According to analysts at Zion Market Research, the Smart Mobility market accounted for USD 38.21 Billion in 2020 and is expected to reach USD 148.91 Billion by 2028, growing at a CAGR of more than 18.74% from 2021 to 2028.
Some of key players in Smart Mobility Market are Cisco, Toyota Motor Corporation, TomTom International, Siemens, Robert Bosch GmbH, QuaLIX Information System, MAAS Global Oy, Innoviz Technologies Inc., Ford Motor Company, and Excelfore Corporation among others. These players are set to bolster the development of smart mobility market.
Smart City initiatives and demand for transportation solutions To Spur Growth
The global smart mobility market is growing at a rapid rate. Factors such as the rise in smart city projects, increasing use of digital platforms to manage traveler journeys end-to-end, growing need for smart mobility owing to the rise in traffic congestion are boosting the growth of the global market. Further, the mode of transportation is either by public transportation system or by individually owned cars. With the rise in population and urbanization, in cities across the world, road traffic has become a huge problem. It is 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 which in turn is 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 are also equally contributing to the overall market growth.
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, 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.
The emergence of the Covid-19 pandemic has impacted the growth of the global smart mobility market. The restrictions on movement and strict lockdown imposed by most of the governments across the countries have put constraints on transportation. Thus, a decrease in the demand for carpooling, car sharing, and on-demand ride services was been witnessed. In addition to this, impact on fleet management was also been observed as the transportation sector was been affected by the outbreak of Covid-19. However, the implementation of safety measures and putting the constraint on the number of passengers while traveling in the different modes of alternative mobility may result in a steady growth rate during the forecast period.
Presence of Big Players in the Region Support North America Dominance
Regionally, North America is anticipated to dominate the global smart mobility market and is expected to continue its dominance during the forecast period. 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 growth of the market in this region. On the other hand, 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.