Intelligent Transportation Systems Market size was USD 29.68 Billion in 2024 and is expected to reach USD 82.42 Billion by 2035, with a CAGR of 17.23% from 2024-2035.
Intelligent Transportation Systems (ITS) are sophisticated technologies applied in transportation infrastructure and vehicles to enhance safety, efficiency, and mobility. They consist of traffic control, automated toll collection, real-time traveler information, and automatic vehicle control. In addition, ITS solutions range from reducing traffic congestion and enhancing public transportation efficiency to enhancing road safety through real-time observation and communication between vehicles and infrastructure.
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Intelligent Transportation Systems overview
Transportation Mode Insights
The road segment held the biggest market share in 2022. The perpetual rise in traffic congestion and greenhouse gas emissions is propelling the use of roadways intelligent transportation systems, such as the implementation of electric vehicles, Advanced Traffic Management Systems (ATMS), Advanced Public Transportation System (APTS), and the installation of smart infrastructure, among others. The application of big data analytics in traffic management is on the rise. Intelligent Traffic Signal System employs information from numerous sources, such as sensors, cameras, and connected vehicles, to make traffic patterns more intelligible and allow for more knowledgeable decisions regarding signal control and overall traffic management. In addition, governments of many nations are making significant investments in road infrastructure schemes to facilitate sustainable transport, improve interoperability across different systems, and enhance road safety. For example, during the month of June 2022, the European Union (EU) invested approximately USD 6.14 billion to finance approximately 135 transport infrastructure projects in Europe
Roadway Offering Insights
The hardware segment held the highest market share of more than 45.0% in 2022. Growing public and private investments in smart cities, as well as the rising requirement to enhance the roadway infrastructure to handle the rising volume of vehicles, are fueling the growth of the hardware segment. Hardware’s capabilities to satisfy various computational needs of ML algorithms in distinct ITS systems are anticipated to help drive segment growth within the roadway intelligent transportation system market during the 2030 timeframe.
The services segment is expected to register significant growth at a CAGR of 8.2% during the forecast period. The strong growth of the roadway ITS services can be contributed to the increasing priority of public authorities to leverage the ITS services in order to reduce their operating expenditures, streamline rollout of the roadway ITS hardware systems, and maximize the operational effectiveness of their Intelligent Transportation System (ITS) solutions.
Roadway System Type Insights
The Advanced Traffic Management System (ATMS) segment held the highest market share of above 30.0% in 2022.Government policies supporting the establishment of traffic infrastructures and the growing use of advanced traffic controls & analytics are some of the key contributors of traffic monitoring systems. ATMS makes use of communications technologies, data processing technology, and sensors to provide real-time management of transportation network operations, complementing the industry trend.
The Advanced Public Transportation System (APTS) segment is anticipated to exhibit the highest CAGR of 8.6% during 2030. Advanced Public Transportation System assists in improving the efficiency, quality of travel, comfort, and overall customer experience through the digital transformation strategies of the public transportation industry, driving the segment growth in the roadway ITS market.
Below is a more detailed regional breakdown of the intelligent transportation systems market
North America
North America is projected to lead in intelligent transportation systems market during the forecast period, as per Market Research. The governments of North America, especially the US Department of Transportation, actively promote and invest in ITS development and deployment. This involves funding research efforts, pilot programs, and infrastructure improvement to facilitate the deployment of ITS systems. This high government support promotes innovation and creates a stable business environment for companies that design and deploy ITS technologies.
North America boasts a mature technology infrastructure, with an existing communication network and a high rate of connected devices. This firm foundation supports easy integration of ITS technologies and encourages data exchange between connected vehicles and infrastructure. Additionally, North America has an experience of adopting new technologies early on, which provides ITS companies with an opportunity to pilot and refine their solutions in a receptive market.
The North American ITS market is supported by robust private sector investment in research and development of new ITS solutions. Furthermore, public-private partnerships between private companies and government agencies are a common approach for financing and executing large-scale ITS projects. Such collaboration combines experience from both sectors to accelerate the development and deployment of new ITS technology.
In addition, traffic congestion and public safety are critical problems for North America. People are strongly demanding the remedy of these two issues. High market demand in North America follows for ITS solutions that enhance roadway safety, decongest the roads, and enhance the general efficiency of transport. Such governmental and business community support coupled with public demand are fueling growth in the market in North America.
Asia Pacific
Asia Pacific is projected to have the greatest growth in the market over the forecast period. The Asia Pacific region is growing increasingly urban, leading to high traffic congestion levels and a burgeoning need for smarter transportation systems. Governments are also investing heavily in infrastructure development such as intelligent traffic management systems, smart parking solutions, and intermodal public transit networks. The focus on refreshing infrastructure provides the perfect setting for the adoption of ITS systems.
Most Asian governments are encouraging smart city initiatives, and ITS plays a significant role in creating a more efficient, sustainable, and technologically advanced urban landscape. Government policies and subsidies promote the creation and use of ITS solutions, thus leading to market expansion. In addition, pilot initiatives and demonstration sites showcasing the advantage of ITS tend to boost adoption.
In addition, advances in technology make ITS systems cheaper and more accessible. The presence of local producers and the emergence of affordable ITS components are reducing deployment costs. Coupled with increased technological capabilities in the region, this makes possible the creation and deployment of region-specific ITS solutions that are tailored to local budgets and needs.
Europe
Europe region is expected to show remarkable growth over the forecast period. Europe’s age-old tradition of transport innovation facilitates the growth of advanced ITS solutions by mature businesses. These companies employ telecommunications, sensors, and software skills to create sophisticated ITS solutions for European cities and transportation networks.
Public-private partnerships are prevalent in European ITS development. Such partnerships bring together public and commercial sector knowledge to create effective project implementation and risk sharing. European research institutions also contribute to driving innovation and information transfer in the market.
Additionally, European citizens welcome new technologies and accept smarter and more sustainable modes of transportation. ITS solutions with enhanced traffic flow, safety, and choice are in growing demand. Public acceptability, complemented by industry and government support, fosters an enabling environment for ITS growth in Europe.
| Key Companies Profiled | TomTom, Garmin, Siemens, Cisco Systems, Inc., Cubic Corporation, Kapsch TrafficCom, Thales Group, Q-Free, FLIR Systems, EFKON, and Denso Corporation |
| Segments Covered | By Mode of Transportation, By System, By Application, and By Geography. |
| Customization Scope | Free report customization (equivalent to up to 4 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope |
Market Insights Research has segmented the global intelligent transportation system market based on mode of transportation roadway offering, roadway system type, roadway application, railway offering, railway system type, railway application, airway offering, airway system type, airway application, maritime offering, maritime system type, maritime application, and region.
- Intelligent Transportation System Mode of Transportation Outlook
- Roadway
- Railway
- Airway
- Maritime
- Intelligent Transportation System Roadway Offering Outlook
- Hardware
- Interface Boards
- Sensors
- Surveillance Cameras
- Telecommunication Networks
- Monitoring and Detection Systems
- Others
- Software
- Visualization Software
- Video Detection Management Software
- Transit Management Software
- Others
- Services
- Cloud services
- Business services
- Professional services
- Hardware
- Intelligent Transportation System Roadway System Type Outlook
- Advanced Traveler Information System (ATIS)
- Advanced Traffic Management System (ATMS)
- Advanced Transportation Pricing System (ATPS)
- Advanced Public Transportation System (APTS)
- Emergency Medical System (EMS)
- Intelligent Transportation System Roadway Application Outlook
- Traffic Management
- Road Safety and Security
- Freight Management
- Public Transport
- Environment Protection
- Automotive Telematics
- Parking Management
- Road Tolling Systems
- Others
- Intelligent Transportation System Railway Offering Outlook
- Hardware
- Interface Boards
- Sensors
- Surveillance Cameras
- Telecommunication Networks
- Monitoring and Detection Systems
- Others
- Software
- Visualization Software
- Video Detection Management Software
- Transit Management Software
- Others
- Services
- Cloud services
- Business services
- Professional services
- Hardware
- Intelligent Transportation System Railway System Type Outlook
- Advanced Traveler Information System (ATIS)
- Advanced Traffic Management System (ATMS)
- Advanced Transportation Pricing System (ATPS)
- Advanced Public Transportation System (APTS)
- Emergency Medical System (EMS)
- Intelligent Transportation System Railway Application Outlook
- Rail-running Operation and Collision Avoidance
- Passenger Information Management
- Smart Ticketing
- Security Surveillance
- Emergency Notification
- Others
- Intelligent Transportation System Airway Offering Outlook
- Hardware
- Interface Boards
- Sensors
- Surveillance Cameras
- Telecommunication Networks
- Monitoring and Detection Systems
- Others
- Software
- Visualization Software
- Video Detection Management Software
- Transit Management Software
- Others
- Services
- Cloud services
- Business services
- Professional services
- Hardware
- Intelligent Transportation System Airway System Type Outlook
- Advanced Traveler Information System (ATIS)
- Advanced Traffic Management System (ATMS)
- Advanced Transportation Pricing System (ATPS)
- Advanced Public Transportation System (APTS)
- Emergency Medical System (EMS)
- Intelligent Transportation System Airway Application Outlook
- Security Surveillance
- Shuttle Bus Tracking
- Traveler Information Management
- Aircraft Traffic Management
- Smart Ticketing
- Emergency Notification
- Others
- Intelligent Transportation System Maritime Offering Outlook
- Hardware
- Interface Boards
- Sensors
- Surveillance Cameras
- Telecommunication Networks
- Monitoring and Detection Systems
- Others
- Software
- Visualization Software
- Video Detection Management Software
- Transit Management Software
- Others
- Services
- Cloud services
- Business services
- Professional services
- Hardware
- Intelligent Transportation System Maritime System Type Outlook
- Advanced Traveler Information System (ATIS)
- Advanced Traffic Management System (ATMS)
- Advanced Transportation Pricing System (ATPS)
- Advanced Public Transportation System (APTS)
- Emergency Medical System (EMS)
- Intelligent Transportation System Maritime Application Outlook
- Freight Arrival & Transit
- Real-time Weather Information Tracking
- Container Movement Scheduling
- Emergency Notification
- Others
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