North America Smart Transportation Market
Market Size in USD Million
CAGR :
% 
USD
48.76 Million
USD
136.21 Million
2024
2032
 Forecast Period |
2025 –2032 |
 Market Size (Base Year) |
USD 48.76 Million |
 Market Size (Forecast Year) |
USD 136.21 Million |
 CAGR |
% |
| Major Markets Players |
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North America Smart Transportation Market, By Solution (Traffic Management Solution, Passenger Information Solution, Smart Ticketing Solution, Parking Management Solution, Integrated Supervision Solution, Insurance Telematics Solution), Service (Cloud Services, Professional Services), Transportation Mode (Roadways, Railways, Airways, Waterways), Applications (Mobility as a Service, Route Information and Route Guidance, Public Transport, Transit Hubs, Connected Cars, Video Management, Others), and Region - Industry Trends and Forecast to 2032
Smart Transportation Market Size
- The North America Smart Transportation Market size was valued at USD 48.76 million in 2024 and is expected to reach USD 136.21 million by 2032, at a CAGR of 13.7% during the forecast period.
- This growth is driven by the countries are investing heavily in smart city infrastructure, including intelligent transport systems (ITS), real-time traffic management, and multimodal transport solutions.
Smart Transportation Market Analysis
- Governments are promoting sustainable transportation, electric vehicles (EVs), and data-driven traffic management systems through funding, regulations, and partnerships with tech firms.
- The market is propelled by Integration of Internet of Things (IoT), AI, and big data in transport systems enhances traffic flow, safety, and predictive maintenance, opening new markets for smart mobility services.
- U.S. holds a significant market share due to its advanced technology infrastructure, high adoption of Smart Transportation technologies, and presence of key players like Kapsch Traffic Com AG, Thales Group, Alstom, Schneider Electric.
- U.S. is expected to register the fastest growth, fuelled by Integration of Internet of Things (IoT), AI, and big data in transport systems enhances traffic flow, safety, and predictive maintenance, opening new markets for smart mobility services.
- The Traffic Management Solution segment is projected to account for a significant market share of approximately 39.85% in 2025, driven by the widespread adoption of Smart Transportation systems in the country.
Report Scope and Smart Transportation Market Segmentation
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Attributes |
Smart Transportation Key Market Insights |
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Segments Covered |
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Countries Covered |
North America
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Key Market Players |
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Market Opportunities |
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Value Added Data Infosets |
In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include import export analysis, production cNAity overview, production consumption analysis, price trend analysis, climate change scenario, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framewor |
Smart Transportation Market Trends
“Advancements in AI, and Machine Learning (ML)”
- AI and ML are being integrated into transportation systems to enhance operational efficiency. These technologies enable predictive maintenance, optimize traffic management, and improve system reliability by analyzing vast datasets to identify patterns and predict congestion.
- The integration of smart grids with transportation systems allows for efficient energy distribution, especially for electric vehicles (EVs). Smart grids support bidirectional energy flow, enabling vehicles to not only consume but also supply energy back to the grid, enhancing overall energy efficiency.
For instance, In May 2025, Uber partnered with May Mobility to deploy thousands of autonomous vehicles across U.S. cities, starting with Arlington, Texas. These vehicles, initially equipped with safety drivers, aim to transition to full autonomy. May Mobility, backed by Toyota and BMW, also collaborates with Lyft for autonomous services in Atlanta.
- Governments are promoting sustainable transportation, electric vehicles (EVs), and data-driven traffic management systems through funding, regulations, and partnerships with tech firms.
Smart Transportation Market Dynamics
Driver
“Rising Demand of Urbanization & Smart Cities Development”
- Rapid adoption of digital technologies such as AI, IoT, cloud computing, and 5G is transforming industries across NA.
- Massive urban migration is driving the need for sustainable and efficient city planning using smart technologies.
For instance, In 2025 Siemens launched an upgraded intelligent traffic management system featuring machine learning capabilities to predict traffic patterns and adjust signals in real-time, reducing congestion by 20%.
- Japan's Tier IV has initiated projects to develop self-driving electric taxis, aiming to address driver shortages and enhance urban mobility. These initiatives are supported by government policies promoting smart transportation solutions.
Opportunity
“Expansion of Smart Infrastructure and Green Technologies”
- Governments across NA are investing heavily in green and resilient infrastructure to meet climate goals and improve sustainability.
- AI and automation are being widely adopted across sectors such as manufacturing, healthcare, finance, and logistics.
For instance, In November 2025, IBM introduced an AI-powered cloud platform for smart transportation in 2024, offering real-time analytics for public transit and smart parking systems, aiding cities in optimizing traffic flow.
- Innovations in solar technology, such as micro-inverters and AI-driven energy management systems, are making solar installations more efficient and user-friendly. These advancements support the integration of solar energy into smart transportation infrastructures.
Restraint/Challenge
“High Implementation Costs and Cybersecurity Concerns”
- Deploying smart transportation systems, particularly those involving 5G and IoT infrastructure, involves high capital costs for equipment and integration, posing challenges for smaller municipalities.
- Cybersecurity risks associated with connected vehicles and IoT-based systems, especially in developing regions, impact scalability and adoption.
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For instance, a 2024 industry report noted a 20% increase in cyberattacks targeting smart transportation networks in North America, highlighting security challenges.
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- Regulatory complexities, such as varying data privacy standards across the U.S., Canada, and Mexico, further complicate market expansion for smart transportation providers.
Smart Transportation Market Scope
The market is segmented based on type, component, Communication Technology, Connection, Sales Channel, and Application.
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Segmentation |
Sub-Segmentation |
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By Solution |
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By Service |
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By Transportation Mode |
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By Applications |
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In 2025, the Single-Phase segment is projected to dominate the Solution segment
The Traffic Management Solution segment is expected to hold a market share of approximately 39.85% in 2025, driven Rapid Urbanization and Smart City Initiatives.
The Mobility as a Service application segment is expected to account for the largest share during the forecast period in the application market
In 2025, the Mobility as a Service application segment is projected to account for a market share of 24.3%, driven by Increasing Public Demand for Safe and Efficient Transport.
“U.S. Holds the Largest Share in the Smart Transportation Market”
- U.S. dominates the market due to increasingly being integrated into smart home ecosystems, allowing users to monitor and manage energy usage more effectively. Rising population and urban traffic congestion are pushing demand for efficient public transport, real-time tracking, and cashless fare systems, creating business opportunities.
- The U.S. holds a significant share, driven by Advancements in AI and Software-Defined Smart Transportation Technologies.
- The region benefits from significant advancements in AI and software-defined technologies.
“U.S. is Projected to Register the Highest CAGR in the Smart Transportation Market”
- U.S. growth is driven by rising Rapid Urbanization and Smart City Initiatives, and government initiatives for secure transportation in countries like China, India, and Japan.
- U.S. is projected to exhibit the highest CAGR due to its Rapid Urbanization and Smart City Initiatives
- Many North America countries (like U.S and Canada) are investing heavily in smart city infrastructure, including intelligent transport systems (ITS), real-time traffic management, and multimodal transport solutions.
Smart Transportation Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, North America presence, production sites and facilities, production cNAities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
The Major Market Leaders Operating in the Market Are:
- Kapsch TrafficCom AG (Austria)
- Thales Group (France)
- Alstom (France)
- Schneider Electric (France)
- Siemens (Germany)
- MSR-Traffic GmbH (Germany)
- Cubic Corporation (U.S.)
- AtkinsNorth America (U.K.)
- Cisco (U.S.)
- Accenture (Ireland)
- IBM India Pvt Ltd (India)
- LG CNS (South Korea)
- Indigo (India)
- Toshiba Corporation (Japan)
- Oracle (U.S.)
- SAP (Germany)
- Huawei Technologies Co., Ltd. (China)
- Intel Corporation (U.S.)
- Parsons Corporation (U.S.)
Latest Developments in North America Smart Transportation Market
- In June 2023, Kapsch TrafficCom AG (Austria) implemented an advanced Intelligent Transportation System (ITS) for the New Hampshire Department of Transportation. The system introduced All-Electronic Tolling (AET) with free-flow tolling at multiple plazas, utilizing license plate reading cameras, sensors, and in-pavement treadles. This initiative enhances driver convenience, reduces travel times, and improves toll collection efficiency.
- In November 2023, Alstom (France) signed a contract with the Egyptian National Railways Authority (ENR) to modernize the 65-km Tanta–Zifta–Zagazig railway mainline, including nine stations. The project involves installing advanced signaling, power, telecom systems, and trackside equipment to migrate to ETCS Level 1, improving public transport capacity and efficiency in Egypt.
- In September 2024, Siemens (Germany) secured a major framework contract with Beacon for the supply of Vectron locomotives, strengthening rail transport capabilities across Europe. This collaboration enhances Siemens Mobility’s position in providing sustainable and efficient rail solutions, contributing to smarter and greener transportation networks.
- In October 2024, Thales Group (France) was selected by Avinor to deploy Norway’s next-generation nationwide air traffic management system. This initiative modernizes air traffic services, enhancing safety and operational efficiency in Norway’s airspace, aligning with smart transportation goals for aviation.
- In October 2024, Cubic Corporation (U.S.) delivered a smart ticketing solution for Tasmania’s public transport network. The system modernizes fare collection, improves accessibility, and enhances operational efficiency, supporting the region’s efforts to create a seamless public transit experience.
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Research Methodology
Data collection and base year analysis are done using data collection modules with large sample sizes. The stage includes obtaining market information or related data through various sources and strategies. It includes examining and planning all the data acquired from the past in advance. It likewise envelops the examination of information inconsistencies seen across different information sources. The market data is analysed and estimated using market statistical and coherent models. Also, market share analysis and key trend analysis are the major success factors in the market report. To know more, please request an analyst call or drop down your inquiry.
The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market and primary (industry expert) validation. Data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Patent Analysis, Pricing Analysis, Company Market Share Analysis, Standards of Measurement, Global versus Regional and Vendor Share Analysis. To know more about the research methodology, drop in an inquiry to speak to our industry experts.
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