Smart Transportation Market Report 2026

The smart transportation market size has grown rapidly in recent years. It will grow from $180.86 billion in 2025 to $210.77 billion in 2026 at a compound annual growth rate (CAGR) of 16.5%. The growth in the historic period can be attributed to expansion of urban infrastructure projects, growth of intelligent transport deployments, rising vehicle ownership rates, adoption of traffic signal control systems, increased use of navigation applications.

The smart transportation market size is expected to see rapid growth in the next few years. It will grow to $380.65 billion in 2030 at a compound annual growth rate (CAGR) of 15.9%. The growth in the forecast period can be attributed to increasing investments in smart city programs, rising adoption of connected and autonomous vehicles, expansion of integrated mobility platforms, growing demand for sustainable transport solutions, increasing deployment of iot-enabled transport systems. Major trends in the forecast period include increasing adoption of real-time traffic management systems, rising deployment of connected vehicle technologies, growing integration of smart parking solutions, expansion of demand-responsive public transport, enhanced focus on data-driven mobility planning.

The growing number of government initiatives and regulatory measures is driving the expansion of the smart transportation market. Governments in emerging and developing economies are increasingly investing in advanced transportation technologies to reduce road congestion, promote safer transportation practices, and lower the incidence of road accidents. These initiatives are aimed at improving overall mobility efficiency while supporting sustainability goals. For example, in October 2023, the UK Government launched a new round of the Transport Research and Innovation Grant (TRIG) innovation competition, providing £1.8 million ($2.18 million) in funding. This funding supports companies developing projects focused on airport decarbonization and the use of artificial intelligence to make transportation systems more efficient and affordable. Therefore, rising government initiatives and regulations are expected to boost demand for smart transportation over the forecast period.

Companies operating in the smart transportation market are increasingly focusing on adopting connected vehicle and infrastructure technologies, such as vehicle-to-everything (V2X) platforms, to improve traffic flow, enhance road safety, and enable connected mobility solutions. V2X platforms are connectivity systems that allow vehicles to exchange data with other vehicles, road infrastructure, pedestrians, and traffic management systems through cellular networks and edge computing. These platforms support features such as near real-time alerts, infrastructure awareness, and traffic condition intelligence. For instance, in June 2025, Verizon Business, a US-based telecommunications and technology provider, launched the Edge Transportation Exchange, a V2X connected-driving platform designed to build an integrated smart transportation ecosystem. The platform connects vehicles, infrastructure, pedestrians, and other road users using 5G and LTE connectivity, low-latency edge computing, and geolocation-enabled data sharing. The Edge Transportation Exchange enhances traffic efficiency, improves roadway safety, and supports scalable deployment of intelligent transportation applications through collaboration among automakers, technology providers, and public agencies.

In September 2023, Vix Technology, an Australia-based provider of public transport systems and smart city solutions, acquired myBus for an undisclosed amount. This acquisition was intended to strengthen Vix Technology’s capabilities in delivering comprehensive public transportation solutions. myBus is a Spain-based technology company specializing in the development of smart transportation systems.

Major companies operating in the smart transportation market are Cisco Systems Inc., Toshiba Corporation, Siemens Corporation, SAP SE, Thales Group, Alphabet Inc., Tesla Inc., Uber Technologies Inc., Mobileye, NVIDIA Corporation, Siemens Mobility, TomTom N.V., IBM Corporation, Qualcomm Inc., Intel Corporation, General Motors Company, Ford Smart Mobility, Daimler AG, Bosch Group, Continental AG, Cubic Corporation, Aptiv PLC, Trimble Inc., HERE Technologies, Velodyne Lidar Inc., ChargePoint Inc., NXP Semiconductors, TransCore Holdings Inc., WSP Global Inc.

North America was the largest region in the smart transportation market in 2025. Asia-Pacific is expected to be the fastest growing region in the forecast period. The regions covered in the smart transportation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart transportation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart transportation market includes revenues earned by entities by managing transportation and ensuring safe movement of vehicles, pedestrians, traffic, parking, and others. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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