Intelligent Transportation System Market Size, Share & Trends Report

Intelligent Transportation System Market Size, Share & Trends Analysis Report By Type (ATIS, ATMS, ATPS, APTS, EMS), By Application (Road Safety & Security, Public Transport), And Segment Forecasts, 2019 - 2025

  • Published Date: Apr, 2019
  • Base Year for Estimate: 2018
  • Report ID: 978-1-68038-036-1
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 130

Report Overview

The global intelligent transportation system market size was valued at USD 25.58 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 10.5% from 2019 to 2025. The need for presenting real-time traffic information to drivers and passengers is one of the key factors driving the demand for ITS.

U.S. Intelligent Transportation System market

High traffic congestion due to rising number of vehicles has contributed to the need for advanced public traffic management systems. Subsequent need for smart vehicles with public-private partnerships is foreseen to be a major growth driver. Numerous initiatives undertaken to deploy advanced traffic management systems such as Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) communication is also projected to be observed as some of the key growth strategies.

Various economies are dealing with growing traffic concerns and are deploying new systems that integrate communication and electronic technologies. Improved mobility for freight and consumers including better access to transportation is projected to augment the deployment of ITS systems over the forecast period.

Improvement in traffic management and emergency services empowers authorities to quickly respond to emergencies and accidents with more efficiency. The usage of such systems maximizes efficiency in traffic management and shortens the travel duration. The use of public transportation results in the reduction of airborne pollutants and carbon dioxide emissions.

Asia Pacific is estimated to be the fastest-growing region over the forecast period. The implementation of ITS in various economies, such as India and Hong Kong, is contributing to the growth. For instance, the government of Hong Kong is funding the deployment of ITS, which ensures safety and efficiency of their transportation systems.

High benefit to cost ratio strongly influences the transportation authorities and vehicle owners to invest in this technology. Key applications of connected vehicle technologies include Vehicle to Vehicle (V2V) communication, vehicle to Infrastructure (V2I) communication, environment application, and mobility application. 

Application Insights

On the basis of application, the Intelligent Transportation System (ITS) market can be classified into traffic management, environment protection, freight management, public transport, road safety and security, automotive telematics, road user charging, and parking management. 

The U.S. traffic management application segment is expected to reach USD 3.83 billion at a CAGR of 7.45% from 2019 to 2025. ITS deployment is largely driven by government regulations in Europe and North America. Traffic management systems enhance reliability and operation performance of road networks. They include vehicle detection systems, bridge traffic management systems, and ramp metering systems, among others. Increasing traffic jams result in fuel wastage, traffic time, and monetary losses. They also adversely impact socio-economic growth and development of a country. Therefore, traffic management systems are deployed to minimize the financial burden on transportation authorities and governments.

Automotive telematics segment is anticipated to expand at a CAGR of 10.9% from 2019 to 2025. Regulatory initiatives related to security and safety are expected to have a positive impact on the adoption of telematics services in vehicles. Telematics tracking systems are widely deployed in cars, which include accessing and activating remote vehicles using radio frequency identification.

Rise in the number of on-road vehicles has led to high demand for parking management. Intelligent parking management systems enable parking operators to offer a high level of convenience to car users and reduce the wastage of time.

System Type Insights

On the basis of system type, the market can be segmented into Advanced Traveler Information System (ATIS), Advanced Traffic Management System (ATMS), Emergency Management System (EMS), Advanced Public Transportation System (APTS), and Advanced Transportation Pricing Systems (ATPS).

The China ATMS segment is expected to reach USD 643.2 million from 2019 to 2025. The global APTS segment is expected to expand at a CAGR of 12.11% from 2019 to 2025. APTS provides enhanced visibility into the overall timelines of buses and trains. Rising number of public transportation passengers, increased investment in real-time information systems is expected to enable real-time status to passengers.

Global Intelligent Transportation System market

The Asia Pacific ATIS market is anticipated to expand at an estimated CAGR of 14.1% from 2019 to 2025, attributed to the surge in installation of infotainment and navigation devices in new vehicles. ATIS applications include information on location, weather, real-time traffic, and parking. They may also offer services such as mobile calling, internet access and music, and movie downloads. Vehicle manufacturers have been attempting to incorporate navigation and infotainment features in automobiles; there also exists a demand for aftermarket telematics.

Regional Insights

The United States Department of Transportation (DOT) has been investing heavily in R&D, adoption, and deployment of ITS across the region. The University of Michigan Transportation Research Institute and (DOT) conducted a Safety Pilot Model Deployment (SPMD) in Michigan from 2015 to 2013 using DSRC-enabled equipment in a real world environment. Moreover, in 2015, DOT announced that it would push towards mandating V2V technology in U.S. for all light vehicles based on SPMD.

The economic benefits of ITS deployment are particularly notable in developing markets of Brazil, Russia, India, China, and South Africa (BRICS) nations. In-vehicle and cooperative systems not only provide financial benefits to car owners but also aid in avoiding congested routes and reducing the overall fuel consumption and travel time. Car manufacturers in both established and emerging markets are installing these systems in their new car models to differentiate their products from competitors.

Key Companies & Market Share Insights

Key players in the ITS market include Siemens AG, Kapsch TrafficCom, and Hitachi Ltd. This is mainly on account of diversified customer base and a wide range of advanced technology types employed in the intelligent transportation system industry. Other prominent vendors include Denso Corporation, Efkon Ag, Garmin International, and Lanner Electronics among others. Some of the prominent players in the intelligent transportation system market include:

  • Siemens AG

  • Kapsch TrafficCom

  • Hitachi Ltd

  • Denso Corporation

  • Efkon Ag

  • Garmin International

  • Lanner Electronics

Intelligent Transportation System Market Report Scope

Report Attribute


Market size value in 2020

USD 31.0 billion

Revenue forecast in 2025

USD 51.1 billion

Growth Rate

CAGR of 10.5% from 2019 to 2025

Base year for estimation


Historical data

2015 - 2017

Forecast period

2019 - 2025

Quantitative units

Revenue in USD million and CAGR from 2019 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

System type, application, region

Regional scope

North America; Europe; Asia Pacific; MEA; Rest Of The World

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; China; Japan; India; South Korea; UAE; KSA

Key companies profiled

Siemens AG; Kapsch TrafficCom; Hitachi Ltd; Denso Corporation; Efkon Ag; Garmin International; Lanner Electronics

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Segments Covered in the 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 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global Intelligent Transportation System (ITS) market report on the basis of system type, application, and region:

  • Type Outlook (Revenue, USD Million, 2015 - 2025)

    • ATIS

    • ATMS

    • ATPS

    • APTS

    • EMS

  • Application Outlook (Revenue, USD Million, 2015 - 2025)

    • Traffic Management

    • Road Safety and Security

    • Freight Management

    • Public Transport

    • Environment Protection

    • Automotive Telematics

    • Parking Management

    • Road Tolling System

  • Regional Outlook (Revenue, USD Million, 2015 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Middle East & Africa

      • UAE

      • KSA

      • RoW

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