Intelligent Transportation System Market Share, Size, Trends, Industry Analysis Report, By Type (ATMS, APTS, ATPS, ATIS); By Mode of Transport; By Application; By Region; Segment Forecast, 2024 - 2032
- Published Date:Jan-2024
- Pages: 114
- Format: PDF
- Report ID: PM1051
- Base Year: 2023
- Historical Data: 2019-2022
The global intelligence transportation system market was valued at USD 46.93 billion in 2023 and is expected to grow at a CAGR of 8.3% during the forecast period.
Intelligent Transportation System is an advanced application designed to offer innovative services related to diverse modes of transportation and traffic management. These systems delegate users to access advanced information, enabling safer, more coordinated, and more intelligent utilization of transportation networks.
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The increasing need for traffic control solutions and intelligent vehicles, coupled with the enhanced safety and monitoring capabilities provided by License Plate Recognition (LPRs) and advanced cameras, is fueling growth. The rise of smart cities further contributes to this trend. Intelligent Transportation Systems (ITS) offer innovative traffic management solutions, fostering improved road safety, traffic efficiency, and overall mobility, thereby creating a favorable intelligence transportation system market perspective.
- For instance, in June 2022, The European Union (EU) allocated approximately USD 6.14 billion to bolster approximately 135 transportation infrastructure initiatives throughout Europe.
The growth of the Intelligent Transportation System market is anticipated to be driven by factors such as the rising volume of vehicles, boats, planes, and railways, along with aging infrastructure and a potential shortfall in traffic data management. This has led to an increasing need for refined traffic management solutions across diverse transportation modes, including airways, maritime, roadways, and railways. The pivotal role of technology in shaping the future of the intelligent transportation system market is underscored by the adoption of smart technologies and initiatives taken by both public and private entities.
The COVID-19 pandemic has significantly impacted the Intelligent Transportation Systems market. With lockdowns and restrictions imposed globally, there has been a substantial decrease in transportation activities, affecting the deployment and utilization of ITS solutions. Projects related to smart traffic management, public transportation optimization, and connected vehicle systems faced delays and budget constraints due to disruptions in supply chains and workforce availability.
On the other side, the pandemic highlighted the importance of resilient and adaptive transportation systems. The need for contactless and efficient mobility solutions has accelerated the adoption of intelligent technologies. Smart traffic signals, real-time data analytics, and advanced communication systems have become pivotal in managing evolving traffic patterns and ensuring the safety of commuters. Moreover, the pandemic has spurred interest in technologies like autonomous vehicles and smart logistics, driving innovation and investment in the ITS sector.
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As the world recovers from the pandemic, the ITS market is poised for growth, fueled by a renewed focus on sustainable and intelligent transportation solutions. Governments and private entities are likely to prioritize investments in resilient and adaptable ITS infrastructure to address both current and future challenges in the post-pandemic era.
The global expansion of rail networks in response to the growing demand for efficient public transportation systems is generating substantial opportunities for the Intelligent Transportation Systems market. Key industry participants are dedicated to improving transportation via railway networks by forging strategic collaborations with technology providers.
- Increasing traffic obstruction across the globe will facilitate the growth of the market
The rising traffic crowding across the globe will drive the growth of the market. The increasing demand for intelligent vehicles incorporating cutting-edge telecommunications technology, coupled with a crucial need to facilitate traffic flow on urban roads and highways, is driving the growth of the market. Transportation authorities are increasingly utilizing innovative data analytics technologies to tackle the challenges posed by escalating traffic volumes, and supportive government initiatives for efficient traffic management are further contributing to market expansion.
Moreover, the ongoing trend of rapid urbanization, population growth, the cradle of environmentally friendly automotive technology, and the evolution of smart cities are all contributing positively to the intelligent transport system market. In addition, the creation of smart vehicles compatible with Intelligent Transport Systems and the rise in public–private partnerships present lucrative opportunities for market players in the forecast period.
The advancement of Intelligent Transportation Systems is anticipated to enhance mobility for both freight and consumers, providing improved accessibility to transportation services. Enhanced traffic and emergency service management will empower authorities to respond swiftly and efficiently to emergencies and accidents. The implementation of these systems will optimize the efficiency of traffic management, leading to reduced travel durations. Further, the utilization of public transportation will contribute to the reduction of airborne pollutants and carbon dioxide emissions.
The market is primarily segmented based on type, mode of transport, application and region.
By Mode of Transport
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By Type Analysis
- The Advanced Transportation Management Systems (ATMS) segment accounted for the largest revenue share in 2022
The advanced transportation management systems (ATMS) segment accounted for the largest revenue share. The Advanced Transportation Management Systems (ATMS) is poised to play a pivotal role in facilitating traffic congestion, mitigating pollution, and optimizing transportation operations. The integration of communication systems and sensors ensures seamless real-time management, contributing to heightened efficiency. Projections indicate a significant growth rate for ATPS in the forecast period, driven by its ability to enhance operational efficiency and bolster overall transportation safety. Widely employed in automatic vehicle location systems, passenger information, and real-time bus arrival notification systems, ATPS is set to be a foundation in modern transportation solutions.
On the other hand, the advanced public transportation system (APTS) segment is anticipated to witness substantial growth throughout the forecast period. The flourishing progress of bus route planning and infrastructure in certain nations is a key factor contributing to the growth of the market.
By Mode of Transport Analysis
- The roadway segment accounted for the highest market share during the forecast period
The roadway segment accounted for the highest market share during the forecast period, The constant rise in both traffic congestion and greenhouse gas emissions has spurred the embrace of intelligent transportation systems on roadways. This includes the integration of electric vehicles, Advanced Traffic Management Systems (ATMS), Advanced Public Transportation Systems (APTS), and the implementation of smart infrastructure, among other advancements. Moreover, numerous governments worldwide are making substantial investments in road infrastructure projects to foster sustainable transportation, interoperability across diverse systems, and enhanced overall road safety.
On the other hand, maritime segment is anticipated to experience significant growth throughout the forecast period. The significant expansion in this sector can be attributed to the widespread embrace of the Internet of Things (IoT) and digital technologies aimed at enhancing communication and connectivity among ports, logistics networks, and ships. Additionally, the increasing prevalence of remote-controlled shipping operations and autonomous vessels is generating substantial prospects for intelligent transportation solutions within the maritime industry.
- North America accounted for the largest market share in the forecast period in 2022
North America dominated the largest market contributor in the intelligent transportation systems market, with the United States foremost in revenue. The North American market holds a leading position with the largest market share, mainly driven by the presence of key global players and the adoption of cutting-edge technologies such as MI, Big Data, and Cloud Computing. These technologies are instrumental in managing the rising challenges associated with traffic and public transportation systems. Additionally, North America is experiencing a remarkable surge in the sales of commercial drones, with countries like the United States implementing stringent regulations and registration requirements. This trend is expected to fuel the demand for intelligent transport systems in the aviation sector throughout the forecast period.
Asia-Pacific is accounted for the fastest growth during the forecast period. The growing need for cutting-edge technology and the ongoing development of transportation networks are anticipated to fuel regional growth. Countries like China, India, and Japan, in particular, stand to gain significant economic advantages from the implementation of Intelligent Transportation Systems. Additionally, increasing concerns about pollution and the detrimental impact of greenhouse gas emissions on the environment have heightened the demand for eco-friendly transportation in the region. This, in turn, is paving the way for substantial opportunities for the expansion of the ITS market.
Key Market Players & Competitive Insights
The market is characterized by intense competition, with established players relying on advanced technology, high-quality products, and a strong brand image to drive revenue growth. These companies employ various strategies such as research and development, mergers and acquisitions, and technological innovations to expand their product portfolios and maintain a competitive edge in the market.
Some of the major players operating in the global market include:
- Agero, Inc.
- DENSO CORPORATION
- EFKON GmbH
- Garmin Ltd.
- Hitachi, Ltd.
- Iteris, Inc.
- Kapsch TrafficCom
- Nuance Communications, Inc.
- Q-Free ASA
- Sensys Networks, Inc.
- Siemens AG
- Telenav, Inc.
- Thales Group
- TomTom International BV
- Xerox Corporation
- In July 2023, Iteris, Inc., a reliable technology ecosystem specializing in the management of smart mobility infrastructure, has been selected to upgrade the public transit system in Mérida, Mexico, as a component of an ITS modernization project funded by the U.S. Trade and Development Agency (USTDA).
- In July 2022, Indra, a leading global technology engineering company specializing in aerospace defense and mobility, has successfully obtained a contract with Trans Urban in the United States. The firm will deploy its state-of-the-art technology for the automated scanning and identification of high occupancy vehicles (HOV) within the express lanes of I-95, I-495, and I-395 in northern Virginia.
- In April 2022, India's Ministry of Electronics and Information Technology has introduced a range of applications as part of the Intelligent Transportation System (ITS). Among them are significant innovations such as the Onboard Driver Assistance and Warning System, a Bus Signal Priority System, and the CoSMiC software. These developments result from a collaborative effort between the CDAC and the Indian Institute of Technology Madras.
- In September 2021, Siemens, a leading manufacturer of industrial equipment, has entered into a partnership with the National Authority for Tunnels (NAT) to supply an extensive rail system. This system encompasses Egypt's inaugural high-speed rail, as well as electrified main and freight rail lines.
Intelligent Transportation Systems Market Report Scope
Market size value in 2024
USD 50.58 billion
Revenue forecast in 2032
USD 95.39 billion
8.3% from 2024 – 2032
2019 – 2022
2024 – 2032
Revenue in USD billion and CAGR from 2024 to 2032
By Type, By Mode of Transport, By Application, By Region
North America, Europe, Asia Pacific, Latin America; Middle East & Africa
Report customization as per your requirements with respect to countries, region and segmentation
The global intelligent transportation systems market size is expected to reach USD 95.39 billion by 2032.
Key players in the market are Agero, Inc., DENSO CORPORATION, EFKON GmbH, Garmin Ltd., Hitachi, Ltd., Iteris, Inc., Kapsch TrafficCom
North America contribute notably towards the global intelligence transportation system market
The global intelligence transportation system market is expected to grow at a CAGR of 8.2% during the forecast period.
The intelligence transportation system market report covering key segments are type, mode of transport, application and region.