Global Intelligent Transportation System (ITS) Market Grows Steadily at a CAGR of 7.8%

An intelligent transportation system (ITS) provides cutting-edge services related to multiple modes of transportation and traffic management to let users use transportation networks in a safer, more organized, and "smarter" way. These technologies include emergency services, traffic cameras, and signs that adjust speed limits depending on the scenario. On July 7, 2010, the European Union's 2010/40/EU directive defined ITS as systems that use information and communication technologies to manage road transport infrastructure, vehicles, users, traffic, mobility, and interfaces with other modes of transportation. The directive particularly applied ITS to traffic and mobility management systems. ITS can improve road transportation, traffic management, mobility, etc. ITS technology reduces travel times and increases capacity on busy roads worldwide. Market Dynamics Growing Need for Road Safety Drives the Global Market Lack of road safety and preventive measures is a major source of traffic accidents, which destroy infrastructure, raise costs, and slow economic progress. Several government agencies are promoting road safety. The 2005-launched Global Road Safety Initiative (GRSI) pools private-sector investment to promote road safety in low- and middle-income countries. Traffic-related deaths have increased, as have their costs, which may approach 2% of a nation's GDP. Economic development hurts low- and middle-income countries the most. Thus, traffic technology and accident reduction are government priorities. ITS can help achieve this. Thus, various projects are underway to integrate cutting-edge traffic control technologies and promote road safety awareness. Such operations are expected to raise V2V and V2I communication demand. Passenger and commercial cars must include driver assistance and ESC systems in industrialized countries like Europe and North America. These criteria are expected to increase ITS solution demand. Increasing Spending on the Development of Smart and Connected Vehicular Platforms Creates Tremendous Opportunities The Cooperative, Connected, and Automated Mobility (CCAM) concept has caused a paradigm change in the automotive industry. By allowing drivers to communicate with traffic planners about traffic-related information, the concept promotes effective V2V and V2I communication. The C-ITS program is expected to significantly boost road safety, traffic efficiency, and driving comfort by supporting drivers in reacting to traffic circumstances and making informed judgments. These advantages might lessen traffic accidents and preserve a sustainable transportation system in step with changing social needs. This is expected to be a significant opportunity to support market growth during the projected period. Regional Analysis North America is the most significant Global Intelligent Transportation System Market shareholder and is estimated to exhibit a CAGR of 3% over the forecast period. North America is the region that has embraced intelligent transportation technologies the quickest due to the government's increased focus on strengthening the transportation infrastructure in response to rising highway accident and fatality rates and growing traffic congestion. Big data, machine learning, the Internet of Things, and cloud computing have given North American transportation a fresh chance to create and implement intelligent transportation systems. Furthermore, ITS America and the U.S. Department of Transportation Research and Innovative Technology Administration (RITA) are among the largest local companies conducting intelligent transportation system research and development. The presence of significant foreign competitors aids in the local market's development. Multiple public-private partnerships have attempted to construct intelligent transportation systems in various areas around the North American region due to the increasing traffic and congestion in the metropolis. Europe is anticipated to exhibit a CAGR of 7.3% over the forecast period. The region's total employment growth and the importance of the transportation sector to area GDP make the sector a significant one for the European economy. A crucial necessity for the effective operation of the European Union has emerged: sustainable and well-connected transportation systems. In partnership with its member states, business stakeholders, and governmental organizations, the European Commission is developing a standard approach for successfully integrating intelligent transportation systems into the current infrastructure. For instance, as part of the European Commission's Digital Single Market Strategy, it wants to promote the use of ITS to manage the transportation network for customers and enterprises effectively. Work on the following generation of ITS technology has also started in conjunction with cooperative ITS deployment, which will increase automation in the transportation sector. Key Highlights The global intelligent transportation system market was valued at USD 25 billion in 2022. It is estimated to reach USD 55.54 billion by 2031, growing at a CAGR of 7.8% during the forecast period (2023–2031). Based on the product, the global intelligent transportation system market is bifurcated into ATIS, ATMS, ATPS, APTS, and EMS. The ATMS segment dominates the global market and is projected to exhibit a CAGR of 5.6% over the forecast period. Based on application, the global intelligent transportation system market is bifurcated into Traffic Management, Road Safety and security, Freight Management, Public Transport, Environment Protection, Automotive Telematics, Parking Management, and Road Tolling Systems. The traffic management segment owns the highest market share and is predicted to exhibit a CAGR of 5.7% over the forecast period. North America is the most significant global intelligent transportation system market shareholder and is estimated to exhibit a CAGR of 3% over the forecast period. Competitive Players The key players in the global intelligent transportation system market are Hitachi, Ltd.; DENSO Corporation; Siemens AG; and Thales Group, Kapsch TrafficCom AG; SWARCO AG; Addco; Agero, Inc.; EFKON GmbH; Garmin Ltd.; and Xerox Corporation. Market News In April 2023, India and Russia to implement sophisticated transport and logistics. The Memorandum of Understanding (MoU) signed between the Ministry of Road Transport and Highways and the Ministry of Transport of the Russian Federation on Bilateral Cooperation in the Road Transport and Road Industry in September 2021 established the working group to establish a long-term and effective bilateral relationship of communication and cooperation in road transportation, logistics, ITS, and green mobility. In May 2023, Kura posted a tender for an intelligent transport system for Sh8.4 billion. Everything is set to go as the Nairobi Intelligent Transport System (ITS) phase one project tender for Sh8.4 billion is opened by the Kenya Urban Roads Authority (KURA). Global Intelligent Transportation System Market: Segmentation By Type ATIS ATMS ATPS APTS EMS By Applications Traffic Management Road Safety and Security Freight Management Public Transport Environment Protection Automotive Telematics Parking Management Road Tolling Systems By Region North America Europe Asia-Pacific Latin America The Middle East and Africa