The global intelligent transportation systems market size was valued at USD 23.8 billion in 2021 and is projected to reach USD 38.70 billion by 2030, registering a CAGR of 5.75% from 2022 to 2030.
The term "intelligent transportation system market" refers to the use of cutting-edge communication and information technology in the management of transportation and traffic systems to make driving better for drivers in many ways. To put it another way, the market for intelligent transportation systems (ITS) includes most types of transportation that use intelligent communication technology.
ITS is a part of the Internet of Things. It includes information that comes from both wireless and wired connections. By focusing on these three main factors, the market for intelligent transportation systems (ITS) is causing a sea change in how Traffic Management Centers (TMC) run and maintain highway networks. Problems of this kind include not having the right information, having information that isn't up to date, and people in the system not working together well enough.
Traffic management companies (TMCs) can make better decisions about transportation networks with the help of information technology, which gives them more accurate and up-to-date information. It is expected that the growth of the market will be driven by the growing need for traffic control solutions, the growing demand for smart vehicles with the latest telecommunications technology, and the better safety and surveillance that modern cameras and License Plate Recognition (LPR) systems provide. Other things that are likely to help the market grow are the growing number of cars on public roads, the deterioration of the infrastructure that is already there, and a coming problem with how traffic data is managed.
An alternative traffic management system is needed to control the flow of traffic through city corridors and on highways. This need came about because it would soon be necessary to do so. Because of this, the people in charge of transportation are looking forward to using new and cutting-edge data analytics technology to deal with the problem of more traffic.
Traffic on the roads is caused by a number of things, including the fact that there are more cars on the road and not enough roads and bridges. The increase in traffic on the roads is bad for the environment because of the pollution that comes from cars and trucks. It may also cause more people to die in car accidents. Traffic accidents killed about 36,600 people in the United States in 2018. It was said that about 1.35 million people died on the roads around the world.
ITS is being used by governments all over the world to make roads safer, improve how well transportation systems work, and reduce the damage that transportation does to the environment. To use ITS, you need a lot of money. Countries like the United States, Dubai, and Japan are putting a lot of money into ITS-related projects. For example, in the year 2020, the government of the United Kingdom will spend $1.9 million on three projects to test out new technology and new ways to improve driving conditions, cut down on traffic congestion, and reduce the amount of time spent waiting in traffic jams. The government also has high hopes that next-generation intelligent transportation systems market powered by artificial intelligence will give drivers the confidence they need to plan their trips without worrying about getting stuck in traffic. Because of these technologies, there is less traffic, less time wasted, and less pollution in the air. More than USD 368 million is available to innovators in the United Kingdom to help them build a transportation network that is cleaner, greener, and more sustainable.
A sophisticated centralised traffic management centre (TMC) that is able to deal with real-time traffic data and contribute to the reduction of traffic congestion is one of the fundamental requirements for an intelligent transport system. This management centre should be co-located with transportation managers, system operators, dispatchers, and response agencies; however, this would necessitate making significant financial investments.
In addition, the installation of ITS involves a variety of other systems and components, such as CCTV cameras, microwave detectors, dynamic message signboards, sophisticated traveller information systems, highway advisory radios, mobile data terminals, fleet management systems, and so on. Mobile data terminals are on-board devices that offer a variety of functions and facilitate communication in both directions between a control centre and a moving vehicle. According to the United States Department of Transportation, the initial investment for mobile data terminals typically ranges from one thousand to four thousand dollars (USD) per unit, with extra installation costs ranging from five hundred to one thousand dollars (USD).
ITS cannot be put in place by a single stakeholder; instead, it requires collaboration between many different groups, such as user groups, manufacturers, service providers, public sector enterprises, and telecom operators, among others. So, public-private partnerships (PPPs), which are also known as public-private partnerships, would be important for the development of ITS.
Many non-profit organisations, like ITS Canada, ITS America, ITS Thailand, ITS India, and ITS Germany, have signed strategic cooperation agreements with other groups that work on roads and transportation projects. In June 2020, the Yucatan state government decided to hire Cubic Transportation Systems (CTS), a division of the US-based Cubic Corporation that deals with transportation, to put in place modern traffic management technology in the Mexican city of Merida. Cubic and Vixionere SAPI de C.V. (Mexico) worked together to install the Trafficware ATMS central transport management platform, controllers, and Transit Signal Priority software at each intersection that was part of the project. This software works with Cubic's real-time platform NextBus and is built on top of it. Cubic was in charge of putting these parts in place. Cubic will also install the SynchroGreen Adaptive Signal Control module at about 50 different junctions.
The software segment is projected to grow at the highest CAGR during the forecast period
The third-party system, which is connected by network solutions, gets real-time information from software solutions about the vehicle's current location and any unplanned route changes that may have happened because of traffic or an accident. So, governments in many different countries are taking different steps to encourage the development of cutting-edge software. For example, the United States Department of Transportation (USDOT) and the Open-Source Application Development Portal (OSADP) work together to improve research, development, planning, testing, and deployment of connected car and traveler-related applications and ITS. Because of this, it is expected that the software part of the ITS market will have the highest compound annual growth rate (CAGR) during the time of the forecast.
Advanced traffic management systems applications held the largest share of the ITS market in 2020
The advanced traffic management system, which is often called an ATM, talks to drivers about how traffic is moving or how the roads are in real-time. The system keeps an eye on expressways and roads all the time and gives the central traffic control room useful feedback and information. This lets them control the room and take the right steps at the right times to keep traffic from getting too bad. Also, the system makes it possible for private concessionaires, highway operators, or government agencies to improve mobility, economic productivity, road safety, and the efficiency of transportation systems. Because of this, the ATMS application had the biggest share of the ITS market in the year 2020.
In the year 2020, more than 40% of the world market was in North America, making it the most powerful region. This area is known as a technology hub because it is where cutting-edge technologies like machine learning, big data, cloud computing, and the Internet of Things are being developed and used in a big way. Also, the area is home to important players in the international market. Several governments in the region are putting a lot of effort into improving the region's transportation infrastructure, which is making it easier for smart transportation systems to be used. In response to the growing number of cars on the road and the increased traffic that comes with it, a number of government and business groups are working together to make plans for putting intelligent transportation systems into place in a number of cities across North America.
On the other hand, it is expected that the growth of the ITS industry in the Asia-Pacific region will be helped by changes in technology and the ongoing expansion of transportation networks. China, India, and Japan stand to gain the most economically from the use of intelligent transportation systems (ITS) market. This is a very interesting fact. Intelligent transportation systems not only help people avoid crowded routes, which cuts down on the time it takes to get somewhere, but they also help car owners save money by reducing the amount of gas they use. Because of this, automakers in both developing economies and industrialised economies are making big steps toward putting these systems in their next models as soon as possible.
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