This IDC study looks at the business development of the transportation industry, current status of and future development trends in the transportation IT solution markets through a detailed analysis of the developments in the transportation industry and the main solution markets in 2011. This study presents a five-year forecast for the overall transportation industry IT market and its application solution markets, and offers a brief introduction to major solution providers in the China transportation industry solution market.
"Along with economic development in China, traffic volume increases sharply and passengers demand more travel convenience. These have become factors driving the IT development in the transportation industry. Growth in the IT market for the transportation industry has stimulated demand for emerging technologies, such as cloud computing, IoT, and mobile applications. In 2011, total IT spending of the transportation industry was RMB 20.18 billion, increasing 15.9% YoY. In the coming years, the transportation industry IT market will grow at a stable rate, with CAGR at 12.4% in 2011–2016. The IT market in the civil aviation and urban rail transit sectors will grow fast, creating huge demand for various IT products. The urban road traffic sector is gradually becoming a hotspot for IT investment. The market for overall solutions for the transportation industry in 2011 reached RMB 9.96 billion, increasing 15.9% YoY, and is forecast to reach RMB 16.67 billion in 2016. Along with China's urbanization and the growing popularity of private cars, the urban road traffic management information system will have to develop continually. The urban road, expressway, and water transportation solutions necessary for the integrated traffic reform and development will be initiated gradually. The diversification of airport, railway, and other capital institutions, as well as the reform of management mechanisms will boost the management solution market, and promote the growth of relevant IT product market," says Leon Xiao, senior research manager, Vertical Industry Research and Consulting, IDC China.