Intelligent Transportation System is the integration of advanced technologies into vehicles, operating systems, and infrastructure related to or connected to transportation. It aims to provide innovative and intelligent services by applying sensing, analyzing, control, and communication technologies to improve safety, mobility, and transportation efficiency. In addition, it collects the data surrounding transportation and applies it to develop better future directions and options for traffic.
The Global Intelligent Transportation System Market is projected to grow at a CAGR of around 8.5% during the forecast period, i.e., 2023-28. The market growth is aided by the surging need for an advanced traffic management solution to reduce the increasing traffic congestion and the incompatibility of old infrastructure and traditional traffic management systems with a heightened number of vehicles on the road. Moreover, the ever-rising figures of vehicles and increasing single-passenger four-wheeler vehicle figures due to hiker car purchases owing to high living standards and surging disposable income are raising the demand for the market.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Regions Covered||North America: US, Canada, Mexico|
|Europe: Germany, The UK, France, Spain, Italy, Rest of Europe|
|Asia-Pacific: China, Japan, South Korea, Australia, Rest of Asia-Pacific|
|South America: Brazil, Argentina, Rest of South America|
|Middle East & Africa: UAE, Saudi Arabia, South Africa, Rest of MEA|
|Key Companies Profiled||Denso Corporation, Iteris, Lanner Electronics, Agero, EFKON, Cisco, Flir System, Siemens, TransCore, Citilog|
|Unit Denominations||USD Million/Billion|
As the Intelligent Transportation systems integrate advanced modern technologies into the different transportation sectors, from vehicles to infrastructures, they will collect real-time data and assist the passengers, drivers, and cars towards safety, reducing traffic, and other cutting-edge solutions reducing traffic congestion and other avoidable issues. Additionally, government investment dedicated to the development of ITS and integration and installation of the system into the conventional transportation system is extending the market acceleration.
Key Driver: Ever-Growing Need to Reduce Traffic Congestion
The increasing traffic congestion due to the rising number of vehicle purchases resulting from increased living standards and disposable income is pushing the demand for a smart transportation system. Thus, the traffic issues like congestion and many private vehicles on the road incompatible with traditional infrastructural designs and traffic systems are driving the market. Additionally, it provides limitless solutions to traffic and road issues by assisting drivers and passengers, reducing accident chances by delivering advanced and fast suggestions, and leading the traffic by calculating numerous dimensions from vehicles to infrastructures. Therefore, the industry is expected to expand exponentially.
Possible Restraint: High Investments Related to Intelligent Transport System Installation
The ITS heavily depends on numerous high-tech devices, software, and systems, making transforming traffic management into intelligent transportation systems rather expensive. Thus, the high cost associated with integrating and installing ITS could hamper the market expansion in the forthcoming years. Moreover, the maintenance costs and the high budget required for assistance through such technology are over the top for developing economies hindering industrial ascension.
Growth Opportunity: Emergence of Autonomous and Connected Vehicles and Infrastructure
The development and research towards the innovation of autonomous vehicles and research towards producing connected cars with each other and the surrounding infrastructure will create innovative opportunities for the market. For instance,
Additionally, the emergence of smart cities and the installation of advanced technologies in different sectors calls for a connected traffic system with enhanced communication systems to avoid collisions and other traffic issues by integrating modern tech into the transport systems, improving infrastructure, etc., propagating market expansion.
Key Trend: Integration of AI and Other Cutting-Edge Technologies into ITS
The advancement and modification in cutting-edge technologies like AI and VR and their integration in numerous sectors are also on the rise pushing industrial acceleration. Thus, the high scope of advancement in ITS through the integration of Artificial Intelligence and VR-like technology is extending the market expansion. As it aids the driver and other users by providing a heads-up display, visualization, smart suggestions, and fast solution during congested issues, they are likely to add to the market value. For instance,
Based on Type
Amongst all, Advanced Traffic Management System (ATMS) is expected to garner the largest market share in the forecasting period. It is accredited to the rising demand for an advanced management system with the increasing number of vehicles on the road and surging accidents, which are avoidable through a proper management system. Besides, numerous governments spending heavily on integrating the latest technologies, installing advanced methods, and investing in further research and development to enter the ATMS into local roads is pushing the industrial ascension forward. Moreover, new results in data analytics, such as artificial intelligence and machine learning, are expected to propel the development of ATMS, which is likely to propagate the market.
On the other hand, Advanced Public Transportation System (APTS) is also anticipated to experience considerable market growth in the forthcoming years owing to the extending development of public transportation routes, including buses, and metros, in combination with the infrastructural development in cities. Thus, the dedicated governmental investment to upgrade the timeless system of public transport and uplift the status of daily commuters by increasing the potential of public transport is supporting the expansion of the market.
Based on the End User
Here, the Traffic Management segment is projected to mark prominent growth by garnering the major market share in the forecast period. It is aided by the numerous benefits of installation of an intelligent transportation system would bring to the traffic management end users, such as enhanced road network, increased reliability, and operational performance of the system in combination with advanced technologies like vehicle detection systems, bridge traffic management systems, ramp metering systems and more. Additionally, the hiked traffic congestion, extra travel time, and purging traffic accidents are raising the demand for the market. Besides, the government partnering with significant market participants and investing towards bettering the traffic management of the country is further pushing the industry.
Geographically, the Global Intelligent Transportation System Market expands across:
Globally, North America dominated the industry with the largest market share during the historical period and is anticipated to continue in the same trend in the forecast period. It is accredited to the heavy presence of major market participants and the region being equipped and integrated with numerous technological development. Besides, the fast adherence and adoption of innovative modifications amongst the countries and their populace further add to the market progression.
Additionally, the collective public and private collaborative efforts to introduce intelligent transportation systems in various cities such as Los Angeles, New York, and Chicago to create strong short-range communication devices to prevent traffic jams further accelerate the market value. Moreover, the region is the technological hotspot for developing and utilizing cutting-edge technology such as machine learning, cloud computing, etc., exceeding industrial expansion.
Recent Developments in the Market
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Frequently Asked Questions
A. The Intelligent Transportation System Market is projected to grow at a CAGR of around 8.5% during 2023-28.
A. The need to reduce the increasing traffic congestion is expected to drive the Intelligent Transportation System Market during 2023-28.
A. Denso Corporation, Iteris, Lanner Electronics, Agero, EFKON, Cisco, Flir System, Siemens, TransCore, and Citilog are the top players in the market.
A. Advanced Traffic Management System (ATMS) is anticipated to emerge as an area of remunerative opportunities for the leading players in the Intelligent Transportation System Market during the forecast period.
A. Globally, North America would provide lucrative prospects for the Intelligent Transportation System Market in the years ahead.
A. Integrating AI and other cutting-edge technologies into ITS are the key trends shaping the growth of the Intelligent Transportation System Market during 2023-28.
A. The emergence of autonomous and connected vehicles and infrastructure are the lucrative opportunities driving the Intelligent Transportation System Market through 2028.
A. High investments related to ITS installation are the possible restraints affecting the growth of the Intelligent Transportation System Market.