Australia Smart Transportation Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

Key Market Trends and Insights:

• The Australian Capital Territory dominated the market in 2024 and is projected to grow at a CAGR of 12.2% over the forecast period.
• By solution, parking management system is expected to grow at a CAGR of 11.9% over the forecast period.
• By transportation mode, roadways category is projected to witness a CAGR of 12.1% over the forecast period.

Market Size & Forecast:

• Market Size in 2024: AUD 3.05 million
• Projected Market Size in 2034: AUD 8.51 million
• CAGR from 2025 to 2034: 10.80%
• Fastest-Growing Regional Market: Australian Capital Territory

The Australia smart transportation market growth is mainly attributed to the ongoing implementation of government regulations and policies creating clear framework and reduce adoption barriers to promote the adoption of connected and automated vehicles (CAVs) in Australia.

For instance, the 2024–2027 National Connected and Automated Vehicle (CAV) Action Plan sets out measures including a national automated vehicle safety law, an AV in-service safety regulator, and harmonisation of vehicle standards with international regulations.

These initiatives ensure that automated vehicles operate safely and legally. In addition, they also provide consistency across states and territories, reducing regulatory uncertainty for manufacturers and investors. The plan complements infrastructure investments, satellite positioning systems (SouthPAN) and Cooperative Intelligent Transport Systems (C-ITS) improve connectivity and operational reliability.

Workforce readiness is also addressed with the development of educational and training resources for emerging CAV-related roles, building industry and public confidence. By combining legislation, infrastructure, and workforce planning, the government is creating an environment that encourages investment and innovation, further expanding the Australia smart transportation market scope.

Recent Developments

September 2025

Keolis and SNCF Group expanded in Australia by acquiring Downer’s stake in Keolis Downer, positioning for the Melbourne MR5 train tender. Leveraging global rail expertise, they aim to deliver passenger-focused mobility solutions and advanced technologies to enhance efficiency, safety, and the overall travel experience across Victoria’s public transport network.

September 2025

AAMI and Leo Australia launched ‘The AAMI Driving Test’, a national campaign using telematics to score drivers on speed, braking, and phone use. Open to Australians 18+, the six-month initiative turns safe driving into a competition with prizes and leaderboards, promoting safer habits and reducing distracted driving, thereby showcasing the rising trends in Australia’s smart transportation.

December 2024

Perth’s Mitchell Freeway included new features such as a smart system with 1,400+ sensors, cameras, and signals to improve traffic flow and safety. Real-time data helps manage lanes, speed limits, and incidents, while a new third southbound lane eases peak-hour congestion. Supported by USD 423 million in government investment, this upgrade builds on earlier successes to create smarter, safer, and more efficient urban travel.

August 2023

Austrian tech firm Kapsch TrafficCom and the University of Melbourne partnered to optimize a busy inner-city Melbourne Road. Using traffic sensors and advanced AI, the project focuses on improving the safety and flow of people, not cars. Supported by a USD 2 million grant, early simulations suggest a 4% traffic shift could boost overall people movement by 12%, promoting safer and more sustainable urban mobility.

Key Drivers and Trends

Private Investments Driving Smart Transport Growth

Private investments are boosting Australia smart transportation market trends by enabling the rollout of connected and sustainable mobility solutions. In August 2024, Smart Automobile partnered with Lei Shing Hong Group to launch the electric Smart #1 and #3 models in Australia, combining efficient electric powertrains with integrated smart features. Targeted at urban commuters, these vehicles exemplify how private sector initiatives are accelerating the adoption of green, intelligent, and digitally connected transport systems across Australian cities.

AI traffic tech boosts smart transport

Traffic congestion costs South Australia’s economy over USD 33,000 for every 5,000 motorists delayed 20 minutes during peak hours. To address this, in April 2025, the government announced the trials of AI smart cameras at Penfield, Paradise, and Old Noarlunga, linked to the Traffic Management Centre to automatically adjust signals. By integrating AI-driven traffic management, these initiatives demonstrate advanced transport solutions, boosting the demand for intelligent infrastructure that improves safty, efficiency, and commuter experience, further supporting the growth of Australia smart transportation market.

Smart mobility driving transport innovation

Smart mobility solutions, including connected vehicle platforms, are increasingly shaping the future of transportation by improving efficiency, safety, and user experience. The launch of Geely Global App in March 2025, for instance, empowers EX5 owners to remotely manage vehicle status, track locations in real time, and schedule charging sessions, demonstrating the potential of digital integration in transport. Such innovations enhance convenience, reduce downtime, and support sustainable travel. In Australia, the adoption of similar smart mobility technologies is expected to accelerate the market growth.

Massive government investments in transport infrastructure

Australia smart transportation market is receiving a significant boost from government-led infrastructure projects. The Victorian Government’s USD 90 billion investment in roads, rail, and port upgrades, announced in May 2024, incorporates smart technologies such as AI traffic management, intelligent signaling, and digital monitoring systems. Modern and reliable transport infrastructure not only increases capacity and efficiency but also enhances safety and sustainability. As cities grow and mobility demands rise, such investments accelerate the adoption of connected and intelligent transport solutions, strengthening economic resilience and supporting smarter, greener urban mobility nationwide.

Innovation in smart parking and electronic vehicles (EV) charging

Ongoing smart parking innovations and EV charging is driving growth in the Australia smart transportation market by creating more efficient, convenient, and sustainable urban mobility solutions. Advanced technologies like AI-powered parking management, dynamic pricing, real-time occupancy monitoring, and integrated EV charging stations are transforming traditional parking spaces into intelligent transport hubs. UrbanChain Group’s launch of its smart parking and EV charging system in April 2025, in Sydney, exemplifies this trend, offering seamless payments, automated license plate recognition, and sustainable charging options.

Australia Smart Transportation Market Share

By solution, parking management system accounts for the largest market share

Parking management systems are in high demand in the Australia smart transportation market to transform urban mobility as Australia battles rising vehicle density and parking scarcity. Operators deploy IoT-enabled sensors to detect spaces, enable dynamic pricing, and facilitate cashless payments, actively easing congestion in crowded metros. Smart Parking Limited accelerated this shift in July 2023, by acquiring ParkInnovation GmbH and upgrading 46 sites with Automated Number Plate Recognition (ANPR).

On the other hand, traffic management systems are witnessing notable growth to optimize urban flow as cities act against congestion and rising accident rates. Consultancies like Aldridge Traffic Controllers actively roll out adaptive technologies such as SCATS®, synchronizing signals in real time to shorten travel times. Planners and integration teams design smarter intersections, reconfigure routes, and apply predictive analytics to keep traffic moving. Governments fund large-scale deployments, recognizing that intelligent signaling not only reduces delays but also saves lives, pushing traffic systems into the spotlight of Australia’s smart city initiatives

By services, consulting to capture the highest share

Consulting firms are steering the growth of the Australia smart transportation market by guiding complex deployments from concept to execution. Specialists at SALT deliver traffic engineering strategies, design environmental assessments, and tailor urban mobility plans, ensuring cities meet sustainability mandates while addressing local challenges. Regulators and private operators engage consultants to unlock maximum system performance and direct infrastructure investments into the right technologies. With every project, consulting services actively shape smarter, greener, and safer transport networks, solidifying their dominance in service demand.

Deployment and integration record high uptake supporting Australia’s shift to intelligent mobility by installing smart signals, calibrating IoT devices, and linking connected networks together. Partnerships between governments and technology providers drive large-scale rollouts in Sydney and Melbourne, where real-time traffic coordination relies on flawless system interoperability. Engineers integrate parking platforms with adaptive traffic lights, ensuring seamless data flow across city grids. By turning ambitious smart city blueprints into functioning systems, deployment services are accelerating adoption and emerging as a fastest-growing service category in the Australia smart transportation market landscape.

By transportation mode, roadways to represent the biggest portion of the market

Roadways transportation mode is gaining momentum in Australia through government-led technology trials that improve driver behaviour and road safety. The USD 5 million Smarter Highways program launched in 2025 is deploying solar-powered, IoT-enabled systems such as adaptive electronic signage, traffic counters, and intersection warning technologies across regional highways. These innovations are designed to detect hazards, manage congestion, and prompt safer driving actions in real time, making roadways safer and more reliable while reducing risks for both drivers and road crews.

Meanwhile, the airways sector is rapidly adopting to the smart solutions through biometric innovation and digital passenger management to improve both security and convenience. Moreover, the Australia smart transportation market revenue is witnessing significant growth, owing to the rising international passenger traffic, with airports implementing smart solutions that streamline identity checks and reduce congestion. In July 2025, the Australian Government extended its partnership with Amadeus for the Departure SmartGates program across ten airports. This upgrade, integrating Visiontec Facial Recognition, ensures faster processing and stronger border control, highlighting how smart technologies are reshaping Australia’s air travel infrastructure.

By end use, government sector to generate significant revenue

The Australian Government has surged the use of smart transportation solutions by setting ambitious policies and investing heavily in technology. The September 2025 Transport and Infrastructure Net Zero Roadmap promotes reduced emissions across all transport modes by accelerating electrification, low carbon fuels, and public transport adoption. Initiatives include funding intelligent transport systems (ITS) like connected vehicles and smart infrastructure to improve safety and efficiency. Government collaboration with states, industry, and researchers fosters innovation, such as trials of telematics for heavy vehicles and smart traffic management, demonstrating leadership in sustainable transport transformation.

Besides this, commercial end-use records growth at a notable demand in the Australia smart transportation market driven by the need for operational efficiency and cost optimization in fleet management. Rising toll expenses and complex route planning challenges are encouraging adoption of integrated telematics and AI-powered solutions. In March 2025, Platform Science partnered with MapUp to provide advanced toll management tools, including TollGuru and TollTally, combining real-time GPS tracking with automated billing. This integration allows fleet operators to optimize routes, reduce manual processes, control fuel and toll costs, and make data-driven decisions, enhancing overall efficiency and profitability.

Australia Smart Transportation Market Regional Analysis

By region, Australian Capital Territory to lead the demand growth

The Australian Capital Territory (ACT) leads in smart transportation demand growth by implementing comprehensive smart mobility projects. The ACT Government’s MyWay+ next-generation ticketing system, launched with NEC Australia in February 2023, enables seamless, contactless travel across buses and light rail, enhancing user experience. Additionally, ACT’s Zero-Emission Transition Plan commits to a fully electric bus fleet by 2040, backed by ongoing investments in charging infrastructure and active travel pathways. These integrated efforts support Canberra's vision of a connected, sustainable urban transport network, fostering greater accessibility and congestion reduction.

Meanwhile, Victoria holds the largest Australia smart transportation market value, by prioritizing sustainability and innovation. The Victorian Government’s 2023 Zero Emission Bus (ZEB) Trial invested USD 20 million to test 52 electric buses across metro and regional routes, informing a full transition mandate for zero emissions in public transport by 2025. Alongside, Victoria pilots Demand Responsive Transport services and implements prepaid, all-door boarding systems to speed journeys. These initiatives reflect state commitment to cleaner, more efficient public transit supporting climate goals and improving commuter satisfaction.

Competitive Landscape

Australia smart transportation market players are focused on leveraging technological innovation and strategic partnerships to address complex transportation challenges. Companies invest in IoT, AI, and big data analytics to develop integrated solutions like intelligent traffic management, real-time fleet tracking, and smart parking systems. They also collaborate with government bodies to implement pilot projects and large-scale deployments, accelerating adoption. Continuous innovation and user-centric approaches help companies improve urban mobility, reduce congestion, and enhance safety while aligning with sustainability goals.

Additionally, major players adopt diversification strategies by expanding service portfolios across different transport modes, roadways, railways, airways, and maritime. This includes offering comprehensive consulting, deployment, and integration services to optimize infrastructure utilization. Emphasis on scalable and interoperable platforms enables seamless integration within existing transport ecosystems. Many prominent Australia smart transportation companies also focus on sustainability by promoting electric vehicle integration and low-emission transport solutions, fostering long-term growth while aligning with regulatory frameworks and public expectations.

Accenture PLC

Accenture PLC is a global professional services firm delivering consulting, digital, and technology solutions across industries. Established in 1989 and headquartered in Dublin, Ireland, the company is known for its innovation-led strategy and large-scale digital transformation projects. Its expertise in cloud, AI, and analytics has positioned it as a key partner in advancing smart infrastructure worldwide.

Alstom SA

Alstom SA is a leading mobility solutions provider specializing in rail transport, signaling, and integrated systems. Founded in 1928 and headquartered in Saint-Ouen-sur-Seine, France, the company plays a central role in advancing sustainable and connected transportation. Alstom’s portfolio includes high-speed trains, metros, and digital mobility solutions deployed across the Australia smart transportation market.

Cisco Systems Inc.

Cisco Systems Inc. is a multinational technology corporation recognized for its networking, cybersecurity, and communication solutions. Established in 1984 and headquartered in San Jose, California, the United States, Cisco supports digital transformation with scalable infrastructure for enterprises and governments. Its innovations in IoT and smart city technologies reinforce its leadership in connected ecosystems.

General Electric Company (GE)

General Electric Company (GE) is a diversified industrial powerhouse delivering solutions in energy, healthcare, aviation, and digital technologies. Founded in 1892 and headquartered in Boston, Massachusetts, the United States, GE has pioneered technological advancements for over a century. Its expertise in power systems, renewable energy, and intelligent infrastructure strengthens its presence in global smart solutions markets.

Other prominent players in the Australia smart transportation market include International Business Machines Corporation, Indra Sistema S.A., and Kapsch TrafficCom Australia Pty Ltd., among several others.

Key Highlights of the Australia Smart Transportation Market Report:

• Comprehensive historical performance and precise forecasts through 2034, helping stakeholders understand market evolution.
• Detailed insights into product innovations, including smart parking systems, EV charging solutions, AI traffic management, and connected vehicle platforms.
• In-depth competitive landscape profiling leading domestic and international players driving smart transportation adoption in Australia.
• Regional analysis highlighting emerging hotspots and growth opportunities across New South Wales, Victoria, Queensland, and Australian Capital Territory.
• Investment-focused outlook supported by robust data, covering market trends, government initiatives, and private sector participation.

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• Trusted insights grounded in extensive primary research and verified data.
• Actionable information to support strategic planning and decision-making.
• Region-wise and product-specific analysis to identify opportunities and optimize investments.

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