The construction industry will be tasked with building smarter transportation, and it appears these types of projects are set to grow.
The global smart-transportation market was valued at $63.6 billion in 2015, and is expected to reach $237.7 billion by 2022, growing at a CAGR (compound annual growth rate) of 18.6 percent from 2016 to 2022.
The cloud services segment is anticipated to dominate the market during the forecast period. Europe was the dominant region, accounting for approximately 33 percent share of the smart transportation market revenue in 2015. Smart transportation will become a great revenue source for contractors who embrace the technology and projects.
A smart-transportation network will ease traffic congestion and enhance the safety, sustainability, and efficiency of the network. Increasing government support and investments towards the development of smart cities boosts the market. The government of India aims to develop 100 smart cities by using smart technology to improve the efficiency of services and meet residents' needs. The high capital investment to restore the existing system restrains the market growth.
Smart-transportation systems are a necessity. There is a rising demand for efficient transportation networks worldwide.
The solutions segment is divided into hybrid ticketing management system, parking management and guidance system, integrated supervision system, and traffic-management system. In 2015, the traffic-management system accounted for the largest revenue with rapid urbanization and the emerging concept of smart cities and smart traffic. The parking-management system market is anticipated to witness the highest growth, with a CAGR of 18.8 percent from 2016 to 2022.
Europe held the largest marketshare in 2015, and is anticipated to maintain its dominance throughout the forecast period. This is due to increase in demand for smart transportation and concern of users towards the environment. Investments in emerging smart cities will create growth opportunities for the smart transportation market in the region.