Intelligent Traffic Systems Market Size, Share & Trends Analysis Report By Product Type (Integrated Urban Traffic Control System, Freeway Management System, Electronic Toll Collection (ETC), Advanced Public Transportation System, Others), By Component (Hardware, Software, Services), By Solution (Traffic Monitoring System, Traffic Signal Control System, Traffic Enforcement Camera, Integrated Corridor Management, Intelligent Driver Information System, Others), By End-Use (Urban Traffic, Inter-Urban, Parking Management, Info-mobility, Public Transport, Freeway) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global intelligent traffic systems market size was valued at USD 9,705 million in 2021. It is estimated to expand at a CAGR of 12.3% by 2030 to reach USD 27,568 million during the forecast period (2022–2030). Factors like growing awareness of reducing traffic congestion and improving road safety drive the market growth.

"Traffic management" refers to organizing, arranging, directing, and controlling moving and stationary traffic, including pedestrians, cyclists, and motorized or non-motorized vehicles. Its purpose is to ensure the safe, orderly, and effective movement of both people and goods and, whenever feasible, improve the quality of the surrounding environment in and adjacent to areas with traffic infrastructure.

The management of traffic is an essential subfield of the logistics field. It involves the planning, controlling, and acquiring the necessary transport services to physically move vehicles from one location to another. Before entering a construction zone, motorists and pedestrians should be given clear and concise instructions if the traffic management plan is good. When it will be necessary for drivers to reduce their speed, when lanes are combined, and when the roadway will become more congested, drivers will need to be informed. With an effective traffic control plan, drivers will better avoid getting caught in a backup that lasts for several hours.

To alleviate traffic congestion, nations worldwide are adjusting the infrastructure that manages traffic. It is anticipated that regulatory initiatives relating to security and safety will positively impact the uptake of telematics services in vehicles. These services improve driver behavior, cut down on the amount of fuel needed to get from point A to point B and increase overall driver safety. The Intelligent Traffic Management System (ITMS) has a value chain that incorporates management and planning of all activities involved in logistics, conversion, procurement, sourcing, installation, and maintenance of the products that are necessary for traffic management.

Market Dynamics

Global Intelligent Traffic Systems Market Drivers

Growing Awareness in Reducing Traffic Congestion and Improve Road Safety

As various regions of the world continue to urbanize, traffic congestion will become increasingly severe. Especially in developing economies such as India, rapid urbanization has prompted the migration from rural to urban areas. Consequently, while the population density in the suburbs continues to rise, infrastructure development cannot keep pace with urbanization. In the 21st century, the unending increase in population, the massive growth of cities, unplanned agglomerations, and the consequent rise in car ownership is anticipated to pose significant obstacles to urban mobility.

Aging infrastructure, increasing traffic congestion, and the resulting strain on available mobility solutions and transportation infrastructure would exacerbate traffic congestion and jams, raise transportation costs, and impact people's daily lives. An ITMS can significantly contribute to providing real-time traffic data and reducing traffic congestion. Typically, advancements in Radio Frequency Identification (RFID) tools, microchips, beacon-sensing technologies, and information and communication technology can strengthen technological capabilities and drive ITMS adoption over the forecast period.

In addition, several initiatives are being implemented to raise awareness about overall road safety and to implement advanced traffic management systems. It is anticipated that these initiatives will increase demand for V2V and V2I communication. Passenger and commercial vehicles must have Electronic Stability Control (ESC) systems and driver assistance systems in developed economies like Europe and North America. Such regulations are anticipated to increase demand for ITMS solutions over the foreseeable future.

Global Intelligent Traffic Systems Market Restraint

Restructuring Existing Infrastructure to Enforce ITMS

Transportation and traffic management systems are essential to the socio-economic development of any nation. The rising rate of road congestion increases carbon emissions and contributes to a high level of environmental pollution. However, the costs related to traffic congestion, such as increased fuel consumption and increased travel time, can also be a significant concern for any nation. However, implementing the most recent and innovative real-time traffic management technology frequently necessitates reorganizing the current infrastructure.

Transportation authorities may need to upgrade the existing infrastructure to facilitate optimal deployment and management of advanced technologies. For example, to support the Connected Vehicle Pilot Deployment Program in New York City, the DOT deployed 310 signalized intersections for V2I technology, 353 Roadside Unit (RSU) units at Manhattan and Brooklyn Intersections FDR Drive, and other devices. Any large-scale implementation of advanced technologies, such as connected vehicles, is anticipated to necessitate an upgrade of the current infrastructure to ensure interoperability and efficient operations.

Global Intelligent Traffic Systems Market Opportunities

Increased Development of Smart and Connected Vehicle Platforms

The automobile industry has undergone a paradigm shift due to the introduction of the cooperative, connected, and automated mobility (CCAM) concept. The concept enables drivers and traffic supervisors to share the traffic information, thereby establishing effective V2V and V2I communication. Implementation of the cooperative Intelligent Transport Systems (C-ITS) program of the European Union is anticipated to significantly improve road safety, traffic efficiency, and driving comfort by assisting drivers in adjusting to the traffic situation and making the right decisions. Such benefits may reduce road accidents and maintain a sustainable transportation system following the evolving needs of society. This is anticipated to be one of the primary opportunities driving market growth over the forecast period.

Regional Analysis

The regional segmentation of the ITMS market includes North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

North America will dominate the market with the largest share of USD 9,337 million at a CAGR of 10.7% during the forecast period. Intelligent traffic management systems are the most prevalent in North America. Governments in the region are placing a greater emphasis on improving the region's transportation infrastructure to reduce highway congestion, accidents, and fatalities. The North American transportation industry has been able to incubate and implement ITMS more effectively due to the widespread implementation of advanced technologies such as big data, machine learning, IoT, and cloud computing.

In recent years, central transportation authorities in the region, such as the US Department of Transportation, Research and Innovative Technology Administration (RITA), and Intelligent Transportation Society (ITS) America, have directed their research and development efforts toward intelligent transportation systems. In addition to launching intelligent transportation systems and solutions to combat heavy traffic congestion, the US government concentrates on these initiatives.

The San Francisco Municipal Transportation Agency, for example, has launched SFpark, a system designed to manage on-street parking issues, reduce congestion, and facilitate the efficient parking of vehicles in the city. Rapidly expanding intelligent cities and smart infrastructure are fueling the growth of intelligent transportation systems in Canada. Focus on the practical implementation of ITS Canada's 2020–25 Strategic Plan, under which ITS Canada plans to supply and integrate it across the country's municipalities and agencies, is also anticipated to propel the market.

The region of Europe is expected to grow at a CAGR of 11% to reach USD 7,697 million by 2030. The transportation sector is a crucial part of the European economy and a significant contributor to the region's gross domestic product and overall job creation in several countries. It is now essential to implement sustainable and complete items to manage the effective operation of the region's complex transportation sector.

The European Commission collaborates with its member states, industry stakeholders, and public authorities to develop standard integration solutions for ITMS into the current infrastructure. Pertaining to its Digital Single Market Strategy, for instance, the European Commission planned to increase the use of ITMS to manage transport networks for passengers and businesses. It also began working on the next generation of ITMS solutions through the deployment of Cooperative-ITMS, which could push automation in the transportation industry. Countries in the region emphasize the incorporation of intelligent transportation systems into the transportation industry. ITS (UK) estimated that the collective value of the various ITS projects in the country was approximately USD 2.2 billion. Intelligent Transportation Society (UK) is a non-profit public/private sector association established in the United Kingdom to promote smart transportation systems.

Asia-Pacific is envisioned to grow at the highest CAGR of 16.2% during the forecast period. The United Nations projections for global population growth indicated that Asia's inhabitants will probably reach 5.27 billion by 2050. This will hasten the process of urbanization in the region. Consequently, to lessen the burden of the region's diminishing land carrying capacity, the region's government is continuously focusing on improving the overall physical infrastructure, which is pushing the ITMS market further.

Segmental Analysis

The global intelligent traffic systems market share segmentation is based on solution and region.

The solution segment includes Traffic Monitoring systems, Traffic Signal Control systems, Traffic Enforcement cameras, Integrated Corridor Management, Intelligent Driver Information systems, and Others.

The traffic monitoring system is expected to hold the largest share of USD 6,140 million at a CAGR of 12.2% during the forecast period. The market participants' traffic monitoring system solutions consist of data processing technology, communication technologies, and sensors to ensure real-time management of transportation network operations; the information collected and processed is beneficial to drivers and passengers. Inadequate signal controls contribute significantly to traffic congestion and increase travel time significantly.

The emergence of innovative city projects, favorable government initiatives to develop traffic infrastructures, and the growth of adaptive traffic controls and analytics are the primary drivers of the traffic monitoring system. In addition, increasing traffic congestion and vehicle pollution have accelerated the adoption of mobility as a service, increasing traffic monitoring systems' global growth.

The next segment to hold the largest share is the integrated corridor management (ICM) system, with USD 4,930 million growing at a CAGR of 12.7% during the forecast period. ICM assists in optimizing traffic signal corridors, coordinating the management of freeways, responding to multi-modal incidents, and providing real-time incident detection, notification, response, and command and control integration. Major advancements in the effective movement of goods and people along important corridors due to institutional collaboration and proactive, aggressive integration of existing infrastructure will help manage integrated galleries and improve traffic management.

The intelligent driver information system is likely to advance at the highest CAGR of 13.3% during the forecast period. Rising road accidents and fatalities that result in serious injuries have prompted the search for solutions that can improve vehicle and operation safety, thereby enhancing road safety and decreasing the likelihood of collisions. Due to technological advancements, intelligent driver information systems can assist drivers, strengthen security, and provide extra functionality such as collision warnings and automatic braking systems. In addition, the intelligent driver information system includes adaptive cruise control, which adjusts a vehicle's speed to other cars and facilitates traffic flow. And hence, it is expected that such features will propel the segment's growth over the forecast horizon.

Impact of covid-19

The shutdown of work, travel, public events, and academies, alongside quarantine measures, was alarming for global live fire training departments and security personnel. The rapidly growing misinformation being shared on social media is downplaying the seriousness of the event. One of the severe impacts of the novel coronavirus on the live fire training industry is the shutdown of formal training schools, which has made it difficult for departments to fill openings or transfer deployed teams to new locations. However, following social distancing guidelines, fire departments are now focusing on online training methods.

Various military training organizations and agencies across the world are offering a variety of web-based training programs. Key market players are providing free online courses during the national emergency. Google Hangouts and Zoom are being used to conduct local training sessions. Pre-recorded training sessions are great for specific tasks or tactical training. Many organizations have taken a tactical pause in physical meetings and hands-on training to ensure the health of recruits and determine the continued availability of training facilities and module instructors. Others have moved online to continue the training while particular agencies evaluate the trainee's ability to continue providing essential emergency response.

Recent Developments

• 2022- SNC-Lavalin Group and MBC Group will jointly identify opportunities and provide solutions to bolster the resiliency of buildings and infrastructure against recovery in the aftermath of the increasingly pronounced effects of climate change and extreme weather events.
• 2022- Kapsch TrafficCom announced the launch of Intelligent Corridor at Nicholson Street in Melbourne.