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The Intelligent Transport System (ITS) Market size is forecast to increase by USD 36.34 billion at a CAGR of 8.55% between 2023 and 2028. The intelligent transport system market is a rapidly growing industry that focuses on integrating advanced technologies into transportation systems for improved efficiency and safety. ITS solutions include traffic management, electronic toll collection, smart parking, and real-time traveler information systems. The growth rate of the market depends on several factors, including increasing traffic congestion and road accidents, the growing road freight logistics market, and growth in several smart connected devices. This market research and growth report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The market share growth by the traffic management segment will be significant during the forecast period. These solutions mainly include advanced traffic management systems (ATMS). ATMS solutions are used by government authorities and departments such as municipalities, government agencies, and state and regional governments. Growing congestion worldwide is increasing the demand for ATMS.
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The Traffic management segment showed a gradual increase in the market share of USD 15.86 billion in 2018. The market players operating in the transportation industry and travel service providers are increasing transportation costs because of the growing congestion. Health concerns regarding rising pollution levels because of traffic congestion and increased consumption of fuel are leading to economic losses. Several initiatives are expected to increase the demand for ITS and hence drive the growth of the market in focus during the forecast period.
The advanced traffic management system type segment of the global CMP equipment market is expected to grow at a significant rate. These systems ensure traffic safety, traffic flow, and mobility. These also provide real-time data for analysis and allow emergency services and first responders to respond quickly to emergencies. Various countries are making efforts to change their traffic management infrastructure to reduce traffic congestion. The incorporation of telematics solutions in vehicles will improve safety greatly. These services increase driver safety, reduce fuel consumption, improve driver behavior, and enable cost savings. With increased investment and advancements in traffic management infrastructure, the demand these systems is expected to increase and thereby drive the growth of the global market during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US is the key contributor to the market in the region. Major factors contributing to the market in the region are the increased adoption of ITS solutions by end-user industries, the shift from conventional transportation systems to intelligent transportation systems, growth in end-user industries, government initiatives for the implementation of ITS solutions, and the rising number of smart cities. In addition, other factors, such as the high socio-economic costs associated with growing traffic congestion, fuel the demand for ITS solutions.
The Global Intelligent Transport System (ITS) Market is witnessing substantial growth, driven by the pressing challenges of traffic congestion and road safety. Rapid urbanization and the increasing use of vehicles, particularly in emerging economies like India and China, are exacerbating traffic issues. This surge is mainly attributed to the expanding middle-class population and their rising disposable income, which is fueling automobile sales and urban development.
To address these challenges, government organizations in developing nations are deploying Intelligent Transportation Systems (ITS) solutions. These solutions leverage advanced technology such as sensors, automation, and connectivity to enhance traffic management efficiency. Moreover, the growing concerns over road safety are driving the demand for smart traffic solutions integrated with GPS and advanced data analysis software. Developing countries account for a significant portion of global road accidents, primarily due to inadequate infrastructure and inefficient traffic management systems.
Increased use of the meta-intelligence concept in transport systems is the key trend driving market growth. intelligent transport system (ITS) market players of ITS are incorporating the meta-intelligence concept into ITS to improve business efficiency and achieve business intelligence. They are integrating big data and IoT analytics into ITS to have full visibility over the business process for efficient decision-making. Organizations are looking to integrate sales, marketing, distribution, and customer service units to obtain business intelligence from the ITS network.
Moreover, the vendors operating in the application industry, especially in transportation and logistics, can optimize their processes by knowing the environmental and financial costs of every process. They can maximize the utilization of their facilities and adjust and anticipate capacity constraints by managing inbound and outbound appointments. The integration of meta-intelligence is expected to fuel the demand for ITS during the forecast period. The above-mentioned factors drive the demand for ITS across the world during the forecast period.
System integration and interoperability issues are the major challenges impeding market growth. Interoperability issues in the existing systems increase complexities and costs related to the deployment of ITS. The existing operational technology system lacks integrational capability and, hence, tends to work in isolation. There is a need for a fully functional digital workflow, which requires effective data sharing between machines and other systems from the various end-users of ITS.
Moreover, interconnection in an existing infrastructure complicates seamless interoperability among disparate systems in an organization. This leads to high replacement costs to achieve alignment with the latest technologies. For ITS to be truly effective and widely accepted across industries, seamless connectivity, and interoperability between products and applications need to be established. Interoperability, thus, hampers the adoption of ITS solutions.
This market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Intelligent Transport System (ITS) Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3M Co. - The company offers intelligent transport systems such as 3M Smart Transportation which provides real-time and automated traffic updates, journey time, and live congestion updates for important junctions.
Advantech Co. Ltd. - The company offers intelligent transport systems such as Advantech intelligent transportation systems that enable a range of applications such as traffic flow analysis, smart traffic management, violation detection, and driverless vehicles.
Airbus SE - The company offers an intelligent transport system for digitalization that promises to make the transport sector safer, more efficient, and more environmentally compatible with detailed monitoring and intelligent controlling under the brand Dornier Group.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Global Intelligent Transport System (ITS) Market is experiencing rapid development in transportation networks worldwide, with significant growth anticipated in the Asia Pacific region and the UAE. These systems are crucial for enhancing road safety and optimizing roadways and railways. Advanced technologies such as cameras, sensors, and GPS are key components driving automation and data collection for hardware-based solutions. The market offers substantial potential for investments and is witnessing increasing demand for Intelligent Traffic Systems (ITS) and Advanced Traffic Information Systems (ATIS) to address traffic congestion. With the integration of cars into the ITS ecosystem, the global intelligent traffic landscape is evolving rapidly to improve transportation efficiency and safety.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
Intelligent Transport System (ITS) Market Scope |
|
Report Coverage |
Details |
Page number |
105 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.55% |
Market growth 2024-2028 |
USD 36.34 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.39 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Advantech Co. Ltd., AECOM, Airbus SE, Axiomtek Co. Ltd., Constellation Software Inc., Cubic Corp., EFKON GmbH, Garmin Ltd., GMV Innovating Solutions SL, Hitachi Ltd., HR Green Inc., Indra Sistemas SA, Mundys S.p.A., Serco Group Plc, SICE TyS, Siemens AG, Stantec Inc., Sumitomo Electric Industries Ltd., Teledyne Technologies Inc., and Thales Group |
Market dynamics |
Market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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