Smart transportation market is expected to cross $130 billion by 2024, according to a new research report by Global Market Insights, Inc. The smart transportation market growth is attributed to the worldwide government initiatives for the smart city development. Around $1 billion of connected things are mounted across the globe under the smart cities projects. Smart transportation being an integral part of smart cities project provides a platform for connected vehicles. The mandates set by the government, such as Directive on Intelligent Transport Systems and Bharat Stage standards, to reduce the CO2 emissions and to protect the environment also provide an impetus to the growth of the transportation market.
Rapid urbanization and improved lifestyle have transformed the transportation infrastructure thereby driving the market demand. The smart systems help the users in dealing with over speeding, bad weather conditions and heavy traffic, thus avoiding collisions and enhancing the user experience. Various connected technologies, such as IoT, smart sensors and GPS, provide real-time information about traffic congestion in different areas, assisting the drivers in taking alternative routes. These systems reduce passengers’ travel time, improving the productivity and leading to the overall economic development of the country. However, the huge capital investment and time required to complete the transformation process of the existing infrastructure and transportation systems may hinder the market growth.
Roadways account for the largest market share in the smart transportation market, followed by railways and airways. Railways are anticipated to grow at a fast pace over the forecast period due to factors such as cheaper transport fare and government investments in developing smart railway systems. Airways are the preferred mode for freight transportation and airports worldwide have been investing in various smart technology solutions to reduce air traffic congestion and delays. For instance, in 2017, airlines and airports invested around $33 billion to improve the airport infrastructure by going through a digital transformation mainly focused on providing self-service processes at bag-drop, check-ins and boarding using new technologies such as IoT, sensors and beacons.
North America accounts for the highest share in the smart transportation market due to the use of advanced technologies, high disposable income and improved lifestyle. Moreover, the growing demand for connected cars due to factors such as fast Internet speed and the emergence of IoT further drives the market growth. The United States accounts for 70 percent of the market in North America owing to the various automotive companies pouring huge funds to develop smart-connected vehicles. For instance, in 2017, Warren Buffett invested $10 billion for bringing about developments in the U.S. airline industry.
To read the report, click here, and to read the press release, click here.
