Smart Transportation Market to Reach $353.9B by 2034

The smart transportation market is set to grow from its current market value of more than $154.7 million to over $353.9 billion by 2034, as reported in the latest study by Global Market Insights, Inc.

Rapid urbanization and rising traffic congestion are key factors driving market expansion as cities worldwide seek advanced mobility solutions to reduce delays, lower emissions, and enhance overall transportation efficiency. 

The growing adoption of connected and autonomous vehicles (CAVs) is also significantly influencing market growth, with technologies like AI, IoT, and 5G playing a crucial role in real-time traffic management and vehicle-to-everything (V2X) communication.

Key takeaways:

·        The hardware segment led in 2024, generating $59 billion in revenue, and is projected to grow at a CAGR of approximately 13.2% during the forecast period. Key hardware elements include GPS, IoT sensors, RFID chips, surveillance cameras, automated fare collection systems, and V2X communication devices.

·        Roadways accounted for 53% of the market share in 2024 and are anticipated to grow at a CAGR of over 13% through 2034. Expanding urban road networks and the increasing adoption of electric and autonomous vehicles are boosting the need for advanced traffic control and forecasting systems. Ride-hailing services and shared mobility platforms are also accelerating the development of smart roadway solutions, contributing to the sector's growth.

·        The traffic management segment dominates due to the rising number of vehicles on roads, increasing urban congestion, and the need for effective mobility solutions. AI-driven traffic control, adaptive signaling, and congestion pricing strategies are being implemented to optimize road performance while minimizing delays and environmental impact. Real-time traffic tracking, automatic incident detection, and predictive analytics are further enhancing road safety and efficiency.

·        Regionally, North America led the market in 2024, accounting for around 33% of the global share and generating $42 billion in revenue. The United States remains at the forefront, with strong government initiatives, technological advancements, and urban development fueling market expansion. Federal funding programs and policies promoting ITS, connected mobility, and AI-powered transportation solutions are accelerating the adoption of smart transport infrastructure across major metropolitan areas.