Four key smart transportation sectors – traffic management systems; public transportation systems; smart charging for plug-in electric vehicles; and vehicle-to-vehicle systems – are set for a huge investment over the next five years.
According to a report by Pike Research, there will be a global investment across these four areas of $13.2billion with annual spending to increase from just under $770million in 2011 to almost $3billion in 2017.
Demand for these intelligent transportation systems is expected to increase in both developed and developing economies. Pike predicts that developed economies will see them as a way to maximise existing transportation infrastructure; while developing cities will incorporate these systems as they build their own transportation infrastructure.
It is anticipated that traffic management system investments will be rolled out of highly developed applications, including real-time traveller information systems – and by the end of the forecast period, nearly every major city will offer such a service.
The largest investment however, is expected to come in the area of smart charging management with plug-in vehicle sales expected to reach 5.19million by 2017. With charging infrastructure increasing, there will be greater investment in smart charging technology to control and minimise the strain on the grid. Meanwhile, public transit and vehicle-to-vehicle investments will be the smallest fractions of the total investment.
