Global Intelligent Transportation System Market was valued at US $ 22.91 billion in 2023 and is expected to reach US $ 42.80 billion by 2032 growing at a CAGR of 9.34% during the forecast period 2024 – 2032.

Currently, there is tremendous growth in the markets related to smart cities development, modernization transport technologies, and effective urban mobility management needs.

The market’s demand shock that was unleashed during the COVID-19 pandemic has affected all places around the world. The drastic reduction in the CAGR arises from actions put forward by states against the outbreak of the pandemic.

Congestions on roads result into massive drops in economic outputs among many nations of the world and hence, become a growing source of concern every day. Financial and space constraints remain the main limiting factors as far as the development of the infrastructure along with increasing number of cars is concerned. Currently, many countries have embarked on intelligent transportation system programmes aimed at alleviating vehicular bottlenecks and preventing vehicle accidents using novel wireless communication safety systems. The electronic toll collection systems, traffic signals, wireless devices, automated vehicle systems as well as pedestrian safety systems have similar objectives.

Government also plays a role in implementing ITS as well as introducing new technologies to the country. Traffic congestion adversely affects the environment. Deploying an intelligent transportation system result to many direct advantages in terms of mobility, security, and safety of the surroundings. Moreover, there is a correlation between the merging of such systems and the congestion experienced on the way home during rush hours. It also boosts vehicle’s efficiency by lowering the amount of oil consumed by the vehicle while waiting in traffic. Countries also use these facilities as a means of avoiding economic difficulties as well as reducing pollution of the air. Additionally, it should be noted that there is a decreased number of death cases on highways and transit comfort for passengers. Through these systems, all elements connected to transport infrastructures are integrated; this allows for a broad number of users’ purposes. Countries that shall deploy ITS will be more beneficial than others when the time for automatic as well as interconnected vehicles commences.

The Intelligent Transportation System Trend Analysis

Continuous advancement of the networked and autonomous vehicles is creating a basis for intelligent transport systems in the coming period. Besides that, transport-related agencies should think in perspective. Many ITS service providers give advice on issues related to planning or implementation and improvement of systems or solution. There is an increase in proliferating urban areas and disposable income leading people to demand technology-driven vehicles with better driving experience. Besides, there are many transportation service providers advocating for infrastructure improvement, connectivity of transport networks and improved road safety systems among other things. Furthermore, future intelligent city projects, advanced communications infrastructure and government campaigns toward smart development of China, India, Singapore, Dubai and other emerging nations to open new market prospects.

ITS technologies are likely to undergo drastic changes due to future advancements in AI and VR.

Artificial intelligence and virtual reality are quickly evolving technologies that could radically alter global transportation infrastructures. This included a head-up display using these technologies which would be used while traveling and for making graphics. They act as enablers of not only vehicles but also all users of the transport systems. AI might have an effect on the model of the system. Some traffic management solution providers are using AI. For example, in March 2020, the Chinese manufacturer of IP (Video) based system, Lilina presented its new intelligent traffic managements system Aida ALPR Series. listed the article discuss. The Aida ALPR were accompanied by advanced municipal surveillance cameras and other apparatus. The integrated system facilitates highly accurate object identification with different applications ranging from license plate recognition, speeding detection, parking spot localization as well as observance of truck, motorcycle, walker norms.

Market growth will be enhanced with increased congestions on roads.

Traffic congestions have been attributed to low quality transport systems coupled with increased numbers of cars plying on the roads. Traffic congestions are detrimental in that they increase emission that pollute the environment while contributing to an increased number of road accidents due to over speeding in order to get to their destination as quickly as possible. In 2018, globally, traffic accidents caused around 1.35 million deaths among which the US had close to 36,600 related accidents in their transport systems.

Government will invest in modern traffic management solution thereby enabling market expansion.

During the forecast period, pro-active government funding towards the construction, development and operation of intelligent transportation system is expected to propel the growth of the market. Many governments worldwide work together with other private parties to implement several active measures targeted to reduce traffic jams. In addition, intelligent transport service provides advise the government concerning integrating ITS into its transportation system.

Segmentation Analysis of the Intelligent Transportation System Market

By Type Analysis

Additionally, the advanced transportation pricing system (ATPS), advanced traffic management system (ATMS), and advanced traveller information system (ATIS) comprise the market segmentation by product. It is anticipated that during the forecast period, the advanced traffic management system (ATMS) segment will hold a dominant position. As a result of reduced traffic congestion, the regional department of transportation's development in smart infrastructure, increasing government investment in this sector, and the implementation of cutting-edge technologies in the system to ensure safe and efficient commutes are anticipated to stimulate the market growth of this market segment.

Increasing bus route planning and structure development in a number of nations is anticipated to contribute positively to the advanced public transportation system (APTS) segment's growth in the ITA market throughout the forecast period. Utilization of devices to obtain information on weather conditions and various modes of transportation is anticipated to contribute to robust growth in the advanced traveller information system (ATIS) sector throughout the forecast period. The market is anticipated to witness consistent growth in the advanced transportation pricing system (ATPS) segment throughout the projected timeframe. The market segment is experiencing growth due to the expanding implementation of e-toll collection centers in numerous countries.

Regional Analysis of the Intelligent Transportation System Market

The segmentation additionally covers Europe, the Middle East, Asia-Pacific and North America.

Moreover, Asia-Pacific currently holds substantial share within global market and it’s likely to remain a key part of the industry during the course of forecast. Therefore, it is important to note that among the countries with sizeable investments in ITS roll-out, China is number two only after USA. For this reason, South Korea is the forerunner of the aforementioned region regarding meaningful financial contribution toward ITS roll out.

Europe is expected to witness robust market growth throughout the time frame of the forecast. Significant integration of ITS for domestic public transportation, United Kingdom leads the way. Moreover, other European countries add to the growth of this market. As an example, France budgeted about eight and a half million euros towards ITS within the five years between 2016 and 2020.

North America’s market will continue to grow unabatedly because of Canada’s sluggishness in adopting the ITS. The leading source of regional growth is the U.S which is driven by the enactment of its FAST Act, fast pace adoption of modern technologies as well as overall governments’ commitment towards smart city development initiatives. Moreover, there are high expectations for significant development of the market within this region where such countries as Brazil and Mexico help on a job creation stage or during the implementation itself.

There will be very high growth in the world’s economy including that of the Middle east. The fact that the UAE embraced modern technology early on and implemented government interventions such as free trade zones, all of these came together to discover possibilities within the automobile industries.

COVID-19 Impact Analysis on Intelligent Transportation System Market.

Covid-19 Impact: Slowdown of Ongoing Projects & Mobility Restrictions to Hamper Growth

The closure and economic crisis that numerous transit authorities experienced in 2020 were profoundly impacted by the COVID-19 pandemic. The COVID-19 pandemic is engendering market unpredictability, supply chain disruptions, business decline, and escalating panic among consumer segments.

ITS is becoming increasingly significant in light of the fact that urbanization and, consequently, travel time are on the rise. It offers a streamlined digital solution for traffic management and eliminates the requirement for human labor. Additionally, the rising prevalence of single-occupant vehicles used for commuting, especially in major cities and suburban areas, increases the demand for such systems. ITS adaptive traffic signal controllers make a positive environmental impact through the substantial reduction of CO2 and NOX emissions caused by the decreased queuing time for vehicles at intersections and signals.

Post-COVID-19, the global market outlook will be positively impacted by increased demand for integrated, biometric, sensor-based technology, as well as the implementation of contactless and mobile payment and ticketing technologies throughout public transportation.

Top Key Players

• DENSO CORPORATION (Kariya, Aichi, Japan)
• Siemens AG (Munich, Germany)
• Hitachi, Ltd. (Chiyoda City, Tokyo, Japan)
• Kapsch TrafficCom AG (Vienna, Austria)
• EFKON GmbH (Raaba, Austria)
• Lanner Inc.(New Taipei City, Taiwan)
• Thales Group (Paris, France)
• Cubic Corporation (San Diego, U.S.)
• Q-Free ASA (Trondheim, Norway)
• Garmin (Olathe, U.S.)

Key Industry Developments in the Intelligent Transportation System Market

• January 2020: Denso Corporation and Qualcomm Technologies are collaborating on the development of the navigation system of the next generation. Utilizing in-vehicle infotainment products is anticipated to become more intuitive with the arrival of this system.
• May 2021: Leading technology services provider L&T and Intel worked in tandem to develop an intelligent parking guidance system powered by artificial intelligence. This solution offers augmented video analytics for operators to monitor occupancy in outdoor public spaces such as stadiums, airports, office campuses, and retail malls in real time, without the need for sensors, via AI-enabled surveillance.
• February 2020: Lanner Electronics, Inc. and Creanord, an authority on service assurance, have established a collaborative alliance. This collaboration will furnish service and carrier providers with an extensive array of segmented, distributed, and advanced solutions for performance assurance in Metro and access networks. This hardware platform integration will provide service providers with a comprehensive solution for managing and diagnosing SLA performance issues with simplicity through the provision of network service visibility around the clock.
• March 2019: Siemens AG has established a new digital center for Intelligent Traffic Systems in Austin, Texas. Data will be gathered, monitored, and analyzed in this laboratory. In addition, fleet management, electric bike-sharing, self-driving vehicles, connected vehicles, shared mobility, multimodal transportation, and advanced traffic management systems will be prioritized using this information.

Table of Contents

1. Introduction Of Global Intelligent Transportation System Market
   1. Overview of the Market
   2. Scope of Report
   3. Assumptions
2. Executive Summary
3. Research Methodology
   1. Data Mining
   2. Validation
   3. Primary Interviews
   4. List of Data Sources
4. Global Intelligent Transportation System Market Outlook
   1. Overview
   2. Market Dynamics
      1. Drivers
      2. Restraints
      3. Opportunities
   3. Porters Five Force Model
      1. Bargaining Power of Suppliers
      2. Threat of New Entrants
      3. Threat of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power among Buyers
   4. Value Chain Analysis
5. Global Intelligent Transportation System Market, By Type
   1. Overview
   2. Advanced Traffic Management System
   3. Advanced Traveler Information System
   4. Advanced Public Transportation System
   5. Advanced Transportation Pricing System
   6. Others
6. Global Intelligent Transportation System Market By Region
   1. North America
      1. U.S.
      2. Canada
   2. Europe
      1. Germany
      2. U.K.
      3. France
      4. Rest of Europe
   3. Asia Pacific
      1. China
      2. Japan
      3. India
      4. South Korea
      5. Singapore
      6. Malaysia
      7. Australia
      8. Thailand
      9. Indonesia
      10. Philippines
      11. Rest of Asia Pacific
   4. Others
      1. Saudi Arabia
      2. U.A.E.
      3. South Africa
      4. Egypt
      5. Israel
      6. Rest of Middle East and Africa (MEA)
      7. Brazil
      8. Argentina
      9. Mexico
      10. Rest of South America
7. Company Profiles
   1. DENSO CORPORATION (Kariya, Aichi, Japan)
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   2. Siemens AG (Munich, Germany)
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   3. Hitachi, Ltd. (Chiyoda City, Tokyo, Japan)
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   4. Kapsch TrafficCom AG (Vienna, Austria)
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   5. EFKON GmbH (Raaba, Austria)
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   6. Lanner Inc.(New Taipei City, Taiwan)
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   7. Thales Group (Paris, France)
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   8. Cubic Corporation (San Diego, U.S.)
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   9. Q-Free ASA (Trondheim, Norway)
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
   10. Garmin (Olathe, U.S.)
       1. Company Overview
       2. Key Executives
       3. Operating Business Segments
       4. Product Portfolio
       5. Financial Performance (As per availability)
       6. Key News

Global Intelligent Transportation System Market Segmentation

Intelligent Transportation System by Type: Market Size & Forecast 2024-2032

• Advanced Traffic Management System (ATMS)
• Advanced Traveler Information System (ATIS)
• Advanced Public Transportation System (APTS)
• Advanced Transportation Pricing System (ATPS)
• Others

Intelligent Transportation System by Geography: Market Size & Forecast 2024-2032

• North America (USA, Canada, Mexico)
• Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
• South America (Brazil, Argentina, Columbia, Rest of South America)
• Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)

Major Players:

• DENSO CORPORATION (Kariya, Aichi, Japan)
• Siemens AG (Munich, Germany)
• Hitachi, Ltd. (Chiyoda City, Tokyo, Japan)
• Kapsch TrafficCom AG (Vienna, Austria)
• EFKON GmbH (Raaba, Austria)
• Lanner Inc.(New Taipei City, Taiwan)
• Thales Group (Paris, France)
• Cubic Corporation (San Diego, U.S.)
• Q-Free ASA (Trondheim, Norway)
• Garmin (Olathe, U.S.)