INTELLIGENT TRANSPORTATION SYSTEMS MARKET ANALYSIS

The global intelligent transportation systems market size was valued at US$ 21.57 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 9.1% from 2023 to 2030. The global Intelligent Transportation Systems market is forecast to grow at a high pace in the projected time period. This growth can be attributed to the active funding by the governments for planning, designing, and implementing ITS. Governments are collaborating with private partners to take active measures towards minimizing traffic congestion. This in turn drives the market growth.

Global Intelligent Transportation Systems Market: Regional Insights

North America is anticipated to dominate the global intelligence transportation systems market over the forecast period. The growth of this region is attributed to presence of major market players, technological developments, and early adoption of latest and advanced technologies such as cloud computing, big data, and machine learning in the region. This is for managing the public transportation system and growing traffic in the region.

Furthermore, Asia Pacific is also expected to account for major share in the global intelligent transportation systems market over the forecast period. This is owing to rise in demand for advanced technology, and constant expansion of transportation networks in the region. The demand for intelligent transportation system is increasing in the region with growing economic benefits stemming from implementation of this system in countries such as Japan, India, and China. Thus, the region is likely to show significant growth in the market over the forecast future.

Figure 1: Global Intelligent Transportation Systems Market Share (%), By Region, 2022

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Global Intelligent Transportation Systems Market Drivers:

Increasing smart city projects to boost market growth

As per the United Nations projections, cities have become necessity as they can house more than half of the global population. Cities in different countries face various issues such as environmental pollution, obsolete conventional transportation, financial management, and security surveillance becomes insufficient. Smart cities provide enhanced life quality by getting insights from data collected from gadgets, networked sensors, and people. Smart cities can address perpetual urban challenges such as trash management, security, traffic congestion, and transit through leveraging data for increasing efficiency. Thus, demand for intelligent transportation systems is increasing due to growing smart city developments. This in turn is expected to drive growth of the market.

Progressive emission reduction to propel market growth

Several governments of countries around the world are promoting net-zero emission objectives. Transportation accounts for one-fifth of the overall emissions of carbon dioxide. With better traffic management, urban congestion can be alleviated and in turn can reduce pollution. Thus, for progressive reduction of emissions, the demand for intelligent transportation systems is increasing, which in turn will drive growth of the market over the forecast period.

Global Intelligent Transportation Systems Market Opportunities:

Growing public and private partnerships are expected to create growth opportunities in the global intelligent transportation systems market over the forecast period. For implementation of ITS, collaboration among various domains including infrastructure providers, telecom operators, service providers, manufacturers, user groups, and public sector organizations is necessary. Thus, public and private partnerships are critical for development of ITS. With increasing public and private partnerships, the market is likely to witness major growth opportunities in the market.

Emergence of autonomous vehicles is also anticipated to generate growth opportunities in the global intelligent transportation systems market over the forecast period. The adoption of autonomous and semi-autonomous vehicles has been increasing since past few years and it is expected to account for major share of automotive market in the future. With implementation of platform based on AI to enhance the performance of the system and safety characteristics, the mainstream acceptance of autonomous vehicles is improved. This in turn is creating growth opportunities in the global intelligent transportation systems market.

Global Intelligent Transportation Systems Market Trends:

Growing popularity of Roadways applications is a recent trend

Roadways segment is growing rapidly in the intelligent transport systems market. The number of commercial fleet is growing across the globe, owing to the rise in e-commerce activities and growing manufacturing activities that are encouraging several logistics players to use appropriate asset monitoring and management systems. Thus, demand for intelligent transportation systems is increasing. This trend is likely to continue in the global intelligent transportation systems market over the forecast period.

Arrival of connected and autonomous cars is a new trend

The transportation infrastructure will be future-ready with growing number of connected and automated cars on the roads. Thus, transportation agencies have to prepare for the future. Several ITS service providers are delivering their expertise in designing, planning, implementing, and tasks for improving solution and system performance. With increasing number of these advanced vehicles, the need for intelligent transportation systems is also growing. This trend is further expected to support growth of the market in the coming future.

Global Intelligent Transportation Systems Market Restraints:

High cost of ITS to hinder the market pace

A sophisticated centralized traffic management center (TMC) which can handle real-time traffic data and alleviate traffic congestion is an essential requirement for an intelligent transportation system. However, implementation of ITS includes several components such as microwave detectors, CCTV cameras, advanced traveler information systems, dynamic message signboards, and highway advisory radios among several others. The cost of these components increases overall cost of implementing ITS. This factor in turn is expected to limit growth of the global intelligent transportation system market over the forecast period.

Differing ITS architectures around the world to hinder the market growth

For development of an ITS infrastructure, integrating various heterogeneous devices becomes necessity, which further creates concerns around compatibility. These different devices have to be synchronized depending on the standards and specifications. Thus, lack of uniform standards in ITS infrastructure creates challenges in deployment of these systems. This factor in turn is expected to hamper growth of the global intelligent transportation systems market over the forecast period.       

Figure 2: Global Intelligent Transportation Systems Market Share (%), By Functionality Type Segment, 2022

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Global Intelligent Transportation Systems Market Segmentation:

The global intelligent transportation systems market report is segmented into Functionality Type, Offering, Component, Deployment, Application, Software, and Service.

Based on Functionality Type, the market is segmented into Advanced Traffic Management System (ATMS), Advanced Traveler Information System (ATIS), Advanced Transportation Pricing System (ATPS), Advanced Public Transportation System (APTS), and Others. Out of which, Advanced Traffic Management System (ATMS) is expected to dominate the global market over the forecast period and this is attributed to the growing traffic congestion leading to growing investment by governments toward use of latest ITS for ensuring safe and smooth commutes.

Advanced Traveler Information System (ATIS) segment is also expected to witness significant growth in the near future and this is owing to the various advantages of ATIS leading to growing demand for these systems. These systems can gather and disseminate up-to-date travel information for assisting drivers to make critical decisions during driving. This information allows drivers to make swift travel decisions without needing assistance from transit agency workers.

Based on Application, the market is segmented into Traffic Management, Road Safety, Freight Management, Parking Management, and Toll Management. Out of which, Traffic Management is expected to dominate the global market over the forecast period and this is attributed to the increasing traffic demand due to growing urban populations all over the world. Growing urbanizations creates different means of transportation, due to which traffic management becomes more difficult. The demand for ITS is thus increasing globally for traffic management. This in turn is driving growth of this segment.

Road Safety segment is also expected to witness significant growth in the near future and this is owing to the growing road accidents on highways all over the world. The need for safety of highways as become important due to which effective transportation infrastructure has become critical. The demand for intelligent transportation systems is thus increasing in road safety

Based on Component, the market is segmented into Telecommunication Networks, Sensors, Interface Boards, Monitoring and Detection System, and Surveillance Camera. Out of which, Telecommunication Networks is expected to dominate the global market over the forecast period and this is attributed to the growing demand for fiber optic cables driving growth of the telecommunication networks. Every ITS function requires wires and lines through which the telecommunication networks are likely to drive the market growth in the near future.

Sensors segment is also expected to witness significant growth in the near future and this is owing to the growing applications of in-vehicle sensors in traffic management, safety, and entertainment. Automotive manufacturers are increasingly focusing development of these sensors. These sensing and communication capabilities of sensing devices and vehicles can be used for developing smart and intelligent transportation systems through their seamless integration. This in turn is driving growth of this segment in the market.

Based on Service, the market is segmented into Business and Cloud Service, Support and Maintenance Service. Out of which, Business and Cloud Service is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of cloud services in ITS implementation. Cloud computing is a crucial part of ITS. The high-speed of internet and smart mobile technologies have made cloud computing feasible. Cloud computing in ITS can store and back up corporate data, simply information sharing, and operate software program.

Support and Maintenance Service segment is also expected to witness significant growth in the near future and this is owing to the growing need for support and maintenance services. The maintenance routine of intelligent transportation systems covers regular and unscheduled work and involves operational, electrical, environmental, and structural concerns. With proper installation, and maintenance ITS equipment can improve efficiency and connectivity of surface transportation systems. Thus, demand for this segment is growing in the global intelligent transportation systems market.

Based on Offering, the market is segmented into Hardware, Software, and Service. Out of which, Hardware is expected to dominate the global market over the forecast period and this is attributed to the due to growing number of hardware equipment needed for setting up the ITS industry. Hardware is one of the most important aspects of the ITS industry. It is the point of input and output for the whole service market of intelligent transportation systems industry. Thus, growing number of hardware equipment is likely to drive growth of this segment.

Software segment is also expected to witness significant growth in the near future and this is owing to the increasing adoption of software services of ITS. Development of software in a successful ITS is crucial. The software is the brains of the whole ITS and performs data processing for the system. Due to its importance in ITS, adoption of ITS software is increasing, which is further driving growth of the segment.

Based on Deployment, the market is segmented into On-Premise, Cloud. Out of which, On-premise is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of on-premise deployment of intelligent transportation systems due to its various advantages. On-premise ITS can facilitate the housing of company’s server in the infrastructure of the firm and even onsite. Thus, on-premise deployment of ITS is increasing across several regions, which is further driving growth of the market.

Cloud segment is also expected to witness significant growth in the near future and this is owing to the benefits of using cloud deployment of ITS. Cloud solutions are important to create intelligent systems, as they offer centralized control needed for integration of several applications. The segment is likely to gain major growth in the coming future, as the use of cloud deployment offers better management of data for ITS to users. It also offers greater storage facility compared on-premise storage accessibility.

Based on Software, the market is segmented into Visualization Software, Video Detection Management Software, Transit Management Software, Others. Out of which, Visualization Software is expected to dominate the global market over the forecast period and this is attributed to the increasing need for improving transportation safety and traffic flow, growing use of advanced communication technology, and development of intelligent driver-assistance systems. Visualization is a key step for transformation of raw data collected by ITS into useful information for making transportation decisions. These systems data exploration through visualization techniques such as bar charts, graphs, and geographic heat maps.

Video Detection Management Software segment is also expected to witness significant growth in the near future and this is owing to the rise in number of vehicles on roads creating need for ITS to handle traffic flow density, average vehicle speed, and queue length. ITS need real-time data and analytics for efficiently managing traffic in tunnels, urban roads, and highways. For this, video detection management software are the key as they can capture images and videos through cameras. It helps in analysis of data gathered and then it informs decision-makers in traffic control centers how to maintain efficient traffic flow on the city arteries.

Global Intelligent Transportation Systems Market: Key Developments

In July 2022, Transurban gave a contract to Indra for its ground-braking technology for verifying high-occupancy vehicles (HOV). This systems will be implemented on the I-95, I-495, and I-395 express lanes in in Northern Virginia

In January 2020, Denso Corporation entered into collaboration with Qualcomm Technologies for development of the next generation cockpit system. This system is expected to enhance user-friendliness in the use of in-vehicle infotainment products.

In February 2020, Lanner Electronics, Inc. and Creanord announced partnership through which the service and carrier providers will be assisted with a various segmented, distributed, and advanced solutions in Metro. Moreover, it will also offer access networks for performance assurance.

In September 2021, Siemens entered into partnership with the National Authority for Tunnels (NAT) for creating the world’s first electrified, high-speed main and freight train rail line transportation with the use of ITS.

Global Intelligent Transportation Systems Market: Key Companies Insights

The global intelligent transportation systems market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global intelligent transportation systems market are Siemens AG, Ricardo, Thales SA, Indra Sistemas, S.A., Kapsch TrafficCom AG, Teledyne FLIR LLC, and Garmin Ltd.

*Definition: Intelligent Transportation Systems (ITS) combine leading-edge information and communication technologies to improve traffic management, road safety, environmental impact, and driver experiences. They are essential for addressing growing congestion that wastes time, reduces productivity and fuel consumption, and increases the cost of transporting goods and services.