The global smart-mobility industry generated a little more than $34 billion in 2019, and is estimated to reach $70.5 billion by 2027, growing at a CAGR of 20.2% from 2020 to 2027, according to a new report from Allied Market Research. Some of the leading market players in this space are Cisco, Excelfore Corp., Ford Motor Co., Innoviz Technologies, Inc., MAAS Global Oy, QuaLiX Information System, Robert Bosch GmbH, Siemens, TomTom International, and Toyota Motor Corp.
The trend of on-demand transportation services and favorable government initiatives for the development of Smart Cities are propelling growth. Threats related to data hacking and low penetration of the Internet in developing countries could restrain market growth. However, the deployment of intelligent transportation systems and improvement in the performance of autonomous vehicles (AVs) will create new opportunities in the coming years.
Of course, the Covid-19 pandemic is affecting trends in smart mobility. On-demand transportation services were closed down during the lockdown imposed by governments of many countries. As the lockdown restrictions lifted, services such as ridesharing or carpooling have taken a hit due to safety concerns. Various initiatives regarding Smart City development have been postponed by governments to curb the spread of coronavirus.
Based on solution, the traffic-management segment contributed to the highest share of the smart-mobility market in 2019, holding more than one-fourth of the global total, and it is expected to maintain its dominant share throughout the forecast period. This is due to its advantages, including less traffic congestion on roads and a limited number of vehicles on roads at a specific time period. However, the parking-management segment is projected to witness the highest CAGR (compound annual growth rate) of 21.9% from 2020 to 2027. This is attributed to flexibility in the usage of car parking along with the optimization of parking space.
Based on technology, the RFID (radio frequency identification) segment accounted for the highest share, contributing nearly one-fourth of the total share of the global smart mobility market in 2019, and it is expected to maintain its lead position during the forecast period. This is attributed to equipping vehicles with RFID for offering systems that can scan vehicles rapidly and reduce operational time. However, the GPS segment is expected to see the highest CAGR of 21.9% from 2020 to 2027, owing to real-time information about the surroundings offered to drivers for enabling them with better decisions as per the situation.
Based on region, North America held the highest market share, with nearly one-third of the global smart mobility market in 2019, and is expected to maintain its dominance in terms of revenue by 2027. This is due to the rise in production and sales of the vehicles along with the development of better infrastructure across the region. However, Asia-Pacific is expected to portray the highest CAGR of 22.2% from 2020 to 2027, owing to the collaboration of leading market players and the adoption of innovative technologies such as RFID for smart mobility.
