The global intelligent traffic systems market was valued at USD 32.5 billion in 2019 and is expected to grow at 13.0% CAGR during the forecast period.
Intelligent Traffic Systems Market: Future of On-Road Safety and Driverless Vehicles
The intelligent traffic systems market has been growing at a hefty CAGR of 13.0% and is expected to keep up with its steady projection during the forecast period. The intelligent traffic systems provide innovative and enhanced services to regulate and streamline traffic. Intelligent traffic management solutions help to eliminate congestion problems and make on-road traffic safer and coordinated for better flow.
Advances in information and communication technologies (ICT) in hardware, software, and communications are driving the global intelligent transportation systems market. The integration of ICT with transportation infrastructure enables a better and safer traveling experience and migration to intelligent transportation systems (ITS).
In the last few years, sensor technology has become ubiquitous, with extensive deployment in healthcare, agriculture, forest, vehicle, and marine monitoring. Now in transportation, the technology is supporting the design and development of a wide range of applications for traffic control, safety, and entertainment. The U.S. has made sensors, actuators, and rear-view visibility systems mandatory in vehicle manufacturing and intelligent transportation systems implementation. The regulation aims to provide services to increase driver and passenger satisfaction, improve road safety, and reduce traffic congestion.
Increasing Traffic Congestion
The demand and need to drive far surpass the plying capacity of roads in bigger cities; therefore, commuters in key metropolitan areas face massive congestion. Growing industrialization and urbanization are the prime factors behind the increasing number of vehicles and rising traffic congestion in several economies.
According to the Economic and Social Commission for Asia and the Pacific (ESCAP) report, approximately 54% of the global population resides in urban areas. And the United Nations has projected that two-thirds of the world’s population will be urban by 2050, with an increase of 2.5 billion to current urban communities. Growing traffic and related issues, such as accidents and emergencies, have accelerated the demand for deploying intelligent traffic systems to mitigate concerns.
These systems provide real-time information from sensors that quantify vehicle speed and traffic signals to raise pre-emptive alarms, help control traffic signals, and guide drivers on identifying shorter and traffic-free routes for better mobility. Thus, increasing traffic congestion fosters the demand for advanced public traffic management systems.
Designing and Developing Smart Vehicles Compatible with ITS
The Roads and Transport Authority (RTA) of Dubai's smart transport strategy 2017–2021 plans to make 25% of the city’s road trips by autonomous vehicles by 2030. The initiative also aims to execute 34 projects ranging from self-driving buses, autonomous drones, and taxis, as well as other tasks, such as the expansion of information kiosks and pedestrian crossings.
Such initiatives are expected to drive the market in the upcoming years. The Chinese Government has also announced plans to have 10% of all cars be self-driving by 2030. This presents an immense opportunity for market players to release unique solutions in delivering better traffic updates, recharging electric-vehicle batteries, and accurate mapping, among others. Growth in the design and development of smart vehicles to realize the idea of an 'intelligent highway' is expected to revolutionize the global intelligent traffic systems market during the forecast period.
COVID-19 Impact: Automotive Industry Takes a Substantial Hit
The COVID-19 pandemic has brought enormous global disruption to the economic, environmental, and social factors. People are experiencing significant suffering as a result of the pandemic. Within several months of the first appearance of the novel coronavirus, it spread to more than 170 countries. The infection further spread through roadway and rail transportation, including mass transit and freight corridors across cities and countries. The impact on freight transportation is noticeable.
Starting with the closure of factory closures in parts of China in January 2020, supply chains were significantly disrupted. Nevertheless, essential food and supplies continued to move. Although the freight movement was aided by reductions in traffic congestion on major roadways, reducing the negative impact of transportation on the environment will continue to be an important research topic in the upcoming years.
Experts believe that digital technology will be of significant use in putting urban transport back on its feet, which was brought down by COVID-19. Digital innovation has made it much easier to collect and analyze real-time data, providing an effective way for governments to identify and quantify disruptions. Many technology firms have opened their transport data for the first time to help transport authorities track and benchmark urban mobility performance worldwide and allowing them to create a complete and comprehensive data collection system.
The Urban Traffic Control Segment Is Projected to Attain a Noteworthy Share in the Global Market
Urban traffic control is the process of controlling traffic signals remotely by the Highways Authority by providing UTC-connected signals to ensure a smoother traffic flow in and around the site throughout the day. Urban transport is an important sector of municipal services. Various forms of urban transportation transfer people and cargo within the territory of a city and the immediate suburban zones and perform work related to the planning and provision of public services and amenities. The rise in urban traffic and related issues have accelerated the demand for intelligent traffic systems for the effective monitoring of vehicles and reducing losses.
In March 2016, Nedap, a leader in vehicle detection and identification technology, announced a strategic partnership with Cross, a leading manufacturer of technological components for road, electric infrastructure, to focus on improving the control of traffic flows in urban areas. With the integration of Nedap's parking bay sensor system SENSIT into the Cross-traffic management and information system InVipo, real-time information about the usage of parking spaces in the streets can be monitored to guide motorists.
North America Region Is Estimated to Hold Lion’s Share in the Global Market
The North American intelligent traffic system market is driven by the increasing demand to reduce traffic congestion and improve road safety. Intelligent traffic systems help to tackle traffic congestion for better utility of transportation capacity through the exchange of real-time information, driving the market growth.
The U.S. intelligent traffic management system (ITMS) provides a smart and intelligent mobility platform that can be effectively integrated into traffic management devices and equipment. ITMS covers a particular technology that applies to transport and infrastructure for transfer information between automated systems.
The Advanced Transportation and Congestion Management Technologies Deployment Initiative by the U.S. Department of Transportation supports public transportation system operators in the region. In April 2016, the U.S. Department of Energy and Transportation announced plans to accelerate the R&D of innovative smart transportation systems and alternative fuel technologies.
The rising need to provide real-time information to drivers and passengers has, in turn, increased the demand for integrated traffic systems to enable transportation authorities to respond to emergency incidents more quickly. Intelligent transportation systems also contribute to a reduction in fuel consumption and greenhouse gas emissions by reducing vehicular congestion.
Asia-Pacific Is Anticipated to Develop at a Rapid Pace across the Global Market
Asia-Pacific (APAC) integrated traffic systems market is pegged to register the highest CAGR during the forecast period, owing to rapid urbanization and increasing vehicle sales in the region. APAC demonstrates a strong focus on emission- and congestion-free traffic and has been an early adopter of advanced technologies, such as integrated traffic systems.
Growth in road infrastructure in China and India has fuelled the development of new and existing technologies, such as integrated traffic systems. Simultaneously, increasing traffic and growing population in urban areas have boosted the demand for smooth and congestion-free travel from commuters and governments. Considering these factors alongside the rising disposable income, the sale of four-wheelers in the region is expected to increase considerably during the forecast period. Further, continuous research and development in India, China, and Australia to implement effective intelligent traffic management solutions also propels the regional market growth.
Players operating in this market include Kapsch TrafficCom, SWARCO, Siemens Mobility, TomTom N.V., Thales Group, IBM International, Cubic Corporation, Fujitsu, Q-Free ASA, and SICE, among others. Many market players are adopting both organic and inorganic strategies to cement their sales footprints in the domestic and in the global market. Under their organic growth strategies, these companies are emphasizing steering R&D to facilitate their customers with world-class products.
The various departments operating in these companies are carefully delivering dependable and reliable provision towards the product offering to ensure consistent and reliable performance. Additionally, manufacturers operating in the market are venturing into long-term service contracts with federal governments in different regions. For instance, in 2020, SICE got a contract to remodel six tunnels of the Cantabrian expressway, namely the tunnels of El Carmen, Llovio, Tezangos, El Fabar, Arena de Morís, and Duesos, in the Ribadesella and Caravia section. These tunnels will be adapted to the European Safety Directive.
Intelligent Traffic Systems Market: Segmentation
By Product Type
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