Global Smart Transportation Market Size and Share Analysis 2023-2028

Market Overview

Smart transport, also known as intelligent transport, encompasses an advanced transportation infrastructure that aims to provide innovative traveler information systems, transportation management systems, transportation pricing systems, public transportation systems, and cooperative vehicle systems. It has diverse applications such as traffic management, safety and security, parking management, public transport, automotive telematics, and freight.

The Smart Transportation Market is estimated to reach a size of USD 31.26 billion in 2023 and is projected to grow at a CAGR of 6.79% during the forecast period (2023-2028) to reach USD 43.41 billion by 2028.

Product Type

Market Report

No. of Pages


Release Date

March 2023

Base Year


Forecast Period


Market Size

USD 29.8 billion in 2021

Market Segments

Product Type, Application, Region



No. of Companies Mentioned


Market growth is driven by factors such as increasing traffic volume, government initiatives to reduce greenhouse emissions, urbanization, the rise of megacities, and population growth.

Urbanization presents challenges in cities worldwide with transportation needs being a primary concern. Resolving these complexities is crucial for the transportation market. The trend of increased IoT and connected devices is expected to continue with smart city projects, driving market expansion. The use of IoT-connected products like smart homes, smart meters, smart transportation, and smart lighting will facilitate communication between these devices.

Smart mobility, including transportation, is a key objective in innovative city development. Creating efficient, flexible, and integrated transportation networks is vital for smart mobility. Smart mobility significantly enhances the lives of residents and tourists in modern urban centers. By 2040, it is projected that 65% of the world’s population will reside in cities. Urban mobility management prioritizes healthy modes of transportation like walking and cycling, while also reducing carbon emissions and optimizing traffic flow analysis.

Traffic congestion has risen due to the exponential growth of populations relocating to cities from suburban and rural areas, resulting in population concentration around metropolitan centers. Insufficient roadway designs and poor urban planning have contributed to vehicle congestion in cities. For instance, in 2022, the average American driver wasted 51 hours in traffic congestion, equating to approximately one hour each week. This represents a 15-hour increase compared to 2021, costing the typical American driver USD 869 in lost time, according to mobility analytics firm Inrix’s 2022 Global Traffic Scorecard.

However, the lack of a standardized strategy has led to compatibility concerns in smart transportation. Multiple manufacturers produce various components such as software, hardware, and mobile networks, leading to compatibility issues. Moreover, communication protocols vary significantly among nations, posing challenges for manufacturers seeking global acceptance of their products.

The post-COVID-19 scenario will positively impact the market due to increased demand for biometric, integrated, contactless, mobile payment adoption, sensor-based technology, and ticketing technologies in public transit. Furthermore, development efforts by various companies are expected to boost the demand for smart transportation.

Market Segmentation

The market is segmented based on various factors, including product type, application, and region.

Segmentation by Product Type
Advanced Traveler Information Systems (ATIS)
Advanced Transportation Management Systems (ATMS)
Advanced Transportation Pricing Systems (ATPS)
Advanced Public Transportation Systems (APTS)
Cooperative Vehicle Systems

Segmentation by Application
Traffic Management
Road Safety and Security
Parking Management
Public Transport
Automotive Telematics
Other Applications

Segmentation by Region
North America – United States and Canada
Europe – United Kingdom, Germany, France, and Rest of Europe
Asia-Pacific – China, Japan, Australia, and Rest of Asia-Pacific
Latin America – Brazil, Mexico, and Rest of Latin America
Middle East and Africa – Saudi Arabia, South Africa, United Arab Emirates, and Rest of Middle East and Africa

In 2022, the Advanced Transportation Management Systems (ATMS) segment accounted for the largest share (36.21%) of the market. Valued at USD 10.78 billion in 2022, this segment is projected to reach USD 14.81 billion by 2028. ATMS is a logistics platform that leverages technology to assist businesses in planning, executing, and optimizing the movement of goods. It ensures compliance with regulations and provides proper documentation. The market’s growth is driven by factors such as cloud-based SaaS solutions, mergers and acquisitions, and the integration of established TMS product players with innovative startups. The exponential growth of the e-commerce industry, fueled by online shopping and increased internet usage, has also contributed to the adoption of ATMS solutions by e-commerce companies to digitize and automate their logistics operations.

In terms of applications, the traffic management segment held the largest share (36.23%) of the market in 2022. Valued at USD 10.78 billion in 2022, it is expected to reach USD 16.82 billion by 2028, with a compound annual growth rate (CAGR) of 7.99% during the forecasted period (2023-2028). Traffic management plays a vital role in smart transportation by utilizing advanced technologies and data analysis to optimize traffic flow and reduce congestion. Intelligent transportation systems (ITS) are one example of traffic management applications. These systems employ sensors, cameras, and GPS to collect real-time data on traffic conditions, which can be used to adjust traffic signals, redirect vehicles, and provide drivers with real-time traffic information. Given the growing population and increasing traffic pressure on roads, governments and traffic agencies are adopting ITS to improve highway infrastructure and enhance traffic movement. For instance, in April 2022, the Ministry of Electronics and Information Technology (MeitY) in India launched several applications under the ITS to address the country’s traffic situation. One notable initiative was the collaboration between the Centre for Development of Advanced Computing (CDAC) and the Indian Institute of Technology Madras to develop an indigenous Onboard Driver Assistance and Warning System (DAWS), Bus Signal Priority System, and Common SMART IoT Connectivity (CoSMiC) software. Mahindra and Mahindra, an industrial partner, was involved in the project.

In terms of regions, Europe accounted for the largest share (30.45%) of the market in 2022. Valued at USD 9.06 billion in 2022, it is expected to reach USD 12.55 billion by 2028. The United Kingdom, in particular, is home to major global automotive manufacturers and renowned sports car marques like Aston Martin, Bentley, and McLaren. The country’s vibrant motor vehicle traffic contributes to market growth. For example, vehicle traffic on UK roads increased by 11.9% between 2020 and 2021, reaching 297.6 billion vehicle miles. This rise in traffic leads to road congestion and drives the demand for traffic management solutions.

The Asia-Pacific region is projected to grow at a CAGR of 8.52% during the forecasted period (2023-2028). China has outlined a comprehensive transportation system in its 14th Five-Year Plan (2021-2025) that focuses on intelligent and green transportation. By 2025, China aims to achieve significant advancements in overall transportation industry competence, service quality, and efficiency. Improving transportation infrastructure, technology, and human resources are key components of this plan to support urbanization, meet consumer demand, and facilitate factor supply movements. Japan has also witnessed rapid expansion in smart transportation networks, driven by technologies such as the internet of things (IoT). These networks require IoT architecture, which includes cloud computing, sensors, and data communication. Australia, with its diverse and complex transportation infrastructure network, is actively developing traffic management technologies to reduce congestion, enhance safety, and improve traffic conditions. Additionally, the emergence of smart cities in Singapore, India, and South Korea has led to increased adoption of intelligent transportation technologies, creating opportunities for technology providers in these countries. Collaboration and investment between countries in the region further contribute to market growth. For instance, in December 2022, India and South Korea agreed to a loan from the Economic Development Cooperation Fund (EDCF) of the Republic of Korea to construct an intelligent transport system on the Nagpur-Mumbai Expressway.

Competitive Landscape

Due to the relatively low market penetration of the smart transportation industry, companies are positioning themselves to provide customized products and solutions tailored to specific segments and even individual customers. This approach enhances product differentiation and allows for better price realization.

Key players in the smart transportation sector, such as Cisco, SAP SE, IBM, and others, are prioritizing expansion into new areas. These companies have a proven track record of developing innovative ideas to expand their product portfolios within the smart transportation industry. Consequently, the industry is anticipated to experience high levels of competitive rivalry throughout the forecast period.

Key companies profiled in this report include Cisco Systems Inc., SAP SE, IBM Corporation, AVEVA Group PLC, Siemens Corporation, Oracle Corporation, Alstom, Advantech Co. Ltd, Orange SA, Huawei Technologies Co. Ltd, Hitachi Ltd.

Recent Industry Developments

In December 2022, Outsight announced a collaboration with Innoviz Technologies, a leading technology provider in solid-state LiDAR sensors and high-performance perception software. Outsight’s Spatial Intelligence Software, an innovative real-time edge processor and cloud capabilities system, offers a seamless platform for integrating 3D LiDAR data into various applications, including infrastructure, commercial, and automotive sectors.

In August 2022, the European Space Agency (ESA) and the European Road Transport Telematics Implementation Coordination (ERTICO), a consortium focused on intelligent transportation systems in Europe, established a partnership to explore the potential of space-based technology in supporting future smart road systems, such as autonomous vehicles. ERTICO, a collaborative effort between public and private entities, aims to reduce accidents caused by human error through the implementation of technologies like lane departure alerts, collision avoidance, and traffic flow control.

Key Questions Answered

What is the duration of the study for the Smart Transportation Market?
The Smart Transportation Market has been studied from 2018 to 2028.

What is the growth rate of the Smart Transportation Market?
The Smart Transportation Market is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.79% over the next five years.

What is the size of the Smart Transportation Market?
The Smart Transportation Market is anticipated to reach USD 31.26 billion in 2023 and is expected to grow at a CAGR of 6.79% to reach USD 43.41 billion by 2028.

Which region has the highest growth rate in the Smart Transportation Market?
The Asia Pacific region is experiencing the highest CAGR from 2018 to 2028 in the Smart Transportation Market.

Which region holds the largest share in the Smart Transportation Market?
Europe currently holds the highest share in the Smart Transportation Market in 2022.

Who are the key players in the Smart Transportation Market?
The major companies operating in the Smart Transportation Market include Cisco Systems Inc., SAP SE, IBM Corporation, AVEVA Group PLC, and Siemens Corporation.

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Global Smart Transportation Market Size and Share Analysis 2023-2028

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Global Smart Transportation Market Size and Share Analysis 2023-2028

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