The Global Intelligent Transportation System Market was valued at USD 25.2 Bn in 2020 and is expected to reach USD 41.8 Bn by 2027, with a growing CAGR of 7.5% during the forecast period.
Intelligent Transportation System (ITS) is the software of sensing, analysis, control, and communications technologies to ground transportation with the purpose to enhance safety, mobility, and efficiency. ITS consists of an extensive variety of applications that process and share data to ease congestion, enhance traffic management, decrease environmental effects and increase the advantages of transportation to commercial users and the public.
Technological advancements such as Artificial Intelligence (AI), 5G, edge computing, Internet of Things (IoT), big data, and others are expected to accelerate the intelligent transportation system market growth during the forecast period. These technologies facilitate rapid exchange of information and data between service providers and consumers. They also offer accurate data and real-time visibility coupled with higher level of customer satisfaction and increased efficiency. For instance, in June 2020, SINTRONES (Taiwan), one of the global leaders in computing technology in vehicles, launched a new ABOX-5210G. The new ABOX-5210G Fanless Computer are powered by AI GPU computing, Intel Gen 10 Core i9, with NVIDIA GPU technology. The new series incorporates numerous unique features to support AIoT (AI and IoT) on Smart Cities and IIoT(Intelligent IoT) on transportation.
Based on the type, the Advanced Traffic Management System (ATMS) segment of intelligent transportation system market is growing at the highest CAGR during the forecast period owing to the growing traffic congestion across the globe
Based on the type, the intelligent transportation system industry is segmented into Advanced Traveler Information System (ATIS), Advanced Traffic Management System (ATMS), Advanced Transportation Pricing System (ATPS), Advanced Public Transportation System (APTS), and Emergency Medical System (EMS). The Advanced Traffic Management System (ATMS) segment of intelligent transportation system market is growing at the highest CAGR during the forecast period owing to the increasing traffic congestion across the globe. The easy affordability of the vehicles is due to the lucrative schemes and discounts provided by the automobile producers. This leads to higher adoption of vehicles across the globe which in turn create traffic congestion and produce toxic pollutants that create pollution. Thus, this segment is growing at the highest CAGR during the forecast period.
Based on the application, the traffic management segment is expected to hold the largest market share during the forecast period because the traffic management systems enhance the reliability and operational performance of road networks
Based on the application, the intelligent transportation system industry is segmented into traffic management, road safety and security, freight management, public transport, environment protection, automotive telematics, parking management, and road tolling systems. The traffic management segment of intelligent transportation system market is expected to hold the largest market share during the forecast period because the traffic management systems enhance the reliability and operational performance of road networks. These systems may typically consist of vehicle detection systems, bridge traffic management systems, and ramp metering systems, amongst other systems. Frequent traffic congestions often culminate in tremendous economic losses stemming from the increase in travel time and the increase in fuel consumption. Traffic congestions additionally take an intense toll on the economic and socio-economic growth of a country. Hence, government bodies across different parts of the globe are putting a strong emphasis on enforcing traffic management systems as a part of the efforts to lessen the financial burden on governments.
Based on region, the Asia Pacific is expected to grow at the highest CAGR during the forecast period
The Asia Pacific region is expected to grow at the highest CAGR during the forecast period owing to the increasing population and growing number of megacities. Moreover, the increasing urbanization and strong economic growth are considered as one of the prominent factors for the growth of the ITS market in the region. In the APAC region, China is leading the market due to the largest funding by the government for the implementation of ITS. The countries like China, Japan, Australia and others are considering ITS as a perfect solution to tackle issues like traffic congestion, air pollution, and greenhouse gas emissions. For instance, according to the recent study of the United Nation Environment Programme (UNEP), around 6.5 million people die annually from exposure to poor air quality in the Asia Pacific region. Therefore, these facts supported the growth of the ITS market in the region.
The report also provides an in-depth analysis of Intelligent Transportation System market dynamics such as drivers, restraints, opportunities, and challenges:
The COVID-19 pandemic impacted the intelligent transportation system market owing to the strict lockdown imposed by the government across the globe. The industry witnessed a significant decline due to the disruption in the supply chains, hampering the manufacturing and R&D capabilities of the companies. However, with the relaxations in the lockdown in the second half of 2021, the industry will witness robust growth due to the supportive government initiatives. Intelligent transportation systems, such as contactless access control and smart ticketing systems, will increasingly adopt across public transportation terminals in the wake of the pandemic. Thus, the intelligent transportation system market recovering very quickly in the coming years.
*Note: A detailed analysis is specific to the intelligent transportation system market will be provided in the report
The report also provides an in-depth analysis of key trends in the intelligent transportation system market:
The report also provides an in-depth analysis of recent news developments and investments:
The unique insights provided by this report also include the following:
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Market Overview & Competitive Landscape
Market Segmentation (Market Size and Share Analysis)
COVID – 19 Opportunity Mapping
Regional Market Analysis