Growing number of vehicles and increasing population has led to the need for effective traffic management. An Intelligent Transportation System (ITS) integrates the transportation network with ICT (Information and Communications Technology) to improve performance, enable multimodal transport and help alleviate road accidents and optimize fuel consumption. Besides being used for road transport, ITS is also used for rail, water and air transport and navigation systems. With the help of sensors, navigation systems, video surveillance devices, and vehicle probes, real-time data is collected. It is then analyzed and communicated to the user via dynamic sign boards, internet, mobile telephony, etc. The usage of ITS to reduce road accidents and increase safety in general is a major driving force for the market. Demand for vehicle to vehicle (V2V) and vehicle to infrastructure (V2I) communication in order to enhance road safety is expected to gain momentum over the next few years. Interoperability issues in between the user and the road or control units may act as a restraint to the industry in the near future. Establishment of standardization and a unified technology is necessary for effective communication. The global intelligent transportation systems market was estimated to be valued at USD 14.59 billion in 2012 which is expected to reach USD 38.68 billion by 2020, growing at a CAGR of 13.0% from 2014 to 2020.
Key intelligent transportation systems analyzed in the study include advanced traveler information systems (ATIS), advanced transportation management systems (ATMS), advanced transportation pricing systems (ATPS), advanced public transportation systems (APTS) and cooperative vehicle systems. ATIS provide real-time traffic, navigation, weather information, etc.; demand for these systems is expected to increase, particularly in developed markets, where manufacturers are installing infotainment and navigation devices in new vehicles. ATMS was the largest segment and accounted for 39.9% of the overall demand in 2013. They help optimize transportation network operations as well as aid in alleviating pollution and traffic congestion in order to enhance quality of life. ATMS solutions offered by market participants combine data processing technology as well as sensors and communication to ensure real-time management of transportation networks’ operations; information gathered and processed is beneficial to drivers and travelers alike. APTS is expected to be the fastest growing market segment, at an estimated CAGR of 13.7% from 2014 to 2020. These systems are used for increasing the efficiency public transit systems’ operations as well as boost overall safety. APTS applications include bus arrival notification systems, real-time passenger information systems, automatic vehicle location systems, etc. Cooperative vehicle systems, also known as cooperative vehicle infrastructure systems (CVIS) enable vehicles and transport infrastructure to exchange information in a dynamic fashion. This information includes data related to location, traffic and road conditions, and helps warn travelers and drivers in advance to incidents, blockages and hazards. Technologies used may include 3G, wireless LAN; for example, traffic signals could enable vehicles to synchronize speed with the traffic light cycle. The CVIS project by the European Commission aims at creating a unified technical solution and ensuring interoperability in communication. Another key objective of this project is to address issues of data privacy and security, user acceptance, and system openness, as well as roll-out plans for implementation.
ITS market revenue share by product, 2012
ITS applications analyzed and reported in the study include traffic management, road safety and security, freight management (commercial), public transport, environment protection, automotive telematics, parking management and road user charging. Traffic management is the largest application area for ITS; ATMS is used to enhance road networks. This also reduces the financial burden on regulatory authorities since it decreases investment required to enforce traffic congestion control. The segment accounted for 31.4% of the total market share in 2013 and is expected to continue dominating the market over the next six years. Environmental protection application is expected to witness the fastest growth of 18.2% from 2014 to 2020. Reducing exhaust emissions is one of the key priorities of intelligent transportation systems, which is targeted through lowering of greenhouse gases and carbon dioxide concentration in densely populated areas through traffic management. Reducing traffic congestion is one of the key focus areas to avoid excessive petrol consumption and negative environmental impact. Road user charging (RUC) also accounted for considerable market share in 2013; it refers to solutions for infrastructure-related revenue collection. Toll collection methods include electronic toll collection (ETC); Multi-Lane Free-Flow (MLFF) systems enable cashless collection of tolls. Technologies used for conducting RUC include satellite-based such as Global Navigation Satellite System (GNSS) or Global Positioning System (GPS), Automatic License Plate Recognition (ALPR) and Dedicated Short-Range Communication (DSRC) among others.
North America is expected to remain the largest regional market over the forecast period, and accounted for 43.8% of the overall industry share in 2013. The Intelligent Transportation Society of America (ITS America) is involved in the research, development as well as deployment of ITS in order to enhance the surface transportation system in the U.S. Successful ITS projects in the region include the Advanced Regional Traffic Interactive Management and Information System (ARTIMIS), Arterial Street Signal Interconnect, Philadelphia, PA and Georgia Navigator among others. Asia Pacific is expected to be the fastest growing region, at an estimate CAGR of 14.0% from 2014 to 2020. ITS implementations across numerous countries in Asia Pacific is expected to drive regional growth. According to the China Intelligent Transportation Systems Association, China will build an ITS by 2015 to save energy as well as tackle issues of traffic congestion. Additionally, a transportation information platform is to be released in order to enable the public access information on latest traffic conditions. R&D activities and regulatory initiatives in countries such as Japan and India are also estimated to positively impact the industry.
Major industry participants include TransCore Inc., Q-Free ASA, Kapsch TrafficCom AG, EFKON AG, and Lanner Electronics, Inc. among others. Key growth strategies followed by companies operating in the market include product development and innovation, as well as mergers and acquisitions. They offer customized turnkey solutions, electronic toll collection, traffic telematics solutions, etc. Additionally, market players provide ITS construction and maintenance services for large ITS deployments. Major products comprise traffic signal control, video management, tollway traffic management, and event tracking solutions.