Transportation Analytics Market Report 2025

The transportation analytics market size has grown exponentially in recent years. It will grow from $19.92 billion in 2024 to $23.95 billion in 2025 at a compound annual growth rate (CAGR) of 20.2%. The growth in the historic period can be attributed to demand for operational efficiency, traffic management, government initiatives, safety and compliance requirements, environmental sustainability, customer expectations.

The transportation analytics market size is expected to see exponential growth in the next few years. It will grow to $49.96 billion in 2029 at a compound annual growth rate (CAGR) of 20.2%. The growth in the forecast period can be attributed to autonomous vehicle integration, predictive analytics adoption, growth of mobility as a service (maas), climate change and emission reduction goals, big data handling, cybersecurity concerns. Major trends in the forecast period include integration of real-time data and IoT sensors, advanced predictive analytics for maintenance, enhanced fleet management and optimization, integration of GIS (geographic information system) technology, cybersecurity measures for connected vehicles, continued advancements in machine learning and ai.

The growth of the transportation analytics market is being driven by increasing government initiatives aimed at developing smart cities and advanced commuting systems. A smart city is an urban area that excels in several critical domains, including economy, mobility, environment, people, lifestyle, and governance. Transportation analytics is employed in smart cities to monitor and manage traffic systems. Monitoring devices, such as sensors, are integrated into traffic lights and signals to continuously track traffic movement. For instance, in March 2023, Global X ETF, a US-based fund management firm, reported that the United States made a significant advancement in infrastructure with the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) enacted in November 2021. Over the next decade, the IIJA will invest $550 billion to enhance roads, bridges, airports, and railroads, expand access to clean drinking water and broadband internet, and promote environmental justice. Consequently, the rise in government initiatives for smart city development is fueling the growth of the transportation analytics market.

The anticipated increase in sales of commercial and passenger vehicles is expected to further propel the growth of the transportation analytics market. As the number of vehicles rises, transportation analytics becomes essential for optimizing traffic management, implementing intelligent transportation systems (ITS), and adapting public transit systems. It addresses challenges such as parking management, supply chain optimization for automotive logistics, and enhancing fleet management efficiency. Additionally, transportation analytics offers insights into consumer behavior, contributes to road safety improvements, evaluates environmental impacts, and integrates with smart city initiatives. For example, in January 2022, the Office of Energy Efficiency and Renewable Energy, a US-based government agency under the U.S. Department of Energy, reported that new light-duty vehicle sales reached 14.9 million in 2021, representing a 3% increase over 2020. Thus, the rising sales of commercial and passenger vehicles are driving the growth of the transportation analytics market.

Major companies in the transportation analytics market are creating new AI-driven transportation management solutions to enhance their competitive advantage. For example, in September 2023, SS Supply Chain Solutions, an India-based software development firm, launched iTMS (Intelligent Transport Management Solution). This platform is a comprehensive tool for transportation planning, settlement, and execution, powered by advanced analytics that employs artificial intelligence and data analytics to optimize the entire logistics transportation lifecycle. Key features of iTMS include Order AI for automated order acquisition, Shipment Planning and Optimization for efficient dispatch routing, and an Execution Orchestration Tool for real-time tracking and performance enhancement. Additionally, iTMS provides Contract & Rate Management and Billing & Settlement tools to streamline overseas trade processes and facilitate financial audits.

Leading companies in the transportation analytics market are also creating new solutions for enterprise rail analytics. Enterprise rail analytics involves applying advanced data analysis and business intelligence techniques to rail transportation systems for enterprises. The objective is to enhance decision-making processes, optimize resource utilization, and boost overall productivity within the rail logistics and transportation sector for businesses. For instance, in June 2022, XPO Logistics, Inc., a US-based freight transportation services provider, collaborated with Google Cloud on a multi-year initiative to transform supply chain logistics. By leveraging Google Cloud's expertise in artificial intelligence (AI), machine learning (ML), and data analytics, XPO is developing supply chains that are faster, more efficient, and provide better visibility. Google Cloud’s analytics, AI, and ML tools allow XPO to deliver rapid insights to its operators, including product managers, demand planners, route planners, and data analysts.

In June 2022, Atlantia S.p.A., an Italy-based construction firm, acquired Yunex Traffic for an undisclosed sum. This acquisition bolsters Atlantia S.p.A.’s global footprint, enhances its expertise in intelligent transport systems, and positions the company to provide innovative solutions for smart and sustainable mobility. Yunex Traffic, based in Germany, specializes in traffic solutions that assist cities and municipalities in integrating intelligent strategies into their traffic systems.

Major companies operating in the transportation analytics market are International Business Machines Corporation, OmniTracs LLC, Cubic Corporation, Alteryx Inc., Cellint Corporation, Inrix Corporation, Siemens AG, Hitachi Limited, Conduent Inc., Oracle Corporation, Thales Group, Iteris Inc., Dataiku Inc., Ridecell Inc., GoFreight Inc., SmartDrive Systems Inc., Kapsch Trafficcom AG, Indra Sistemas S.A., Trimble Inc., TomTom N.V., CARTO Inc., MoveInSync Rentlz Inc., SENGERIO Inc., StreetLight Data Inc., Arity LLC, Flexe Inc.

North America was the largest region in the transportation analytics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the transportation analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the transportation analytics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Transportation analytics involves employing advanced analytical tools to evaluate and optimize the efficiency of transportation operations. These analytics encompass a range of data, including driver information, travel duration, route analysis, and unloading periods. The transportation system integrates various elements, such as traffic sensors, monitoring displays, electronic access, mobility management, and global positioning systems (GPS).

The primary categories of transportation analytics are descriptive, predictive, and prescriptive analytics. Descriptive analytics involves examining current and past data to identify patterns and correlations. Components of transportation analytics consist of solutions and services available across on-premise, cloud-based, and hybrid platforms. These are applied in remote sensing, transit, traffic, incident, and logistics management, among other applications. Transportation analytics cater to multiple modes of transportation, including railways, roadways, maritime, and airways.

The transportation analytics market research report is one of a series of new reports that provides transportation analytics market statistics, including transportation analytics industry global market size, regional shares, competitors with a transportation analytics market share, detailed transportation analytics market segments, market trends and opportunities, and any further data you may need to thrive in the transportation analytics industry. This transportation analytics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The transportation analytics market includes revenues earned by entities by providing transportation analytics services that are used to make commercial as well as personal transport easier. 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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