Transportation Predictive Analytics and Simulation Global Market Report 2024

The transportation predictive analytics and simulation market has grown strongly in recent years. It will grow from $2.54 billion in 2023 to $2.79 billion in 2024 at a compound annual growth rate (CAGR) of 9.6%. The expansion observed in the historical period can be ascribed to the emergence of the Internet of Things (IoT), the early conceptualization of smart city initiatives, initiatives focused on data collection, governmental efforts, and the growth of transportation infrastructure.

The transportation predictive analytics and simulation market is expected to see strong growth in the next few years. It will grow to $3.91 billion in 2028 at a compound annual growth rate (CAGR) of 8.8%. The anticipated expansion in the forecast period can be linked to the proliferation of smart cities, a growing adoption of the Internet of Things (IoT), a heightened demand for traffic management solutions, and an increased emphasis on sustainability. Key trends expected during the forecast period encompass the integration of big data, the implementation of artificial intelligence and machine learning, a surge in demand for smart transportation, rising concerns about climate and the environment, and the integration of artificial intelligence and machine learning technologies.

The expected rise in instances of road accidents is set to drive the growth of the transportation predictive analytics and simulation market. Road accidents, occurring on roads, highways, and other thoroughfares, stem from factors such as increased vehicular traffic, alterations in traffic patterns or road conditions, driver errors, or shifts in weather conditions. Transportation predictive analytics and simulation play a crucial role in mitigating road accidents by identifying high-risk areas, enhancing traffic flow, predicting and preventing accidents, and addressing driver behavior. This has led to an increased adoption of transportation predictive analytics and simulation. For instance, data from May 2022 revealed that the National Highway Traffic Safety Administration, a part of the US Department of Transportation, reported 42,915 fatalities in motor vehicle traffic accidents in 2021, marking a 10.5% increase from the 38,824 fatalities in the previous year. Hence, the growing instances of road accidents are a significant driver of the transportation predictive analytics and simulation market.

The anticipated growth of transportation is expected to be a driving force behind the expansion of the transportation predictive analytics and simulation market. Transportation, encompassing the movement of people, animals, goods, or materials from one location to another, is poised for growth. Predictive analytics and simulation technologies play a pivotal role in enabling data-driven decision-making within the transportation industry, optimizing operations, improving safety measures, and enhancing overall system efficiency. For instance, data from June 2023 indicated that the American Trucking Association reported an annual revenue of $875.5 billion for the US trucking industry in 2021, representing 80.4% of the country's freight bill. Therefore, the upward trajectory in transportation activities serves as a key driver for the transportation predictive analytics and simulation market.

Product innovations stand out as a prominent trend gaining momentum in the transportation predictive analytics and simulation market. Companies within this market are actively embracing new technologies as part of their strategy to maintain a competitive edge. An illustrative example is Geotab Intelligent Transportation Systems, a Canada-based provider of telematics technology for GPS fleet management, which introduced Stop Analytics in April 2023. This data analytics module is designed to enhance the movement of goods and services, improve safety at truck stops and roadways, strategically identify new real estate sites, develop more efficient curbside management programs, and pinpoint locations for electric vehicle charging infrastructure. Stop Analytics specifically aids in identifying parking for heavy-duty trucks, contributing to improved driver safety.

Major players in the transportation predictive analytics and simulation market are also actively developing innovative products such as the transport automation controller to drive market revenues. Ericsson, a Sweden-based telecommunications company, launched the Ericsson Transport Automation Controller in November 2023. This cloud-native software, leveraging artificial intelligence (AI) and machine learning (ML), analyzes and automates microwave, IP, and optical networks. Targeted at communications service providers (CSPs), the controller offers an advanced solution for maximizing efficiency in mobile transport networks. The product integrates automatic configuration, pathfinding, and other advanced functionalities, incorporating AIOps (artificial intelligence for IT operations).

In April 2021, Bentley Systems, a US-based infrastructure engineering software company, acquired INRO Software for an undisclosed amount. This acquisition enhances Bentley’s mobility digital twins’ capabilities by incorporating INRO’s advanced traffic and vehicle simulation capabilities with Bentley's existing civil design and pedestrian simulation software, including Streetlytics, CUBE, OpenRoads, and LEGION. INRO Software, based in Canada, specializes in multi-model transportation planning.

Major companies operating in the transportation predictive analytics and simulation market report are SAP AG, IBM Corporation, T-Systems International GmbH, Xerox Corporation, Cubic Corporation, Cyient Insights Private Limited, Tiger Analytics Inc., PTV Group, Predikto Inc., Space-Time Insight India Private Limited, TSS-Transport Simulation Systems Inc., Caliper Corporation, Dataiku, INRIX, Indra Sistemas S.A., Siemens AG, Kapsch TrafficCom AG, TomTom International BV, HERE Technologies, Iteris Inc., Citilabs Inc., Dassault Systèmes SE, Altair Engineering Inc., AnyLogic North America LLC, Simio LLC, FlexSim Software Products Inc., Transoft Solutions Inc., Trafficware Group Inc., Mott MacDonald Group, WSP Global Inc., IBI Group Inc., Stantec Inc., GHD Group Pty. Ltd.

North America was the largest region in the transportation predictive analytics and simulation market in 2023. Asia-pacific is expected to be the fastest-growing region in the global transportation predictive analytics and simulation market during the forecast period. The regions covered in the transportation predictive analytics and simulation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the transportation predictive analytics and simulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The key elements of transportation predictive analytics and simulation include software and services. Software encompasses computer programs and tools utilized for the analysis and modeling of transportation data, enabling predictions about future transportation trends and occurrences. Its functionalities extend to the collection and storage of transportation data, analysis of transportation patterns, identification of trends, creation of virtual models for transportation systems, and the generation of maps. Transportation predictive analytics and simulation operate through microscopic, macroscopic, and mesoscopic simulation models, available for deployment on both on-premise and cloud-based platforms. The end-users benefiting from transportation predictive analytics and simulation span roadways, railways, airways, seaways, and other transportation systems.

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

The transportation predictive analytics and simulation market consists of revenues earned by entities by providing predictive analytics and simulation services such as predicting traffic congestion, estimating travel time, optimizing route planning, and assessing the impact of infrastructure changes. 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 transportation predictive analytics and simulation market consists of the sales of transportation management systems, predictive analytics software, simulation software, and real-time data analytics. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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