Intelligent Transportation System Market Analysis

Intelligent Transportation System Industry Insights

Offering Analysis

The services category account for the largest revenue share, of 55%, in 2024, 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 the highest 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.

These offerings have been analyzed:

• Hardware
  • Interface boards
  • Sensors
  • Surveillance cameras
  • Telecommunication networks
  • Monitoring and detection systems
  • Others
• Software (Fastest-Growing Category)
  • Visualization software
  • Video detection management software
  • Transit management software
  • Others
• Services (Largest Category)
  • Business and cloud services
  • Support and maintenance services
  • Others

System Analysis

Advanced traffic management system (ATMS) is expected to keep dominating the market till 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.

Advanced public transportation system (APTS) is expected to register the fastest growth during the forecast period, with a CAGR of 7%. 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.

Furthermore, advanced transportation pricing system (ATPS) accounted for a significant intelligent transportation system market revenue share in 2024, and it is expected to grow with a substantial CAGR during 2025–2030. 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.

The report offers insights into the following systems:

• Advanced Traffic Management System (Largest Category)
• Cooperative Vehicle System
• Advanced Public Transportation System (Fastest-Growing Category)
• Advanced Traveler Information System
• Advanced Transportation Pricing Systems
• Others

Application Analysis

The roadways category holds the largest share, of 40%, 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.

The application breakdown of the market is presented below:

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