Smart Mobility Market is estimated to be valued at USD 47.27 Bn in 2025 and is expected to reach USD 178.47 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of20.9% from 2025 to 2032.
The Smart Mobility Market actively integrates advanced technologies to deliver efficient, safe, and sustainable transportation systems. It offers solutions including connected vehicles, electric and autonomous vehicles, traffic management systems, mobility-as-a-service platforms, and micro-mobility options. Urbanization, environmental concerns, and growing demand for seamless commuting drive the market to transform traditional transport infrastructure. Governments, technology providers, and mobility operators collaborate to implement intelligent, data-driven solutions that improve urban mobility, reduce congestion, and promote eco-friendly, cost-effective transportation.
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Bike Commuting hold the largest market share of 37.11% in 2025. Cities are increasingly adopting bike commuting in the Smart Mobility Market to achieve efficient, flexible, and sustainable transportation. Urban congestion, environmental awareness, and growing demand for cost-effective travel encourage people to use bicycles and e-bikes. Innovations such as app-based sharing platforms, GPS tracking, and electric assistance make biking easier and more accessible. Governments implement supportive policies, build dedicated cycling infrastructure, and promote health-conscious lifestyles, driving bike usage and establishing it as a practical, eco-friendly, and essential component of modern urban mobility. For instance, in December 2025, EMotorad launched the T-Rex Smart, positioning it as India’s first electric bicycle featuring Bluetooth and GPS connectivity. This introduction marks the company’s entry into the smart mobility segment, targeting urban commuters who seek connected riding experiences.
Cities are advancing traffic management in the Smart Mobility Market to optimize transportation efficiency and safety. Increasing urban congestion, higher vehicle volumes, and the demand for seamless mobility drive governments and operators to deploy intelligent traffic solutions. Real-time monitoring, IoT-enabled sensors, AI-powered signal control, and connected infrastructure improve traffic flow and minimize delays. By implementing supportive policies, smart-city initiatives, and promoting sustainable transport, stakeholders actively position traffic management as a crucial component in building efficient, safe, and eco-friendly urban mobility networks. For instance, in July 2025, GVMC Commissioner Ketan Garg announced the launch of ‘Project SARTHI’ (Systematic Augmented Radial Traffic & Hoop Induction), a pilot initiative to deploy an AI-based Integrated Traffic Management System (ITMS) in the city.
3G and 4G technologies actively drive the Smart Mobility Market by delivering reliable, widespread connectivity for diverse transportation solutions. Their broad network coverage allows connected vehicles, fleet management, traffic monitoring, and mobility-as-a-service platforms to communicate seamlessly across urban and suburban areas. Offering cost-effective and mature solutions, these networks support real-time data transfer, telematics, and IoT integration. By linking legacy systems with modern smart mobility applications, 3G and 4G enable governments, operators, and technology providers to offer efficient, accessible, and fully connected transportation services.
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Europe dominates the overall market with an estimated share of 35.5% in 2025. Europe is rapidly transforming its smart-mobility landscape as cities adopt efficient, clean, and connected transportation systems. Strict environmental and air-quality regulations, along with the growing shift toward electric and shared mobility, are prompting urban centers to replace private cars with EVs, micro-mobility solutions, and multimodal transport platforms. Technology drives this change, as widespread use of IoT sensors, data analytics, AI-powered traffic management, and digital mobility-as-a-service platforms actively converts legacy transport infrastructure into smart, adaptive, and responsive urban networks. For instance, TOYOTA Connected launched TOYOTA Connected Europe (TCEU) in London to expand its technology-driven mobility solutions and support the growing European market with tailored products and services.
Urbanization, rising smartphone use, and growing demand for convenient transportation are rapidly transforming Asia‑Pacific’s smart‑mobility landscape. Cities and companies are integrating public transit, ride‑hailing, micro-mobility, and shared transport into seamless digital platforms through Mobility-as-a-Service (MaaS), making commuting easier and greener. Governments actively support this shift by investing in smart-transport infrastructure, expanding intelligent transport systems (ITS), and promoting EV adoption and data-driven mobility, accelerating the region’s transition toward efficient, sustainable, and fully connected transit networks. For instance, in January 2025, XPENG launched its flagship X9 premium electric MPV in Malaysia, advancing its Southeast Asia expansion and building on the success of the XPENG G6 in the country.
Cities across the United Kingdom are rapidly transforming the smart mobility market by adopting electrification, digital infrastructure, and shared mobility solutions. London and other urban centres are rolling out zero-emission buses, expanding EV-charging networks, and implementing smart ticketing, contactless payments, and open-data platforms to deliver seamless transport services. At the same time, micro-mobility options—such as e-scooters, bikes, and e-bikes—and ride-sharing are gaining popularity as alternatives to private car ownership, driven by increasing investments in data-driven traffic management and multi-modal connectivity. For instance, in February 2025, Xpeng, in partnership with International Motors Ltd (IML), launched in the UK, highlighting its smart mobility offerings, says Xpeng president and vice-chairman Dr. Brian Gu.
Cities and policymakers in India are actively transforming the smart mobility landscape by prioritizing electrification, micromobility, and digital infrastructure. Electric two- and three-wheelers are becoming increasingly popular across urban and semi-urban areas, lowering pollution and providing affordable, compact commuting options. To facilitate this transition, authorities and private players are expanding charging infrastructure—including public chargers, battery-swapping stations, and fast-charging networks—across major cities and highways, making EV adoption more convenient and alleviating range anxiety
Electric mobility increasingly defines smart‑mobility systems worldwide. Automakers and urban transit providers are rolling out electric cars, buses, scooters and bikes to replace fossil‑fuel vehicles. Simultaneously, investment in charging infrastructure — including public chargers, fast‑charging hubs and battery‑swap stations — is accelerating, making EV adoption more practical for commuters. This shift supports cleaner air and encourages broader public and commercial use of electric fleets rather than traditional combustion vehicles.
Cities and consumers are embracing small, flexible vehicles — e‑scooters, e‑bikes, and light EVs — along with shared mobility services like ride‑pooling and scooter‑sharing. This trend reflects growing demand for convenient, low‑cost, short‑distance transport alternatives. As urban populations swell and traffic congestion worsens, micromobility provides agility, lowers noise and carbon emissions, and offers a viable alternative to private vehicle use.
Rapid urbanization and growing traffic congestion create strong demand for smarter, sustainable transport systems. As cities expand and traditional infrastructure strains under car‑heavy usage, there is a growing need for intelligent mobility solutions — including EVs, shared transport, and efficient public transit — to ease congestion, reduce emissions, and improve urban livability.
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| Base Year: | 2024 | Market Size in 2025: | USD 47.27 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 20.9% | 2032 Value Projection: | USD 178.47 Bn |
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| Companies covered: |
Cisco Systems, Inc., Excelfore, Ford Motor Company, Robert Bosch GmbH, and TomTom International N.V. |
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About Author
Gautam Mahajan is a Research Consultant with 5+ years of experience in market research and consulting. He excels in analyzing market engineering, market trends, competitive landscapes, and technological developments. He specializes in both primary and secondary research, as well as strategic consulting across diverse sectors.
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