to control the disease spread has affected the transportation industry and developments planned in this sector. Smart transportation system providers have their manufacturing units spread across various countries in North America, Europe and the Asia Pacific, and the majority of the parts in these regions are severely affected by COVID 19, hence disruption of the supply chain in this region has marginally affected the global smart transportation market growth.
Global Smart Transportation Market: Segmentation
The global smart transportation market is bifurcated based on systems, applications, and region. The systems segment is further divided into an advanced traffic management system, ITS-enabled transportation pricing system, and others. Among these, advanced traffic management system segment holds the largest share of the market. Severe traffic situations, a growing number of vehicles owing to rising disposable income in developing countries, and rising need for surveillance of road accidence are some of the factors fueling the growth of the global smart transportation market. Based on the application segment, the market is further bifurcated into fleet management & asset monitoring, passenger information management, parking management, collision avoidance, emergency vehicle notification, and other applications.
Global Smart Transportation Market: Regional Analysis
The Asia Pacific is expected to grow with the highest CAGR during the forecast period. Growing digitalization, expanding business, rising the need for transportation, high vehicle number, government initiatives for smart roads, availability of low-cost materials, a growing percentage of road surveillance by real-time monitoring systems, etc. are the factors contributing to the growth of the smart transportation market in this region. On the other hand, North America held the largest share of the market in 2019. Well-established transportation industry with high adoption of newer monitoring and communication techniques, the government initiatives to produce hi-tech transportation systems, and the presence of major market players are some of the reasons causing healthy growth of the market in this region. Europe is projected to stay in the second position in the global smart transportation market in terms of revenue generation. The market in Europe is growing at a significant rate; well-developed countries such as Germany, the United Kingdom, Italy, Spain, and France in this region are major revenue contributors for the smart transportation market in Europe.
Global Smart Transportation Market: Competitive Players
Major players operating in the global smart transportation market include Cubic Corporation, IBM Corporation, Cisco Systems, Inc., Indra Sistemas S.A., Alstom SA, General Electric Company, TomTom International B.V., LG CNS Corporation, Thales Group, and Xerox Corporation.
