Intelligent Transportation Systems Market

Market Overview

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.

Market Dynamics

Global Intelligent Transportation Systems Market Drivers

• Rising road traffic congestion

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.

• Favourable government initiatives for effective traffic management

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.

Global Intelligent Transportation Systems Market Restraints

• The high installation cost of ITS

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).

Global Intelligent Transportation Systems Market Opportunity

• Icreasing public-private partnerships

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.

Segmental Analysis

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.

Regional Analysis

The market is split by region into North America, Europe, Asia-Pacific, and LAMEA.

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.

Recent Developments

In September 2021, Siemens and the National Authority for Tunnels (NAT) made a deal for Siemens to build a complete rail system that will include Egypt's first high-speed, electrified main and freight rail line. This will change how Egypt moves around. Siemens Mobility will provide its full turnkey services for 15 years to design, install, test, and take care of the systems. The whole contract is worth about $4.5 billion, and Siemens Mobility's share is about $3 billion.

In July 2021, Siemens Intelligent Traffic Systems (ITS), a division of Siemens Mobility, has started a new brand called Yunex Traffic. It will use its position as the market leader to offer innovative, smart, and all-around mobility solutions.

In June 2021, Plenary Infrastructure Group from Australia gave Kapsch TrafficCom a project to install a new toll collection system on the Louisiana Highway (LA-1) for the Louisiana Department of Transportation and Development (LADOTD). The project is an addition to Kapsch's existing contract with Plenary. Kapsch is providing an all-electronic tolling system and related maintenance services for a major bridge and tunnel replacement in Belle Chasse, Louisiana.

In May 2021, Cubic Transportation Systems (CTS) was given a multi-year contract by Omaha Metro Transit (US) to deliver its Umo Pass solution. A single fare payment system will make it easy for Omaha Metro Transit riders to plan and pay for their trips with Umo Pass.

Intelligent Transportation Systems Market Segmentation

Based on Offering

• Hardware
  • Interface Boards
    • Multifunctional boards
    • Vehicle detection boards
    • Communication boards
• Sensors
  • Vehicle detection sensors
  • Pedestrian presence sensors
  • Speed sensors
• Surveillance Cameras
  • Thermal cameras
  • AID cameras
• Telecommunication Networks
  • Fiber optic cables
  • Copper lines
  • Wireless media
• Monitoring and Detection Systems
  • Automatic number plate recognition systems
  • Intelligent traffic controllers
• Others (Linked Traffic Controllers and Variable Message Signboards)
• Software
  • Visualization Software
  • Video Detection Management Software
  • Transit Management Software
  • Others
• Services
  • Business and Cloud Services
  • Support and Maintenance Services

Based on System

• Advanced Traffic Management Systems (ATMs)
• Advanced Traveller Information Systems (ATIS)
• ITS-enabled Transportation Pricing Systems (ITPS)
• Advanced Public Transportation Systems (APTS)
• Commercial Vehicle Operation (CVO) Systems

Based on Roadways Application

• Intelligent Traffic Control
  • Traffic Monitoring Systems
  • Traffic Signal Control Systems
  • Traffic Enforcement Cameras
  • Variable Traffic Message Signboards
• Collision Avoidance
• Parking Management
• Passenger Information Management
• Ticketing Management
• Emergency Vehicle Notification
• Automotive Telematics
• Fleet Management and Asset Monitoring

Based on Railways Application

• Rail-running Operation and Collision Avoidance
• Passenger Information Management
• Smart Ticketing
• Security & Surveillance
• Emergency Notification
• Others

Based on Aviation Application

• Security & Surveillance
• Shuttle Bus Tracking
• Traveller Information Management
• Smart Ticketing
• Aircraft Management
• Emergency Notification
• Others

Based on the Maritime Application

• Freight Arrival & Transit
• Real-time Weather Information Tracking
• Container Movement Scheduling
• Emergency Notification
• Others

Based on Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Belgium
  • Denmark
  • Austria
  • Sweden
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of Asia Pacific
• Rest of the world
  • South America
  • Middle East
  • Africa