First publishedon www.ITSInternational.com
The Smart Transportation Market is set to grow from its current industry value of more than $41bn (£28bn) to over $130bn (£91bn) by 2024, according to a report by US-based Global Markets Insights. The growth is attributed to worldwide government initiatives for smart city development.
Findings revealed that $1bn (£70m) of connected things are mounted globally under the smart cities projects. Government mandates focused on reducing C02 emissions and protecting the environment are also assisting the growth of the transportation market.
Transportation infrastructure has changed through rapid urbanisation and improved lifestyle, which are driving the market demand. However, the study highlighted that capital investment and the time required to complete the transformation process could hinder growth.
Roadways are the largest market share in the smart transportation market followed by railways, which are expected to grow through cheaper transport fare and government investments in smart railway systems.
For the software segment, the traffic management system dominates the market through the use of sensors and Internet of Things, in traffic lights. Additionally, the smart ticketing segment is estimated to reach $11bn (£7.7bn) by 2024.
The penetration of integration services is the highest in the market through their ability to deliver high levels of performance and intelligence. Computers, electronics, smart sensors and information and communication need to integrate with transport infrastructure and vehicles to reduce traffic congestion and environmental impact as well as improve transport efficiency.
The cloud deployment model is anticipated to have a fast growth rate following the popularity of the vehicular cloud technology and the features it brings such as efficient traffic management, road safety, standardisation and infotainment services.
North America witnesses the highest share in the smart transportation market through its use of advanced technologies, high disposable income and improved lifestyle.
Asia Pacific is projected to show the highest growth rate over the period. The developing stage of the infrastructure is said to offer a significant opportunity for smart infrastructure development, driving the demand for the smart transportation market.
Key players operating in the market include Accenture
, General Electric, IBM
and WS Atkins
Additional findings are available here