The conventional understanding of next-generation mobility constitutes convergence between on-demand and ride-hailing services, electrification, and the most imperative autonomous vehicles. As the world is drifting towards implementing the ideology of ‘smart cities,’ detachment from the existing blueprint of infrastructures serving the transportation services and implementing smart execution of the same is paramount. As a consequence global smart transportation market is gaining traction due to bourgeoning urban population augmenting the convoy of vehicles employed globally, creating a demand for intelligent transport systems (ITS) with integration of IoT (Internet of Things) and AI (Artificial Intelligence). As the automotive sector is participating in the evolution of transportation with its electric vehicles (EV) serving the ecological requirements and autonomous and semi-autonomous vehicles catering the needs of autonomy and safety, this is not sufficient. The gaps to be filled to achieve ‘smart transportation’ includes implementation of advanced traveler information systems (ATIC), advanced transportation management systems (ATMS), advanced transportation pricing systems (ATPS), and advanced public transportation systems (APTS) in the overall transportation infrastructure of roadways, railways, airways and maritime as well. Hence, leveraging the global emphasis and governmental initiatives to deliver ITS and lay foundation for Transportation 4.0, the global Smart Transportation Market size is poised for exponential growth and is evaluated to be $54.45 billion as of 2018. Tracing the developments in numerous adjacent subsidiary markets such as ITS, EV, autonomous vehicles, and IoT in transportation, smart transportation as a parent market is estimated to be progressing at a global CAGR of 12.6% during the forecast period of 2019-2025.
Smart Transportation Infrastructures – Imperative to Mainstream Autonomous Vehicles:
The consistently evolving autonomous vehicles market is gaining noticeable traction in major economies such as the United States and China. As a consequence, the economies are bound to construct smart transportation infrastructures in the form of highways, roadways, and advanced transportation data network that is compatible with their autonomous fleet of automotive. For instance, in Utah, the United States, the Utah Department of Transportation partnered with the Panasonic Corporation of North America to install intelligent sensors along with nominated segments of Utah highways. These sensors will facilitate real-time sharing of data between vehicles, infrastructure, roadways, and traffic operators. Apart from updating the commuters with real-time updates for traffic management, the data can be utilized for structural monitoring to address critical operations, safety, and maintenance needs on roadways.
Similarly, the world’s largest car manufacturing nation, China, is all set to announce operational a 100 km long highway with lanes dedicated for autonomous vehicles. The infrastructure will be equipped with smart sensors in the dedicated lanes to establish real-time communication with autonomous cars for detecting and directing its route, and a smart-toll facility to conduct easier payment. Hence, the global Smart Transportation Market is leveraging the necessity of efficient and automatic transportation infrastructures for mainstreaming the fleet of autonomous vehicles.
Artificial Intelligence to Assist ‘Smarter’ Functionality of Automotive Batteries:
Smart transportation is not just limited to smart vehicles and smart infrastructures, but an ITS should also deliver facilities to provide the smarter utility of fuel to diminish energy loss, supplementing the trend of ‘low carbon economy.’ As the automotive sector is already implementing ‘light-weighting’ to augment fuel economy in ICE vehicles, Robert Bosch GmbH announced a new service for the rampantly developing electric and hybrid vehicles. The battery in the Cloud, launched in 2019, is a solution designed for connecting electric vehicles batteries with AI running in the cloud. By persistent monitoring and analysis of battery statuses such as current ambient temperature and charging habits, and optimization of recharging processes it can deliver energy conservation instructions to drivers utilizing in-car displays and can increase battery life by 20%. The German technology and engineering giant has also found its first customer implementing this solution, which is a Beijing-based mobility giant DiDi Chuxing, which as of 2018 had 550 million users and tens of millions of drivers on its platform. An energy tech startup developed similar solutions, Greensmith in 2012, and Advanced Charging Technologies also deliver real-time analytics of vehicles batteries on a cloud-based application. However, Bosch is delivering an edge to itself with AI integration as it transmits real-time battery data to be treated by machine learning algorithms in datacenters. Considering the emphasis given on efficiency of ‘fuel’ and ‘power’ by the automotive sector, this innovation as a ‘smart battery’ for the emerging electrical fleet is adding impetus to the smart transportation market growth.
Governmental Initiatives and Private Enterprises Assisting Smart Transportation in North America:
The transition towards smarter execution of conveyance is a phenomenon pacing up globally, but North America owing to its unmatched development in the spectrum of autonomous vehicles and intelligent transport systems are leading the market. This region in 2018 had a share of 34.76% in global smart transportation market demand. Some factors in support of the argument-
· North America is the leading region globally in terms of deployment of intelligent transportation systems and had a share of 33.35% in the global ITS market as of 2018. Moreover, the United States Department of Transportation and Intelligent Transportation Society of America are constantly working towards smarter and safer execution of transit that is creating tremendous opportunities for the players in the smart transportation market.
a. The Intelligent Transportation Society of America is working towards deployment of ITS such as V2V (vehicle to vehicle) and V2I (vehicle to infrastructure) communication, consequently creating abundant demand driving the market.
b. United States Department of Transportation reported-
i. Deployment of photo-radar speed enforcement van reduced the count of speeding vehicles by 23.7%.
ii. Installation of speed management system reduced the number of winter weather-related accidents by 100%. Zero accidents were recorded post-installation.
iii. Speeding dropped by 65% in the local neighborhood by the installation of automated speed enforcement systems.
· Similarly, North America is the leading market for semi-autonomous and autonomous vehicles with a share of 48.65% as of 2018. Apart from holding some of the biggest companies in autonomous driving such as Waymo LLC, Tesla, Inc., and General Motors, the United States is dominating the smart transportation market due to proper addressing of autonomous vehicle’s potential by governmental institutions. Hence, as of now 29 states and Washington D.C. have legislated regulations about autonomous vehicles. Considering the investment, U.S. Transportation Secretary in 2016, declared disposing $4 billion over the next decade to accelerate the developments and implementation of safe vehicle automation.
Among all sectors implementing smart transportation solutions such as telematics and intelligent transportation technology, fleeting management is estimated to be the fastest-growing vertical progressing at an application CAGR of 17.6% going through to 2025. By such implementation, fleet management will benefit in terms of reducing operational cost, enhancing driver and asset security, and improving customer experience.
Smart Transportation Market Companies:
Some of the key players operating in the global market are Accenture plc, Cisco Systems, Inc., General Electric Company, International Business Machines Corporation, Siemens AG, Thales Group, SAP ERP, Huawei Technologies Co., Cubic Transportation System, Toshiba Corporation, Bentley Systems, Incorporated, Descartes Systems Group, Rockwell Collins, Trimble Inc., DNV GL, and Conduent Inc.
Smart Transportation Market Trends Shaping Future Endeavors of Companies:
· Mobility data is an imperative asset for any economy to implement intelligent transport system. A correct interpretation of data sets is paramount to allocate operations for existing mobility requirements and develop upcoming initiatives and groundwork. As a consequence, the Government of India is planning to detect the transition of people via license plate readers and the ecosystem of IoT to mine mobility data. To execute such endeavors, IBM’s Watson Analytics is supposed to be roped into mine traffic data, and deliver interactive dashboards to be utilized by the command centers.
· Considering the increasing number of urban population and rise in the global automotive fleet, availability of parking spaces, and real-time information on the same is emerging as a necessity. Hence, smart parking solutions that are an integration of IoT, cameras, wireless communications, smart parking meters, and advanced algorithms are gaining substantial emphasis among several smart transportation innovations. Apart from intellectualizing parking management, smart parking solutions deliver real-time information regarding the availability of parking spaces and also enables an interface to make payments. In 2016, Huawei Technologies Co. in collaboration with Vodafone Group Plc finished the initial trial on commercial networks for pre-standard NB-IoT smart parking in Spain. Huawei claimed that smart parking would allow vehicle operators to access a list of data remotely, from a mobile application that includes checking parking spot availability and also navigating to the available spots.
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