Smart Transportation Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Smart Transportation Market is Segmented by Application (Traffic Management, Road Safety and Security, and More), Product Type (Advanced Traveler Information Systems (ATIS), and More), Service (Deployment and Integration, and More), Transportation Mode (Roadways, Railways, and More), Connectivity Technology (DSRC/C-V2X, 5G and LTE-M, and More), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

Smart Transportation Market Size and Share

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Smart Transportation Market Analysis by Mordor Intelligence

The smart transportation market size is valued at USD 125.65 billion in 2025 and is forecast to reach USD 247.81 billion by 2030, registering a 14.55% CAGR. Strong policy backing and rising urban populations are steering governments toward data-centric traffic systems that deliver more capacity without paving additional lanes. Cloud-native analytics, 5G-enabled vehicle connectivity, and digital twin modeling are converging to cut congestion, shorten travel times, and improve safety. Public capital is flowing into deployment: in October 2024, the United States approved USD 4.2 billion for 44 next-generation mobility projects.[1]U.S. Department of Transportation, “Biden-Harris Administration Announces More Than USD 4.2 Billion for Transformational Projects,” transportation.govEurope leads adoption through its Sustainable and Smart Mobility Strategy that promotes zero-emission travel under 500 km and mandates open data across modes of transport. Asia-Pacific is scaling fastest as megacities roll out intelligent highways and MaaS platforms to manage the largest wave of urbanisation in history.[2]World Bank, “Transforming Transportation 2025,” live.worldbank.org

Key Report Takeaways

  • By application, Traffic Management held 31% of the smart transportation market share in 2024 and is expanding at a double-digit CAGR toward 2030.
  • By product type, Advanced Transportation Management Systems commanded a 32% share of the smart transportation market size in 2024; Cooperative Vehicle Systems are rising at a 17.2% CAGR to 2030.
  • By service, Cloud Services accounted for 42% of the smart transportation market size in 2024, whereas Professional Services are advancing at a 15.6% CAGR.
  • By connectivity technology, Cellular/C-V2X captured 60% of the smart transportation market share in 2024 and, when paired with 5G, is growing at 19.4% CAGR.
  • By geography, Europe led the smart transportation market with 39.5% revenue share in 2024, while Asia-Pacific is the fastest-growing region at 13.6% CAGR.

Segment Analysis

By Application: Traffic Management Dominates Urban Mobility Solutions

Traffic Management contributed 32.30% market share to the smart transportation market in 2024 and is projected to outpace overall growth as cities target double-digit congestion cuts with AI coordination. Real-time adaptive signal control shows 35% travel-time savings in pilot corridors across Florida, underpinning procurement for intersection analytics, incident detection, and corridor optimisation. Municipal buyers value modular cloud dashboards that plug into legacy controllers without forklift upgrades, a design principle widening vendor addressability.

Parking Management technologies are advancing at a 13.2% CAGR, converting curbside inventory into digital assets and slashing cruising traffic that can reach 30% of downtown volumes. Public Transport is growing as passengers shift from ownership toward usage-based subscriptions. In freight, cooperative adaptive cruise control demonstrates 5-6% fuel savings and higher average speeds, generating business cases for logistics ITS deployments and further boosting the smart transportation market.

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Note: Segment shares of all individual segments available upon report purchase

By Product Type: ATMS Platforms Evolve with AI Integration

Advanced Transportation Management Systems represented 32% of smart transportation market share in 2024, acting as the digital operating system for multi-modal networks. Agencies are replacing siloed, on-premise servers with cloud-native orchestration that supports predictive analytics, work-zone automation, and greenhouse-gas dashboards. California’s procurement to unify 20 legacy systems under a single COTS platform exemplifies the consolidation trend.

Cooperative Vehicle Systems, posting a 17.2% CAGR, marries 5G and edge AI to enable platooning, advanced hazard alerts, and prioritised emergency routing. The 5G Automotive Association’s 2025 non-terrestrial network trial in Paris validated hybrid satellite-cellular V2X, widening coverage for rural highways 5gaa.org. Advanced Transportation Pricing Systems are gaining momentum as congestion pricing reshapes revenue streams and nudges modal shift, often using blockchain for real-time micro-tolling.

By Service: Cloud Platforms Enable Real-Time Analytics

Cloud Services accounted for 42% of the smart transportation market size in 2024, reflecting a decisive move away from on-premise data centres. Cloud elasticity allows agencies to ingest terabytes of sensor data, run predictive models, and publish open data portals without capacity planning. Iteris’ SaaS contract with Ventura County underscores how pay-as-you-go analytics lower entry barriers. Platform vendors now bundle cybersecurity monitoring and digital-twin modelling to deepen recurring revenue.

Professional Services are expanding at 15.6% CAGR as agencies seek system integrators that can navigate multi-vendor interoperability, regulatory compliance, and change management. Advisory teams architect phased deployments to minimise disruption, while managed-service wraps guarantee uptime for mission-critical corridors. Deployment & Integration work remains pivotal where legacy SCADA, toll, and payment systems demand careful cut-overs to cloud architectures in the smart transportation market.

By Transportation Mode: Roadways Remain Foundation of Smart Mobility

Roadways generated 34.8% of 2024 revenue. Smart roadway upgrades include connected-vehicle corridors, automated incident clearance, and pavement-embedded sensors that feed maintenance AI. Federal Highway Administration pilots on nighttime visibility and next-gen incident management are setting reference frameworks. Integration with tolling and freight platforms is reinforcing the roadway backbone within the broader smart transportation market.

Airways are the fastest-growing mode at 12.7% CAGR, propelled by remote tower control, AI-guided ground handling, and UAV traffic management. The smart airport segment is driven by biometric passenger flow and edge-based security screening. Rail and maritime investments in connected signalling, predictive maintenance, and autonomous vessel systems round out modal diversification, ensuring the smart transportation industry delivers resilience across supply chains.

Smart Transportation Market
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Note: Segment shares of all individual segments available upon report purchase

By Connectivity Technology: C-V2X Accelerates with 5G Integration

Cellular/C-V2X held 60% of the smart transportation market share in 2024 as regulators cleared the 5.9 GHz band for vehicle connectivity. The technology offers kilometre-scale communication ranges, minimal roadside hardware, and seamless upgrade paths to 5G NR. China’s mandate for adding 30 million V2X-ready vehicles annually by 2032 underlines the scale of cellular adoption.

5G/C-V2X is the fastest-growing connectivity stack at 19.4% CAGR through 2030, supporting high-bandwidth sensor sharing and paving the way for partial autonomy. Satellite augmentation using low-earth orbit constellations plugs coverage gaps along rural freight routes and open seas. The European space programme forecasts GNSS downstream revenues to more than double to EUR 580 billion (USD 639 billion) by 2033.

Geography Analysis

Europe captured 39.5% of 2024 revenue in the smart transportation market, underpinned by stringent emissions targets and cohesive funding models. The Sustainable and Smart Mobility Strategy calls for 30 million zero-emission vehicles and a doubling of high-speed rail traffic by 2030. Investment in public data spaces and open-source simulation platforms accelerates vendor innovation while helping cities benchmark performance region-wide. Northern Europe’s mature telecom infrastructure and early adoption of congestion pricing provide templates replicable across the continent.

North America ranks second. Federal programmes, including SMART Grants (USD 100 million annually) and mega-grant corridors, finance pilot scaling and rural outreach. Silicon Valley’s cloud and semiconductor clusters feed a rich supplier ecosystem, allowing rapid commercialization of LIDAR modules, mapping APIs, and middleware critical to the smart transportation market. The FCC’s approval for supplemental satellite coverage using commercial mobile spectrum extends V2X reach into sparsely populated regions, reinforcing the resilience of emergency services.

Asia-Pacific posts the highest growth at 13.6% CAGR. Chinese provinces are activating roadside C-V2X to meet national mandates, while India’s dedicated highway and port programmes integrate IoT sensors for journey-time guarantees. ASEAN megacities deploy contactless ticketing tied to national identity schemes, shortening adoption cycles for Mobility-as-a-Service. In parallel, Middle Eastern states channel Vision 2030 funds into autonomous metro lines, targeting USD 7 billion regional ITS spend by 2030. Collectively, these initiatives cement APAC as a principal volume engine for the smart transportation market.

Smart Transportation Market: Forecasted Growth Rate by Region
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Competitive Landscape

Market structure is moderately concentrated. Siemens, IBM, Thales, and Huawei anchor end-to-end portfolios that bundle signalling, cloud analytics, and cybersecurity. Each pursues ecosystem plays: Siemens’ Xcelerator platform courts developers to build value-add apps on its transport OS, while IBM overlays watsonx AI to orchestrate predictive incident response. Tier-one OEMs collaborate with telcos and hyperscalers to extend mobility-as-a-service stacks, shifting revenue from hardware to recurring platform fees.

Strategically, vendors pivot toward orchestration models that merge modes into unified journey layers, echoing cloud operating-system economics. Acquisition pipelines target niche software that fills capability gaps: Transit Technologies’ three-deal roll-up of bus scheduling, dispatch, and passenger apps broadens its MaaS suite. Partnerships also de-risk geographic entry; Actelis Networks leverages defence contracts to validate ruggedised Ethernet for roadside cabinets, then cross-sells to city DOTs.

White-space opportunities persist in emerging markets where per-capita capex is lower. Suppliers offering modular, cloud-first architectures with pay-as-you-drive pricing are best positioned. Blockchain tolling pilots indicate latent demand for micro-payment rails that reduce leakage and enable distance-based charging – a proposition resonating with policymakers targeting net-zero funding models within the smart transportation market.

Smart Transportation Industry Leaders

  1. Cisco Systems Inc.

  2. SAP SE

  3. IBM Corporation

  4. AVEVA Group PLC

  5. Siemens Corporation

  6. *Disclaimer: Major Players sorted in no particular order
Smart Transportation Market
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Recent Industry Developments

  • April 2025: Sonoma-Marin Area Rail Transit secured USD 81 million state funding to extend rail services, leveraging mixed financing to decongest Highway 101.
  • April 2025: Shengfeng Development and CATL initiated a USD 42 million logistics partnership, embedding battery distribution into a Tier-1 smart logistics hub to tilt transport emissions downward.
  • March 2025: Actelis Networks reported USD 7.8 million 2024 revenue, up 38%, attributing growth to hardened networking gear for city ITS backbones.
  • March 2025: Transit Technologies acquired Bushive, adding real-time bus optimisation to its road-transport tech stack and accelerating its smart city platform play.

Table of Contents for Smart Transportation Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rapid urban?population growth stressing legacy road networks
    • 4.2.2 Government smart-city funding and ITS mandates
    • 4.2.3 Drop-in cost of AI-enabled edge sensors
    • 4.2.4 Growth of MaaS subscription platforms
    • 4.2.5 Transition of toll roads to blockchain-based micro-payment rails
    • 4.2.6 Aviation-grade GNSS redundancy adopted for dense urban canyons
  • 4.3 Market Restraints
    • 4.3.1 High upfront capex for city-wide ATMS roll-outs
    • 4.3.2 Lack of cross-vendor data standards for V2X
    • 4.3.3 Cyber-security-compliance liabilities for public agencies
    • 4.3.4 Scarcity of dedicated 5.9 GHz spectrum in megacities
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Intensity of Competitive Rivalry
    • 4.7.5 Threat of Substitute Products
  • 4.8 Impact of Macroeconomic Trends
  • 4.9 Industry Value-Chain Analysis

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Application
    • 5.1.1 Traffic Management
    • 5.1.2 Road Safety and Security
    • 5.1.3 Parking Management
    • 5.1.4 Public Transport ITS
    • 5.1.5 Automotive Telematics
    • 5.1.6 Freight and Logistics ITS
  • 5.2 By Product Type
    • 5.2.1 Advanced Traveler Information Systems (ATIS)
    • 5.2.2 Advanced Transportation Management Systems (ATMS)
    • 5.2.3 Advanced Transportation Pricing Systems (ATPS)
    • 5.2.4 Advanced Public Transportation Systems (APTS)
    • 5.2.5 Cooperative Vehicle Systems (C-ITS)
  • 5.3 By Service
    • 5.3.1 Deployment and Integration
    • 5.3.2 Cloud and Managed Services
    • 5.3.3 Professional and Consulting
  • 5.4 By Transportation Mode
    • 5.4.1 Roadways
    • 5.4.2 Railways
    • 5.4.3 Airways
    • 5.4.4 Maritime
  • 5.5 By Connectivity Technology
    • 5.5.1 DSRC / C-V2X
    • 5.5.2 5G and LTE-M
    • 5.5.3 Satellite (GNSS, L-band)
  • 5.6 By Geography
    • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
    • 5.6.2 South America
    • 5.6.2.1 Brazil
    • 5.6.2.2 Argentina
    • 5.6.3 Europe
    • 5.6.3.1 Germany
    • 5.6.3.2 United Kingdom
    • 5.6.3.3 France
    • 5.6.3.4 Russia
    • 5.6.3.5 Rest of Europe
    • 5.6.4 APAC
    • 5.6.4.1 China
    • 5.6.4.2 Japan
    • 5.6.4.3 India
    • 5.6.4.4 Rest of APAC
    • 5.6.5 Middle East and Africa
    • 5.6.5.1 Saudi Arabia
    • 5.6.5.2 United Arab Emirates
    • 5.6.5.3 South Africa
    • 5.6.5.4 Rest of Middle East and Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Initiatives and Mergers and Acquisitions
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes global overview, market overview, core segments, financials, strategy, market rank/share, products and services, recent developments)
    • 6.4.1 Siemens Corporation
    • 6.4.2 Cisco Systems Inc.
    • 6.4.3 IBM Corporation
    • 6.4.4 SAP SE
    • 6.4.5 AVEVA Group PLC
    • 6.4.6 Thales Group
    • 6.4.7 Huawei Technologies Co. Ltd.
    • 6.4.8 Alstom SA
    • 6.4.9 Kapsch TrafficCom AG
    • 6.4.10 Hitachi Ltd.
    • 6.4.11 Oracle Corporation
    • 6.4.12 Advantech Co. Ltd.
    • 6.4.13 Orange SA
    • 6.4.14 TransCore LP
    • 6.4.15 Cubic Transportation Systems
    • 6.4.16 TomTom NV
    • 6.4.17 Panasonic Holdings Corp.
    • 6.4.18 Ericsson AB
    • 6.4.19 Qualcomm Inc.
    • 6.4.20 Continental AG
    • 6.4.21 Iteris Inc.
    • 6.4.22 PTV Group

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-Need Assessment
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Global Smart Transportation Market Report Scope

Smart transport or intelligent transport is 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 various applications, such as traffic management, safety and security, parking management, public transport, automotive telematics, and freight. 

The study also tracks the demand for the global smart transportation market based on application, product type in multiple geographies. The impact of macroeconomic trends on the market is also covered under the scope of the study. Further, the disturbance of the factors affecting the Market's evolution in the near future has been covered in the study regarding drivers and constraints. The market sizes and predictions are provided in terms of value in USD for all the above segments.

By Application Traffic Management
Road Safety and Security
Parking Management
Public Transport ITS
Automotive Telematics
Freight and Logistics ITS
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 (C-ITS)
By Service Deployment and Integration
Cloud and Managed Services
Professional and Consulting
By Transportation Mode Roadways
Railways
Airways
Maritime
By Connectivity Technology DSRC / C-V2X
5G and LTE-M
Satellite (GNSS, L-band)
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Europe Germany
United Kingdom
France
Russia
Rest of Europe
APAC China
Japan
India
Rest of APAC
Middle East and Africa Saudi Arabia
United Arab Emirates
South Africa
Rest of Middle East and Africa
By Application
Traffic Management
Road Safety and Security
Parking Management
Public Transport ITS
Automotive Telematics
Freight and Logistics ITS
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 (C-ITS)
By Service
Deployment and Integration
Cloud and Managed Services
Professional and Consulting
By Transportation Mode
Roadways
Railways
Airways
Maritime
By Connectivity Technology
DSRC / C-V2X
5G and LTE-M
Satellite (GNSS, L-band)
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Europe Germany
United Kingdom
France
Russia
Rest of Europe
APAC China
Japan
India
Rest of APAC
Middle East and Africa Saudi Arabia
United Arab Emirates
South Africa
Rest of Middle East and Africa
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Key Questions Answered in the Report

What is the current size of the smart transportation market?

The market is valued at USD 125.7 billion in 2025 and is projected to reach USD 247.8 billion by 2030.

Which segment holds the largest share of the smart transportation market?

Advanced Transportation Management Systems lead with 32% share in 2024.

Which connectivity technology is growing fastest?

5G/C-V2X connectivity is expanding at 19.4% CAGR through 2030.

Which region is expected to record the highest growth?

Asia-Pacific is forecast to grow at 13.6% CAGR, driven by rapid urbanisation and large infrastructure investments.

What is the main funding driver behind market growth in North America?

The U.S. Infrastructure Investment and Jobs Act and related grant programs provide substantial capital for intelligent mobility deployments.

What is the biggest restraint facing city deployments today?

High upfront capital expenditure for city-wide ATMS roll-outs remains the most significant barrier, particularly for developing economies.

Page last updated on: June 25, 2025