Global and China Smart Traffic Market Scale Status and Investment Risk Outlook Analysis

Nowadays, smart transportation has become an ideal choice of transportation as the development of urbanization and the growing popularity of intelligent information technology. Smart traffic is one of the most important parts of intelligent transportation, which is concerned by more and more countries in the world. This essay will do a detailed analysis of the current global and Chinese smart traffic market scale and the future investment risk prospects.
First of all, talking about the global smart traffic market scale, it is estimated that by the end of 2025, the global smart transport market will reach 668.56 billion US dollars. Countries in Europe, North America and Asia Pacific regions have paid more and more attention to the development of smart transportation industries due to its huge market potential. As a result, the government of these places has clearly issued a series of development plans. For example, The Smart Mobility Market Initiative launched by the Japan government to speed up urban intelligent transformation, the Smart Mobility Market Initiative launched by the Germany government for smart transportation construction, and the Smart Mobility Action Plan launched by the U.S. Department of Transportation for safer, improved transportation services and infrastructure. In addition, the European Union has revised relevant laws and regulations, such as the view of “smart traffic” and the rules and regulations on intelligent transport systems. Developed countries such as the US, Japan, Germany, as well as countries in the European Union, have spent a lot of money and energy developing the smart traffic market during recent years.
And then, let's look at the development status of China's smart traffic market. According to the report of China' s Intelligent Connected Vehicle Industry Alliance, the output of China's smart transport industry in 2018 was 204.9 billion yuan, a year-on-year increase of 20.4%. It's estimated that by the end of 2025, the output of China's smart transport industry will reach 1.8 trillion yuan. It can be seen that in recent years, China has made great progress in the intelligent development of transportation industry. In addition to the official support from the government, people'ss demand for the intelligent transportation industry is also one of the important factors driving the development of China's smart traffic industry. According to statistics from the China Automotive Technology and Research Center, the government and the public's curiosity and enthusiasm for smart traffic increased by 30% and 24% respectively between 2015 and 2018. Therefore, the development of China's smart traffic market has been in a very good state during recent years.
Finally, let's talk about the investment risk outlook of smart transportation market in the future. As the development of artificial intelligence, 5G communication technology and big data technology, the smart transportation industry will have broader development prospects, which will bring new investment opportunities for the market. Therefore, under the current development trend of intelligent technology, enterprises that have long-term investment in smart transportation industry will have greater competitive advantage.
On the other hand, due to the weakness of global economic recovery, the smart transportation market may face investment risks brought by macro economic fluctuations. Besides, countries have different economic, cultural and political conditions, leading to the differences of technological development and policy support in various countries, which will also bring certain investment risks to the global smart transport industry.
In conclusion, with the rapid development of artificial intelligence, 5G communication technology and it technology, smart transportation will become a very potential industry in the future. We can see that the global and Chinese smart traffic market scale have been in a good state in recent years and has a good investment outlook. However, the investors should still pay attention to the macroeconomic environment and policy changes when investing the smart transport industry, in order to reduce the investment risk.