INTELLIGENT TRANSPORTATION SYSTEMS MARKET ANALYSIS

Market Challenges And Opportunities

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 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.