Smart transportation is a collection of technologies that provide integrated services for transportation systems and enable users to be better informed and make safer, smarter and more coordinated travel decisions through solutions like computer software, sensors, and other telecommunication equipment. Implementation of smart transportation services allows for collection of real-time traffic data, better monitoring and control of transportation infrastructure and ultimately smoother and greener transportation systems with reduced traffic congestion.
The global Smart Transportation Market is estimated to be valued at US$ 122.4 Bn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the growth of the smart transportation market is increased urbanization. Rising levels of urbanization globally have led to rapid increase in population and traffic congestion levels in cities. This has prompted governments and municipalities to invest heavily in development of smart transportation infrastructure and integrated mobility solutions. According to the United Nations, currently 55% of the world’s population lives in urban areas and it is estimated that by 2050, 68% of the global population will be residing in cities. This increased urbanization will significantly increase demand for smart and sustainable mobility across major cities around the world.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate as high capital is needed to enter the market. Bargaining power of buyers: The bargaining power of buyers is high as there are many existing vendors providing transportation solutions. Bargaining power of suppliers: The bargaining power of suppliers is moderate as vendors can switch between suppliers. Threat of new substitutes: The threat of new substitutes is moderate as new technologies are emerging. Competitive rivalry: It is high as vendors compete on technology, pricing and services.
SWOT Analysis
Strength: It provides efficient transportation solutions. Wide variety of tech-enabled products and services.
Weakness: High investment needs for infrastructure development. Complex integration with existing systems.
Opportunity: Growing investment in smart cities projects. Increasing adoption of IoT and connectivity solutions.
Threats: Data privacy and security concerns. Lack of common standards delays large scale implementation.
Key Takeaways
The global Smart Transportation Market Demand is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing urbanization and demand for efficient transportation solutions. The market size for 2023 is US$ 122.4 Bn. Asia Pacific region dominates the market and is expected to grow at fastest pace due to growing investment in smart cities projects by China, India and other developing countries in the region.
Regional analysis Europe is another major market for smart transportation owing to supportive initiatives by European Commission for deployment of smart and clean transportation infrastructure. North America is also among the early adopters of smart transportation due to significant focus on innovating transportation solutions and services especially in the US.
Key players operating in the smart transportation market are Thales Group, Alstom, Huawei, Hitachi, Siemens, Cisco Systems, IBM, Microsoft, Intel, Qualcomm. Key players are focusing on partnerships, mergers and acquisitions to expand their product and service portfolio as well as customer base.
For more insights, Read-
https://www.insightprobing.com/smart-transportation-market-growth-market-size-share-analysis/
