Report Overview
The global transportation analytics market size was valued at USD 7.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 15.6% from 2020 to 2027. Factors such as the growing adoption of smart transportation initiatives and the Advanced Traffic Management System (ATMs) undertaken across the world are the primary drivers fostering market growth. Reduction in fuel consumption, traveling time, and air pollution are some of the benefits offered by these analytics solutions. A shift toward automation of operational processes with the use of Artificial Intelligence (AI) and Machine Learning (ML) is likely to foster market growth.
The use of transport analytics systems vis-à-vis Intelligent Transportation Systems (ITS) makes traffic monitoring easy, thereby reducing road accidents and harmful carbon emissions. As per the Transportation Institute, U.S., drivers waste more than 3 billion gallons of fuel per year, commuters spend approximately 42 hours a year stuck in traffic, having a total regional expenditure of USD 160 billion, equivalent to USD 960 per commuter. Moreover, the rising population and rapid urbanization in emerging economies are expected to influence the demand for traffic solutions. These factors are expected to foster growth prospects in near future.
The market growth is likely to be driven by various government initiatives for the development of smart cities, which will further contribute to the adoption of transportation analytics solutions in relation to intelligent transport systems. For instance, the U.S. Department of Transportation has provided more than USD 63 billion to major transportation infrastructure projects across the U.S. in 2018. Also, an increase in the number of passenger and commercial vehicles has contributed to traffic congestion. The demand for analytics in intelligent transport systems will assist in reducing traffic jams, diverting the traffic away, and minimizing the risk of collisions. However, data security and privacy are some of the primary challenges that need to be addressed by the analytics vendors in the coming years.
Under various smart city initiatives undertaken by various countries across the world, China’s Intelligent Transport System Association has aimed to invest USD 30 billion in intelligent transport industry by 2020. On similar lines, in Dubai, under the initiative of Dubai Plan 2021, the government aims to transform infrastructure with respect to transportation and other physical amenities. Moreover, in January 2019, Cellint Corporation was selected by Translink, a Canadian regional transportation authority to provide travel pattern analytics for its North Shore Transportation Planning Project worth billions of dollars. Thus, smart cities and smart transportation initiatives were undertaken worldwide will certainly boost the applications of transportation analytics over the coming years.
Data collection and analytics solutions available in the market today provide a host of functionalities, including traffic volume counts, vehicle classification counts, travel time and delay studies, and parking studies. To ensure better connectivity and safety of commuters, city planners are recording traffic volume and other parameters to build models in order to optimize the public transportation and traffic movement. For instance, in regards to Citi Logik and Vodafone’s project with Transport for London (TfL), over 10 billion data points were collected. With the help of these data points, a large number of algorithms were used to create journey matrices of around 1.2 billion trips, and the same data was used to complement the existing roadside sensor network data for other operations. Thus, applications of analytics will benefit the operational and managerial functions rapidly in the transport industry over the forecast period.
