The global smart transportation market is expected to maintain steady growth in the coming years, driven by rapid urbanisation, rising traffic congestion, and expanding deployment of connected and digital mobility systems. According to a recent DataM Intelligence market report released on 2 February 2026, the sector is projected to grow at a compound annual growth rate (CAGR) of 10.9% between 2024 and 2031.
The expansion is linked to increasing adoption of Internet of Things (IoT)-enabled transport solutions, including connected vehicles, intelligent traffic control, and mobility-as-a-service platforms. Demand is being shaped largely by city authorities and transport operators seeking to improve efficiency, safety, and environmental performance as part of broader smart city and sustainability strategies.
North America currently leads the global market with around 35% share, supported by strong digital infrastructure, government investment, and widespread implementation of intelligent transport technologies. Europe and Asia-Pacific each account for roughly 25% of the market, reflecting continued investment in urban mobility, connected infrastructure, and smart city programmes.
Industry development is also being influenced by ongoing investments, product launches, and acquisitions across the autonomous mobility and smart infrastructure ecosystem. Recent activity includes funding and technology expansion efforts in autonomous transport platforms, smart traffic management, and connected public transport systems. Analysts note that while investment and technology availability continue to improve, future growth will depend on system integration, interoperability, and the ability to scale digital mobility solutions across complex urban transport networks.
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