Abstract: The concept of Cyber-Physical Systems (CPS) enables the creation of a complex network that includes sensors integrated into vehicles and infrastructure, facilitating seamless data acquisition and transfer. This review examines the convergence of CPS and Industry 4.0 in the smart transportation sector, highlighting their transformative impact on Intelligent Transportation Systems (ITS) operations. It explores the integration of Industry 4.0 and CPS technologies in intelligent transportation, highlighting their roles in enhancing efficiency, safety, and sustainability. A systematic framework is proposed for developing, implementing, and managing these technologies in the transportation industry. Moreover, the review discusses frequent obstacles during technology integration in transportation and presents future research trends and innovations in intelligent transportation operations post-Industry 4.0 and CPS integration. Lastly, it emphasizes the critical need for standardized protocols and encryption methodologies to enhance the security of communication and data exchange among CPS components in transportation infrastructure.