Global Smart Transportation Market Overview, 2024-29

Market Dynamic

Market Drivers • Urbanization and population growth: Rapid urbanization and population expansion are major drivers of the global smart transportation market. As more people move to cities, the demand for efficient and environmentally friendly transportation solutions grows. Smart transportation solutions solve urban mobility issues by optimizing traffic flow, improving public transportation systems, and reducing congestion, making them critical instruments for managing urban expansion and increasing the quality of life for city people. • Demand for seamless mobility: The demand for seamless mobility solutions is a major driver of the global smart transportation industry. Consumers are increasingly expecting easy, integrated transportation solutions that allow them to transition effortlessly between modes of transportation. Mobility-as-a-Service (MaaS) platforms, ride-sharing apps, and digital payment systems allow travelers to easily plan and pay for multimodal journeys, increasing convenience and flexibility. As the need for seamless mobility experiences develops, so will the market for smart transportation systems that enable interconnected, user-centric transportation networks. Market Challenges • Cybersecurity risks: As smart transportation systems become more networked and reliant on digital technologies, they face an increasing variety of cybersecurity risks and vulnerabilities. Malicious actors may target transportation networks, vehicles, and infrastructure with cyber-attacks, data breaches, or ransom ware attacks, endangering passenger safety, privacy, and operational continuity. To safeguard vital infrastructure and sensitive data from unwanted access and modification, strong cybersecurity solutions such as encryption, authentication, intrusion detection systems, and secure communication protocols must be implemented. • Infrastructure integration challenges: The integration of smart transportation technology into existing infrastructure presents substantial problems due to old systems, fragmented data, and complex regulatory regimes. Retrofitting existing infrastructure with smart sensors, communication networks, and data analytics capabilities necessitates careful planning, investment, and collaboration among a variety of stakeholders, including government agencies, transportation authorities, and private-sector partners. Furthermore, ensuring interoperability and seamless integration of various modes of transportation, such as public transportation, ride-sharing, and autonomous vehicles, presents additional technical and logistical challenges that must be addressed in order to fully realize the potential of smart transportation initiatives. Market Trends • Rise of electric and autonomous vehicles: Another key trend impacting the global smart transportation industry is the increased usage of electric and self-driving cars (AVs). Governments, automakers, and technology companies are investing extensively in EV and AV technology research, motivated by worries about air pollution, climate change, and road safety. Electric vehicles are a cleaner and more sustainable alternative to traditional internal combustion engine vehicles, whereas self-driving cars promise to transform the way people and commodities are carried. This trend is pushing innovation in battery technology, charging infrastructure, and AV software, paving the way for a more environmentally friendly, safer, and more efficient transportation future. • Embrace of smart infrastructure and IoT connectivity: The use of smart infrastructure and Internet of Things (IoT) connections is altering the worldwide smart transportation market, allowing for the creation of more intelligent and responsive transportation systems. Smart infrastructure elements such as networked traffic lights, digital signage, and sensor-equipped highways are being used to collect real-time traffic data, monitor road conditions, and improve safety and efficiency. IoT connectivity offers seamless communication between vehicles, infrastructure, and other devices, allowing for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication to improve situational awareness and danger detection. Covid-19 Impacts As public transportation systems are extremely susceptible to disease outbreaks, transit agencies increasingly focus on data-driven decisions to adapt services and restore rider trust. Technologies such as AI (Artificial Intelligence) and IoT (Internet of Things) can help in balancing operations by adjusting to comprehensive data offered on ridership peaks and lows. Technologies used in smart transportation will provide users with detailed transport data such as real-time arrival information to avoid waiting at crowded stations and how full a train or a bus is, among other benefits. Transit agencies and cities can optimize their services by integrating real-time information and mobile fare payments to provide sustainable transport alternatives and avoid people reverting to single-car usage. For instance, the transportation system in Israel is severely lagging. It relies considerably on fragmented and inefficient public transport and single-occupancy rides. It results in high pollution levels, traffic jams, and poor access. To reinvent mass commuting during the pandemic, Israel introduced a large-scale pilot to facilitate low-occupancy traveling by combining on-demand transit with private carpooling. It uses a tailored algorithm to rout buses and provide the most efficient ride. More than 250 modes of transportation ranging from cars and buses were used to take over 75,000 trips within three weeks of its introduction. Hence, the pandemic will accelerate the modernization of the current transportation infrastructure.

Key Development

• In February 2023, AURA AERO has signed an agreement with Thales to develop a new generation connected avionics solution adapted to electric and hybrid regional aviation. • In January 2023, BASS has launched BASSnet 2.11 Service Pack with new features that includes new Carbon Intensity Indicator (CII) calculator, e-signature for work and rest hours, enhanced efficiency with ihm material declaration automation. • In November 2022, Trimble Viewpoint Vista, an ERP solution within the Trimble Construction One suite integrated with Hilti Group’s Hilti ON!Track asset management system. Providing a solution for unified tool tracking and more accurate, automatic job allocation, giving contractor’s one source of truth for tracking and managing their tools and equipment. • In January 2022, Kapsch TrafficCom AG provided a free-flow AET at toll plazas by introducing All-Electronic Tolling (AET) to the New Hampshire Transportation Department (NHDOT). For vehicles without a toll transponder, video tolling will be possible because of the AET's license plate reading cameras, sensors, and in-pavement treadles. The free new roadways at all NHDOT toll locations will also give drivers more convenience and quicker travel times. • In October 2022, Iteris, Inc. announced that it received approval from the City of Anaheim to enforce its recently unveiled set of managed services as part of an ongoing deal for a regional smart mobility, security, and sustainability program. The effective management of major transportation operations using Iteris' cloud-enabled managed services reduces traffic congestion, boosts safety, and creates a more robust, egalitarian, and sustainable transportation infrastructure. • In June 2021, TomTom and GreenMile announced a new multi-year agreement. TomTom Maps APIs will be combined with GreenMile’s solutions, enhancing its customers’ vehicle monitoring and real-time route planning.