The “Global Transportation Predictive Analytics and Simulation Market, by Component (Software and Services), by Simulation Method (Microscopic, Macroscopic, Mesoscopic), by Development Model (On-Premise, Cloud-based), by Component of Transport (Roadways, Railways, Airways, Seaways) and by Geography (North America, Latin America, Europe, Europe, Asia Pacific, and Middle East & Africa) - Global Forecast to 2027”, is expected witness a CAGR of 8.9% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights
Predictive analytics in transportation is collecting data using predictive analytics and simulation software to determine traffic patterns and predict future outcomes and trends concerned with transportation. This is done to improve the efficiency of transportation operations. The said software provides various results to the transportation sector such as predictive maintenance, traffic optimization, network & capacity optimization, revenue optimization, and customer behavior. This software finds applications in different components of transport including railways, roadways, seaways, and airways. It can also offer vital insight on risk assessment and what-if scenarios. Moreover, predictive analytics has been using big data that can offer real-time customer data and enable organizations with forward-looking perspective.
The global transportation predictive analytics and simulation market is estimated to account for US$ 1,930.1Mn in terms of value by the end of 2019 and is expected to grow at a CAGR of 8.9% during the forecast period (2019-2027).
Benefits such as cost-effective and cost-saving operations are expected to drive the global transportation predictive analytics and simulation market.
Predictive analytics and simulation software for transportation offer cost-saving operations. Freight carriers in transportation sector require constant maintenance, which is the major reason behind increase in costs. Transpiration predictive analytics and simulation software provides predictive maintenance for vehicles by collecting data from sensors installed in vehicles and ascertaining which components are most likely to require immediate attention. This analysis helps technicians to replace or repair the component in advance, saving expensive post-damage repairs. For instance, Cetaris Software is a transportation predictive analytics and simulation software. It helps to streamline maintenance operations by capturing data and analysis. It offers fleet maintenance, preventive maintenance, warranty checking, and inventory management.
Emergence of semi-autonomous and autonomous vehicles is expected to pose lucrative growth opportunities for market players
Automakers around the world are focused on manufacturing semi-autonomous and autonomous vehicles with innovative features in it. An autonomous vehicle is comprised of camera, radar, LIDAR, etc. The data captured through these devices can be used for further analysis of traffic congestion, traffic volume, and maintenance of the car. Increasing demand for semi-autonomous and autonomous worldwide is expected to offer conducive growth opportunities for market players during the forecast period.
Constant struggle to comply with strict regulatory policies is expected to restrain the global transportation predictive analytics and simulation market
Although predictive analytics and simulation is a resourceful software to forecast valuable future trends and outcomes, they often fail to comply with stringent regulatory policies in some countries. This, in turn, is expected to hinder the adoption of predictive analytics software in transportation and thereby restrain the market growth in the near future.
Growing trend towards incorporation of intelligent transportation system (ITS)
The U.S. Government is increasingly investing in intelligent transportation system. Moreover, the U.S. Department of Transpiration (DoT) has laid down an Intelligent Transportation Systems Strategic Plan for 2015–2019. This plan includes different program categories such as connected vehicles automation, enterprise data, emerging capabilities, accelerating deployment, and interoperability. The U.S. DoT is planning to improve operations and reduce costs in transportation by using predictive analysis.
Increasing number of vehicles has increased adoption of predictive analytics software
Emerging economies in Latin America such as Brazil are facing challenging traffic conditions. Around 40% of Sao Paulo residents own a motor vehicle, which is significantly lower than most cities in the U.S. However, it is significantly lower than most cities in other Latin American cities. Moreover, public infrastructure in Sao Paulo is not built to host such a large number of private vehicles, which is leading to traffic congestion. For instance, Rio de Janerio has adopted a smart city model, which has led to increased adoption of smart transportation solutions. This, in turn, has created growth opportunities for predictive analytics in transportation market.
Key companies involved in the global transportation predictive analytics and simulation market are Cubic Corporation, Siemens, T-Systems International GmbH, IBM Corporation, Tiger Analytics Inc., PTV Group, Cyient-Insights, Xerox Corporation, Predikto Inc., SAP AG, and Space-Time Insight.
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