The population of the world is growing at about 2% a year or faster than any other period in human history. While there has been a steady increase in population growth during the past two or three centuries, it has been rapid in the past 20 years. United Nations (UN) predicted that by the year 2020, over 60% of the world population would be concentrated in the urban cities. This will trigger an increasing demand for transport infrastructure and urban mobility. Smart cities are the most important drivers of economic growth of the country and the backbone of cities happen to be the intelligent transportation infrastructure. Transport is a significant component of modern economy; transportation accounts for 6-12% of the GDP in many developed countries.
Though transportation has greatly improved our lives, quite a few problems remain unsolved, including traffic, road accidents, congestions, and vehicle emissions. According to the European Commission, the EU loses 1% of their GDP per year, due to congestion around the urban areas. Only road transport accounts for more than 40% of Carbon Dioxide (CO2) emission across the globe and 60% accounts for other pollutants. As the use of transportation facilities continue to upsurge the advancement of new technologies in the transportation infrastructure, the urban sector will face a tough challenge with the management of transportation systems.
The improving performance and technological advancements in the operational technologies are now starting to have a significant impact on the urban mass transport industry. Smart transportation is all about integrating ICT with the existing transportation infrastructure, delivering real-time online information about the traffic flow and passengers/commuters. With the help of digital technologies, such as advanced control systems and sensor technologies, transportation around the cities can be monitored & controlled efficiently. Smart transportation also includes interfacing smart intermodal technologies with other modes of transport and setting up or upgrading the smart solutions, so that passengers can take informed decisions with respect to their transport requirements.
Smart cities around the world have already deployed transportation solutions along with infrastructure, to support the transportation systems of the future. The solutions have proven to be proficient in diminishing traffic congestion issues. Even though Intelligent Transportation Systems (ITS) have been around since 1994, the contemporary solutions provide tools for traffic estimation, parking guidance, passenger information, consulting services, data analytics & decision support, fare collection, smart ticketing, and insurance telematics. For instance, the traffic management solutions, including smart signaling solution, route guidance solution, passenger information solutions, electronic fare payment, and smart ticketing solutions are becoming ubiquitous in transportation systems.
The solutions crunch the entire traffic data to predict traffic jams an hour before they occur. Predictive data analytics and decision support operate in conjunction, to provide relevant information useful in taking optimal decisions, as per a city's volatile transport needs. These solutions are having an impact on the quality and accessibility of information for delivering an enhanced passenger experience. While the impacts of these technologies are already ostensive in many systems, there is a potential for a much stronger impact during the forecast period.
Apart from the solutions, services also have a significant role to play in enabling smart infrastructure. Services, such as consulting (business consulting, technology consulting, and operational consulting), support & maintenance (repair, replace, upgrades, or operations outsourcing), and system integration & deployment (designing, engineering, and deployment) have gained a major traction for supporting smart infrastructure. The evolution of network connectivity solutions, cloud services, self-optimizing software, and improved operator interfaces in transportation systems provide better information & quick service and reduce congestion.
One major module of the Smart Cities initiative is creating and developing an efficient urban mobility & mass transport system, providing a variety of transport alternatives. To fulfill this objective, the specific regional authorities have invested in several large projects within the realm of the urban infrastructure development. Almost USD 30 billion is projected to be spent in the next 15 years on the application of Internet of Things (IOT) technology in the global railway industry. Currently, USD 2 billion is spent every year by the railway industry over smart rail projects and connected trail technologies. These investments continue to soar at a high rate.
According to the American Society of Civil Engineers' 2013 report card, the U.S. needs to invest an additional USD 3.6 trillion by 2020, to upgrade the nation's infrastructure to acceptable standards. Thus, the investments in the smart transportation infrastructure and technologies are continuing to grow during the estimated period, as to quickly improve the efficiency & capacity of the mass transportation, create high quality, and secure the public transportation system.
The report includes an in-depth study of the market trends, market sizing, competitive mapping, emerging technology segments, and market dynamics of the smart transportation market. The industry trends, drivers, and opportunities in the smart transportation market distinctly indicate a noteworthy growth in the next five years. The report also provides premium insights that can help the solution vendors and system integrators to identify the needs for modern infrastructure in the global smart transportation market. The smart transportation market is segmented: by solution, services, and by region. The solutions segment comprises smart ticketing solution, parking management solution, passenger information solution, and traffic management solution.
The services segment includes consulting services, system integration & deployment, and support & maintenance. The regional segment includes North America, APAC, MEA, Europe, and Latin America. The driving factors of the smart transportation market include rising urban population & high demographic growth rate, adoption of connected & smart technology in transport infrastructure, government initiative for smart cities & Public Private Partnership (PPP) working model, rising demand of integrated security & safety system for enhancing public safety, and rising concern for environmental protection, globally. The major factors that are restraining the growth of the smart transportation market are the unavailability of uniform technology and standards for smart transportation solutions.
The smart transportation market research report analyzes the future growth potentials, opportunities, and key challenges in the market. The market faces the challenge of integrating complexities over the legacy system and network, synthesizing raw data from several touchpoints, and data security & privacy of the commuters. The smart transportation technology providers see emergent opportunities, due to the rising adoptions of e-flexi payment systems and exponential growth of mobile phones.
The report also focuses on various regional markets for each of the sub-segment within the smart transportation market. The major regions include North America, Europe, APAC, MEA, and Latin America. Europe is estimated to hold the largest market share in 2016, whereas APAC is in the growth phase and is expected to be the fastest-growing region in the smart transportation market. The key reason for this high growth rate is the increasing adoption of IoT technology and various smart city initiatives for digital transformation.
The European Commission has put forward an investment plan worth USD 13 billion in the transport infrastructure for 276 transport projects, selected under the Connecting Europe Facility (CEF); these planned investments to improve urban transport and traffic infrastructures in France and the U.K. is expected to drive the European railway transportation market. North America is projected to account for the second largest market of the overall smart transportation market in 2016, as companies in this region are pushing for higher adoption of the IOT technology in the transportation industry. APAC would overtake North America by the end of the forecast period, due to a greater need for smart transportation solutions and the higher number of government initiatives for smart transportation technology deployments.
1. Executive Summary
2. Global Scenario
- Global Market For Smart Transportation
- Market Dynamics
- Key Opportunity: Smart Transportation Solutions
3. Techno-Economic Analysis
- Global Smart Transportation Market
4. Market Segmentations
- Smart Transportation Market By Transportation Mode
- Smart Transportation Market By Solution
- Parking Management
- Access Control Solution
- Ticketing And Revenue Management
- Automated Parking Guidance and Slot Management
- Passenger Information
- Multimedia Information and Entertainment
- Network Connectivity
- Traffic Management
- Smart Signalling
- Route Guidance
- Toll Collection and Revenue Management
- Predictive Traffic Analytics
- Smart Transportation Market By Services
- Deployment and Integration
- Support and Maintenance
5. Market By Geography
- North America
- South Korea
- Significant Rest of World
- Middle East & Africa
- Latin America
6. Competitor Intelligence
- Market Share Analysis
- Major Start-Ups Existing in Smart Transportation Market and Related Domains
- Manufacturers and Primary Stakeholders in the Market
7. Company Profiles
- General Electric
- IBM Corporation
- Seimens AG
- Cisco Systems
- Alstom SA
- LG CNS Co. Ltd.
- Cubic Corporation
- Indra Sistemas SA
- Kapsch Trafficcom AG
- Thales SA
- Research Methodology
- List of Tables and Figures in the Report