Intelligent Transportation System Market Size, Share & Segmentation By Type (Advanced Traveler Information System (ATIS), Advanced Traffic Management System (ATMS), Advanced Transportation Pricing System (ATPS), Advanced Public Transportation System (APTS), Emergency Medical System (EMS)), By Application (Traffic Management, Road Safety and Security, Freight Management, Public Transport, Environment Protection, Automotive Telematics, Parking Management, Road Tolling Systems, Intelligent Transportation System Market), by Region and Global Forecast 2024-2032

Intelligent Transportation System Market Report Scope & Overview:

The Intelligent Transportation System Market size was valued at USD 50.21 billion in 2023 and is expected to grow to USD 105.58 billion by 2032 and grow at a CAGR of 8.61 % over the forecast period of 2024-2032. 

In order to improve driver experience in a variety of ways, the intelligent transportation system market refers to the implementation of cutting-edge communication and information technology in traffic and transportation system operations. In other words, every form of transportation that uses intelligent communication technologies falls within the ITS market. ITS is a component of the Internet of Things and contains data based on wired and wireless connectivity.

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Other elements that are expected to contribute to the expansion of the ITS industry include the increasing number of cars on the road, deteriorating infrastructure, and a lack of traffic data management. As a result, there is an increasing need for intelligent traffic management systems to control traffic flow on roads and in urban areas. A number of initiatives have been made by both public and commercial organizations to implement smart technologies, showing how technology will influence the development of the intelligent transportation system market.

The Traffic Management Center (TMC) in the ITS setup can handle real-time data and help cars discover alternate routes to lessen traffic congestion. This TMC solution consists of a number of systems and components, including sensors, vehicle probes, navigation systems, and video surveillance systems. Dynamic billboards, the internet, or mobile telephony are used to evaluate, process, and transmit to the user the results of the data collected by the devices.

Market Dynamics

Drivers

• Increasing the need of managing the flow of traffic in cities and highways.

• Government is taking the initiative of improving the ITS for reducing road accidents and maintaining the timing of traffic signals.

• Reduce the emission of harmful gases from vehicles.

The various vehicles and aircraft emit various pollution or harmful gases which are very dangerous the intelligent transportation system are reducing the emission of that gases with the help of technology 

Restrains

• Limit the adoption of technology due to financial crises in some developing economies.

Opportunities

• In the transportation industry the new development in blind spot detection and automatic toll collection.

• Consistently increasing road traffic congestion creates opportunity.

Information and communication technology (ICT) adoption has made maritime transit safer and more effective in industrialized economies. ICT applications, however, come at a considerable cost and require specialized infrastructure. Big data analytics and digital mobile communications have opened up new worldwide possibilities for more effective and affordable ITS in the Internet era. Transport authorities use cutting-edge tools, such as cloud-based services, open data standards, and other clever applications, to manage the resources of sea transportation and boost safety.

Challenges

• achieving an international standard for ITS architecture

Impact Of covid-19

Given the increased urbanization and thus rising commute times, ITS is becoming increasingly important. It eliminates the need for a human to manually operate it and offers a seamless digital solution for traffic control. The need for such systems is also fueled by a rise in single-occupancy vehicle travel, notably in major cities. Because there is much less waiting time for vehicles at traffic signals and intersections, the adaptive traffic signal controllers of ITS help the environment by lowering CO2 and NOX emissions. After COVID-19, the market growth will be positively impacted by rising demand for integrated, biometric, and sensor-based technology, contactless & mobile payment adoption, and ticketing technologies throughout public transit. The traffic statistics for the roadways under BRISA's concession for the first six months of 2020. From March to June 2020, traffic volumes were lowered by 47% on average (compared to 2019). This was attributed to COVID-19, since traffic volumes increased by 3.38% and 3.29% in January and February, respectively. The fall in traffic in April 2020 as compared to April 2019 was over 70%, with a minor recovery in traffic in May and June, with reductions of 47% and 29%, respectively.

Impact of the Russia-Ukraine War

Intelligent Transportation System (ITS) market is responsible for developing and implementing advanced technologies to improve transportation efficiency, safety, and sustainability. Despite these challenges, the ITS market has shown resilience and adaptability. Companies have shifted their focus to alternative suppliers and diversified their supply chains to mitigate the impact of the conflict. According to Drewry’s composite World Container Index, container prices increased by 1.1% to $9,477.46 per 40ft container as of February 24. Furthermore, the demand for ITS solutions has increased as governments and private organizations seek to improve transportation infrastructure and reduce congestion.  the Russia-Ukraine war has had a significant impact on the ITS market, but the industry has shown resilience and adaptability in the face of these challenges. As the conflict continues, it is important for companies to remain vigilant and proactive in managing their supply chains and investments to ensure the continued growth and success of the ITS market.

Impact of the Recession

The global economic recession has had a significant impact on various industries, The ITS market is a rapidly growing industry that utilizes advanced technologies to improve transportation efficiency, safety, and sustainability. However, the recession has caused a slowdown in the growth of this market. The main reason for the impact of the recession on the ITS market is the decrease in government funding. Governments around the world have been forced to cut back on their spending due to the economic downturn, and this has affected the funding available for ITS projects. As a result, many ITS projects have been delayed or canceled, leading to a decrease in demand for ITS products and services. Another factor contributing to the impact of the recession on the ITS market is the decrease in consumer spending. With the economic uncertainty, consumers have become more cautious with their spending, and this has affected the demand for ITS products and services. For example, the demand for advanced navigation systems and other ITS technologies has decreased as consumers have opted for cheaper alternatives. the ITS market is expected to recover in the coming years. Governments are likely to increase their funding for ITS projects as they recognize the importance of improving transportation efficiency, safety, and sustainability. Additionally, as the economy recovers, consumers are likely to increase their spending on ITS products and services.

Key Market Segmentation:

The Intelligent Transportation System Market is segmented into two types on the basis of by type, by Application.

By Type

• Advanced Traveler Information System (ATIS)
• Advanced Traffic Management System (ATMS)
• Advanced Transportation Pricing System (ATPS)
• Advanced Public Transportation System (APTS)
• Emergency Medical System (EMS)

By Application

• Traffic Management

• Road Safety and Security

• Freight Management

• Public Transport

• Environment Protection

• Automotive Telematics

• Parking Management

• Road Tolling Systems

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Regional Analysis

North America has the largest worldwide market for intelligent transportation systems. The area is home to key international market participants and has access to a number of technologies for the creation and application of cutting-edge technologies, such as machine learning, big data, and cloud computing, to manage the growing traffic and public transit system. The implementation of intelligent transportation systems is being pushed by the emphasis that various governments place on enhancing the transportation infrastructure. In North America, numerous public-private collaborative initiatives to implement intelligent transportation systems are taking shape in cities like New York, Toronto, Vancouver, Los Angeles, and Chicago. These initiatives are generating significant demand for short-range communication devices that reduces traffic congestion, which in turn fuels the region's demand for intelligent transportation systems.

The sector for intelligent transportation systems in Asia-Pacific is predicted to grow at the greatest rate. The region's intelligent transportation system market is anticipated to increase as a result of rising demand for cutting-edge technologies and ongoing network expansion. In nations like China, India, and Japan, the economic gains resulting from the implementation of the intelligent transportation system stand out in particular. By decreasing total fuel usage and assisting in avoiding congested routes, these devices help vehicle owners save money and cut down on travel time. As a result, several automakers in both emerging and industrialized nations are actively incorporating similar systems into their next models.

REGIONAL COVERAGE:

North America

• USA

• Canada

• Mexico

Europe

• Germany

• UK

• France

• Italy

• Spain

• The Netherlands

• Rest of Europe

Asia-Pacific

• Japan

• South Korea

• China

• India

• Australia

• Rest of Asia-Pacific

The Middle East & Africa

• Israel

• UAE

• South Africa

• Rest of the Middle East & Africa

Latin America

• Brazil

• Argentina

• Rest of Latin America

Key Players:

The major players are Kapsch TrafficCom, Agero, Inc., Iteris Inc., DENSO CORPORATION, EFKON GmbH, Garmin Ltd., Thales Group, Xerox Corporation, Recardo, Sensys Networks Inc., Telenav Inc., Lanner, Hitachi Ltd., Nuance Communications, Inc., Q-Free ASA, Siemens AG, TomTom International BV, TransCore., and others in final report.

Agero Inc-Company Financial Analysis

Recent Developments:

The Indian Ministry of Electronics and Information Technology (MeitY) unveiled a series of apps under the Intelligent Transportation System (ITS) as part of the InTranSE- II plan to improve traffic conditions in India. In collaboration with the Indian Institute of Technology Madras, the Centre for Development of Advanced Computing (CDAC) developed the Onboard Driver Assistance and Warning System (ODAWS), Bus Signal Priority System, and Common SMART IoT Connective (CoSMiC) software. According to a statement from the government, Mahindra and Mahindra was the project's industrial partner.