Intelligent Transportation System Market Size and Share Analysis Report by System (Advanced Traffic Management System, Cooperative Vehicle System, Advanced Public Transportation System, Advanced Traveler Information System, Advanced Transportation Pricing Systems), Market Offering (Hardware, Software, Services), Application (Roadways, Railways, Aviation, Maritime)- Global Industry Growth Forecast to 2030

Market Overview

The global intelligent transportation system market size was $42,780.0 million in 2021, and this number is expected to increase to $102,617.3 million by 2030, advancing at a CAGR of 10.2% during the forecast period. This can be ascribed to the rising need to improve transportation safety and traffic flow, surging usage of advanced communication technologies, and increasing population across the globe, which is driving the sale of land vehicles.

Moreover, the rising safety concerns, surging vehicle congestion in cities, development of advanced driver-assistance systems (ADAS) and connected vehicles, government initiatives for effective traffic management, and development of smart cities around the world are propelling the market forward.

Services Contribute Majority of Revenue

The services category accounted for the largest revenue share, of around 50%, in 2021, and it is expected to maintain its position during the forecast period. This is due to the need to increase surface transportation network efficiency and connectivity, which requires the proper maintenance of ITS equipment. Additionally, the data stored on the cloud and other storage facilities must be effectively updated and managed, for the proper functioning of the system.

Furthermore, software is expected to grow with healthy growth rate during the forecast period. The increasing need for data processing, rapid technological advancements, surging usage of visualization software, video detection management software, transit management software, and other ITS software, and the growing IT industry and burgeoning number of software providers propel the market growth.

Environmental Pollution Is Contributing to Market Augmentation

An intelligent transportation system is able to minimize the environmental impact of land, air, and marine vehicles on human health, via an improvement in air quality. Vehicle emissions can be reduced to a great extent by improving traffic flow with the use of improved network management techniques.

Furthermore, advanced in-vehicle ITS technologies, such as onboard diagnostics, intelligent speed adaptation, and advanced cruise control, offer substantial environmental benefits in terms of fuel efficiency, thus reducing the local carbon emission concentration. Additionally, the deployment of dedicated bus lanes and prioritization of bus passages at traffic signals could encourage consumers to shift from private cars to public transport. Advanced systems for management information, improved bus patronage, and passenger information provide environmental benefits. Moreover, they are also supporting the booming adoption of low-emission vehicles and reducing pollution through low-emission zones and congestion charging.

Advanced Public Transportation System To Witness Fastest Growth

Advanced public transportation system (APTS) is expected to register the fastest growth during the forecast period, with a CAGR of 9%. The mounting investment in real-time information gathering and analysis for roadways, rising number of public–private partnerships, and need to improve the public transit network’s operational efficiency and passenger services are responsible for the surging demand for APTS. Furthermore, by deploying this solution, fleet providers may raise work efficiency, reduce the accident risk for vehicles and commuters, improve fleet management, and ensure compliance with applicable regulations.

Advanced traffic management system (ATMS) accounted for the largest revenue share in 2021, and it is further expected to dominate the market during 2021–2030. This can be attributed to their widespread usage for roadways, increasing number of commuters and vehicles in cities, and growing concerns of people about minimizing pollution levels and traffic congestion. Moreover, ATMS providers are introducing advanced and cost-effective technologies to improve traveling safety, enhance the productivity of mobility service providers, and conserve energy, while protecting the environment.

Furthermore, advanced transportation pricing system (ATPS) accounted for a significant intelligent transportation system market revenue share in 2021, and it is expected to grow with a substantial CAGR during 2021–2030. This can be attributed to the availability of cashless travel facility, surging need for saving travel time, and demand for fast toll collection. Moreover, a popular ITS for traveling pricing is the vehicle miles traveled (VMT) fee system, which charges road users on the basis of the miles traveled by them.

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Growing Traffic Congestion and Emission Level Drive Market Growth

As road congestion is increasing globally, people are facing more problems, including the wastage of precious time and delays in reaching their destination. The improvement in road infrastructure is not an effective solution to the problem of long traffic jams, especially in urban areas. Some of the popular solutions implemented to tackle this problem have been building overhead and underground passes, increasing the number of lanes, and making the roads wider. However, these solutions are not effective due to the underlying costs. Moreover, such development takes a long time and results in an increased length of jams during the process.

One of the best solutions to reduce traffic congestion is adopting ITS, which manages vehicle flow more efficiently. Additionally, passenger travel accounts for more than 50% of all transportation-related emissions, making this process a significant contributor to air pollution. Urban traffic congestion and the resulting pollution can be reduced with effective traffic control. Moreover, introducing additional options for public movement could compel more individuals to utilize alternative forms of transit, like those that rely on renewable energy and have a less-severe impact on air quality.

Major Revenue Share Is Held by Roadways

The roadways category, based on application, accounted for the largest revenue share in 2021, and it is further expected to dominate the market during the forecast period. This can be attributed to the huge number of companies that offer such solutions for terrestrial commute, rapid urbanization, increasing traffic congestion in smart cities, burgeoning need for parking management, and growing vehicle ownership rate. In addition, the rising investment in real-time information systems for road transportation propels the market expansion.

Aviation is expected to register the highest CAGR during the forecast period. This is due to the rise in aircraft movements, growth in the need for efficient airline operations, rise in the demand for upgraded security and surveillance measures, and augmentation in the usage of smart ticketing systems due to the rising number of commuters. Additionally, the adoption of airport safety and security solutions, such as CCTV surveillance, access management, air cargo inspection, passenger and baggage screening, secure communication, and intrusion detection and perimeter protection system, will drive the market in the coming years.

APAC Is Fastest-Growing Region

APAC is expected to register the fastest growth, with a CAGR of around 8%, during the forecast period. This high-paced growth can be ascribed to the rapid urbanization, developing transportation infrastructure, rising disposable income associated with the enhancing standard of living, growing automobile industry, and rapidly developing road infrastructure in emerging economies, such as China and India.

Moreover, China held the largest revenue share in 2021, and it is expected to maintain its position during 2021–2030, owing to the increasing adoption of new advanced technologies, rising number of daily commuters in the country, and several initiatives taken by the government to reduce emissions.

Europe also accounted for a significant revenue share in 2021, and it is further expected to maintain its position during the forecast period. This can be ascribed to the well-developed automotive industry, stringent regulations regarding emission control, increasing usage of IPTS, and growing concern for road safety.

Key Players in the Market Are:

• Siemens AG
• Thales Group
• Kapsch TrafficCom AG
• Cubic Corporation
• TomTom International BV
• Conduent Inc.
• DENSO Corporation
• Garmin Ltd.
• Indra Sistemas S.A.
• Teledyne FLIR LLC

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on System

• Advanced Traffic Management System
• Cooperative Vehicle System
• Advanced Public Transportation System
• Advanced Traveler Information System
• Advanced Transportation Pricing Systems

Based on Offering

• Hardware
  • Interface boards
  • Sensors
  • Surveillance cameras
  • Telecommunication networks
  • Monitoring and detection systems
• Software
  • Visualization software
  • Video detection management software
  • Transit management software
• Services
  • Business and cloud services
  • Support and maintenance services

Based on Application

• Roadways
  • Intelligent traffic control
  • Collision avoidance
  • Parking management
  • Passenger information management
  • Ticketing management
  • Emergency vehicle notification
  • Automotive telematics
  • Fleet management and asset monitoring
• Railways
  • Rail-running operation and collision avoidance
  • Passenger information management
  • Smart ticketing
  • Security and surveillance
  • Emergency notification
• Aviation
  • Security and surveillance
  • Shuttle bus tracking
  • Traveler information management
  • Smart ticketing
  • Aircraft management
  • Emergency notification
• Maritime
  • Freight arrival and transit
  • Real-time weather information tracking
  • Container movement scheduling
  • Emergency notification

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa