Smart Transportation Market Research Report Information by Transportation Mode (Roadways, Railway, Airway, and Marine), By Roadways (Solution {Vehicle Telematics, Smart, Parking Management, Freight Information, Passenger Information, Traffic Management and Others (Infotainment, V2X, ADAS) and Services {Deployment & Integration, Support & Maintenance AND Consulting}), By Railways (Solution {GIS Tracking Solutions, Rail Traffic Management, Passenger, Information Systems, Freight Information and Others} Services {Deployment & Integration, Supp

Smart Transportation Market Summary

As per Market Research Future Analysis, the Global Smart Transportation Market was valued at USD 133.583 Billion in 2023 and is projected to reach USD 374.93 Billion by 2032, growing at a CAGR of 11.94% from 2024 to 2032. The market is driven by advancements in internet connectivity and the adoption of autonomous vehicles, which enhance safety and efficiency in transportation systems. The roadways segment holds the largest market share, addressing urban challenges like congestion and sustainability through smart road technologies. North America leads the market, supported by government initiatives and a high urbanization rate, while Europe follows closely with a focus on sustainable transportation solutions.

Key Market Trends & Highlights

Key trends driving the Smart Transportation Market include advancements in autonomous vehicles and smart infrastructure.

• The market is expected to grow from USD 152.044 Billion in 2024 to USD 374.93 Billion by 2032.
• Autonomous vehicles are crucial for reducing traffic fatalities and improving infrastructure.
• North America is projected to be the largest market, driven by advanced infrastructure and government support.
• The roadways segment accounted for the largest market share in 2022, addressing urban mobility challenges.

Market Size & Forecast

2023 Market Size: USD 133.583 Billion

2024 Market Size: USD 152.044 Billion

2032 Market Size: USD 374.93 Billion

CAGR (2024-2032): 11.94%

Largest Regional Market Share in 2024: North America.

Major Players

Key companies include Hitachi Ltd., Cisco Systems, Inc., Intel Corporation, Alstom SA, Cubic Corporation, Kapsch, IBM Corporation, Thales Group, Siemens AG, Accenture Plc, and Toshiba.

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Smart Transportation Market Trends

• The Trend of Autonomous Vehicles Boosts Market Growth

A self-driving car, sometimes called an autonomous vehicle, can sense its surroundings and travel safely without human intervention. One of the key components of Intelligent Transport Systems (ITS), which stands for the fusion of information and communication technologies, is (ICTs). With the implementation of autonomous driving, the primary objective of ITS is to reduce the number of traffic and pedestrian deaths and improve transportation infrastructure systems. AGVs,

automated forklifts

, robotic fruit and flower picking, and other future industrial applications heavily rely on autonomous vehicles and ITS.

The benefits of autonomous vehicles in smart transportation are:

Autonomous cars combine various components of their sensor and vision systems to understand their environment and mimic human driving. These systems can scale to millions of vehicles and function in various lighting and weather situations. The use of high-quality, toughened, and precise imaging technologies with 3D object resolution, screening of static and moving objects, and 360-degree horizontal coverage massive volumes of real-time data are delivered due to the installation of 8K panoramic cameras, necessitating a high bandwidth capacity.

Powerful sensor systems, including sonar, radar, GPS, odometry, and LiDAR, are also required, in addition to high-quality vision solutions. A 3D map is created using the sensor data to offer adaptive cruise control, collision avoidance, and blind-spot recognition. For instance, by scanning the area around the vehicle with a laser beam,

LiDAR

can record the forms of the environment. Real-time tracking is done for both moving and stationary objects. Although an automated forklift or fruit harvester might not require 8K high-resolution visual quality, these autonomous vehicles use optic sensors (cameras), speed or laser sensors, and software to generate a 3D map of their operational environment and to navigate the process. Thus, such applications continue to demand huge data transfers.

Smart Transportation Market Segment Insights:

Smart Transportation Market Transportation Mode Insights

Based on transportation mode, the smart transportation market has been segmented into roadways, railway, airway and marine. The roadways segment accounted for the largest market share in 2022; Cities are under increasing pressure to solve environmental challenges brought on by traffic congestion and urban population expansion, while also offering more equal mobility and sustainable transportation. Smart road technology assists municipal planners and governments in addressing these issues.

With traffic management, pedestrian and vehicle safety, environmental monitoring, smart and linked highway corridors, and EV charging and parking networks, the Internet of Things (IoT) is making road transportation more connected, safe, sustainable, and efficient. The urban population, which is expected to outnumber the rural population by 2050, will have a significant influence on transportation infrastructure and the environment. While smart road technology is now in use throughout the world, the future of smart infrastructure is only getting started.

Figure 1: Smart Transportation Market By TRANSPORTATION MODE Insights, 2023 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Smart Transportation Application Insights

The application segment of the smart transportation market has been segmented into mobility-as-a-service, route information and route guidance, public transport, transit hubs, connected cars, video management, and others. Mobility-as-a-Service typically involves the integration of various modes of transportation, such as public transit, ride-sharing services, bike-sharing programs, and even autonomous vehicles, into a single platform. Users can access the platform using a smartphone application or web interface, where they can plan their journey, select the most appropriate mode of transportation, and pay for their travel using a single account.

Smart Transportation Regional Insights

By region, the study segments the market into North America, Europe, Asia-Pacific, and the Rest of the World. The North American region is a significant market for smart transportation solutions, given its advanced transportation infrastructure, high urbanization rate, and the presence of several leading technology providers. The smart transportation market in North America is expected to grow at a significant rate during the forecast period. The North American governments are promoting the development and adoption of smart transportation solutions through various initiatives and funding programs.

For instance, the US Department of Transportation's Smart City Challenge program provided funding for the development of innovative transportation solutions in several US cities. U.S. demographics are changing rapidly, and so are technological trends. There is an increasing number of older adults ageing in place and given the rise of automated vehicles and innovation in mobility services, there are opportunities for on-demand modes to enhance access for older adults, children, and people with disabilities.

Figure 2: SMART TRANSPORTATION Market By REGION Insights, 2023 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe stands as the second-biggest market for smart transportation market. The region has a well-developed transportation infrastructure and is home to several major automotive and technology companies, which are driving the adoption of smart transportation solutions. One of the major drivers of growth in the European smart transportation market is the increasing focus on reducing carbon emissions and promoting sustainable transportation options. Governments and regulatory bodies in the region are implementing policies and incentives to encourage the adoption of electric and hybrid vehicles, as well as the development of smart infrastructure and mobility services. 

Further, the countries considered in the scope of the Smart Transportation Market are the US, Canada, Mexico, UK, Germany, France, Italy, Spain, Switzerland, Austria, Belgium, Denmark, Finland, Greece, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Sweden, Romania, Ireland, China, Japan, Singapore, Malaysia, Indonesia, Philippines, South Korea, Hong Kong, Macau, Singapore, Brunei, India, Australia & New Zealand, South Africa, Egypt, Nigeria, Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Kuwait, and Oman, Brazil, Argentina, Chile, and others.

Smart Transportation Market Key Market Players & Competitive Insights

The Smart Transportation Market comprises various global, regional, and local service providers that are continuously evolving to enhance their market position. Technological advancements to enhance customer experience and growing adoption of IoT and automation technologies to enhance technological optimization are the key factors that aid market growth.

The service providers compete based on cost, efficiency, and reliability of smart transportation to stay relevant in the competitive market. Vendors in the Smart Transportation Market are focused on improving their products, services and expanding their presence in underdeveloped and developing countries.

Key Companies in the Smart Transportation Market include

• Hitachi Ltd.
• Cisco Systems, Inc
• Intel Corporation
• Alstom SA
• Cubic Corporation
• Kapsch
• IBM Corporation
• Thales Group
• Siemens AG
• Aeco
• Accenture Plc
• Toshiba
• Harris Corporation
• Veson Nautical
• Bass Software
• Bentley System among others

Smart Transportation Market Developments

• Q1 2025: Siemens Mobility to acquire Optrail to boost rail digitalization Siemens Mobility announced the acquisition of Italian rail technology company Optrail, aiming to strengthen its digital rail infrastructure and smart transportation solutions.
• Q2 2024: Wayve raises $1.05B to build AI foundation models for autonomous vehicles UK-based autonomous driving startup Wayve secured $1.05 billion in Series C funding led by SoftBank, with participation from Nvidia and Microsoft, to accelerate the development of AI-powered smart transportation systems.
• Q2 2024: Volvo Group and Daimler Truck launch cellcentric hydrogen fuel cell plant Volvo Group and Daimler Truck inaugurated their joint venture cellcentric’s new hydrogen fuel cell production facility in Germany, targeting zero-emission smart transportation for heavy-duty vehicles.
• Q2 2024: Jaguar Land Rover invests $180mn in Portland tech hub for self-driving cars Jaguar Land Rover announced a $180 million investment in its Portland, Oregon technology center to develop advanced driver assistance and autonomous vehicle features for smart transportation applications.
• Q3 2024: Alstom wins €900 million contract for Paris Metro Line 18 automation Alstom secured a €900 million contract to supply driverless train systems and digital signaling for the new Paris Metro Line 18, advancing smart urban transportation infrastructure.
• Q2 2024: Uber launches autonomous delivery pilot with Serve Robotics in Los Angeles Uber began a pilot program using Serve Robotics’ autonomous sidewalk robots for food deliveries in Los Angeles, marking a new step in smart urban transportation and last-mile logistics.
• Q1 2025: Hitachi Rail to acquire Thales’ Ground Transportation Systems business Hitachi Rail announced a definitive agreement to acquire Thales’ Ground Transportation Systems, expanding its smart transportation portfolio in signaling and mobility solutions.
• Q2 2024: May Mobility raises $105M Series D to scale autonomous shuttle deployments Autonomous shuttle company May Mobility raised $105 million in Series D funding to expand its smart transportation services in North America and Japan.
• Q3 2024: Beijing launches pilot for vehicle-road-cloud integration in smart transport The Beijing municipal government launched a pilot project integrating intelligent connected vehicles with road and cloud infrastructure, aiming to enhance smart transportation efficiency and safety.
• Q2 2024: Siemens Mobility and Deutsche Bahn launch world’s first automated train in Hamburg Siemens Mobility and Deutsche Bahn unveiled the world’s first automated, driverless train in Hamburg, Germany, as part of a smart transportation initiative to improve urban rail efficiency.
• Q1 2025: Aurora Innovation secures $820 million in public offering to fund autonomous trucking Aurora Innovation raised $820 million through a public offering to accelerate the commercialization of its autonomous trucking platform for smart freight transportation.
• Q2 2024: General Motors and Honda expand Cruise robotaxi partnership to Tokyo General Motors and Honda announced the expansion of their Cruise robotaxi partnership to Tokyo, with plans to deploy autonomous ride-hailing services as part of smart city transportation initiatives.

Smart Transportation Market Segmentation:

Smart Transportation Market Transportation Mode Outlook

• Roadways​
  • Solutions​
    • Vehicle Telematics ​
    • Smart Parking Management
    • Freight Information​
    • Passenger Information​
    • Traffic Management
    • Others (Infotainment, V2X, ADAS)​
• Services
  • Deployment & Integration​
  • Support & Maintenance​
  • Consulting​
• Railway
  • Solutions
    • GIS Tracking Solutions​
    • Rail Traffic Management​
    • Passenger Information Systems​
    • Freight Information​
    • Others (Smart Ticketing, Auto-Routing and Scheduling, Predictive Maintenance & Wayside Condition Monitoring)​
• Services​
• Deployment & Integration​
• Support & Maintenance​
• Consulting
• Airway
  • Solutions​
    • Freight Information System​
    • Passenger Information​
    • Air Traffic Management​
    • Ramp Management​
• Services​
  • Deployment & Integration​
  • Support & Maintenance​
  • Consulting​
• Marine​
  • Solutions​
    • Maritime Software​
    • Vessel Tracking​
    • Port Operations Management​
• Services​
  • Deployment & Integration​
  • Support & Maintenance​
  • Consulting​ Others

Smart Transportation Application Outlook

• Mobility-as-a-Service​
• Route Information and Route Guidance​
• Public Transport
• Transit Hubs​
• Connected Cars
• Video Management​
• Others​

Smart Transportation Regional Outlook

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • Rest of Asia Pacific
• Rest of the World
  • Middle East & Africa
  • South America

Attribute/Metric	Details
Market Size 2023	USD 133.583 Billion
Market Size 2024	USD 152.044 Billion
Market Size 2032	USD 374.93 Billion
Compound Annual Growth Rate (CAGR)	11.94% (2024-2032)
Base Year	2023
Forecast Period	2024-2032
Historical Data	2018-2022
Forecast Units	Value (USD Million)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	Transportation, Application, and Region
Geographies Covered	North America, Europe, Asia Pacific, and Rest of the World
Countries Covered	The U.S, Canada, Mexico, Germany, France, UK, China, Japan, India, Australia, South Korea, UAE, and Brazil
Key Companies Profiled	Hitachi Ltd., Cisco Systems, Inc, Intel Corporation, Alstom Sa, Cubic Corporation, Kapsch, IBM Corporation, Thales Group, Siemens Ag, Aeco, Accenture Plc, Toshiba, Harris Corporation, Veson Nautical, Bass Software, Bentley System and Others
Key Market Opportunities	·       The trend of autonomous vehicles provides exceptional growth opportunities
Key Market Dynamics	·       The enhancements in the internet connectivity field improve the smart transport market ·       The adoption of technologies and internet connectivity into transportation