The global intelligent transportation system market size was valued at USD 20.94 billion in 2015. ITS is a combination of communication and information technology with transportation infrastructure which increases the efficiency of transport process and improves passenger safety. An efficient transportation system has a positive impact on the low number of road accidents, reduction in exhaust emissions and less travel time.
Global ITS market by region, 2014 - 2024 (USD Million)
Such systems provide convenience to travelers whether driving a vehicle individually or using public transport. The demand for integrated mobile systems in public transit has been on the rise due to concerns of public security. Modern transportation service providers are pursuing versatile vehicle computing systems integrating mobile surveillance, tracking and monitoring to ensure the safety of their passengers and simplify implementation processes. Countries such as France and India are focusing on implementation of these systems owing to rising demand for improved traffic conditions and travel comfort for pedestrians as well as drivers.
The utilization of real-time information to facilitate better decisions along with the need for traffic management centers will enable users to respond efficiently, thereby increasing the demand for intelligent transportation systems. The industry players are focusing on enhancing the capability and technology of their products and services owing to the presence of a large number of competitors. For instance, in July 2016, NXP Semiconductors N.V. and eSSys announced technology partnership in next-generation Cooperative Intelligent Transportation System (C-ITS) project proposed by Korean Ministry of Land, Infrastructure and Transport.
The cooperative vehicle system is expected to be the fastest-growing segment growing at a CAGR of 14.7% from 2016 to 2024. This growth attributes the demand for a technical solution, which will allow all infrastructure elements and vehicles to communicate with each other. The increasing need to improve the energy efficiency of vehicles by reducing the pollutant emission is providing traction to the growth.
Various projects such as the Cooperative Vehicle-Infrastructure Systems (CVIS) are undertaken to design and develop the technologies, which requires the vehicle to communicate with each other and with the roadside infrastructure.
Environment protection segment was valued at USD 546.6 million in 2015. This segment is expected to witness fastest growth owing to the need for reducing exhaust emissions. It 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.
Traffic management accounted for over 30.5% of the overall revenue in 2015. These solutions are used to improve road networks by reducing the financial burden on regulatory authorities as it decreases investment required to enforce traffic congestion control.
Asia Pacific accounted for over 23% revenue share in 2015 and is anticipated to be the fastest growing region owing to the implementation of ITS in India, Australia, and Hong Kong. Government regulations and standards for ITS to deploy self-driving autonomous cars is boosting the demand for these systems in the region. For instance, in the Republic of Korea, the deployment of ITS has increased the average traffic speed by 20%.
North America dominated the market in 2015 owing to the impelling demand from private and public sector in the U.S. Government initiatives and deployment of safety technologies in commercial vehicles has increased the consumer base over past few years.
Key industry competitors include Kapsch TrafficCom AG, Iteris Inc., Thales Group, TomTom NV, Garmin International Inc. and Q-Free ASA. Product development along with mergers and acquisitions are the key strategies followed by industry players. For instance, Agero Inc. announced a partnership with Cambridge Mobile Telematics to develop real-time accident management solutions.
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