Smart transportation has emerged as one of the key mechanisms for promoting sustainable and safe transport. The benefits etched with using such transportation solutions will serve as growth accelerators for the smart transportation market.
Smart transportation can be defined as the use of modern technologies such as car navigation, container management systems, and others. Smart transportation and traffic management are leading to new inventions regarding mobility. The introduction of smart cities across a plethora of countries around the world will set the stage for the growth of the smart transportation market. The use of technologies like artificial intelligence, the Internet of Things, and others will push the growth of the smart transportation market.
The growing concerns regarding high traffic congestion across varied cities have resulted in an increase in the growth prospects of the smart transportation market. The increasing traffic congestion across many countries has urged government bodies to incorporate the smart city approach, which includes smart transportation as the prime aspect. Therefore, these factors assist in propelling the growth of the smart transportation market.
Transparency Market Research has performed an extensive analysis on various aspects related to the growth of the smart transportation market. The analysts at TMR have performed extensive research on various factors etched with the smart transportation market. The TMR team projects the global smart transportation market to expand at a CAGR of 21.30% during the forecast period of 2021-2031. The global smart transportation market was at US$ 47.91 Bn in 2020 and is anticipated to be US$ 400.77 Bn by 2031.
Some prominent advantages that will have a positive effect on the smart transportation market growth trajectory are as follows:
Vital Advantages of Smart Transportation
Efficiency: The efficiency of smart transportation systems adds new parameters of growth.
Affordability: Smart transportation mechanisms make better use of resources and can lower costs to a great extent owing to frequent preventative maintenance and low energy consumption.
Sustainability: Smart transportation solutions are designed to provide efficient transport services. Low traffic congestion results in decreased energy consumption and environmental conservation. Many initiatives such as electric vehicle charging stations are being researched to assure superior quality smart transportation services, which will not harm the environment. Thus, these factors will attract considerable growth opportunities.
The government bodies of various regions are embracing smart transportation systems for effective traffic decongestion. It also offers efficient public transport. The smart transportation market has a plethora of opportunities for growth. In the upcoming period, more regions are anticipated to embrace smart transportation technologies. The growing disposable income and the expanding urbanization worldwide will ensure extensive growth for the smart transportation market. Densely populated countries like India and China are expected to bring promising growth for the smart transportation market.
COVID-19 Effect on Smart Transportation Market
The smart transportation market was affected greatly due to the COVID-19 pandemic. The rising prevalence of virus transmission led to strict lockdown implementations around the world. This factor led to immense losses as transport systems were closed for a brief period. However, with the gradual reopening of the economies, everything is steadily returning to normal. Mass vaccination drives and various discounts provided by transport systems in various countries is attracting exponential growth in the smart transportation market. In addition, densely populated countries such as China and India are expanding their transport networks at a rapid pace. Hence, these factors may serve as growth boosters for the smart transportation market.
Some well-entrenched players in the smart transportation market are Huawei Technologies Co., Ltd., TomTom International BV., Cubic Corporation, Bentley Systems, etc., Accenture PLC, General Electric Company, Thales Group, and Bombardier Inc.