Global smart transportation market expected to reach US$237,701 million by 2022
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According to a new report published by Allied Market Research, titled, “Smart Transportation Market by Solution and Service: Global Opportunity Analysis and Industry Forecast, 2014-2022,” the global smart transportation market was valued at US$63,667 million in 2015, and is expected to reach US$237,701 million by 2022, growing at a CAGR of 18.6 percent from 2016 to 2022. Cloud services segment is anticipated to dominate the market during the forecast period. Europe was the dominant region, accounting for approximately 33 percent share of the smart transportation market revenue in 2015.
Rise in number of vehicles results in high traffic congestion, leading to the requirement of smart transportation network to ease traffic congestion, enhance the safety, sustainability, and efficiency of transportation network. In addition, most consumers are now demanding smart transportation options that can easily navigate the roads with the least possible scope of congestion. The increasing government support and investments towards development of smart cities provides a major boost to the market. For instance, the Government of India aims to develop 100 smart cities by using smart technology to improve the efficiency of services and meet the residents’ needs. However, the need for high capital investment, owing to the complete restoration of the existing transport system, restrains the market growth.
“Smart transportation system is a necessity, owing to the rising demand for efficient transportation networks worldwide. These systems have witnessed the highest growth in cloud services segment, due to the advancement in technology and increased demand for storage, access, and management of data remotely. In addition, parking management systems are expected to increase their market share at a notable rate. Asia-Pacific and Brazil possess enormous opportunities for the players operating in the smart transportation systems market.” states Sheetanshu Upadhyay, research analyst at Allied Market Research.
“However, the parking management system market is anticipated to witness the highest growth, with a CAGR of 18.8 percent from 2016 to 2022.”
The solutions segment is divided into hybrid ticketing management system, parking management & guidance system, integrated supervision system, and traffic management system. In 2015, traffic management system accounted for the largest revenue, owing to rapid urbanization and the emerging concept of smart cities and smart traffic. However, the parking management system market is anticipated to witness the highest growth, with a CAGR of 18.8 percent from 2016 to 2022.
The service segment is further divided into business, professional, and cloud services. In 2015, cloud services generated the largest revenue, owing to rapid increase in demand for cloud services smart transportation system. However, this segment is anticipated to witness the highest growth over the forecast period, with a CAGR of around of 18.8 percent from 2016 – 2022.
Europe held the largest market share in 2015, and is anticipated to maintain its dominance throughout the forecast period. This is due to increase in demand for smart transportation and concern of users towards the environment. Additionally, investments in emerging smart cities would create growth opportunities for the smart transportation market in the region.
Questions & Answers
Q.What are the primary drivers for the growth of the smart transportation market?
What are the primary drivers for the growth of the smart transportation market?
The market is driven by the need to ease traffic congestion, enhance safety and efficiency, and meet consumer demand for smart transportation options. Increasing government support and investments in smart city development also boost the market.
Q.Which regions are identified as holding significant opportunities for smart transportation market growth?
Which regions are identified as holding significant opportunities for smart transportation market growth?
Asia-Pacific and Brazil possess enormous opportunities for companies operating in the smart transportation systems market. Europe is also expected to maintain its dominance throughout the forecast period.
Q.What is preventing faster growth in the smart transportation market?
What is preventing faster growth in the smart transportation market?
The market growth is restrained by the need for high capital investment. This is due to the complete restoration required for existing transport systems, which can be costly.
Q.Which specific segments within smart transportation are expected to see the highest growth rates?
Which specific segments within smart transportation are expected to see the highest growth rates?
The parking management system market is anticipated to witness the highest growth, with a CAGR of 18.8 percent from 2016 to 2022. The cloud services segment is also expected to have the highest growth over the forecast period at around 18.8 percent.
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