Smart transport market to be worth almost $150B by 2023
According to the latest reports from Marketsandmarkets, the smart transportation market size is estimated to be USD 75.00 billion in 2018 and expected to reach USD 149.21 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 14.7% during the forecast period.
The major factors expected to drive the growth of the smart transportation market cited by the analysts include the rising urban population and high demographic rates, the growing adoption of connected and smart technologies in the transportation infrastructure, and the increase in free trade agreements. Government initiatives for smart cities and government authorities are adopting Public Private Partnerships (PPP) working models, which is also propelling the growth of the smart transportation market.
The airways segment is expected to grow at the highest CAGR during the forecast period. The demand for aviation services has increased significantly in the last decade. With the improvement in living standards and reduction in the cost of air travel, air transport has become affordable to many more people. It has increased the demand for commercial aircraft. New technologies and digitalisation of services are driving the airlines industry to ensure smooth maintenance, reduce operating costs, and take advantage of the increase in air travel.
The solution subsegment in the roadways segment is expected to account for the larger market share during the forecast period. The solution subsegment includes passenger information, traffic management, smart ticketing, parking management, freight information, and vehicle telematics.
According to Marketsandmarkets, the APAC area is expected to be the fastest-growing region for the smart transportation market during the forecast period, due to the increase in the adoption of new technologies, high investments for digital transformation, and rise in Gross Domestic Product (GDPs) of countries in the region. The majority of the potential economies in this region, such as Australia, Singapore, China, Korea, Hong Kong, and India, are said to be rapidly investing in technological transformation for improving infrastructure and implementing various smart city projects. Untapped potential industries, high penetration of advanced technologies, growth in freight use in various industry verticals, and economic developments and government regulations are expected to drive the smart transportation market growth at the highest rate during the forecast period.
Major vendors covered in the smart transportation market report include Thales, Huawei, Siemens, IBM, Cisco Systems, SAP, Alstom, Bombardier, Saab, ANPC, Bentley Systems, Indra Sistemas, Hitachi and Rockwell Collins amongst others.