In the wake of a test-hacking of a Jeep Cherokee, the global smart transportation market has been valued at $45.10 billion in 2014, growing at a CAGR of 18.5% from 2015 to 2021, according to "Smart Transportation Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2021."
For the habitant of any urban area, the concept of smart transportation sounds like a dream come true. Cashless toll systems are one example of its application. In reality, though, the vulnerability of any network that connects with a car is a major concern. In the recent test-hack of a Jeep, the hackers managed to turn the car off—in mid-traffic—through the car’s entertainment system.
The smart transportation market encompasses the development of smart networks for better coordination of traffic. Hardware-wise, “smart” usually means the application of multiple sensors and MEMS. In addition, the concept of smart transportation is applicable in smart cities. It ensures better traffic management, safety of the commuters and smart parking of vehicles.
In 2015, Europe lead the market of smart transportation and the region will be dominating during the forecast period. The application of smart transportation for better coordination of traffic is acting as a driver for the market. North America follows Europe accounting for more than 25% of the global market share. However, Asia Pacific is the fastest growing region due to the presence of major economies such as China, Japan and India. Rest of the world is expected to maintain steady growth due of the developing regions as the application of smart transportation involves high initial investment.
The global smart transportation market by solutions is categorized into ticketing management systems, parking management systems, integrated supervisory systems and traffic management systems. The traffic management system has the highest market share in 2015 and is expected to dominate the market during the forecast period. The growth is attributed to the demand for better traffic management by using innovative toll systems.
On the basis on services, the smart transportation market can be segmented into: cloud services, business services and professional services. Cloud services have dominance in the market with its market share accounting to more than 40% of the global market. Business services follow the cloud services. Cloud services are becoming increasing popular across various organization due absence of physical devices. Moreover, the application cloud services enables the users to access their data remotely. Thus, cloud services are very helpful in efficient management of traffic, concludes the report.