Led by smart city initiatives and demand for transportation solutions, the global Smart Mobility Market is expected to reach $ 148.91 billion by 2028.
According to analysts at Zion Market Research, the market accounted for $ 38.21 billion in 2020 and is anticipated to grow at a CAGR of more than 18.74% from 2021 to 2028.
The global smart mobility market is growing rapidly due to factors including the rise in smart city projects, increasing use of digital platforms to manage traveller journeys end-to-end and the growing need for smart mobility due to the rise in traffic congestion.
In addition, the mode of transportation is either by public transportation system or by individually owned cars. With the rise in population and urbanisation, road traffic has become a huge problem in cities across the world. It has been reported that in 2017, economically, the United States lost $ 305 billion just because of traffic congestion and on average, an American spends almost 34 hours annually in traffic which is also a wastage of time. In such cases, smart mobility offers a revolutionary and new way of thinking with a new vision of zero ownership, zero accidents, and zero emissions in an efficient, safer, and cleaner manner.
It also helps to reduce fatalities, decrease congestion, and is an economic game-changer. All these factors have led to a rise in the adoption of smart mobility, fostering the growth of the global smart mobility market. In addition to this, growing network infrastructure and an increase in the adoption of smart mobility for fleet management contribute to overall market growth, the research firm said.
Furthermore, the advancement in the technologies to develop state-of-the-art solutions of smart mobility and the workforce to provide in a customer-centric and responsive manner may provide ample opportunities for the growth of the global smart mobility market over the forecast period. However, Zion Market Research said that the low penetration of the internet & smart mobility market in low & middle-income countries and growing concerns of security & data privacy are some of the factors that may hamper the growth of the global smart mobility market.
Pandemic Impact
The emergence of the COCID-19 pandemic has impacted the growth of the global smart mobility market. The restrictions on movement and strict lockdown imposed by most governments across the countries have put constraints on transportation. Thus, a decrease in the demand for carpooling, car sharing, and on-demand ride services has been witnessed. In addition, an impact on fleet management was observed as the transportation sector was affected by the pandemic outbreak. However, implementing safety measures and constraining the number of passengers while travelling in the different modes of alternative mobility may result in a steady growth rate during the forecast period.
Some of the key players in smart mobility market are Cisco, Toyota, TomTom International, Siemens, Robert Bosch, QuaLIX Information System, MAAS Global, Innoviz Technologies, Ford and Excelfore Corporation.
Regionally, North America is anticipated to dominate the global smart mobility market and continue its dominance. Factors such as the growing adoption of smart mobility, growing concerns of traffic congestion, and the presence of well-established network infrastructure supporting smart mobility are propelling the market's growth in this region.
On the other hand, the Asia Pacific region is estimated to be the fastest-growing region. This is attributed to the rise in demand for carpooling & car-sharing, expanding transportation business, and the growing necessity of traffic management, the research firm noted.
Courtesy: Zion Market Research. NB: Photo is representational; courtesy: Ford.