Intelligent Transportation System Market Size Report, 2030 (2023)

Report Overview

The global intelligent transportation system market size was valued at USD 28.25 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 8.3% from 2023 to 2030. The growing demand for traffic control solutions, smart vehicles, the improved safety and surveillance offered by modern cameras, License Plate Recognition (LPRs), and the rapid development of smart cities, among others, are contributing to the growth of the intelligent transportation system (ITS) industry.

ITS provides traffic management solutions that enable enhanced road safety, traffic flow, and mobility, creating a positive market outlook. The COVID-19 pandemic has hampered the implementation projects and new ITS sales & installations in 2020. However, the ITS industry witnessed significant growth in mid-2021, owing to the increasing investment by various governments in infrastructure development activities to recover the pandemic-affected economy.

The growing number of vehicles on the road, aging infrastructure, and lack of traffic data management are some of the other factors anticipated to contribute to the ITS market’s growth. As a result, the rising need of managing the traffic flow across highways and city corridors has triggered the need for advanced traffic management technology. The implementation of smart technologies and several efforts have been taken by both public and private organizations by varying measures, demonstrating the role of technology in shaping the future of the intelligent transportation system industry.

ITS setup includes Traffic Management Center (TMC), which can deal with real-time data and assist vehicles in finding alternate ways to reduce traffic congestion. This TMC implementation includes a set of video surveillance systems, sensors, vehicle probes, navigation systems, and other systems & components. The data collected through devices is analyzed, processed, and communicated to the user through dynamic signboards, the internet, or mobile telephony.

Advancements in sensing and telecommunications technologies are particularly expected to encourage the adoption of the ITS over the forecast period. However, the growing preference for digitization of various attributes for implementing intelligent transportation system solutions is one of the major factors for the ITS industry’s growth.

The implementation and significant use of ITS to reduce road accidents and enhance road safety is a major factor driving the growth of the market. Further, the continuous demand for Vehicle-to-Infrastructure (V2I) and Vehicle-to-Vehicle (V2V) communication to streamline the vehicle flow is expected to gain traction over the next few years.

The transportation industry’s continued developments, like blind-spot detection and electronic toll collection, have triggered the need for an efficient transportation system that can potentially improve road networks and redefine the expectations and prospects of sustainable transportation and traffic management.

An effective transportation and traffic management system are critical for the socioeconomic development of any country. While the growing number of traffic congestions increases carbon emissions and leads to a high degree of environmental pollution; the costs associated with traffic congestions, including fuel consumption and travel time, can also be a major issue for any nation. Nevertheless, advanced traffic management systems capable of utilizing real-time data can efficiently address traffic issues.

However, implementing the latest, advanced real-time traffic management technology often requires restructuring the existing infrastructure. Transportation authorities may have to upgrade the existing infrastructure to ensure effective deployment and management of advanced technologies, slowing down the ITS industry growth.

Type Insights

The Advanced Traffic Management System (ATMS) segment accounted for a market share of over 30% in 2022. Solutions offered by key market players can combine data processing technology with sensing and telecommunications technologies to ensure real-time management of transportation networks and share the information gathered and processed with drivers and travelers.

Moreover, development in data analytics, including artificial intelligence and machine learning, are key factors that are expected to play an imperative role in the development of ATMS over the forecast period. In addition to this, the easy affordability of vehicles, and automobile manufacturers’ discounts on vehicles are accelerating vehicle sales which, leads to traffic congestion. ATMS will be adopted at higher rates during the forecast period to address this challenge.

The Advanced Public Transportation System (APTS) segment is anticipated to register considerable growth with a CAGR of 10.2% over the forecast period. APTS provides enhanced visibility into the overall timeliness of buses and trains and shares real-time information with commuters. For instance, smart cards, telecommunications, and other electronic technologies have the potential to improve the efficiency of the transportation system. The increasing investment by several governments in making public transportation better and reducing traffic congestion is expected to boost the growth of this segment.

Application Insights

The traffic management segment accounted for the largest market share of over 32% in 2022. These systems enhance the road network’s reliability and operational performance, including vehicle detection systems, bridge traffic management systems, and ramp metering systems, among other systems. Frequent traffic congestions often culminate in significant monetary losses stemming from the increase in travel time and the growth in fuel consumption. Traffic congestion is a repetitive problem across the globe, causing huge fuel consumption and impacting the quality of life. Hence, the government bodies’ role across the globe is also important to launch new technologies in the country and execute intelligent transportation systems, which will be expected to drive the demand for the market and reduce the financial burden on governments.

The automotive telematics segment is expected to register a CAGR of 9.9% through 2030. The remarkable growth of the automotive telematics segment can be attributed to the initiatives being pursued by government bodies for ensuring safety and security on roads. Dynamic displays and navigation systems can help operate road networks flexibly and reduce travel time.

Similarly, smartphone-based applications used to provide real-time information to vehicle owners for scheduling vehicle maintenance services are also gaining popularity in several parts of the world. This is expected to play a vital role in driving the growth of the automotive telematics segment over the forecast period.

Regional Insights

North America held the major share of over 35% of the global intelligent transportation system industry in 2022. The region is home to the major global market players and is equipped with several technologies for the development and implementation of the latest, advanced technologies, such as machine learning, big data, and cloud computing, to manage the increasing traffic and public transportation system.

The strong emphasis of various governments on improving transportation infrastructure is driving the adoption of intelligent transportation systems. Several public-private collaborative efforts to introduce intelligent transportation systems are materializing in various cities such as New York, Toronto, Vancouver, Los Angeles, and Chicago, across North America to create a strong demand for short-range communication devices that prevent traffic jams, which ultimately drives the demand for intelligent transportation systems in the region.

The Asia Pacific intelligent transportation system industry is anticipated to witness the highest CAGR of 11.0% from 2023 to 2030. The increasing demand for advanced technology and the continued expansion of transportation networks are expected to drive the growth of the intelligent transportation system industry in the region. The economic benefits stemming from the deployment of the intelligent transportation system are particularly notable in countries, such as China, India, and Japan.

These systems provide monetary benefits to vehicle owners by reducing overall fuel consumption and also help in avoiding congested routes and thus reducing travel time. Due to this, several automobile manufacturers in developing and developed economies are aggressively integrating these systems into their upcoming models.

Key Companies & Market Share Insights

The key players operating in the intelligent transportation system industry include DENSO CORPORATION; EFKON GmbH; Thales Group; Sensys Networks, Inc.; Hitachi, Ltd.; Kapsch TrafficCom; and Q-Free ASA; among others. Market players are investing aggressively in research & development activities, improving internal processes, actively engaging in new product development, and improving their existing products as part of the efforts to increase their respective market shares. They are also focusing on strategic partnerships and mergers & acquisitions to develop technologically advanced products and gain a competitive edge in the market.

For instance, in April 2021, a subsidiary of Siemens AG, Siemens Mobility integrated HERE Technologies’ corridor travel time Application Program Interface (API) to provide a time-as-a-service (JTaaS) solution to assist the British public authorities to reduce traffic congestion. The integration would allow Siemens Mobility to offer the public and traffic authorities in the U.K. the option to monitor journey times without the need for additional hardware such as Wi-Fi sensors and ANPR cameras with Bluetooth.

Further, in March 2021, Telenav, Inc. partnered with an automotive group SAIC, to make available navigation and location-based services for SIAC’s internal combustion engine (ICE) vehicles and battery-powered electric (BEV). The solution provides BEV and ICE needs in markets with both left and right-hand driving and also delivers a seamless onboard navigation experience that is optimized to provide up-to-date maps and online content to end-users with reduced mobile data consumption, creating robust opportunities for the ITS market. Some prominent players in the global intelligent transportation system market include:

• Agero, Inc.

• DENSO CORPORATION

  See Also

  Intelligent Transport Systems (Its) Market Share, Industry Analysis, Driver, Trends, Business Overview By 2028Global Intelligent Transportation Systems (Its) Market Share 2023 by Key Suppliers, Pricing Trends, Global Growth and Size Analysis, Regional Segments Forecast to 2028Intelligent Transportation System (ITS) Market and its Economic Impact on Industry with Forecast 2030Intelligent Transportation System (ITS) Market Size 2023 Will Touch New Level in Upcoming Year

• EFKON GmbH

• Hitachi, Ltd.

• Garmin Ltd.

• Thales Group

• Xerox Corporation

• Ricardo

• Sensys Networks, Inc.

• Telenav, Inc.

• Iteris, Inc.

• Kapsch TrafficCom

• Lanner

• Nuance Communications, Inc.

• Q-Free ASA

• Siemens AG

• TomTom International BV

• TransCore

Intelligent Transportation System Market Report Scope

Global Intelligent Transportation System Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global intelligent transportation system market report based on type, application, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Advanced Traveler Information System (ATIS)

  • Advanced Traffic Management System (ATMS)

  • Advanced Transportation Pricing System (ATPS)

  • Advanced Public Transportation System (APTS)

  • Emergency Medical System (EMS)

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Traffic Management

  • Road Safety And Security

    See Also

    Intelligent Transportation Systems Market Size, Share | Growth Report [2031] | Straits Research

  • Freight Management

  • Public Transport

  • Environment Protection

  • Automotive Telematics

  • Parking Management

  • Road Tolling Systems

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

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    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • UAE

    • KSA