Smart Transportation Market Report 2025: $353.9 Bn Opportunities, Growth Drivers, Industry Trend Analysis, and Forecasts 2021-2034

Dublin, April 11, 2025 (GLOBE NEWSWIRE) -- The "Smart Transportation Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025-2034" report has been added to ResearchAndMarkets.com's offering.

The Smart Transportation Market was valued at USD 124.6 billion in 2024, and is projected to reach USD 353.9 billion by 2034, rising at a CAGR of 12.8%

Rapid urbanization and rising traffic congestion are key factors driving market expansion as cities worldwide seek advanced mobility solutions to reduce delays, lower emissions, and enhance overall transportation efficiency. The growing adoption of connected and autonomous vehicles (CAVs) is significantly influencing market growth, with technologies like AI, IoT, and 5G playing a crucial role in real-time traffic management and vehicle-to-everything (V2X) communication.

These advancements help optimize road safety, streamline traffic flow, and enhance transport networks by integrating with smart city infrastructure. Governments and transport authorities are heavily investing in intelligent transportation systems (ITS), supporting initiatives such as smart signals, automated tolling, and vehicle tracking. As self-driving and electric vehicles become more mainstream, demand for AI-powered mobility solutions continues to rise, reinforcing the expansion of the smart transportation industry.

The market is segmented based on components into hardware, software, and services. The hardware segment led in 2024, generating USD 59 billion in revenue, and is projected to grow at a CAGR of approximately 13.2% during the forecast period. Key hardware elements include GPS, IoT sensors, RFID chips, surveillance cameras, automated fare collection systems, and V2X communication devices. These technologies are critical for real-time traffic monitoring, connected vehicle systems, and intelligent transport solutions. Investment in embedded systems for urban mobility, including electronic toll collection and AI-driven traffic management, is further strengthening the demand for hardware solutions.

By transportation mode, the market is divided into roadways, railways, airways, and maritime. Roadways accounted for 53% of the market share in 2024 and are anticipated to grow at a CAGR of over 13% through 2034. Expanding urban road networks and the increasing adoption of electric and autonomous vehicles are boosting the need for advanced traffic control and forecasting systems. Ride-hailing services and shared mobility platforms are also accelerating the development of smart roadway solutions, contributing to the sector's growth.

In terms of solutions, the market is segmented into traffic management, smart ticketing, parking management, passenger information systems, and freight management. The traffic management segment dominates due to the rising number of vehicles on roads, increasing urban congestion, and the need for effective mobility solutions. AI-driven traffic control, adaptive signaling, and congestion pricing strategies are being implemented to optimize road performance while minimizing delays and environmental impact. Real-time traffic tracking, automatic incident detection, and predictive analytics are further enhancing road safety and efficiency.

Regionally, North America led the market in 2024, accounting for around 33% of the global share and generating USD 42 billion in revenue. The United States remains at the forefront, with strong government initiatives, technological advancements, and urban development fueling market expansion. Federal funding programs and policies promoting ITS, connected mobility, and AI-powered transportation solutions are accelerating the adoption of smart transport infrastructure across major metropolitan areas.

Comprehensive Market Analysis and Forecast

• Industry trends, key growth drivers, challenges, future opportunities, and regulatory landscape
• Competitive landscape with Porter's Five Forces and PESTEL analysis
• Market size, segmentation, and regional forecasts
• In-depth company profiles, business strategies, financial insights, and SWOT analysis

Key Topics Covered:

Chapter 1 Methodology & Scope
1.1 Research design
1.2 Base estimates and calculations
1.3 Forecast model
1.4 Primary research & validation
1.5 Market definitions

Chapter 2 Executive Summary
2.1 Industry 360 synopsis, 2021-2034

Chapter 3 Industry Insights
3.1 Industry ecosystem analysis
3.2 Supplier landscape
3.2.1 Technology providers
3.2.2 System integrators
3.2.3 Transportation infrastructure providers
3.2.4 Automotive & vehicle manufacturers
3.2.5 Data & service providers
3.3 Profit margin analysis
3.4 Technology & innovation landscape
3.5 Patent analysis
3.6 Use cases
3.7 Key news & initiatives
3.8 Regulatory landscape
3.9 Impact forces
3.9.1 Growth drivers
3.9.1.1 Rapid urbanization and congestion in cities across the world
3.9.1.2 Growing demand for efficient and sustainable transportation
3.9.1.3 Technological advancements in IoT, AI, and big data analytics
3.9.1.4 Rising government initiatives and investments
3.9.1.5 Growing demand for connected and autonomous vehicles
3.9.2 Industry pitfalls & challenges
3.9.2.1 High initial investment costs
3.9.2.2 Data privacy and security concerns
3.10 Growth potential analysis
3.11 Porter's analysis
3.12 PESTEL analysis

Chapter 4 Competitive Landscape, 2024
4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix

Chapter 5 Market Estimates & Forecast, by Component, 2021-2034 ($Bn)
5.1 Key trends
5.2 Hardware
5.2.1 Sensors
5.2.2 Cameras
5.2.3 RFID chips
5.2.4 GPS device
5.2.5 Others
5.3 Software AG
5.3.1 Traffic management systems
5.3.2 Fleet management software
5.3.3 Others
5.4 Services
5.4.1 Consulting
5.4.2 Deployment & integration
5.4.3 Support & maintenance

Chapter 6 Market Estimates & Forecast, by Transportation Mode, 2021-2034 ($Bn)
6.1 Key trends
6.2 Roadways
6.3 Railways
6.4 Airways
6.5 Maritime

Chapter 7 Market Estimates & Forecast, by Solution, 2021-2034 ($Bn)
7.1 Key trends
7.2 Traffic management
7.3 Smart ticketing
7.4 Parking management
7.5 Passenger information systems
7.6 Freight management

Chapter 8 Market Estimates & Forecast, by Technology, 2021-2034 ($Bn)
8.1 Key trends
8.2 IoT
8.3 AI & machine learning
8.4 Big data analytics
8.5 Cloud computing
8.6 Blockchain

Chapter 9 Market Estimates & Forecast, by End Use, 2021-2034 ($Bn)
9.1 Key trends
9.2 Government agencies
9.3 Commercial businesses

Chapter 10 Market Estimates & Forecast, by Region, 2021-2034 ($Bn)
10.1 Key trends
10.2 North America
10.2.1 U.S.
10.2.2 Canada
10.3 Europe
10.3.1 UK
10.3.2 Germany
10.3.3 France
10.3.4 Italy
10.3.5 Spain
10.3.6 Russia
10.3.7 Nordics
10.4 Asia-Pacific
10.4.1 China
10.4.2 India
10.4.3 Japan
10.4.4 South Korea
10.4.5 ANZ
10.4.6 Southeast Asia
10.5 Latin America
10.5.1 Brazil
10.5.2 Mexico
10.5.3 Argentina
10.6 MEA
10.6.1 UAE
10.6.2 Saudi Arabia
10.6.3 South Africa

Chapter 11 Company Profiles
11.1 Alstom
11.2 Bentley
11.3 Cisco
11.4 Conduent
11.5 Cubic
11.6 Hitachi
11.7 Huawei Technologies
11.8 IBM
11.9 Indra Sistema
11.10 Kapsch TrafficCom
11.11 Lyft
11.12 NEC
11.13 Qualcomm
11.14 Robert Bosch
11.15 SAP
11.16 Siemens Mobility
11.17 Thales
11.18 TomTom
11.19 Trimble
11.20 Uber Technologies

For more information about this report visit https://www.researchandmarkets.com/r/y937y1

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