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Report Overview: Intelligent Transportation System MarketThe global intelligent transportation system market size was valued at USD 15.47 billion in 2020 and is projected to register a compound annual growth rate (CAGR) of 4.7% from 2021 to 2027. The necessity for presenting real-time traffic information of different regions to passengers and drivers is one of the significant factors driving the demand for intelligent transportation systems across the world. The growing number of vehicles on road, aging infrastructure, and lack of traffic data management are other factors anticipated to drive the overall growth. The need to enhance traffic flow across highways and corridors in cities has led to the rising need for an alternative technology to manage traffic. Transportation authorities can address the growing traffic issue by using innovative and advanced data analytics technologies. High traffic jams owing to the increasing number of vehicles have contributed to the need for advanced public traffic management systems. Developments in emergency services and traffic management empower authorities to speedily respond to accidents and emergencies with more efficiency. The usage of such systems shortens the travel duration and increases efficiency in traffic management. The use of public transportation, such as buses and trains results in the reduction of carbon dioxide emissions and airborne pollutants. Moreover, traffic congestion can be streamlined by deploying end-to-end connecting traffic management systems by using advanced techniques such as cloud computing and data analytics. Data collected from components such as sensors, video cameras, and embedded systems installed along the road can be used for analyzing and controlling real-time traffic across cities. Companies in the ITS market are conducting research and development activities to use data analytics and cloud to reduce congestion, improve traffic flow across various cities, reduce idle time, and improve fuel economy. For instance, Cubic Corporation launched the NextTraffic solution on Microsoft’s Azure cloud in order to achieve enhanced traffic and transportation management. According to the company, the NextTraffic solution can deliver real-time traffic management across New York City by exchanging data with traffic signal management applications, connected vehicles, weather sensors, speed enforcement cameras, and integrated corridor management systems. The intelligent transportation system market will be impacted by supply chain disruption due to coronavirus pandemic. Further, in some countries, there are other mass transport projects in the pipeline, such as metro or light rail, and speeding up transit projects is expected to be delayed due to the current global COVID-19 crisis. However, with economic stimulus packages announced by many countries such as the U.S., Japan, Germany, Italy, U.K., France, India, and China, is expected to create great opportunities for advancements in transportation infrastructure. The recovery from the pandemic is expected to create a positive inclination in the ITS demand. The logistics industry has been evolving with the advent of technology. Technologies, such as Artificial Intelligence (AI), Internet of Things (IoT), blockchain, and big data, are rapidly transforming the way transportation systems are designed, planned, built, and operated. Logistics and transport involve a significant exchange of information and data between customers and service providers, and advances in information technology have been facilitating the rapid exchange of information and data. The latest technologies have enhanced visibility and control over shipments and subsequently augmented efficiency and customer satisfaction. AI is being implemented in several industries, including transportation, supply chain, and logistics. The growing volumes of data in transport management are driving the need for more sophisticated data processing solutions. As such, intelligent transportation systems are increasingly using AI to track data in real-time and optimize efficiency. IBM’s Watson is an example of the implementation of AI in transport management to identify damages to logistics assets leveraging cognitive visual recognition capabilities and to optimize routes and manage the network leveraging predictive analysis.
Application Insights: Intelligent Transportation System MarketThe traffic management application segment led the market and accounted for more than 30.0% share of the global revenue in 2019. By application, the Intelligent Transportation System (ITS) market is segmented into road tolling systems, traffic management, road safety and security, parking management, freight management, automotive telematics, public transport, and environment protection. Traffic management systems help to enhance operational performance and reliability of road networks. They comprise ramp metering systems, vehicle detection systems, and bridge traffic management systems, among others. Growing traffic congestions result in monetary losses, traffic time, and fuel wastage across the world. Owing to this, they unfavorably impact the socio-economic growth and development of a particular country. Thus, traffic management systems are installed to reduce the financial burden on governments and transportation authorities. The automotive telematics segment is likely to expand at the highest CAGR of 6.1% from 2021 to 2027. This is owing to regulatory initiatives related to safety and security that are estimated to have an impact positively on the adoption of telematics services in vehicles. Moreover, telematics tracking systems are usually installed in vehicles, which include activating and accessing remote vehicles with radio frequency identification. A surge in the number of on-road vehicles has led to increased demand for parking management solutions. Advanced parking management systems help parking operators to provide a high level of convenience to the vehicle owner and reduce the wastage of time.
Type Insights: Intelligent Transportation System MarketAdvanced Traffic Management System (ATMS) type segment led the market and accounted for more than 30.0% share of the global revenue in 2019. On the basis of type, the intelligent transportation system (ITS) market can be segmented into Emergency Management System (EMS), Advanced Traveler Information System (ATIS), Advanced Public Transportation System (APTS), Advanced Transportation Pricing Systems (ATPS), and Advanced Traffic Management System (ATMS). The advanced traffic management system primarily comprises applications for dynamic messaging signs, traffic signals, and ramp metering, among others. Bad traffic signal controls contribute considerably to congestion as well as an increase in the overall travel time to a large extent. ATMS helps in detecting dangerous weather conditions, roadway hazards, accidents, and creates a complete integrated view of overall traffic flow. They are installed with the present traffic control systems that generally help in reducing congestion and ensuring the efficient use of road space. However, the advanced public transportation system segment is expected to expand at the highest CAGR of 7.1% from 2021 to 2027. APTS offers enhanced visibility into the overall timelines of trains and buses. The increasing number of public transportation passengers, growing investment in real-time information systems is likely to enable real-time status to passengers.
Regional Insights: Intelligent Transportation System MarketNorth America lead the market and accounted for over 40.0% share of global revenue in 2019. The United States Department of Transportation (DOT) has been investing heavily in research and development, deployment, and adoption of intelligent transportation systems across the country. Advancements in communication technologies are boosting the revolution of the transportation network in U.S. Devices such as radio and mobile possessing short-range dedicated technology are facilitating drivers, transit passengers, freight operators, and transport authorities for vehicle-to-vehicle communication. The usage of this technology is expected to increase with the growing number of vehicles across the region. However, continuous technological developments and expansion of the transportation network in the Asia Pacific are expected to drive the growth of the intelligent transportation system market in the Asia Pacific. The economic benefits of ITS deployment are particularly notable in countries such as China, India, Japan, and South Africa. In-vehicle and cooperative systems not only offer financial benefits to vehicle owners but also help to reduce travel time and the overall fuel consumption, and aid in avoiding congested routes. Vehicle manufacturers in both emerging and established markets are integrating these systems in their upcoming car models to differentiate their products from competitors.
Key Companies & Market Share Insights: Intelligent Transportation System MarketThe key players that lead the global ITS market in 2019 include Hitachi Ltd.; Kapsch TrafficCom; and Siemens AG. This is primarily on account of technologically advanced product offerings and diversified customer base in the intelligent transportation system industry. Companies are emphasizing research and development activities to develop technologically advanced systems to gain a competitive edge. For many intelligent transportation system manufacturers, the COVID-19 has exposed vulnerabilities in supply chains, interrupted production, impacted demand, and driven an urgent need to modernize operations. Digitalizing and modernizing such capabilities will be crucial for ITS manufacturers to recover from the crisis rapidly, and to make them more resilient and agile manufacturing operations needed in the future. In addition, many players operating in the market are securing intelligent transportation system contracts from different agencies and governments concentrated on offering solutions such as smart tolling systems, smart parking systems, and systems incorporating vehicles to everything technology. Due to rapid urbanization and industrialization across the world, there has been a rapid transformation in the transportation sector with the adoption of intelligent transportation systems. Moreover, some market players are also entering into strategic partnerships to develop smart transportation technology. Some prominent players in the intelligent transportation system market include:
Key companies Profiled: Intelligent Transportation System Market Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global Intelligent Transportation System (ITS) market report on the basis of type, application, and region:
- Hitachi Ltd.
- Kapsch TrafficCom
- Siemens AG
- Lanner Electronics
- Garmin International
- Efkon Ag
- Denso Corporation
- TomTom International BV
Type Outlook (Revenue, USD Million, 2016 - 2027)
Application Outlook (Revenue, USD Million, 2016 - 2027)
- Traffic Management
- Road Safety and Security
- Freight Management
- Public Transport
- Environment Protection
- Automotive Telematics
- Parking Management
- Road Tolling Systems
Table of Contents Chapter 1. Methodology and Scope 1.1. Market segmentation & scope 1.2. Information procurement 1.2.1. Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum) 1.2.2. IFF internal database 1.2.3. Secondary sources & third-party perspectives 1.2.4. Primary Research 1.3. Information analysis 1.3.1. Data analysis models 1.4. Market formulation & data visualization | read more...