Intelligent Transportation System (ITS) Market Size, Share & Industry Analysis, By Type (Advanced Traffic Management System, Advanced Traveler Information System, Advanced Public Transportation System, Advanced Transportation Pricing System, and Others), and Regional Forecast, 2024-2032

The global intelligent transportation system (ITS) market size was valued at USD 26.18 billion in 2023. Based on our analysis, the market is projected to grow from USD 28.36 billion in 2024 to USD 66.64 billion by 2032 at a CAGR of 11.3% over 2024-2032.

Road traffic congestion is a major problem globally, causing massive loss to economic productivity. This is primarily occurring because of a lack of infrastructure growth compared to the growing number of vehicles on roads due to cost and space constraints. Many nations are implementing a strategic plan of intelligent transportation systems to reduce road traffic congestion and accidents through advanced safety systems by wireless communications. The same is done through automatic electronic toll collection systems, pedestrian safety systems, traffic signals, automated vehicle systems, and wireless devices.

The role of the governments is also vital in introducing new technologies in their respective countries and implementing ITS. The impact of growing traffic congestion on the environment is harsh. Implementing an intelligent transportation system leads to ultimate benefits such as powerful and wide-ranging mobility, safety, and the environment. In addition, the implementation of such systems provides better traffic commuting. It also increases the efficiency of vehicles by lowering the burning of fuel from vehicles at signals. These systems also help nations to lower air pollution and prevent economic loss.

Other notable benefits of ITS include reduced road fatalities and comfortable passenger transit. These systems allow all the road and transportation infrastructure systems to be fully connected, leading to a wide range of applications for users. The countries implementing ITS are likely to have a better future as the world enters the era of connected and autonomous cars.

The COVID-19 pandemic accelerated the adoption of Intelligent Transportation Systems (ITS) globally. With the need for contactless services and reduced reliance on public transportation, there's heightened demand for ITS solutions to optimize traffic management, enhance road safety, and facilitate remote operations. Additionally, the pandemic highlighted the importance of resilient transportation networks and efficient logistics, driving investment in advanced ITS technologies to support the evolving mobility landscape in a post-pandemic world.

Intelligent Transportation System (ITS) Market Trends

Arrival of Autonomous and Connected Cars and Emerging Opportunities

The increasing number of automated and connected cars on the roads makes the transportation infrastructure future-ready. Also, transportation agencies need to be prepared for the future. Many ITS service providers deliver their expertise in design, planning, implementation, and tasks to improve solution and system performance. The increasing urbanization, rising disposable incomes, and need for advanced vehicles to ease the driving experience have propelled many transportation service providers to demand a well-connected transportation system, improved infrastructure, and improved road safety. In addition, upcoming smart city projects, advanced communication networks, and government initiatives for smart development in China, India, Singapore, Dubai, and other emerging countries will create new opportunities for market growth.

Advancements in AI and VR to Bring Revolutionary Changes in ITS Technologies

The increasing advancements in artificial intelligence and virtual reality show promise to enhance transportation networks across the globe. These technologies include a head-up display for motor transit and creation of visualization. They help drivers and they aid other transportation system users. AI has the potential to create changes in the modeling of the system.

Traffic management solutions providers are adopting AI. For instance, in March 2020, Lilin - a Taiwanese manufacturer of IP video-based systems - unveiled an AI-based traffic management system named Aida ALPR series along with a range of surveillance cameras and other innovative city equipment. This complete system provides accurate object detection for plate recognition, vehicle speed detection, parking spot detection, truck, motorbike, and pedestrian violations.

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Intelligent Transportation System (ITS) Market Growth Factors

Rising Road Traffic Congestion to Drive Market Growth

The growing number of vehicles on the road and the lack of adequate transportation infrastructure results in traffic congestion. The rising road traffic congestion, in turn, leads to a negative impact on the environment due to vehicle emissions and may cause an increase in road fatalities. Nearly 36,600 deaths were reported due to traffic accidents on the U.S. roadways in 2018, and around 1.35 million deaths across the globe were reported due to road crashes.  

Government Investments in Advanced Traffic Management Solutions to Fuel Market Growth

Active funding by the respective governments for planning, designing, and implementing ITS is likely to drive the intelligent transportation system market growth during the projected period. Governments in many countries are collaborating with private partners to take active measures towards minimizing traffic congestion. Intelligent transport service providers also support the government by providing expertise on implementing ITS in the transportation infrastructure.

RESTRAINING FACTORS

Lack of Standardized Communication Protocols and Interoperability Among Different ITS Components and Systems Restrains Market Growth.

According to the International Organization for Standardization (ISO), as of 2024, there remains a lack of uniformity in communication standards and protocols across regions and jurisdictions, hindering seamless integration and collaboration among ITS solutions. The absence of standardized communication protocols poses significant challenges for the deployment and scalability of ITS projects, as interoperability issues can arise when attempting to connect disparate systems and technologies. This lack of interoperability not only complicates the implementation process but also increases costs and delays associated with customization and integration efforts.

The complexity of ITS infrastructure and the diversity of stakeholders involved in ITS projects further exacerbate interoperability challenges. Different vendors, government agencies, and private entities often deploy proprietary ITS solutions that may not be compatible with each other, leading to fragmentation and inefficiencies in the transportation ecosystem.

Addressing these interoperability challenges requires concerted efforts from industry stakeholders, governments, and standardization bodies to develop and implement unified communication standards and protocols for ITS systems. By establishing common frameworks and interoperable solutions, the ITS industry can overcome barriers to integration and unlock the full potential of intelligent transportation technologies to improve mobility, safety, and efficiency on a global scale.

Intelligent Transportation System (ITS) Market Segmentation Analysis

By Type Analysis

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Advanced Traffic Management System Segment to Grow Substantially over 2024-2032

Based on type, the market is segmented into the advanced traffic management system (ATMS), advanced traveler information system (ATIS), advanced public transportation system (APTS), advanced transportation pricing system (ATPS), and others. The advanced traffic management system (ATMS) segment is anticipated to dominate the forecast period. The increasing investment by the government in this segment, use of the latest technologies in the system to ensure safe and smooth commutes, and the regional department of transportation’s development in smart infrastructure, owing to lower traffic congestion, is likely to boost the growth of this segment in the market.

The advanced public transportation system (APTS) segment is also estimated to show good growth in the ITA market over the forecast period, which is attributable to the rising development of bus route planning and structure in some countries. The advanced traveler information system (ATIS) segment is also expected to show good growth in this market over the forecast period due to the rising usage of smartphones to gain information regarding the weather and all modes of transport. The advanced transportation pricing system (ATPS) segment is also projected to show steady growth in the market over the forecast period. The increasing development of e-toll collection centers in many countries is driving the growth of this segment in this market.

REGIONAL INSIGHTS

Asia Pacific to Dominate Spurred by Increasing Traffic Congestion

By region, the market has been segmented into Europe, North America, Latin America, Asia-Pacific, the Middle East, and the Rest of the World.

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Asia-Pacific region currently dominates the global market, and is expected to have the significant contribution in this market over the forecast period. China is second leading the market in this region owing to funding by the Chinese government to implement the ITS in the country. South Korea is the leading country in this region with the most considerable financing for ITS deployment.

Europe is expected to show significant growth in the market over the forecast period. The U.K. is a leader attributed to a substantial deployment of ITS in the country for public transportation. Also, other European countries also contributing towards development of this market.

North America is projected to show steady growth in this market over the forecast period owing to the implementation of ITS by Canada at a slower rate. The U.S. among the region is leading in contributing to growth of the region due to its FAST Act, use of advance technology and rising adoption ratio, and overall government involvement for smart cities project. For instance, in March 2024, the U.S. Department of Transportation introduced funding opportunities for 34 grant projects; these projects were announced in March 2024, spanning 22 states, the District of Columbia, and Puerto Rico with grand funding of USD 148 Million.

Latin America is also projected to show good growth in the market as Brazil and Mexico support the ITS planning and deployment in the countries.

The markets in the Middle East & the Rest of the World regions will experience rapid growth. This can be attributed to the early adoption of advanced technologies and the government’s initiatives like free trade zones in the UAE, which have sensed opportunities in the automotive industry.

List of Key Companies in Intelligent Transportation System (ITS) Market

Key Market Players Emphasize Collaborations for Better Design, Planning, & Implementation of ITS Solutions

The key companies are collaborating with expert ITS companies for design and product development. They are also developing advanced products for hassle-free and better service. Furthermore, many small enterprises are also working with the government to provide better transportation services.

At present, many small market companies are also great players, withholding substantial intelligent transportation system market share. The dominance of the key players is also current, owing to the provision of advanced and developed products. Key companies leading the market are Denso, Siemens Ag, EFKON GmbH, and Hitachi, among other prominent players.

Kapsch TrafficCom AG and Axxes SAS formed a joint venture to design, plan, and implement an electronic toll collection service.

• Kapsch TrafficCom and Axxes formed a joint venture company registered as MoKA SAS. The new company will build, design, and operate the European Electronic Toll Collection Services (EETS).


• This project aims to provide hassle-free toll processing for commercial vehicles over 3.5 tons.

List of Key Companies Profiled:

• DENSO CORPORATION (Kariya, Aichi, Japan)


• Siemens AG (Munich, Germany)


• Hitachi, Ltd. (Chiyoda City, Tokyo, Japan)


• Kapsch TrafficCom AG (Vienna, Austria)


• EFKON GmbH (Raaba, Austria)


• Lanner Inc.(New Taipei City, Taiwan)


• Thales Group (Paris, France)


• Cubic Corporation (San Diego, U.S.)


• Q-Free ASA (Trondheim, Norway)


• Garmin (Olathe, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2023: NEC announced that it is set to pioneer an intelligent transportation system in India's UPSRTC Buses. The master system integrator by Uttar Pradesh State Road Transport Corporation (UPSRTC) for the Vehicle Location Tracking-Passenger Information System (VLT-PSIS) project under the Nirbhaya fund of the Government of India. Under this project, AIS 140-based Vehicle Location Tracking (VLT) devices and emergency safety buttons will be installed across the majority of UPSRTC buses, along with tracking the entire fleet on the Uttar Pradesh state tracking platform.


• June 2023: ZTE Corporation, a global leading provider of information and communication technology solutions, and Tianyi Transportation Technology, an intelligent transportation operator and service provider, jointly unveiled the industry's first 5G+ intelligent connected vehicle system with Vehicle-Road-Cloud integration at the Mobile World Congress (MWC) Shanghai 2023. Additionally, the two companies have signed a strategic cooperation agreement aimed at accelerating the commercialization of autonomous driving services.


• April 2023: Geotab Intelligent Transportation Systems (ITS), a Geotab business unit, revealed that it is ready to provide governments with actionable, real-world insights to improve their transportation networks, launched Stop Analytics, a powerful data analytics module that offers aggregate commercial vehicle parking insights. Geotab Intelligent Transportation Systems introduces Stop Analytics for safer and sustainable road networks.


• January 2023: Minima and MobilityXlab extended a partnership to fuel the future of connected mobility and intelligent transportation systems. Minima's cutting-edge technology and its partnership with MobilityXlab will play a crucial role in shaping the future of connected mobility and intelligent transportation systems, allowing the idea of smart connected infrastructure to become a reality.


• January 2020: Denso Corporation and Qualcomm Technologies are collaborating to develop the next-generation cockpit system. This system is likely to improve user-friendliness in the usage of in-vehicle infotainment products.

REPORT COVERAGE

The market research report covers a detailed analysis of the market. It focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the current market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth market analysis of several factors that have contributed to its growth over recent years.

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