Smart Mobility Market Size, Share & Industry Analysis, By Offering (Bike Commuting, Car Sharing, Ride Sharing, and Others), By Solution Type (Traffic Management, Parking Management, Mobility Management, and Others), By Technology (AI & ML, IoT, Global Positioning System (GPS), Radio Frequency Identification (RFID), Embedded System, and Others), and Regional Forecast, 2024-2032

The global smart mobility market size was valued at USD 36.71 billion in 2023. The market is projected to grow from USD 43.46 billion in 2024 to USD 194.13 billion by 2032, exhibiting a CAGR of 20.6% during the forecast period.

Smart mobility is a modern transport and mobility network that connects various technological elements. This includes traditional motor vehicles, electric vehicles, and public transportation systems, along with new modes of transportation such as on-demand ride-sharing services (such as Uber and Lyft) and car-sharing programs. Smart mobility solutions utilize advanced technologies such as artificial intelligence, Internet of Things (IoT), and big data analytics to provide real-time information, optimize routes, and connect various modes of transportation.

The market’s growth is fueled by various factors, including the need to reduce traffic congestion and greenhouse gas emissions, government initiatives to promote smart mobility, and technological advancements. Additionally, the increasing number of passengers per vehicle is also a significant factor driving market growth. For instance,

• Industry studies report that the average American spends approximately 34 hours per year stuck in traffic, which adds up to a staggering 5.5 billion hours for all commuters. The economic cost of this lost time is significant: USD 330 million per day, which amounts to around USD 124 billion per year. If this trend continues, the projected cost could increase to USD 186 billion by 2030.

Due to the COVID-19 pandemic, the market experienced a decline throughout 2020 and continued experiencing slower growth in 2021. This drop can be attributed to a decrease in demand for ride-sharing and carpooling services around the world. However, it is expected that demand for these services will begin to increase in the forthcoming years.

IMPACT OF GENERATIVE AI

Increasing Investments by Automotive Industry in Generative AI to Optimize Mobility Landscape

Generative AI plays a vital role in enhancing autonomous driving by leveraging advanced predictive modeling and decision-making intelligence. It helps vehicles to perceive their surroundings better and make real-time decisions, thereby ensuring safer autonomous driving experiences. Automotive manufacturers have been embracing EV technology and software-defined vehicles to meet the demands of this transformative era. They are harnessing requirements engineering and software testing to ensure the seamless integration of generative AI into every facet of product design and production. EV manufacturers are leading the charge in electrification, pioneering software and cloud-native engineering to usher in a new era of mobility.

• March 2023: VinAI, a global AI research firm, launched two new smart mobility solutions - InteriorSense and SurroundSense. InteriorSense is a suite of advanced in-cabin solutions that consist of MirrorSense, DrunkSense, and the Driver and Occupants Monitoring System (DOMS). Meanwhile, SurroundSense offers a suite of features that improve driving convenience and safety, including Advanced Surround View Monitoring (ASVM), which provides a 360-degree panoramic view, boosting situational awareness and eliminating blind spots.

Smart Mobility Market Trends

Increasing Need for On-demand Transportation Services to Fuel Market Growth

The on-demand transportation service provides customers with passenger vehicles, taxis, and charter vehicles, offering flexibility and various features such as real-time vehicle tracking, feedback, and rating. Mobile applications are available to help users access the service and compare fares. As vehicle prices continue to rise, more individuals, especially urban-based corporate individuals, are turning to on-demand transportation options such as carpooling and cab services.

• In October 2023, Liftango, a global company that offers shared mobility solutions, teamed up with May Mobility, which specializes in developing and deploying Autonomous Vehicle (AV) technology. They aim to create advanced demand-responsive transportation solutions through AV microtransit. By combining their knowledge and skills, the two firms will focus on improving demand-responsive scheduling and routing for autonomous fleets.

The growing use of smartphones and connected vehicles has led to a rise in the popularity of on-demand transport services. As automobiles can be quite expensive, more people are turning to on-demand services that allow them to easily pre-book, modify, and cancel their bookings at a lower cost using mobile applications.

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Smart Mobility Market Growth Factors

Rise in Smart City Initiatives to Propel the Demand for Smart Mobility

The rising adoption of IoT propels the growth of platforms and smart cities globally. It is estimated that over the next three years, there will be over 26 smart cities, with most of them in Europe and North America, offering major growth avenues for AI and IoT sensors’ adoption in smart cities. Governments across the world are implementing similar investments and subsidy programs. This factor is thus anticipated to augment the global smart mobility market growth during the forecast period.

• According to Cisco, M2M connections increased to half of the globally connected devices and connections in 2023. The share of Machine-To-Machine (M2M) connections reached 50% in 2023, as compared to 33% in 2018. There were around 14.7 billion M2M connections in 2023. 

The growth of the overall smart devices market and technological advancements in the fields of machine learning, nanotechnology, and others are projected to augment the market share.

RESTRAINING FACTORS

Lack of Internet Penetration in Developing Regions to Hinder Market Growth

Ride-sharing services require a reliable internet connection for all three parties involved - the service providers, riders, and drivers. The entire operation is carried out through the use of smartphones, which require mandatory internet connectivity. However, some countries in North Africa and the Middle East, such as Tunisia, Syria, Chad, Eritrea, Burundi, Somalia, and others, have a low level of internet penetration. This factor can negatively impact the adoption of smart mobility, which in turn is likely to limit the global smart mobility market growth over the forecast period.

Furthermore, the costs of some solutions, such as GPS and RFID are reduced; however, the overall cost of these solutions is still high. This is mainly due to the inclusion of the cost of infrastructures, such as software and servers, along with maintenance and other costs. In addition, it is difficult for companies, especially SMEs, to find professionals with the required technical skills, and it is also challenging for them to train new employees.

Smart Mobility Market Segmentation Analysis

By Offering Analysis

Rapid Urbanization and Smartphone Adoption is Likely to Amplify the Demand for Ride Sharing Offerings

Based on offering, the market is classified into bike commuting, car sharing, ride sharing, and others.

The ride sharing segment held the largest market share in 2023. Today, more than 4 billion people live in cities. By 2050, the United Nations (UN) estimates that this number will grow to 6 billion (70% of the world population) and that cities will account for 85% of the world’s economic output. This expansion is having a critical impact on urban transport systems. While urbanization and economic growth continue, around half of the world’s population currently has convenient access to public transport. Moreover, the growing penetration of internet connectivity and smartphone technology has boosted the growth of ride-sharing platforms, making them more accessible to a broader consumer base.

• According to recent research, the number of people globally who earn an income from shared mobility services is expected to grow from 9 million in 2023 to 16 million in 2030.

The bike commuting sector is predicted to experience the highest Compound Annual Growth Rate (CAGR) in the forecast period. This is due to the increasing popularity of bike commuting in various regions, mainly owing to its eco-friendly and fuel-free mode of transportation. Bike commuting involves using bicycles to travel within a city. This mode of transportation is becoming more prevalent in many regions, which is expected to boost the growth of this sector in the global market.   

By Solution Type Analysis

Parking Management Segment to Lead with Demand for Smart Parking Solutions Integrated with Advanced Technologies

Based on solution type, the market is segmented into traffic management, parking management, mobility management, and others.

The parking management sector is expected to witness significant growth over the forecast period, with the highest Compound Annual Growth Rate (CAGR). This growth is attributed to the increasing adoption of parking management solutions in developed countries such as the U.S., the U.K., Germany, and China, among others. These solutions involve strategies designed to increase the effectiveness of the existing parking system and the use of smart mobility aids in parking management to offer real-time data through various integrated technologies. The adoption of these solutions is growing worldwide due to the several benefits of parking management, which, in turn, is expected to support the growth of this segment in the global market.

By Technology Analysis

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Increasing Deployment of RFID Technologies in Smart Cities Augments Segment Growth

Based on technology, the market is segmented into AI & ML, IoT, Global Positioning System (GPS), Radio Frequency Identification (RFID), embedded system, and others.

The RFID technology held the major market share in 2023 due to its versatility in enhancing transportation and mobility services. The technology is extensively used in public transportation systems for access control and fare collection, making it one of the primary drivers for RFID's dominance. Cities on a global scale have adopted RFID-based card systems for trains, subways, and buses, which has streamlined the ticketing process and improved the overall commuter experience. The efficiency of these systems has led to increased adoption rates among transit authorities, contributing to the technology's market growth.

The Internet of Things (IoT) technology is expected to experience significant growth, with the highest CAGR over the forecast period. This is due to the progress in machine learning and artificial intelligence, the emergence of smart cities, and interconnected supply chains, making the potential for IoT almost limitless. The latest trends suggest that IoT technology can help address global challenges such as traffic and blockage issues. According to industry studies, cities that adopt smart-mobility technologies could reduce travel times by an average of 15 to 20% by 2025. This projected improvement is expected to drive market growth over the forecast period.

• In January 2023, Omega Seiki Mobility (OSM), which is a part of the Anglian Omega Group, took a significant step toward green mobility by expanding its range of electric trucks and passenger vehicles. At the Auto Expo 2023, the company launched the new SCV OSM M1KA 1.0, India's first IoT integrated four-door electric passenger vehicle with a cosmic roof, as well as the industry's first air-conditioned electric passenger vehicle called 'KRAZE'. Also, the company introduced its new electric passenger vehicle 'MUSE'.

REGIONAL INSIGHTS

The global market scope is classified across five regions, namely North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

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In 2023, North America held the highest market share. The U.S. and Canada are highly developed nations that have been quick to adopt smart mobility solutions. This is due to a high level of urbanization and tech-savvy population. North America’s strong economy prompted significant investments in smart mobility infrastructure, such as advanced public transportation networks and smart traffic management systems. Major technology companies and startups in North America have also contributed to innovation and development in the smart mobility space. They have experimented with and implemented new technologies such as IoT-enabled transportation, smart city initiatives, and autonomous vehicles, propelling the market forward.

• In March 2024, Harman, a provider of connected vehicle solutions, launched the Harman Ready Connect 5G Telematics Control Unit (TCU). This unit is designed to leverage the latest Snapdragon Digital Chassis connected car technologies from Qualcomm Technologies Inc. to expand the boundaries of connectivity and make automotive connectivity available to a wider audience.

Asia Pacific is expected to experience the highest CAGR in the market over the assessment period. The region is home to some of the world's leading technology companies, such as China's Baidu, Alibaba, and Tencent, which are investing heavily in the development of autonomous vehicles and other smart mobility solutions. Furthermore, the region's governments are introducing policies and regulations to promote the adoption of smart mobility solutions. This includes incentives for companies to invest in the development of smart mobility solutions, as well as the implementation of safety standards for autonomous vehicles.

• In December 2023, under the Smart Cities Mission by Government of India, around 1,104 smart mobility projects, totaling approximately USD 14.73 billion (₹22,785 crores), had been completed so far. An additional 526 projects are in advanced stages of development.

The smart mobility market in Europe is expanding due to the growth of Industry 4.0 and IoT. The European Union's commitment to improving air quality and reducing emissions is also driving the market's growth. This is demonstrated by the introduction of regulations such as the Clean Mobility Package, which aims to decrease emissions from road transport. The region is home to many innovative startups that are creating new technologies and services to improve transportation efficiency. This creates a competitive environment that drives down prices and makes smart mobility solutions more accessible to consumers. Additionally, the region has well-developed public transportation networks and strong infrastructure, providing a platform for companies to develop and deploy smart mobility solutions quickly and efficiently.

The use of smart mobility solutions is continuously growing in the Middle East & Africa. The Middle East, being a hub for international trade, requires efficient logistics solutions. Moreover, the region is home to numerous tech-savvy investors, which is fueling the demand for innovative mobility solutions.

Additionally, South America is also being driven by the increasing demand for electric vehicles, as well as the growing popularity of ride-hailing services. Moreover, the region's favorable economic conditions, such as low inflation and low-interest rates, are also contributing to the growth of the market in South America.

List of Key Companies in Smart Mobility Market

Launching New Smart Mobility with Enhanced Features to Cater End-Users’ Evolving Requirements

Key players operating in the market, such as Robert Bosch GmbH, Cisco Systems, Inc., Ford Motor Company, Siemens AG, Excelfore Corporation, and others, are launching several new products that are focused on catering to specific types of industries. These major players combine current products with new technologies to meet the changing needs of customers.

• In May 2023, Admiral Group partnered with Ford Smart Mobility and telematics provider Redtail Telematics to launch Admiral Live. This connected car offering allows eligible Ford vehicle owners to share driving data directly from their cars.

List of Key Companies Profiled:

• Robert Bosch GmbH (Germany)


• Cisco Systems, Inc. (U.S.)


• Innoviz Technologies Ltd. (Israel)


• Ford Motor Company (U.S.)


• Mindteck (India)


• Siemens AG (Germany)


• Excelfore Corporation (U.S.)


• Toyota Motor Corporation (Japan)


• QuaLiX Information System LLP (India)


• TomTom International BV (Netherlands)

KEY INDUSTRY DEVELOPMENTS

• January 2024 – Targa Telematics, a technology company specializing in the development of connected mobility platforms and Internet of Things (IoT) solutions, announced a partnership with HERE Technologies, a technology and location data and technology platform. Targa Telematics improves its fleet management offerings by utilizing HERE Platform APIs, providing customers with unique insights into vehicle operations.


• November 2023 – Hyundai Motor Group launched its first smart urban mobility hub in Singapore. The newly built Hyundai Motor Group Innovation Center Singapore (HMGICS) facility provides an unprecedented level of integration between robotic and human processes.


• September 2023 – Peachtree Corners, a smart city located in the U.S., is partnering with ITC Intelligent Traffic Control Ltd (ITC) to provide a software solution that can be used on existing traffic infrastructure. The solution is designed to measure traffic and predict and alleviate congestion before it happens in order to create a safer, more efficient, and sustainable travel experience. The infrastructure is powered by real-world connected technology and 5G.


• June 2023 – Toyota Motor Corporation unveiled a range of new technologies aimed at supporting its transition into a mobility company. Among these new technologies, the company showcased the first giga casting. This new innovation is expected to help Toyota reduce the manufacturing cost of upcoming all-electric vehicles. These vehicles will be based on an all-new architecture and are set to hit the market in 2026.


• May 2023 – Siemens acquired the electric vehicle division of Mass-Tech Controls in order to enhance their electric mobility solutions in India. This division is responsible for the design, engineering, and manufacturing of a diverse range of AC chargers, along with 30 to 300kW capacity DC chargers that cater to various end applications for electric vehicles.

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The research report includes prominent regions globally to provide a better understanding of the industry. Furthermore, it provides insights into the most recent industry trends and an analysis of technologies that are being adopted quickly. It also emphasizes the market’s drivers and restrictions, allowing the reader to obtain a thorough understanding of the industry.

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