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The intelligent transportation system market size is projected to reach US$ 66,355.13 million by 2031 from US$ 35,938.98 million in 2023. The market is expected to register a CAGR of 8.0% during 2023–2031. The implementation V2X for intelligent transportation systems is likely to emerge as a new trend during the forecast period.
Intelligent Transportation System Market Analysis
Roads (vital components of urban infrastructure) facilitate human mobility and logistics, serve as the basis of social and economic growth, and link cities, ports, and airports. Although road maintenance and development promote economic growth, the increased traffic volume leads to issues such as overcrowding and road accidents. The negative consequences of increasing vehicle ownership have been worse in recent years. It has led to a significant increase in road traffic injuries and environmental degradation due to greenhouse gas emissions. To improve traffic management and infrastructure, ITS uses a wide range of ICTs based on wired and wireless connections. It lowers transportation risks, eases traffic congestion, increases transportation efficiency, lowers pollution, and enhances the driving experience, road system safety, and capacity. By integrating cutting-edge communications technology into the transportation infrastructure and vehicles, ITS increases productivity, improves mobility and safety in transportation, and strengthens global connection. Thus, the demand for ITS is expected to grow in the upcoming years. The intelligent transportation system (ITS) market is majorly driven by increasing smart city initiatives and infrastructure development, rapid urbanization across regions, and government initiatives to enhance road safety. Further, the focus of government bodies to improve transportation infrastructure is expected to generate lucrative opportunities in the market during the forecast period. However, system integration challenges, cybersecurity threats, and high maintenance costs are factors hampering the market growth.
Intelligent Transportation System Market Overview
Intelligent transportation systems use state-of-the-art wireless, electronic, and automated technologies to monitor, assess, and control transportation networks. They use information and communications technology (ICT) to connect automobiles and transportation infrastructure. Thus, the advantages of wireless devices, sensor technologies, and smart ICT services have led to a surge in the adoption of ITS. Further, ITS has numerous applications in tolling, commercial vehicle operations, traffic operations, traveler information, and public transportation to improve traffic flow, prevent collisions, and enhance passenger comfort and safety.
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Intelligent Transportation System Market: Strategic Insights
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Intelligent Transportation System Market: Strategic Insights
Naveen
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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Intelligent Transportation System Market Drivers and Opportunities
Rapid Urbanization Across Regions to Fuel Market Growth
Traditional transportation infrastructure is perceived to be inefficient in resource allocation, pollution control, and traffic congestion. The increase in commuter traffic and vehicle ownership generates a persistent need for intelligent solutions and improved traffic management techniques. ITS aids in automated parking, smart traffic lights, and real-time public transport tracking. Transportation management is an important aspect of urban planning and development. According to the United Nations Economic Commission for Europe (UNECE), by 2050, 55% of the world's population is expected to live in urban areas. Further, according to the World Bank, 56% of the world's population, i.e., 4.4 billion inhabitants, currently live in cities. This trend is expected to continue, with the urban population reaching new heights by 2050, wherein nearly 7 of 10 people may live in cities.??Given that cities create over 80% of the world's GDP, well-managed urbanization can promote sustainable growth by boosting productivity. Thus, urban expansion and development boost the intelligent transportation system market growth.
Government Focus on Transportation Infrastructure
The construction of metro facilities, new airports, and railway networks is growing worldwide. In March 2023, the Canadian Kelowna City Council approved the funding of US$ 90 million for the Kelowna Airport terminal expansion project. As of 2023, six new airports were under construction in the US. In 2022, the Government of India announced its plans to build 220 airports by the end of 2025. In 2023, the Indian government approved US$ 3.93 billion for seven transformative railway projects to boost connectivity. In November 2021, The US Congress passed the Bipartisan Infrastructure Deal to repair and rebuild roads and bridges across the country by investing US$ 110 billion. By focusing on climate change mitigation, resilience, equity, and safety for all users, the investment is aligned to transform poor roads and highways in the country in the next five years. According to a joint statement by the US President and Canada's Prime Minister in March 2023, under the Canadian Critical Minerals Infrastructure Fund, ~US$ 1.09 billion (CAD 1.5 billion) will be invested to support clean energy and transportation infrastructure projects. Thus, the growing infrastructure development projects across the world are expected to create lucrative opportunities for the ITS market growth during the forecast period.
Intelligent Transportation System Market Report Segmentation Analysis
Key segments that contributed to the derivation of the intelligent transportation system market analysis are type, system, and application.
- Based on type, the intelligent transportation system market is segmented into hardware, software, and services. The hardware segment held the largest market share in 2023. The hardware category is further segmented into interface boards, sensor, surveillance camera, telecommunication network, monitoring and detection system, and others.
- Based on system, the intelligent transportation system market is segmented into advanced traffic management system (ATMS), advanced traveler information system (ATIS), ITS-enabled transportation pricing system (ITPS), advanced public transportation system (ATPS), commercial vehicle operation (CVO), and others. The advanced traffic management system (ATMS) segment held the largest market share in 2023.
- Based on application, the market is divided into fleet management and asset monitoring, intelligent traffic control, smart ticketing, variable traffic message sign, collision avoidance, and others. The intelligent traffic control segment held the largest share of the market in 2023.
Intelligent Transportation System Market Share Analysis by Geography
The geographic scope of the intelligent transportation system market report is mainly divided into five regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America. Europe is the second-largest contributor to the global intelligent transportation system market, followed by Asia Pacific. Government bodies across this region are focusing on smart mobility and the implementation of ITS. For instance, in October 2023, with a view to accelerating digital transition and smarter mobility in the EU, the Council adopted a new framework for the deployment of ITS by revising the 2010 directive. Technology advancements such as automated and connected mobility, on-demand mobility apps, and multimodal transportation are all intended to be taken into consideration by the updated directive. Additionally, it seeks to improve interoperability and speed up the availability of digital data that supports navigation and multimodal trip planners. This will enable communication between automobiles and road infrastructure to alert drivers to unforeseen circumstances, such as a traffic bottleneck up ahead. On June 2, 2022, the Council adopted a general stance on this proposal. On June 9, 2023, a provisional agreement on the new directive's language was obtained after interinstitutional discussions with the European parliament.
Intelligent Transportation System Market Report Scope
Intelligent Transportation System Market News and Recent Developments
The intelligent transportation system market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the intelligent transportation system market are listed below:
TomTom (TOM2), the location technology specialist, announced that it is deepening and extending its collaboration with Microsoft. TomTom’s maps and traffic data will power location-based services across Microsoft’s solutions, reaching hundreds of millions of people and organizations daily. The companies will work closely together on bringing innovations to market, including AI-infused products. In addition, TomTom is reaffirming Microsoft Azure as its preferred cloud provider. (Source: TomTom, Press Release, July 2024)
Kapsch TrafficCom's Automatic Number Plate Recognition (ANPR) software has received a big update lately. Depending on the application, the update can attain top performance in automatic number plate recognition. With the new ANPR software, artificial intelligence software was trained to detect number plates accurately and reliably using hundreds of thousands of photos in a GDPR-compliant manner. This will aid in the identification of vehicles without generating traffic congestion. (Source: Kapsch TrafficCom, Press Release, April 2023)
Intelligent Transportation System Market Report Coverage and Deliverables
The "Intelligent Transportation System Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Intelligent transportation system market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Intelligent transportation system market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Intelligent transportation system market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the intelligent transportation system market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
Asia Pacific is anticipated to grow at the fastest CAGR over the forecast period.
The key players operating in the intelligent transportation system market include Hitachi; Siemens; DENSO; Cisco Systems, Inc.; INDRA SISTEMAS; SA; EFKON GmbH; Cubic Transportation Systems, Inc.; Kapsch TrafficCom AG; TomTom International BV.; and Teledyne FLIR LLC.
Modern wireless networks connect cars, pedestrians, infrastructure, highways, etc., using cutting-edge communication technology. In the framework of intelligent transportation systems, vehicle-to-everything (V2X) communication supports a wide range of use cases, including entertainment services, cooperative autonomous driving (traffic information exchange), and traffic safety (traffic jam/accident reporting, collision warning, and collision avoidance).
The intelligent transportation system market was estimated to be valued at US$ 35,938.98 million in 2023 and is anticipated to grow at a CAGR of 8.0% over the forecast period.
Traditional transportation infrastructure is perceived to be inefficient in resource allocation, pollution control, and traffic congestion. The increase in commuter traffic and vehicle ownership generates a persistent need for intelligent solutions and improved traffic management techniques. ITS aids in automated parking, smart traffic lights, and real-time public transport tracking. Transportation management is an important aspect of urban planning and development. According to the United Nations Economic Commission for Europe (UNECE), by 2050, 55% of the world's population is expected to live in urban areas.
The hardware segment led the intelligent transportation system market with a significant share in 2023.
The intelligent transportation system market is expected to reach US$ 66,355.13 million by 2031.
The List of Companies - Intelligent Transportation System Market
- Hitachi
- Siemens
- DENSO
- Cisco Systems, Inc.
- INDRA SISTEMAS SA
- EFKON GmbH
- Cubic Transportation Systems, Inc.
- Kapsch TrafficCom AG
- TomTom International BV
- Teledyne FLIR LLC
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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