
Global Transportation Trends
Increasing Urbanization and Congestion
Migration to our cities continues to increase as citizens seek the benefits of hybrid work, urban cultural and sports activities, restaurants and other quality-of-life opportunities.
Rising Demand for Connectivity & Mobility
Tech savvy citizens are eager to take advantage of modern services such as retail e-delivery and multi-modal ride sharing (car, scooter, bus, autonomous vehicle, etc.)
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Connectivity on the move. Frost & Sullivan projects that the number of active IoT devices will reach approximately 73 billion by 2027. Servicing billions of connected devices will demand innovative tech solutions to deploy, connect, and manage these devices at an unprecedented scale. Increases in e-commerce and last mile delivery services will further strain our roadways and benefit from connectivity.
Slow, unreliable Wi-Fi
Guest complaints increase by 3x during peak demand
Sub-optimized revenue capture
Revenue per available room (RevPAR) is 10–20% lower vs. AI-optimized hotels
Unaddressed security vulnerabilities
90% of cyberattacks in hospitality exploit outdated networks
Manual, inefficient operations
Staff spends 40% more time on low-value tasks
Lack of hybrid event readiness
Missed opportunity to capture 20–50% additional event revenue
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New mobility paradigms. To reduce traffic congestion and air pollution, cities are under pressure to phase out private cars in favor of autonomous vehicles, ride sharing programs, and mixed-modal travel including bicycles, scooters and pedestrian walkways. McKinsey estimates that in the US, autonomous vehicles could account for a quarter of passenger-kilometers by 2030, representing a potential benefit to the public exceeding $800 billion a year.
Ensuring Safety, Security, Equity, and Sustainability
Citizens demand a safe and secure physical and digital city environment covering all modes of transportation public and private, and from parking to public transit. Cities benefit from technologies to reduce roadway accidents, improve emergency response times, and protect against cyber-attacks. And by encouraging multi-modal transportation and reducing congestion, urban communities can fight pollution and promote equitable mobility for underserved communities while delivering environmental sustainability.
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McKinsey forecast that 60% of world population will be living in cities by 2030 resulting in acute traffic congestion and increase pollution. (1)
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OCDE forecasts that the demand for urban passenger transport to more than double between 2015-2050, putting more constraint on transport infrastructure.
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Congestion costs the U.S. more than $74 billion in 2024, a 1.7% increase from 2023. The typical U.S. driver lost 43 hours due to traffic congestion.(2)
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Telecommuting dropped 8% in the U.S. with the largest drop in tech-heavy metro areas such San Jose (minus 30%), San Francisco (minus 24%) and Seattle (minus 19%).(2)
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Across the U.S. 15% more people commuted via transit while 3% drove to work. Large metro areas saw even bigger increases in transit (San Jose +42%).
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McKinsey & Company – Government can deliver exceptional customer experiences (2023)
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INRX 2024 Global Traffic Scorecard
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To reduce the number of private cars clogging the world’s roadways, cities including New York have rolled out congestion pricing programs. New York’s program, inspired by cities such as London, Stockholm and Singapore, is the first congestion-pricing system in the U.S. According to the Metropolitan Transportation Authority, drivers are saving an average of 20 to 30 minutes driving into the congestion district with about 1.2 million fewer vehicles entering the zone. In just the program’s first month, the city has raised $48 million in toll revenue.
Wall Street Journal, Feb. 19, 2025
By 2036, it’s expected that autonomous vehicles will account for 45% of total passenger miles, as private cars and traditional buses are replaced by more efficient, more affordable and more sustainable options such robo-taxis and autonomous shuttles.
Walking or cycling
Private car
Bus
Train
Walking or cycling
Private car
Robo-taxi
Train
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The economic impact of autonomous travel is estimated at $800 billion by 2036”
McKinsey & Company – Getting beyond gridlock in cities 2019
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The annual cost of roadway accidents to communities is estimated at $800 billion per year. (1)
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Roadway fatalities in the US remain high, with around 40,000 deaths per year (1).
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The population size and economic activities of our cities equates to two-thirds of our global energy consumption and 70% of greenhouse gas emissions.
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Over the past 30 years the frequency of weather and climate disasters has increased steadily, resulting in growing fatalities and generating billions of dollars in property losses. In 2024 alone, 27 weather and climate disasters resulted in 568 fatalities and $183 billion in cost to the community. (2)
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NHTSA 2023
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NOAA’s National Centers for Environmental Information: Billion-Dollar Weather and Climate Disasters report
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At one of the leading hotel chains in the US, Cisco solutions including Meraki helped reduce service tickets by 90%.
The benefits were driven by standardization of policy configurations and enhanced visibility.
The remaining open tickets are closed in less than one day, resulting in massive reduction in support costs and improvement in NPS and revenues.