The global "smart mobility" market – encompassing transportation apps, smart parking solutions and the infrastructure that supports them – is estimated to reach $70.46 billion by 2027, growing between now and then at a CAGR of 20.2%.
This is according to new data from Allied Market Research (AMR), which also showed smart mobility valued at $34 billion in 2019.
The research shows that the main drivers of smart mobility include a rise in popularity of on-demand transportation services, including car and bike share, and government initiatives in support of smart cities. One such initiative the report calls out is a mobility subsidy program implemented in 2019 by Japan's Ministry of Economy, Trade, and Industry (METI) and the Ministry of Land, Infrastructure, Transport, and Tourism (MLIT), which has generated $27.6 million in revenue.
Indeed, the Asia-Pacific region is projected to see the highest growth in the 2020-2027 timeframe, with a projected CAGR of 22.2%, "owing to collaboration of leading market players and adoption of innovative technologies such as RFID," states the report. Currently, North America holds the highest market share and is expected to maintain revenue dominance through 2027.
Key technology players mentioned in the research who stand to gain from increased market growth include Cisco, Excelfore, Ford, Innoviz Technologies, QuaLiX Information System, Siemens, TomTom and Toyota.
Despite projected growth, COVID-19 still casts a shadow on the future of the market, with a downfall in 2020 due to stay-at-home orders, and slow growth anticipated for 2021 as well. However, AMR still expects things to turn around "after 2022" with the introduction of more safety measures in ride-sharing vehicles to protect people from the virus, like plastic barriers between the driver and passenger.
Beyond the pandemic, other contributors to slower growth in certain segments of the smart mobility market include low Internet penetration in developing and rural areas, as well as concerns around security and data theft.
— Nicole Ferraro, contributing editor, Light Reading