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The intelligent traffic management (ITMS) market size is forecast to increase by USD 19.42 billion at a CAGR of 13.64% between 2023 and 2028. The Intelligent Traffic Management System (ITMS) market is experiencing significant growth due to the increasing demand for real-time data and AI-based smart traffic solutions. The wave in public transportation usage and the purchase of four-wheelers have led to increased road congestion, resulting in a need for efficient traffic management systems. ITMS plays a crucial role in responding to emergencies and improving travel time by optimizing signal controls and managing traffic flow. Smart city projects are also driving the market, with data storage facilities becoming essential for managing vast amounts of traffic data. However, challenges such as the lack of skilled professionals in government traffic organizations and the high cost of implementation hinder market growth. Overall, the ITMS market is expected to continue expanding as cities prioritize efficient transportation systems and smart infrastructure solutions.
The market is experiencing significant growth due to the increasing number of vehicles on the roads and the resulting insufficient infrastructure. The market's sales and installations are driven by major manufacturers supplying components for ITMS (Intelligent Transportation Management Systems) installation. In the post-pandemic era, the economic impact of traffic congestion and the need for cost reduction have become major factors. Smart mobility solutions, including telematics services, security, safety, driver behavior analysis, and carbon dioxide emissions reduction, are key product segments. Traffic management infrastructure, including telematics tracking systems, plays a crucial role in mitigating traffic congestion and addressing airborne pollutants.
However, project delays and the high cost of implementation can pose challenges. In emergencies, ITMS can help ensure safety and efficiency, making it an essential component of urban infrastructure development. Management bodies are increasingly recognizing the importance of ITMS in reducing traffic congestion and improving overall transportation efficiency.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The traffic monitoring segment is estimated to witness significant growth during the forecast period. In the post-pandemic era, the significance of intelligent traffic management systems has gained prominence due to their role in mitigating project delays and enhancing mobility in smart cities. Advanced technologies such as machine learning and data analytics are driving the growth of this market. Traffic monitoring is a crucial aspect of intelligent traffic management, enabling transportation authorities to optimize traffic flow, ensure road safety, and reduce carbon dioxide emissions and airborne pollutants. The high cost of developing new road infrastructure and the need for efficient utilization of existing infrastructure have further boosted the demand for intelligent traffic management solutions. By providing real-time traffic information, these systems help prevent congestion, minimize travel time, and improve overall transportation efficiency.
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The traffic monitoring segment accounted for USD 5.78 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 31% 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.
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In the post-pandemic era, the market is poised for significant growth, particularly in regions like North America, where traffic congestion and the need for improved mobility are major concerns. The US, being the largest contributor to the North American market, experiences annual losses of approximately USD300 billion due to traffic jams. These losses encompass both direct costs, such as fuel prices, and indirect costs, including delays in product deliveries. To mitigate these issues and enhance road safety, transportation authorities are increasingly turning to intelligent traffic management systems. These systems aim to optimize traffic flow, reduce carbon dioxide emissions, and minimize the release of airborne pollutants in smart cities. The primary market segments include advanced traffic management systems, adaptive traffic signal control systems, and intelligent transportation systems. The growing demand for these solutions underscores the importance of efficient transportation infrastructure in the modern world.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for AI-based smart traffic solutions is the key driver of the market. Intelligent Traffic Management Systems (ITMS) market is witnessing significant growth due to the implementation of AI-based smart traffic management solutions. These advanced systems enable real-time traffic information collection and analysis, ensuring efficient management of passengers and vehicles. Major manufacturers are supplying components for ITMS installations, including vehicle detection and identification systems at traffic junctions, which help authorities detect traffic rule violators and issue penalty receipts.
Furthermore, AI is utilized to analyze traffic data on specific roads, allowing authorities to formulate effective policies and assess infrastructure requirements. Additionally, AI-based unmanned railway crossings prevent accidents, as demonstrated by the unfortunate statistic of approximately 8,700 deaths due to unmanned railway crossings in India in 2020. The economic impact of ITMS is substantial, reducing the need for extensive paperwork and lowering the costs associated with managing traffic junctions.
Increase in the purchase of four-wheelers. is the upcoming trend in the market. The recovery of automobile sales in major markets such as the US, China, the EU, and Japan following the COVID-19 pandemic has led to an anticipated tide in demand for intelligent traffic management systems (ITMS). Real-time traffic information is crucial for managing the flow of passengers and vehicles efficiently, especially in cities with insufficient infrastructure. The economic impact of ITMS installation is significant, as it reduces congestion, enhances safety, and improves overall transportation efficiency. Major manufacturers are investing heavily in the supply of components for ITMS, including sensors, software, and communication systems.
The lack of skilled professionals in government traffic organizations is a key challenge affecting the market growth. Intelligent traffic management systems play a crucial role in providing real-time traffic information to passengers and vehicle operators, thereby improving overall road safety and efficiency. However, the insufficient infrastructure and supply of components required for ITMS installation pose challenges to market growth. Major manufacturers are investing heavily in research and development to address these issues and expand their sales and installations. The economic impact of intelligent traffic management systems is significant, as they help reduce congestion, enhance passenger experience, and optimize vehicle flow.
However, the high costs associated with hiring skilled professionals with IT and AI-related knowledge to operate these systems can hinder market growth during the forecast period. Government authorities recognize the importance of these systems and are increasingly investing in training programs to address the shortage of qualified personnel.
The market forecasting 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 market growth analysis strategies.
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.
Chevron Corp. - The company offers intelligent traffic management such as Low-Speed Traffic Management.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 Intelligent Traffic Management System (ITMS) market is witnessing significant growth due to the increasing demand for real-time traffic information among passengers and vehicle owners. The urban population's rapid growth and industrialization have led to insufficient infrastructure, resulting in traffic congestion, travel time delays, and increased carbon dioxide emissions and airborne pollutants. The market is segmented into ITMS installation, telematics tracking systems, and smart city applications. Major manufacturers are focusing on the supply of components for ITMS installation to meet the growing demand for smart mobility solutions. The economic impact of traffic congestion and the need for road safety and mobility have led transportation authorities to invest in ITMS for mitigating traffic flow issues.
Further, the post-pandemic era has accelerated the adoption of ITMS for managing traffic congestion, responding to emergencies, and improving transport capacity effectiveness. The implementation of ITMS includes the use of communication technologies, telematics services, signal controls, and vehicle-borne sensors. The market for ITMS is expected to grow due to the increasing demand for eco-driving, cost reduction, and driver behavior analysis. Smart city projects are also driving the market's growth, with municipalities investing in data storage facilities and sensors for traffic monitoring systems. The market's future growth is expected to be driven by the need for real-time data exchange, driver assistance consoles, and navigational control.
Market Scope |
|
Report Coverage |
Details |
Page number |
188 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.64% |
Market Growth 2024-2028 |
USD 19.42 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.73 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 31% |
Key countries |
US, China, UK, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Chevron Corp., Cisco Systems Inc., Cubic Corp., Huawei Technologies Co. Ltd., INRIX Inc., International Business Machines Corp., Kapsch TrafficCom AG, Light Crossing Technology Corp., PTV Planung Transport Verkehr AG, Q Free ASA, Rekor Systems Inc., Roper Technologies Inc., Siemens AG, SNC Lavalin Group Inc., SWARCO AG, TagMaster AB, Teledyne Technologies Inc., Telegra d.o.o., Thales Group, and TomTom NV |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, 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 Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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