The transportation system is managed and coordinated effectively with the help of the smart transportation. This is done by using artificial intelligence and information technology. Smart transportation helps in the easy flow of traffic and makes driving comfortable for drivers.
The smart transportation market growth as we can see is driven by the time and fuel saving ability of the infrastructure. Supportive government initiatives, such as by the European Union (EU) and Directive on Intelligent Transport System (ITS) is also anticipated to favour the industry growth over the forecast period.
In addition to that, we can say smart transportation systems can provide better safety and security by integrating intelligent communication systems in the infrastructure, thus, supplementing the market growth. ITS also encourages the development and promotion of substitute green fuels such as natural gas and biodiesel.
The major drivers of an upsurge in the demand for the market include rising demand for integrated security & safety for enhancing public safety and government initiatives to incorporate smart technologies in the existing transportation infrastructure.
The smart transportation market size is expected to grow from US$ 72.05 bn in 2016 to US$ 220.76 bn by 2021, at a Compound Annual Growth Rate (CAGR) of 25.1% during the period 2016–2021.
However, the need for high capital investment, owing to the complete restoration of the existing transport system, and large database requirement of the road network, which may not be possible in developing nations, restrain this market growth.
As per the geographic analysis, Europe is expected to have the largest market share. Europe is expected to benefit from its rapid digitization across verticals. Increasing adoption of smart connected devices and technological advancements, followed by a robust network infrastructure and strong government vision toward smart transportation is expected to drive the continuous growth in the smart transportation market whereas North America is expected to remain the leader in the future.
APAC is emerging and is expected to surpass Europe by 2021 because of the ever-increasing population and the greater need for smart systems. Emphasis has been laid on the various systems that can be used to make urban transport smarter.
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, as a result of business strategic moves, such as improved infrastructure and implementation of various smart city projects.
The smart transportation ecosystem includes technology vendors such as,
Alstom SA (Levallois-Perret, France), General Electric Company (Massachusetts, U.S), IBM Corporation (New York, U.S.), Cisco Systems, Inc. (California, U.S.), Cubic Corporation (California, U.S.), Indra Sistemas S.A. (Madrid, Spain), Siemens AG (Munich, Germany), Kapsch TrafficCom AG (Vienna, Austria), TomTom International B.V. (Amsterdam, Netherlands), LG CNS Co. Ltd. (Seoul, South Korea), Q-Free ASA (Trondheim, Norway), Thales Group (La Defense, France), and WS Atkins (Epsom, U.K.) offer numerous solutions and services for the smart transportation market.