Intelligent Transportation System Market Growth Analysis | 2023-2028

Market Insights

The intelligent transportation system market was estimated at USD 52 billion in 2023 and is likely to grow at a CAGR of 8.37% during 2023-2028 to reach USD 77.74 billion in 2028.

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Market Dynamics

Introduction

An Intelligent Transportation System (ITS) is referred to as a system that comprises road transport and an efficient metro/underground rail system. ITS includes the revamp of overall technological aspects such as Carrier Access for Land Mobiles (CALM), GPS, Dedicated Short Range Communication (DSRC), etc.

COVID-19 Impact

The COVID-19 pandemic has moderately affected the intelligent transportation system sector. The pandemic has taken a huge toll on new intelligent transportation system (ITS) sales & installations. Several product manufacturers suspended their operations temporarily due to the lockdown as well as faced supply chain disruptions, thus affecting the market growth.

Market Drivers

The intelligent transportation system market is driven by a host of factors, some of which are noted below:

• Surging demand for traffic control solutions enhanced improved safety & surveillance provided by modern cameras and license plate recognition (LPRs), and growing demand for smart vehicles integrated with advanced telecommunications technology.
• The rising global population, especially in urban cities, has compelled local municipalities, government bodies, and urban city planners to introduce and innovate new & innovative intelligent transportation systems.

Market Trends

• Development of connected and autonomous vehicles: CAVs are expected to revolutionize transportation by enhancing safety and efficiency by communicating with traffic infrastructure and enhancing communication.
• Increased use of big data and analytics: ITS systems utilize data to improve traffic flow, optimize routing, and identify safety hazards. Big data and analytics enhance insights for transportation system improvement.

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Opportunities

• Surge in demand for traffic control solutions: Intelligent transportation systems can improve traffic flow, reduce congestion, and boost productivity and economic growth in cities worldwide, addressing global traffic congestion issues.
• The surge in demand for smart vehicles: Smart vehicles utilize sensors and communication technologies to enhance safety and efficiency on roads, enabling seamless communication with traffic infrastructure and other vehicles.
• Enhanced safety and surveillance: Modern cameras and LPRs enhance traffic safety and security by detecting and tracking vehicles and identifying stolen ones.
• Increasing development in smart cities: Smart cities utilize ITS for efficient transportation systems, managing traffic flow, providing real-time transit information, and enhancing parking availability.

Challenges

• Cost of implementation: Implementing ITS systems in large cities can be expensive, hindering adoption in some countries.
• Ineffective cooperation among stakeholders: ITS systems involve multiple stakeholders, including government agencies, transportation authorities, and private companies, requiring coordination and collaboration to achieve shared goals.
• Security issues: ITS systems collect and transmit vast amounts of data, making it crucial to protect it from unauthorized access and cyberattacks.
• Technological stagflation: ITS systems constantly evolve with new technologies, making it challenging to keep up with the latest and ensure compatibility.

Segments Analysis

By Type

“Advanced traffic management system (ATMs) segment held a significant market share of more than 30% in 2022.”

The market has been classified into advanced traveler information systems (ATIs), advanced traffic management systems (ATMs), advanced transportation pricing systems (ATPs), advanced public transportation systems (APTs), and emergency medical systems (EMS). Under these, the advanced traffic management system (ATMs) segment held a significant market share & is estimated to remain the largest sub-segment during the forecast period.

The expansion can be credited to the ever-rising traffic on highways across the world. Further, overcrowding of traffic can be accredited to the easily affordable cars that are made accessible due to advantageous plans and various discounts that the auto manufacturers provide. There will be an increased use of advanced traffic management systems for handling this issue.

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By Application Type

“Traffic management accounted for a market share of more than 30% in 2022.”

The market has been classified into traffic management, road safety and security, freight management, public transport, environmental protection, automotive telematics, parking management, and road tolling systems. Under these, traffic management dominates the market and is expected to propel intelligent transportation system market growth at a significant rate during the review period.

Traffic management systems comprise bridge traffic management systems, vehicle detection systems, and ramp metering systems, among other systems. It improves the reliability & operational performance of road networks, thereby boosting segment growth.

Regional Insights

“North America held the highest market share of more than 35% in 2022 and is projected to grow at a healthy CAGR in the coming years.”

North America is a technology hub for the development & implementation of new and advanced technologies, including machine learning, cloud computing, big data, and IoT. Also, the presence of key market players in the region, coupled with the strong emphasis of various governments on enhancing transportation infrastructure, further bolsters the regional market growth during the review period.

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Key Players

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc.

The following are the key players in the global intelligent transportation system market (arranged alphabetically)

• Addco LLC (US)
• Cubic Corporation (US)
• Denso Corporation (Japan)
• FLIR Systems (US)
• Garmin International Inc. (US)
• IBM Corporation (US)
• Lanner Electronics Inc. (Taiwan)
• Siemens AG (Germany)
• Thales Group (France)
• TomTom NV (Netherlands)

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s intelligent transportation system market realities and future market possibilities for the forecast period of 2023 to 2028. After a continuous interest in our intelligent transportation system market report from the industry stakeholders, we have tried to further accentuate our research scope to the intelligent transportation system market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The intelligent transportation system market is segmented into the following categories:

By Type

• Advanced Traveler Information System (ATIS)
• Advanced Traffic Management System (ATMS)
• Advanced Transportation Pricing System (ATPS)
• Advanced Public Transportation System (APTS)
• Emergency Medical System (EMS)

By Mode of Transportation Type

• Roadways
• Railways
• Airways

By Application Type

• Traffic Management
• Road Safety, and Security
• Freight Management
• Public Transport
• Environment Protection
• Automotive Telematics
• Parking Management
• Road Tolling Systems

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

Recent Market News

• On 9 August 2023, NEC India was chosen as the master system integrator for the Uttar Pradesh State Road Transport Corporation's VLT-PSIS project, funded by the Nirbhaya fund. The project aims to improve safety in buses and passengers' travel experiences using advanced technologies. It will introduce live tracking of buses through an Integrated Command Control Centre in Uttar Pradesh
• On 27 July 2023, Iteris, Inc., a trusted technology ecosystem for smart mobility infrastructure management, was chosen to modernize public transit in Mérida, Mexico, as part of a USTDA-funded ITS modernization project.
• In November 2022, Hitachi Rail Limited was awarded a Framework Agreement contract by Ferroviaria Italiana for developing and deploying the European Rail Transport Management System (ERTMS) digital signaling on 1,885 kilometers of the Italian rail network.
• In October 2022, Cubic Transportation Systems, Inc. was awarded a five-year Traffic Scotland Systems Contract (TSSC) from Transport Scotland for providing support, maintenance, modernization, and development services to ensure the maximum availability of the systems that deliver the Traffic Scotland Service.
• In May 2022, Montgomery County, Maryland, renewed the 10-year contract with Conduent Transportation to supply automated speed and red-light camera systems aimed at policing traffic rules and making communities safer.
• In April 2022, The Indian Ministry of Electronics and Information Technology (Meity) launched several apps under the Intelligent Transportation System (ITS) as part of the InTranSE- II program to improve traffic conditions in India. The Centre for Development of Advanced Computing (CDAC) and the Indian Institute of Technology Madras partnered to develop an indigenous Onboard Driver Assistance and Warning System (ODAWS), Bus Signal Priority System, and Common SMART IOT Connectiv (COSMIC) software (IIT-M). According to a government announcement, Mahindra and Mahindra were the project's industrial partners.