The smart transportation market for mass transit is projected to grow at a CAGR of 8.90% during the forecast period, to reach a market size of USD 44.78 Billion by 2021. A wide array of upcoming railway projects, increased urbanization, and the growing need of public transport has led to the increase in demand for smart transportation solutions and its related components, software and services. Additionally technological advancements, such as the implementation of automatic vehicle location systems, traveler information systems, and electronic payment systems have led the demand for smart solutions market for mass transit solutions. These advancements helps to improve the fuel economy, lower emission levels, reduce traffic congestion that increase traveler convenience.
In this report, the global smart transportation market for mass transit is broadly segmented based on its use into roadways and railways. Region-wise, Asia-Oceania and Europe are estimated to dominate the market for roadways and railways. The Asia-Oceania market is growing due to rising industrialization, urbanization, and government spending on the transportation sector. The growth of the European market can be credited to the improved socio-economic conditions in economies such as Germany, the U.K., and France.
Due to increasing need for surveillance and vehicle tracking, there has been an increased in the use of Wi-Fi devices, in public transits (both roadways and railways) which is driving the demand for smart solutions in mass transit.
The smart transportation market for smart ticketing systems is expected to grow for both roadways and railways. This growth is owing to the advantages offered in terms of efficiency, and reliability. These services make the travel experience better as well as reduce losses which leads to better performance.
The automated vehicle location system is estimated to be the fastest growing smart transportation market in the roadways transportation segment. This growth is owing to the advantages AVLS offers such as vehicle tracking. This helps the transportation agency to keep a real time check on its fleet and provide assistance in case of medical emergency.
Key factors restraining the growth of the smart solutions market for mass transit includes the data storage concerns, security and management, the high cost of components and its complex nature, and slow GDP growth rate of developing countries. The necessity of providing real time information with the help of all these technologies and components means these systems are vulnerable to cyber attacks. This would have a negative impact on the SPT market.
The smart transportation market for mass transit is dominated by a few global players such as Thales Group (France), Siemens AG (Germany), Kapsch TrafficCom (Austria), TomTom International (The Netherlands), WS Atkins Plc. (U.K.), Q-Free ASA (Norway), Swarco AG (Austria), TransCore LP (U.S.), Iteris Inc. (U.S.), and Efkon AG (Austria). The Thales Group has a strong product offering and invested heavily in R&D to retain its position in the market. The company has also adopted new product development and supply contracts as key strategies while Siemens AG has followed the strategies of new product development and mergers & acquisitions to emerge as a prominent player in the market.
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