The global smart transportation market was valued at USD 110.53 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 13.0% from 2023 to 2030. This growth is primarily driven by several key factors, including advancements in urban infrastructure projects, government initiatives aimed at reducing greenhouse gas emissions, and the increasing demand for advanced technology integration in traffic control systems. Many cities around the world face significant challenges such as a lack of quality public transportation, insufficient capacity to manage increasing transit demand, safety concerns on the roads, poor traffic management, and issues with parking availability. Additionally, pedestrian infrastructure is often inadequate. These challenges create a growing need for smart transportation systems, which can provide solutions to these problems and improve urban mobility. As cities expand and populations grow, the demand for efficient, safe, and sustainable transportation systems is expected to rise sharply in the coming years.

Several trends contribute to the momentum of the smart transportation market. For example, urbanization is a major driver, as more people move to cities, increasing the demand for efficient public transportation systems. The widespread acceptance of Internet of Things (IoT)-based technology and the expansion of 5G connectivity also play a crucial role in making smart transportation infrastructure more feasible and easier to implement. These technologies enable real-time data exchange, improve traffic management, and enhance vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications, all of which help optimize the transportation network.

Moreover, the COVID-19 pandemic temporarily disrupted transportation systems worldwide, with travel restrictions severely affecting the movement of people and goods. This led to a significant decrease in revenues and growth for the transportation sector, as well as a decline in people's disposable income. Public transportation, being highly vulnerable to disease outbreaks, faced particular challenges. As a result, many travel organizations are now focusing on making data-driven decisions to improve service offerings, enhance safety, and rebuild consumer trust. This situation has also heightened the demand for private transportation services, such as ride-sharing and private car services, as people become more cautious about using crowded public 

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Regional Insights

North America

In 2022, North America captured over 33% of the global market share for smart transportation solutions. The region stands as the largest adopter of these technologies, primarily due to the increasing efforts of regional governments to improve transportation infrastructure. Factors such as congested highways, poor air quality, and a rise in highway accidents and fatalities are driving the need for advanced transportation systems. The U.S., in particular, is home to many major companies in the ICT sector that provide smart transportation solutions, further strengthening the region's dominance in the market.

In addition to this, other prominent transport infrastructure companies in North America are increasingly collaborating to innovate and expand smart transportation systems. These collaborations often leverage a wide range of technical expertise to create solutions that benefit the entire region. A notable example of such collaboration occurred in November 2022, when Iteris, Inc. entered into a four-year agreement with the North Carolina Department of Transportation (NCDOT) to enhance mobility across the state using Iteris’ ClearGuide system. This system helps to analyze and visualize traffic data in real time, improving traffic flow and safety on the roads.

Europe

Moving to Europe, the region is expected to see substantial growth opportunities in the smart transportation market, driven by rapid technological adoption and growing traffic congestion in major cities. In addition to the increasing use of cars, which results in rising parking challenges, there is also a global shift towards more efficient transportation systems. This shift, coupled with semi-autonomous and autonomous vehicle technologies, is expected to accelerate the development of intelligent transportation solutions in Europe.

For instance, in January 2022, Kapsch TrafficCom AG introduced All-Electronic Tolling (AET) at toll plazas in New Hampshire. AET eliminates the need for traditional toll booths, allowing for free-flowing traffic by using license plate reading cameras, sensors, and in-pavement treadles to automatically charge vehicles without a transponder. This solution not only reduces congestion at toll plazas but also provides faster travel times and greater convenience for drivers.

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Key Companies & Market Share Insights

The smart transportation market is highly competitive, with numerous established players dominating the space. These companies cater to various sectors within the market, including automotive, infrastructure, IT, and telecommunications. The presence of these large players presents a significant barrier to entry for new companies. However, the growing demand for differentiated smart transportation solutions and the continuous technological advancements in the field offer opportunities for new entrants to make their mark.

To gain a competitive edge and strengthen their market position, key players in the industry are focusing on strategic partnerships and collaborations. One such example is Iteris, Inc., which announced in October 2022 that it had received approval from the City of Anaheim to implement its cloud-enabled managed services as part of a regional smart mobility, security, and sustainability program. These services are designed to reduce traffic congestion, improve safety, and create a more sustainable transportation infrastructure. By leveraging cloud-based technologies, Iteris helps manage key transportation operations effectively, ensuring a more robust and equitable system for the city.

Key Smart Transportation Companies

Some prominent players in the global smart transportation market include:

• Accenture PLC

• Alstom, SA

• Cisco System, Inc.

• Cubic Corporation

• General Electric Company (GE)

• Indra Sistema S.A.

• International Business Machines Corporation

• Kapsch

• LG CNS Corporation

• Xerox Holdings Corporation

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