Smart transportation market to reach $285.12 billion by 2024
The global intelligent transportation system (ITS) market size was valued at $44.26 billion in 2015 and is anticipated to reach a market size of $285.12 billion by 2024. The market is expected to grow at a rapid pace over the forecast period, according to the report, “Intelligent Transportation System Market Size & Forecast Report, 2014-2024,” published by Grand View Research and distributed by Million Insights.
The ITS is a transportation structure that combines the use of artificial intelligence (AI) along with information technology to effectively coordinate and manage transportation systems. It is primarily concerned with efficiently managing the rail, air, and road transportation modes and allied transport infrastructure.
The application of a smart transportation network provides drivers with enhanced knowledge of traffic to enable better coordination and safety of drivers. Planning smart cities aids municipal authorities and governments because it helps to reduce vehicle emissions.
The global smart transportation market is poised for growth because of the increasing need to improve the performance of prevailing transportation networks and the rising focus on road safety. Major long-term drivers of the market include demographic and economic growth in emerging economies. In developed countries, the growth of the market is connected to the need to improve the prevailing infrastructure as well as the increased awareness of environmental and sustainability issues. Traffic congestion due to the greater number of vehicles on the roads has contributed to the requirement for advanced public traffic management systems. Consequently, the need for smart vehicles with public and private partnerships is also projected to be a key opportunity for growth over the next eight years.
The increase in sales of automobiles worldwide is increasing traffic congestion as well as the need for smart transportation systems. The rising awareness of safety among drivers is also expected to favorably impact the growth of the global smart transportation market. Government initiatives such as the EU Directive on intelligent transportation systems have been passed to effectively manage traffic on the road. These directives will help in saving fuel as well as time. Several other governments, including in the UK, have shown interest in deploying smart transportation systems across their countries. This is expected to further increase the demand for smart transportation systems.
However, the major restraint for the overall market includes the need for huge capital investment since the prevailing transportation systems require complete redesign. In addition, for the implementation of smart transportation systems to be possible, a large database of road networks is required. Such databases are unlikely to be available in developing countries. This factor will limit the growth of the market. Moreover, a certain amount of downtime is essential to update the infrastructure to deploy smart transportation systems. The need for downtime would create a major hindrance for updating systems, as it would mean a total halt in the routine travel of passengers.
The global smart transportation market is segmented on the basis of solutions, services, and green/smart fuels. The market is classified regarding solutions for parking guidance and management, integrated supervision, traffic management, ticketing management, and passenger information systems. The area of ticketing management systems is expected to generate the maximum revenue since it is an elementary element of transportation infrastructure that is easily implemented. Additionally, the integrated supervision system is anticipated to witness the maximum growth potential since it reduces accidents and traffic jams and also provides enhanced safety measures.
On the basis of services, the market is segmented into professional services, cloud services, and business services. The segment generating maximum revenue includes professional services; the cloud services segment is expected to witness the fastest growth rate since the system would generate a considerable amount of data that would be stored in the cloud. On the basis of green/smart fuels, the smart transportation market is segmented into ethanol, wood-gas, biogas, hydrogen, and solar-cell. Presently, ethanol is generating the highest revenue, as it is used as a biofuel stabilizer to reduce pollution. However, solar-cell is projected to witness the highest rate of growth over the forecast period.
North America emerged as the most dominant region for the global smart transportation market because of various factors including growing demand across public and private sector, promotional activities, and government initiatives, particularly across the U.S. Asia-Pacific is projected to have significant growth over the next eight years. This growth can be attributed to the intensive research and development and regulatory activities in the emerging nations, including Japan and India.
The prominent strategies practiced by the major industry participants feature customized solutions, mergers and acquisitions, innovative technologies, partnerships, and new product developments. Key market players include General Electric Company, Accenture PLC, Cubic Corporation, LG CNS, Cisco Systems, Inc., IBM Corporation, Indra, Kapsch, Xerox, Schneider Electric, Alstom SA, and Siemens.
For more information or to order a copy of the report, go to https://www.millioninsights.com/industry-reports/smart-transportation-market.