SMART MOBILITY MARKET ANALYSIS

The global smart mobility market size was valued at US$ 26.89 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 20.9% from 2023 to 2030. The market is driven by the increasing need for reducing traffic congestion and emissions of greenhouse gases, government initiatives to promote smart mobility, and advancements in technology. Moreover, the rising number of passengers per vehicle is also a major driving force for the market growth.

Global Smart Mobility Market: Regional Insights

In North America, the global smart mobility market is anticipated to show substantial growth over the forecast future. This can be attributed to rise in production and sales of vehicles, growing infrastructural development across the region, and various other development by service providers for providing better and efficient services. Moreover, the presence of major market players in the region, such as Ford International, and Cisco is also driving the market growth, as these companies have introduced the smart mobility concept in North American countries.

Moreover, Europe is also projected to exhibit robust growth in the global smart mobility market during the forecast period, owing to rise in investment in smart mobility from various investment companies in the region, driving the adoption of this technology. Such initiatives aim at safer and securer transportation modules. Moreover, the major manufacturers in the region are focused on launch of novel autonomous connected vehicles to improve driving experience. These factors are expected to support growth of the global smart mobility market across the region.

Figure 1: Global Smart Mobility Market Share (%), By Region, 2022

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Global Smart Mobility Market Drivers:

Increasing need for on-demand transportation services to fuel the market growth

The on-demand service includes passenger vehicle, taxi, and charter vehicles providing flexibility among other features such as tracking of vehicle, real time feedback, and rating to end customers. Various mobile applications facilitate the availability of the car and fare comparison with the correspondent. For instance, in August 2017, Migo, a search engine for on-demand rise services introduced a mobile applications, using which users can compared prices and locations of nearby taxis, ride-hailing, and car-sharing companies. With such service, customers can use various functions. Thus, with growing trend of on-demand transportation services, the adoption of smart mobility solutions is likely to increase, which in turn will boost growth of the global smart mobility market over the forecast period.

Rise in smart city initiatives to propel the market growth

Governments of several countries around the globe are supporting smart mobility concept, through smart city initiatives. For instance, the Ministry of Economy, Trade, and Industry and the Ministry of Land, Infrastructure, Transport, and Tourism of Japan developed the smart mobility challenge subsidy program, which generated a US$ 27.6 million of revenue for this program. Various governments around the world are implementing similar subsidy programs and investments. This factor is thus anticipated to augment growth of the global smart mobility market during the forecast period.

Global Smart Mobility Market Opportunities:

Increasing adoption of intelligent transportation system to generate growth opportunities in the global smart mobility market over the forecast period. Advanced cars offer safety services, which are an example of advanced aftermarket technology involving data sharing between the humans and the vehicle. Safety combines automobile technology and telecommunication to improve efficiency of vehicle, enhance safety & security measures, reduce cost of fuel consumption and maintenance, and provide assistance to drive in order to improve his overall experience of driving. Thus, the adoption intelligent transportation systems is increasing, which is likely to create growth opportunities in the market.

Enhancing performance of autonomous vehicles is anticipated to offer business opportunities in the global smart mobility market over the forecast period. Several solutions available in the market are capable of collecting, managing, exploring, interpreting, and analyzing driving data of a specific driver. The use of smart mobility creates large amount of data all the time. This provides major opportunities for superior customers experience and to establish new business avenues in autonomous driving. Thus, this factor is likely to benefits vendors in the global smart mobility market in the coming future.

Global Smart Mobility Market Trends:

Rise in use of electric vehicles and autonomous cars is recent trend

Growing use of autonomous cars and electric vehicles will drive the demand for smart mobility solutions in the coming future. The use of autonomous car will reduce the need for owing private vehicle and other burden along with it. The responsibility for driving will be eliminated for people, and it will help ride-sharing companies to grow their revenue. Thus, this trend is likely to grow in the global smart mobility market over the forecast future.

Bike commuting segment gaining traction in the market

Bike commuting involves traveling from one place to another in a specified range or a city using bicycles. This form of transportation is gaining traction as a smart mobility in several regions due to various benefits of bike commuting. This method is eco-friendly and does not need any kind of propulsion fuel. Moreover, with increasing emergence of electric bicycles, the use of electric bicycles is increasing. This trend is thus, expected to boost growth of the global smart mobility market during the forecast period.

Global Smart Mobility Market Restraints:

Lack of internet penetration in developing regions to hinder the market pace

Ride hailing services need availability of internet for their three parties, which are service providers, riders, and drivers. The operations of this service is carried out through use of smartphone with mandatory connectivity of internet. However, some of the regions such as Chad, Eritrea, Burundi, Somalia, among others still have low internet penetration. This factor thus impacts adoption of smart mobility, which in turn is expected to hinder growth of the global smart mobility market over the forecast period.

Concerns regarding safety of data to impede the market growth

Smart mobility is a recent concept, which is now in trend all over the world. However, this technology is vulnerable to data hacking like cyber-attacks. These events can include braking into an in-vehicle connectivity systems, and unauthorized access to several solutions of car connectivity. Hackers can access the data collected and stored by smart vehicle systems. This factor in turn is expected to limit growth of the global smart mobility market over the forecast period. However, market players are focused on development of solutions to prevent such incidences and improve data security, which is likely to aid in growth of the market.

Figure 2: Global Smart Mobility Market Share (%), By Element, 2022

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Global Smart Mobility Market Segmentation:

The global smart mobility market report is segmented into Elements, Solution, and Technology.

Based on Elements, the market is segmented into Bike Commuting, Car Sharing, and Ridesharing. Out of which, Bike Commuting is expected to dominate the global market over the forecast period and this is attributed to the growing popularity of bike commuting across several regions due to its eco-friendliness and no need for fuel. Bike commuting involves use of bicycles for traveling from one point to another in a city. The use of this mode of transportation is growing across several regions, which is expected to drive growth of the segment in the global market.  

Car sharing segment is also expected to witness significant growth in the near future and this is owing to the various advantages of car sharing leading to rise in adoption. Car sharing offers various advantages such as reduced cost of parking fees and fuel, and increased personal security. Use of car sharing offers an individual with more personal security and it also ensures less congestion on the road due to less number of cars. These factors are thus expected to fuel growth of this segment in the coming future.  

Based on Solution, the market is segmented into Traffic Management, Parking Management, Mobility management, and Others. Out of which, Traffic Management is expected to dominate the global market over the forecast period and this is attributed to the multiple benefits of these solutions. Traffic management solutions has various benefits such as limited number of vehicles at a specific time, and reduction in traffic congestion. Due to this, the vehicular emissions can be reduced significantly. Thus, the demand for traffic management solutions is growing rapidly, which is anticipated to boost growth of the market.

Parking Management segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of parking management solutions. These solutions involve strategies designed for increasing effectiveness of existing parking system, and use of smart mobility aids parking management to offer a real time data through various integrated technologies. Owing to several benefits of parking management, the adoption of these solutions is growing all over the world, which in turn is expected to support growth of this segment in the global market.

Based on Technology, the market is segmented into 3G & 4G, Wi-Fi, GPS, RFID, Embedded Systems, and Others. Out of which, 3G & 4G is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of increased bandwidth, provision of better and fast service, higher internet speed. 3G & 4G network generations allow easy connectivity among vehicles, or offers real time data supplementing the smart mobility concept. The easy availability of these networks across several regions is driving the growth of this segment.

Wi-Fi segment is also expected to witness significant growth in the near future and this is owing to the increased adoption of Wi-Fi technology due to its convenience and mobility in operations. The ease in deployment, rise in productivity, and cost-effectiveness of Wi-Fi is driving their adoption all over the world, which in turn is expected to aid in growth of the global smart mobility market.

Global Smart Mobility Market: Key Developments

In September 2022, Hyundai introduced the first smart mobility solutions, a new Hyundai Venue in Delhi India, with good look, comfort, and amazing size, performance, edges. The Hyundai SUV was renovated to Hyundai venue.

In March 2022, Chalo, a smartphone application acquired Vogo, a two-wheeler shared mobility startup in India.

In February 2021, Ton Tom formed an agreement with Precisely, a global data integrity leader, under which precisely consumers will be able to use top map and traffic information of Tom Tom for making well-informed business decisions.

In March 2023, MG Motor India, a British brand, after exhibiting the line-up of electric car at the Auto Expo Motor Show 2023, announced the plans to launch a new smart EV named “Comet” in the local market.

Global Smart Mobility Market: Key Companies Insights

The global smart mobility market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global smart mobility market are Cisco Systems, Inc., Excelfore, Ford Motor Company, Robert Bosch GmbH, and TomTom International N.V.

*Definition: Smart Mobility is the next era of transportation, a new paradigm for rethinking and changing the way we get around. It involves the integration of various technologies to improve accessibility, sustainability and efficiency.