An Intelligent Transportation System (ITS) is an advanced application that aims to provide innovative services associated with different modes of transport & traffic management. These systems allow the users to attain information beforehand and & make safer, more coordinated, & 'smarter' utilization of transport networks.
The concept of ITS encircles a wide range of wireless & conventional communications-based information & electronic technologies, exhibiting essential components like sensors, a processing unit, GPS notification, a communication channel, & traffic prioritization signals. As transportation system is scaling throughout the country, the demand for these systems is observing a positive influence.
The India Intelligent Transportation System Market is projected to grow at a CAGR of around 16% during the forecast period, i.e., 2022-27. The market is driven by the swift improvement in the economic conditions of the people and their inclination toward private ownership of vehicles, becoming a prominent factor behind the rising number of road accidents. It, in turn, is augmenting the demand for Intelligent Transportation systems (ITS) to minimize such possibilities.
Besides, growing awareness about an enhanced safety mechanism like ITS ensuring safety for the commuters & enriching them with prior traffic information is also fueling its popularity in India. As the system offers accident detection & trigger alerts to ensure the timely arrival of an ambulance within 15 minutes, the installation is growing rigorously across locations. It is also generating growth opportunities for the leading player to increase their development, production, and distribution capacities and cater to the rising needs.
|Study Period||Historical Data: 2017-2020|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North, South, East, West|
|Key Companies Profiled||Schneider Electric India Pvt. Ltd., Tata Group, Siemens India, Urban Mass Transit Company Limited, Mobisoft Infotech LLC, EFKON India Pvt Ltd, Kent Intelligent Transportation Systems India Pvt Ltd, NEC Corporation India Pvt. Ltd., AUM Infotech Pvt Ltd., ATT India, Others|
|Unit Denominations||USD Million/Billion|
Moreover, several initiatives by the government, like InTranSE, drafting Collaborative Intelligent Transportation Systems Endeavor for Indian Cities (InTranSE) to improve the traffic scenario in India are projecting a wide scope for advanced ITS in the country, contributing to the overall industry growth.
In addition, as the Internet of Things is undergoing constant development and integration into the ITS, it also avails benefits like communication between vehicles by storing & processing sensor data, thereby analyzing it to manage the traffic system properly. Additionally, sectors like railways, roadways, airways, & marine, among others, are the prominent consumers of these systems for automation using IoT & are expanding goods transportation, tracking, & deliveries across locations.
Furthermore, the growing focus on developing smart cities is also projecting a need for improved & efficient technology for transportation management, upsurging the demand for ITS technology to attain unparalleled experience by converting a broad range of things into intelligent objects. Therefore, a rapid inclination toward data collection related to vehicle efficiency, telematics review, tire wear & tear tracks, and vehicle performance, is anticipated to ramp up the development of IoT in ITS and drive the market through 2027.
Impact of Covid-19 on the India Intelligent Transportation System Market
The COVID-19 pandemic has been a tremendous national disruption with immense economic, environmental, & social impact throughout the country, where the transportation sector was no exception. With the imposition of lockdown & stringent movement restrictions, the entire transportation industry was put on a temporary halt, which directly impacted the demand for ITS in the country.
However, as the pandemic demonstrated the importance of understanding the connection between the transportation system and its users, the demand for Intelligent Transportation systems escalated amidst the crisis. These systems allowed the users to move across destinations while having information about containment zones & quarantine hotspots. These systems also transmitted video footage of the infected segment to the regulatory bodies, allowing them to analyze the feed & send notifications to the user, suggesting an alternate route.
Based on Type:
Here, Advanced Traffic Management System (ATMS) is anticipated to contribute substantially to the India Intelligent Transportation System Market during the forecast period. It owes principally to the capabilities of these systems to improve traffic flow & ensure safer mobility of the vehicles, capture real-time traffic data from speed sensors & cameras and take automated action accordingly, among others.
Owing to such benefits, the adoption of ATMS is increasing swiftly across India. Besides, growing awareness of other perks like increased transportation system efficiency, enhanced safety, improved economic productivity, minimal fuel consumption, and environmental cost, among others, are also contributing to the rising popularity & utilization of these systems in India.
Moreover, the active participation of the government is also stimulating the demand for ATMS as the National Highways Authority of India (NHAI) conducted a test for the ATMS system on Delhi-Meerut Expressway and Eastern Peripheral Expressway. Hence, it is generating growth opportunities for the leading players to increase their development, production, and distribution of these systems for the growing installation across highways & expressways.
Based on Mode of Transport:
Here, Road Transport is anticipated to dominate the Intelligent Transportation System Market with the largest share during the forecast period. It owes principally to India being the second largest country in terms of road networks, making it extremely important for the government to install an intelligent transportation system for better road networking. It, in turn, is also generating lucrative opportunities for the leading players to increase their production & distribution capacities and cater to the rising demands.
Besides, numerous ITS like traffic signal control, transit management, electronic toll payment, electronic fare payment, traveler information services, incident management, railroad grade crossing safety, & emergency management services, among others, are witnessing an upsurge in demand for installation across different road network in India, enabling the country to step into becoming advanced in this sector.
Growth Opportunities in the India Intelligent Transportation System Market
As the government is focused on the development of the country's infrastructure, it is laying out numerous projects associated with smart cities, transportation & logistics, among others. It, in turn, is generating growth opportunities for the leading players to bring innovations to the existing ITS and increase their service offering to cater to the rising needs nationwide.
The government is also making substantial funding for ITS projects, recognizing it as a prominent sector for investment in research & development. Besides, with the swift expansion of the tourism sector, the demand for ITS to exemplify the potential of IoT shall also contribute to the India Intelligent Transportation System Market growth in the future.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The India Intelligent Transportation System Market is projected to grow at a CAGR of around 16% during the forecast period 2022-27
A. The presence of numerous projects associated with smart cities, transportation & logistics, among others, are generating growth opportunities for the leading players to bring innovations to the existing ITS and driving the India Intelligent Transportation System Market through 2027.
A. Road Transport is anticipated to emerge as an area of remunerative opportunities for the leading players in the India Intelligent Transportation System Market during the forecast period.