TRANSPORT MONITORING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

Transport Monitoring Market Drivers:

• Increasing government focus on transportation safety and efficiency: Governments worldwide are implementing various regulations and initiatives to improve transportation safety and efficiency. According to the data published by the World Health Organization (WHO) in 2021, over 1.3 million people die each year as a result of road traffic crashes. Road accidents also cause between 20-50 million non-fatal injuries. The economic costs of road traffic injuries account for over 3% of the world's GDP. This highlights the massive social and financial burden of road accidents. Consequently, governments are prioritizing measures like electronic vehicle identification, advanced driver assistance systems and V2X connectivity to make transportation safer and prevent accidents. The growing focus on regulations, safety, and smart infrastructure is a key driver augmenting the global intelligent transportation systems industry. Government programs for smart cities and intelligent transportation systems are also catalyzing the market growth.
• Growth of IoT and big data analytics: Increasing adoption of IoT devices, sensors and internet connectivity in the transportation sector is generating huge amounts of data. Big data analytics offers intelligent insights from this data to optimize routes, prevent accidents, improve asset utilization and enhance operational efficiency. In 2023, long-haul and regional fleet companies shared data with various solution providers, and transport planners paired this information with data generated from traffic cameras and sensors. This data, including traffic video analytics and "origin-destination" traffic data, was used to make more accurate and comprehensive predictions, ultimately leading to more efficient and safer transportation management big data helps in predictive maintenance, supply chain visibility, analyzing driving patterns and proactive anomaly detection. According to estimates, the IoT in the automotive sector is expected to reach US$82.7 Bn by 2025.
• Advancements in communication networks like 5G: The rollout of 5G networks offers massive connectivity capabilities with higher speeds and lower latency. This is critical for vehicle-to-everything (V2X) communication for connected and autonomous vehicles. Enhanced bandwidth of 5G will support applications like video-based monitoring, real-time traffic coordination, and remote vehicle diagnostics. In 2023, the transportation management systems (TMS) market was expected to benefit from the deployment of 5G technology, thereby allowing for faster and more reliable data transfer, which is crucial for real-time monitoring and decision-making in transport operations According to Juniper Research, global 5G-connected vehicles will reach 88 million by 2025. Leading telecom providers are partnering with transport companies to test 5G technologies.
• Increasing adoption of fleet telematics: Fleet telematics systems like GPS trackers are being widely adopted to monitor commercial vehicles. As per Berg Insight, the number of active fleet management systems deployed in commercial vehicles worldwide was 15.7 million in 2020. Features like vehicle tracking, driver behavior monitoring, fuel usage optimization and preventive maintenance are driving uptake. Other factors include compliance mandates, need to reduce costs and improve safety.

Transport Monitoring Market Opportunities:

• Emergence of smart cities: The development of smart cities worldwide will provide major growth opportunities. Intelligent transportation is a key component of smart city infrastructure. This includes solutions such as intelligent traffic management, congestion charging, smart parking, toll payment systems and passenger information systems. According to projections, there will be over 500 smart cities globally by 2025, providing a massive addressable market for transportation monitoring technologies. For instance, non-profit organization Climate Group's data shows that globally 36% of people are willing to use shared transportation if accessible options exist in their city. This showcases the rise in sustainable mobility preferences and high market potential.
• Adoption of autonomous vehicles: Autonomous vehicles rely heavily on technologies like radars, LiDAR, ultrasound, cameras and connectivity solutions to navigate safely. This will spur the demand for sophisticated transport monitoring components to ensure robust operation and compliance. Companies are forming partnerships to develop autonomous vehicle technologies. According to McKinsey, global autonomous vehicle sales could reach 11.8 million by 2030. According to a report in 2020 by the U.K. government, 5G can enable real-time transmission of large amounts of vehicle data to authorities, something not possible with earlier network standards. This will allow for more robust oversight of autonomous operations. The convergence of autonomous vehicles, regulations, and new technologies like 5G, thus present a major opportunity for the global transport monitoring industry to develop solutions that facilitate the safe adoption of self-driving vehicles.
• Increasing use of drones for traffic and fleet monitoring: Drone technology offers an innovative approach to gather real-time traffic data and monitor fleets. Drones provide an aerial view for smarter insights and are extremely flexible. Law enforcement agencies are using drones for traffic surveillance, analysis and accident investigation. Drones also enable remote monitoring of railways, pipelines, and critical infrastructure. According to estimates, the commercial drone market will grow at ~14% annually till 2028. In 2021, London and Shanghai, found drones to be effective in detecting incidents within 2-3 minutes as compared to 12-15 minutes normally, significantly reducing response times. Overall, increased drone usage allows addressing challenges of rapid urbanization and modernizing transport infrastructure, thus driving significant opportunities for the global market.
• Leveraging Computer Vision and Artificial Intelligence: The application of AI and machine learning can transform traditional approaches to transport monitoring. Computer vision facilitates automatic analysis of visual data from drones, CCTV and vehicle cameras to identify trends, anomalies and maximize efficiency. AI helps to derive actionable insights from diverse transport data. For instance, AI can study driver behavior to evaluate safety risks. The global AI in the transportation market is projected to grow at 38% CAGR till 2026. For instance, In 2021 Transport for London observed changes in usage after expansion of cycle lanes and introducing low emission zones using computer vision deployed across 6,500 roads.