Intelligent Transportation System Market to Generate Revenue Worth $102,617.3 Million by 2030
- Published: September 2022
The global intelligent transportation system market is projected to generate $102,617.3 million revenue by 2030, advancing at a CAGR of 10.2% during 2021–2030. This can be ascribed to the high adoption of new technologies, increasing importance of environmental conservation, growing demand for vehicles, and increasing level of urbanization leading to space crunch in cities.
Advanced Traffic Management System Contributes Highest Revenue
Based on system type, the market is categorized into advanced traffic management system, cooperative vehicle system, advanced public transportation system, advanced traveler information system, and advanced transportation pricing system. Among these, advanced traffic management systems accounted for the largest revenue share, of over 40%, in 2021, and it is further expected to dominate the market during the forecast period. This is due to the increasing efforts for minimizing the population level and congestion, enhancing road safety, improving traffic flow, and alleviating the mobility experience of commuters.
Moreover, the increasing investment by governments in these particular systems to resolve the traffic issue in cities, growing usage of smart technologies in these systems to ensure a safe and smooth commute, and expanding transportation infrastructure are responsible for the intelligent transportation system market boom.
Based on offering, the software category will undergo the fastest growth during the forecast period. This is due to the wide usage of software in transportation systems to improve mobility, by feeding real-time information about the vehicle's actual location and unexpected alterations in routes caused by traffic congestion or any accident to the third-party system accessible through networking solutions.
Additionally, based on application, the roadways category accounted for the largest revenue share in 2021, and it is expected to maintain its position during 2021–2030. This can be attributed to the increasing population across the globe, technological advancements in roadways systems, increasing number of vehicles on roads, and growing automotive industry.
Geographically, APAC will witness the fastest growth during the forecast period owing to the rapid urbanization, rising disposable income, coupled with the increasing standard of living, technological advancements, ongoing expansion of transportation networks, and the high number of passenger vehicles leading to congestion. In addition, several government initiatives to implement better transportation systems in the region drive the market. Moreover, China contributes the majority of the revenue to the regional market due to the high investment by the government to deploy intelligent transportation systems in the country.
North America held the largest revenue share, and it is further expected to dominate the market during the forecast period. This is due to the presence of a large number of industry giants, highly developed transportation systems, rapid adoption of advanced technology, and rising concerns regarding environmental pollution. Moreover, the U.S. generates the higher revenue in the regional market, owing to the high implementation rate of advanced systems and growing need to improve road safety.
Some of the major 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., and Teledyne FLIR LLC.