Smart Mobility Market Statistics - 2027
The global smart mobility market was valued at $34.04 billion in 2019, and is projected to reach $70.46 billion by 2027, registering a CAGR of 20.2%.
Smart mobility is the use of different modes of transportation rather than using one’s own vehicles to reduce number of vehicles running on roads. Smart mobility comprises different concepts such as ride sharing, car sharing, and bike commuting across cities to improve traffic conditions. The need for smart mobility increased across the globe owing to several factors such as increase in pollution, rise in fatalities, and wastage of time, if stuck in traffic jams. Smart mobility is a revolutionary idea for utilizing the available transportation resources in a safer and efficient way to ensure zero emission, least or no accidents and with no ownership of vehicles.
Factors such as rise in trend of on-demand transportation services and government initiatives for smart cities lead to growth of the global smart mobility market. Moreover, low rate of internet penetration in developing regions and threat of data hacking are the factors that are expected to restrain the smart mobility market during the forecast period. However, intelligent transportation systems and improved performance of autonomous vehicles are the factors expected to provide lucrative opportunities for the market growth.
There are several solutions offered in the market that collect, manage, explore, interpret, and analyze driving data of a particular driver. Smart mobility generates a huge amount of data every minute, providing an opportunity for superior consumer experience and establishing new business avenues in autonomous driving.
Leading manufacturing companies are adding a network of smart mobility services, which leads to growth of the market. For instance, Cisco entered into a partnership with Iteris Inc., to promote Cisco’s connected roadway solution through several initiatives between the two companies. Such developments carried out across the U.S. supplements growth of the smart mobility market in the country.
The smart mobility industry is anticipated to experience an exponential growth in Asia-Pacific market, owing to collaboration of leading service provider companies and adoption of latest technologies such as RFID for smart mobility. In addition, wireless service providers are working to provide advanced wireless platforms for smart transportation, which is also expected to supplement growth of the Asia-Pacific smart mobility market.
The global smart mobility market is segmented on the basis of element, solution, technology, and region. On the basis of element, it is categorized into bike commuting, car sharing and ridesharing. On the basis of solution, it is categorized into traffic management, parking management, mobility management, and others. On the basis of technology, it is divided into 3G & 4G, Wi-Fi, GPS, RFID, embedded systems, and others. Region wise, the global smart mobility market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key players profiled in the report include Cisco, Excelfore Corporation, Ford Motor Company, Innoviz Technologies. Inc., MAAS Global Oy, QuaLiX Information System, Robert Bosch GmbH, Siemens, TomTom International and Toyota Motor Corporation.
- In April 2020, TomTom International carried out expansion in an agreement with Verizon by providing maps APIs and SDKs. Under this agreement, Verizon would integrate TomTom’s Maps APIs and SDKs into its location services offering, making it easier for the developer community to build upon and integrate the platform.
- In November 2019, Cisco along with Quantela Inc. developed a unique, market disruptive outcome-based project financing model, which was launched in the Smart City Expo World Congress in 2019. The model can help cities get started on their Smart City projects by converting the upfront CapEx investment to an outcome-based payment that is tied to achieving solution SLAs and project KPIs.
- In July 2019, Ford Smart Mobility, a division of Ford Motor Company acquired Journey Holding to offer intelligent transportation systems. Under this acquisition, Ford hopes to deliver more "seamless, productive and accessible" transportation.
- In September 2019, Excelfore entered into a collaborative agreement to provide its eSync bi-directional data pipeline to Microsoft Azure for OTA updating. The eSync pipeline is demonstrated as a Microsoft Connected Vehicle Platform accelerator.
- In January 2019, Cisco entered into a partnership with Iteris, Inc. (a global provider of applied informatics for transportation and agriculture) to promote Cisco’s Connected Roadway solution through several initiatives between the two companies. Under this partnership, both companies have deployed an edge-processing internet-of-things (IoT) solution with the City of Las Vegas that combine data feeds from the Iteris vantage next video detection platform with Cisco kinetic software solution to analyze multimodal data from vehicles, bicycles, and pedestrians for a number of high-value use cases to improve traffic flow and reduce congestion.
Car sharing is projected as the most lucrative segments
COVID Impact Analysis
With the advent of the COVID-19 pandemic, the smart mobility market has registered a downfall in the year 2020, and is expected to encounter slower growth in the year 2021 as well.
This downfall is attributed to the decrease in demand for ride sharing and carpooling across the globe.
As per the industry experts, this decreased demand is expected to see a positive curve after the year 2022.
The smart mobility market is expected to grow after the availability of safety measures in car sharing and carpooling services such as introduction of plastic barrier between passengers of a car and driver.
GPS is projected as the most lucrative segments
Rise in trend of on demand transportation services
On demand services include taxi, passenger vehicles, and charter vehicles that provide flexibility and other features such as real time feedback, tracking of vehicle, and rating to end customers. Availability of cars and comparison of fare with correspondents is facilitated by numerous mobile applications. For instance, in August 2017, Migo, a Seattle-based search engine for on-demand ride services launched a mobile application that allows users to compare locations and prices of nearby taxis, car-sharing, and ride-hailing companies all in one app. Moreover, such services allow customers to make use of numerous functions. In addition, facility to find exact location of customers and matching demand with available supply are the factors that significantly drive the smart mobility market.
Government initiatives for smart cities
Several government initiatives have been made for implementing concept of smart mobility across the globe. This has led to growth of the global smart mobility market. For instance, in Japan, the Ministry of Economy, Trade, and Industry (METI) and the Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) started a smart mobility subsidy program in 2019, with a revenue of $27.6 million for the program. Similar investments and subsidy programs have been implemented by different governments across the globe, which has leads to growth of the global market.
Parking management is projected as the most lucrative segments
Low rate of internet penetration in developing regions
Ride hailing services require three parties for their operation i.e. driver, riders, and service providers. All processes such as matching rider with drivers, fare estimation & calculation, ride payment, and reputation management are done by using smartphone with mandatory internet connectivity. Some countries such as Eritrea, Burundi, Chad, and Somalia have low penetration of internet that hinders growth of the smart mobility market in these regions. Therefore, low penetration of internet connectivity in developing regions hampers the growth of smart mobility market across those areas.
Intelligent transportation system
Safety services offered in advanced cars are an appropriate example of cutting edge aftermarket technology, which involves sharing data between a vehicle and humans. Safety is a combination of telecommunication and automobile technology used to improve vehicle efficiency, reduce fuel consumption & maintenance cost, enhance security & safety measures, and assist drivers to enhance overall driving experience. Driver assistance systems is a major feature of smart mobility that helps drivers to find most appropriate route to reach a destination. It also prompts alert messages regarding traffic jams and parking space availability. All these features provide intelligent transportation systems, which are designed to improve overall driving experience.
Asia-Pacific would exhibit the highest CAGR of 22.2% during 2020-2027.
Key Benefits for Stakeholders:
- This study presents analytical depiction of the global smart mobility market analysis along with the current trends and future estimations to depict imminent investment pockets.
- The overall smart mobility market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to the key drivers, restraints, and opportunities of the global smart mobility market with a detailed impact analysis.
- The current smart mobility market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Smart Mobility Market Report Highlights
By Solution Type
Key Market Players
TOYOTA MOTOR CORPORATION, Cisco Systems, Inc., MaaS Global Oy, FORD MOTOR COMPANY, Excelfore, Siemens, QUALIX INFORMATION SYSTEM, Robert Bosch GmbH, Innoviz Technologies Ltd., TOMTOM INTERNATIONAL N.V
The smart mobility market is governed by numerous developments carried out by various companies to offer better and efficient services to customers across the globe. The concept of smart mobility has been introduced as a revolutionary way to determine how an individual can get around in a cleaner, safer, and efficient way. In addition, the concept of smart mobility has been introduced to tackle emission and increasing accident problems. In addition, various factors such as flexible, efficient, integrated, cleaner, and safer nature of smart mobility leads to growth of the market.
The demand for smart mobility has foreseen a lucrative growth in previous years, however, currently, the smart mobility market has registered a significant downfall, owing to the COVID-19 pandemic. The pandemic has resulted in increased ownership of vehicles to avoid use of public transport as well as to reduce direct contact with other people. As per the industry experts, the smart mobility market is expected to register a decline of approximately 60% to 70% in the year 2020. Meanwhile, after introducing different safety measures such as proper sanitization mechanism, plastic shields, and similar methods, the market is expected to grow in the upcoming years.
Factors such as rise in trend of on-demand transportation services and government initiatives for smart cities lead to growth of the global smart mobility market. Moreover, low rate of internet penetration in developing regions and threat of data hacking are the factors that are expected to restrain the market growth during the forecast period. However, intelligent transportation systems and improved performance of autonomous vehicles are expected to provide lucrative opportunities for the market growth.
Among the analyzed regions, North America is the highest revenue contributor, followed by Europe, Asia-Pacific, and LAMEA. On the basis of forecast analysis, North America is expected to maintain a greater market size during the forecast period, owing to increase in adoption of smart mobility. Meanwhile, Asia-Pacific is expected to register a significant growth rate during the forecast period, owing to rise in adoption of technologies such as electric and autonomous vehicles.