The global intelligent transportation system (ITS) market size surpassed USD 34 billion in 2022 and is projected to hit around USD 65.33 Bn by 2032, expanding at a CAGR of 6.80% during the forecast period from 2023 to 2032. The Asia Pacific intelligent transportation system market size was estimated at USD 21.6 billion in 2022.
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The U.S. intelligent transportation system (ITS) market size reached USD 29.69 billion in 2022 and is expected to be worth around USD 13.90 Bn by 2032, growing at a CAGR of 6.80% from 2023 to 2032.
North America is the front-runner in the global intelligent transportation system market capturing nearly 43% of the total market revenue share in year 2022. This is mainly attributed to the significant investment done by the government in the region on research and development. Advancement in communication technology in the U.S. expected to boost the revolution in the transportation industry. Technologies such as advanced driver assistance, adaptive cruise control, parking management, advanced vehicle tracking system, and many others are facilitating drivers, freight operators, transit passengers, and transport authorities for communication between two vehicles.
However, continuous development in the communication sector along with rapid expansion in the transportation sector anticipated to flourish the market growth for intelligent transportation systems in the Asia Pacific region. China, Japan, India, and South Africa are some of the notable countries where intelligent transportation system adoption rate is very fast.
Increasing adoption of smart transport systems in order to reduce traffic congestion along with favorable government initiatives that support intelligent transport infrastructure cater the growth global intelligent transportation system market. In addition, the rising necessity for obtaining real-time information for improving the traffic management system by sharing required data with drivers and passengers also aid the growth of the ITS market.
Meanwhile, the ageing infrastructure, increasing number of vehicles on road, lack of proper traffic management system are some of the factors that contribute to the spontaneous growth of the market. A need to update the traffic management system has led to the rapid adoption of alternative technologies for managing traffic. Advanced and innovative data analytics technologies help transportation authorities to monitoring the rising traffic issue. This also helps in speedy response to emergencies and accidents with higher efficiency.
The sudden outbreak of COVID-19 has badly impacted several industries including automobile and transportation business too. This has slowed down the rate of automobile production. Further, by the preventive measures adopted by the government of various nations for controlling the spread of the deadly virus public transportation sector have suffered a lot. Thus, the rate of intelligent transportation system estimated to exhibit a decelerating rate during the COVID-19 times.
| Report Highlights | Details |
| Growth Rate from 2023 to 2032 | CAGR of 6.80% |
| Market Size in 2023 | USD 36.14 Billion |
| Market Size by 2032 | USD 65.33 Billion |
| Base Year | 2022 |
| Forecast Year | 2023 to 2032 |
| Segments Covered | Type, Application |
| Regional Scope | North America, Europe, Asia Pacific, Rest of the World |
| Companies Mentioned | Lanner Electronics, Hitachi Ltd., Kapsch TrafficCom, Denso Corporation, TomTom International BV, Siemens AG, Garmin International, Clever Devices Ltd., Nuance Communications |
Advanced Traffic Management System (ATMS) captured majority of market share nearly 33% in the year 2022. This is mainly because ATMS helps in detecting roadway hazards, dangerous weather condition, picturizes a complete integrated view of the traffic, and accidents. This allows speedy flow of the traffic. Additionally, ATMS also controls the traffic signals that contribute significantly in the congestion and also reduce the travelling time for passengers and drivers.
On the other hand, Advanced Public Transportation System (APTS) anticipated to exhibit the fastest growth over the projected timeframe. Some of the prime factors contributing towards the flourishing growth of the segment are enhanced visibility, rising number of passengers in public transports, increasing investment in real-time security and information system in order to provide real-time status to the drivers.
Traffic management segment captured the largest revenue share of the global intelligent transportation system market around 34% in the year 2022. This is mainly attributed to the benefits offered by the application. Traffic management systems comprises of bridge traffic management systems, vehicle detection system, and ramp metering systems among others. Increasing traffic congestion impact adversely on the development and socio-economic growth of a nation as it resulted in higher fuel consumption, more traffic time, and monetary losses. Henceforth, traffic management systems help governments to reduce financial burden.
On the other hand, automotive telematics anticipated to grow at the highest rate during the upcoming years owing to various regulations pertaining to security and safety of vehicle as well as passengers. Telematics tracking systems include activating and accessing of remote vehicles using radio frequency identification.
Moreover, a surge in the road traffic has significantly triggered the demand for parking management systems. Advanced parking management solution reduces the wastage of time as well as provides high convenience for vehicle owner. Further, the rapid transformation in the city life culture and increasing importance of smart city expected to propel the acceptance of parking management solutions.
Intelligent Transportation System Market is consolidated because of the presence of some major market players such as Hitachi Ltd., Siemens AG, Kapsch TrafficCom, and Lanner Electronics among others. These companies are benefited by their diverse product offering and technological advancement in the intelligent transportation systems industry that help them to capture large customer base. In addition, these companies invest significantly in their product enhancement and regional expansion to gain a competitive edge on the global level.
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 2020 to 2032. For the purpose of this study, Precedence Research has segmented the global Intelligent Transportation System Market report on the basis of type, application, and region:
By Mode of Transportation
By Maritime Roadway Offering,
By Roadway System Type
By Roadway Application
By Railway Offering
By Railway System Type
By Railway Application
By Airway Offering
By Airway System Type
By Airway Application
By Maritime Offering
By Maritime System Type
By Maritime Application
Regional Outlook
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