Intelligent Transportation System (ITS) Market Size, Share & Trends Report

Intelligent Transportation System (ITS) Market Size, Share & Trends Analysis Report By Type (ATIS, ATMS, ATPS, APTS), By Application (Traffic Management, Road Safety, Freight Management), And Segment Forecasts, 2018 - 2024

  • Published Date: Feb, 2018
  • Base Year for Estimate: 2016
  • Report ID: 978-1-68038-036-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 148

Industry Insights

The global intelligent transportation system market size was valued at USD 20.94 billion in 2015. Intelligent transportation systems (ITS) are being increasingly adopted with advanced safety and security solutions to reduce road fatalities. Developing and developed economies are focusing on deployment of such solutions to enhance road network and infrastructure, a trend that is sure to benefit the market. 

U.S. ITS market

ITS is a combination of information technology and communication with transportation infrastructure, which improves passenger safety and enhances the competence of the overall transport process. Adoption of competent transportation systems is expected to reduce number of road accidents and travel time. Various economies are dealing with growing traffic concerns and are deploying new solutions that integrate communication and electronic technologies. Improved mobility for freight and consumers and better access to transportation are likely to augment the deployment of ITS over the forecast period.

Improved traffic efficiency enables transportation authorities to respond to emergencies more quickly. Utilization of such intelligent systems improves efficiency in traffic management and reduces travel duration. Use of public transportation results in reduction of airborne pollutants and carbon dioxide emissions. 

According to the ITS Development Strategy Department of Transport in the Republic of Korea, ITS contributes to reduction in consumption of fuels and greenhouse gas emissions by preventing cars to remain in idle position and reducing traffic congestion. Keeping in mind similar concerns, the U.S. Department of Energy and Transportation, in April 2016, announced a collaboration to accelerate research and development of innovative smart transportation solutions and alternative fuel technologies.

ITS provide ease to travelers, whether they are driving a vehicle individually or are using public transport. In recent years, demand for integrated mobile systems for public transportation has increased owing to anxieties regarding public security. Modern transportation service providers are using multipurpose vehicle computing systems combined with tracking and monitoring to ensure safety of their passengers.

Growing usage of real-time data by traffic management centers to take better decisions and resolve traffic issues is anticipated to drive demand for intelligent ITS. Demand for V2V and V2I communication to enhance road safety is also expected to boost market growth. Interoperability problems between users and control units may act as a restraint to the industry in future. However, establishment of standardization and a unified technology will aim to resolve these issues through effective communication.

ITS industry stakeholders include IT and ITS solution providers, hardware providers, end-use solution providers, and system integrators. End users comprise national as well as regional transport authorities, which install ITS to manage overall transportation network operations. They interact with public and private transport operators to share relevant information regarding traffic via satellite-based or wireless communication devices.Rapid decline in cost of telecommunication and evolution of IT solutions is expected to reduce congestion charges.

Product Insights

The ATMS segment is anticipated to dominate the market throughout the forecast period. ATMS provides traffic management solutions that enable improvement in road safety, enhance traffic flow, and augment mobility. Traffic management solutions offer real-time data to analyze and respond immediately to emergencies. ATMS can be immensely helpful in roadway hazards, detecting accidents during dangerous weather conditions, and creates a complete integrated outlook of overall traffic flow. These systems can be integrated with current traffic control solutions, which primarily help in reducing congestion and ensuring efficient use of road space. Countries worldwide are modifying their traffic management infrastructure to reduce increasing traffic congestion and this is expected to boost industry growth.

The cooperative vehicle system segment is anticipated to exhibit the highest CAGR of 14.7% over the forecast period. Cooperative vehicle systems allow vehicles to share information with other vehicles, roadside infrastructure, and sensors by using ad hoc networks to avoid accidents. V2X infrastructure allows transportation authorities to provide real-time information to travelers to avoid crowded routes and helps in reducing pollution. These solutions are used in connected cars to increase driver safety and provide dynamic traffic information. Stringent regulations to improve driver safety in developed markets of Europe and North America are expected to contribute to the growth of this segment.

Application Insights

The environment protection segment is expected to witness the highest CAGR of 18.3% from 2016 to 2024 owing to growing need to reduce airborne pollutants. ITS reduce the concentration of carbon dioxide and greenhouse gases in heavily populated zones through effective traffic management. North America emerged as the dominant regional market for ITS implementation in environment protection and this trend is expected to continue throughout the forecast period.

Global ITS market

The traffic management segment is expected to dominate the market over the coming years. Traffic management solutions enhance reliability and operation performance of road networks. They include vehicle detection systems, bridge traffic management systems, ramp metering systems, among others. Increasing traffic congestions result in fuel wastage, loss of 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.

Regional Insights

The Asia Pacific intelligent transportation system market is expected to exhibit the highest CAGR from 2016 to 2024. This growth can be attributed to increase in deployment of ITS in countries such as India, China, and Australia. For instance, the Chinese government is focusing on deployment of innovative transportation with emphasis on intelligent vehicles and intelligent transportation throughout the forecast period. In October 2015, the chairman of the ITS association announced that China will be investing USD 30 billion on ITS by 2020.

North America dominated the market in 2015 and accounted for USD 9.10 billion. Government initiatives along with promotional activities are likely to spur the ITS market in North America over the forecast period. The Intelligent Transportation Society of America (ITS America) is involved in research, development, and deployment of ITS to enhance surface transportation systems in U.S. Some of the 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.

Intelligent Transportation System Market Share Insights

Key industry players include Iteris Inc.; Kapsch TrafficCom AG; TomTom NV; Thales Group; Q-Free ASA; and Garmin International Inc. These companies offer a wide range of advanced transportation management products to a diversified customer base.

Market players are focusing on improving technology and compatibility of their products and services as well as using inorganic strategies such as acquisitions and collaborations to strengthen their presence in the market. For instance, in April 2016, Kapsch TrafficCom announced the completion of its acquisition of Schneider Electric’s transportation business. This has helped expand Kapsch’s portfolio and strengthen its position in ITSs in Spain, Latin America, North America, and Middle East.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2024

Market representation

Revenue in USD Million and CAGR from 2016 to 2024

Regional scope

North America, Europe, Asia Pacific, RoW (Rest of the World)

Country scope

U.S., Canada, U.K., Germany, France, Italy China, India, Japan,

Report coverage

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

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2024. For the purpose of this study, Grand View Research has segmented the global intelligent transportation system market report on the basis of type, application, and region:

  • Type Outlook (Revenue, USD Billion, 2014 - 2025)

    • ATIS

    • ATMS

    • ATPS

    • APTS

    • Cooperative vehicle systems

  • Application Outlook (Revenue, USD Billion, 2014 - 2024)

    • Traffic Management

    • Road Safety and Security

    • Freight Management (Commercial)

    • Public Transport

    • Environment Protection

    • Automotive Telematics

    • Parking Management

    • Road User Charging

  • Regional Outlook (Revenue, USD Billion, 2014 - 2024)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

      • France

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

    • Rest of the World (RoW)

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