The global smart transportation market is estimated to reach a market size of US$285.12 billion by 2024, according to a new study by Grand View Research. The growing number of on-road vehicles and the ineffective existing transport infrastructure will drive the need for an efficient management system. Favourable government initiatives toward building a better infrastructure and running the transport system smoothly are expected to boost the industry growth.
Increasing investments in the smart city product is anticipated to open new avenues for growth in the coming years as smart transportation is an integral part of the smart city. The increasing government focus on reducing greenhouse gas emissions and rising traffic congestion is anticipated to drive the industry growth over next eight years. The growing number of government mandates by the European Union and Directive on Intelligent Transport Systems is also anticipated to favour the industry growth over the forecast period.
The requirement for huge capital to replace existing infrastructure with smart technologically advanced systems is expected to hinder industry growth. The long downtime for replacing existing systems may also pose a challenge to its growth and affect the daily commutation activities.
Key solutions available in the market include ticketing management systems, parking management systems, integrated supervision systems and traffic management systems. The integrated supervision systems is used for reducing traffic blocks, minimising accidents and providing better safety measures and holds high growth potential.
Key services include cloud, business and professional services. The cloud service segment is anticipated to witness a surge in the demand, owing to the requirement for the storage of data generated through these systems.
Professional service vendors offering consulting services may witness an increase in demand over the next eight years, owing to the requirement of services for upgrading the existing infrastructure.
The North American region accounted for over 27 per cent of the global revenue share in 2015 and Asia Pacific is estimated to be the fastest-growing segment, offering lucrative growth opportunities for the industry players. The increasing concentration of leading vendors for expansion and technological advancement in this region is expected to favour the regional growth over next eight years.
European Union and government initiatives towards enhancing transport infrastructure are also expected to favour European market growth. The Middle East is anticipated to witness an upsurge in the demand, owing to the increasing government investment in the transport infrastructure.
Increasing investments in the smart city product is anticipated to open new avenues for growth in the coming years as smart transportation is an integral part of the smart city. The increasing government focus on reducing greenhouse gas emissions and rising traffic congestion is anticipated to drive the industry growth over next eight years. The growing number of government mandates by the European Union and Directive on Intelligent Transport Systems is also anticipated to favour the industry growth over the forecast period.
The requirement for huge capital to replace existing infrastructure with smart technologically advanced systems is expected to hinder industry growth. The long downtime for replacing existing systems may also pose a challenge to its growth and affect the daily commutation activities.
Key solutions available in the market include ticketing management systems, parking management systems, integrated supervision systems and traffic management systems. The integrated supervision systems is used for reducing traffic blocks, minimising accidents and providing better safety measures and holds high growth potential.
Key services include cloud, business and professional services. The cloud service segment is anticipated to witness a surge in the demand, owing to the requirement for the storage of data generated through these systems.
Professional service vendors offering consulting services may witness an increase in demand over the next eight years, owing to the requirement of services for upgrading the existing infrastructure.
The North American region accounted for over 27 per cent of the global revenue share in 2015 and Asia Pacific is estimated to be the fastest-growing segment, offering lucrative growth opportunities for the industry players. The increasing concentration of leading vendors for expansion and technological advancement in this region is expected to favour the regional growth over next eight years.
European Union and government initiatives towards enhancing transport infrastructure are also expected to favour European market growth. The Middle East is anticipated to witness an upsurge in the demand, owing to the increasing government investment in the transport infrastructure.
