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The intelligent transport system (ITS) market is estimated to grow at a CAGR of 8.49% between 2022 and 2027. The size of the market is forecast to increase by USD 33.39 billion. The growth of the market depends on several factors, including increasing traffic congestion and road accidents, the growing road freight logistics market, and the growth in the number of smart connected devices.
This report extensively covers market segmentation by application (traffic management, toll management, automotive and infotainment telematics, public transport, and others), type (advanced traffic management system, advanced public transportation system, advanced transportation pricing system, advanced traveler information system, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 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.
The increasing traffic congestion and road accidents are notably driving the intelligent transport systems market growth. Growing urbanization and the ever-rising use of automobiles, primarily because of the rising middle-class population and their increasing disposable income, are intensifying traffic congestion. These factors are more prevalent in developing countries such as India and China than in developed countries. Increased disposable income is fueling automobile sales and urbanization in developing countries. Government organizations in developing countries implement ITS solutions such as congestion charging, road user charging, and electronic toll collection to control traffic congestion.
Improper traffic management, especially in developing regions, is another major factor for the increasing traffic congestion and rising number of road accidents. With the increasing number of road accidents, the demand for smart traffic management systems (part of ITS solutions) is rising. Developing countries account for 93% of the total road accidents across the world. Inadequate law enforcement, unsafe road infrastructure, and improper traffic management are the key reasons for road accidents in these countries. The abovementioned factors drive the demand for ITS across the world.
Increased use of the meta-intelligence concept in transport systems is the key trend the driving intelligent transport systems market growth. Vendors 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.
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.
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.
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.
The report includes the adoption lifecycle of the intelligent transport systems 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
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the intelligent transport systems market.
Stantec - The company offers intelligent transport systems such as Optics and Automated Freight. The company operates under multiple segments including building, energy and resources, water, and infrastructure. Through the buildings segment, the company offers services for the construction of buildings. Through the energy and resources segment, the company generates geothermal energy.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Based on application, the market is segmented into traffic management, toll management, automotive and infotainment telematics, public transport, and others. The market share growth by the traffic management segment will be significant during the forecast period. Traffic management is the largest contributing segment in the global market. It is expected to grow at a steady rate during the forecast period. Traffic management ITS 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 traffic congestion worldwide is increasing the demand for ATMS. A key factor responsible for growing traffic congestion and growing demand for ATMS is the rising number of automobiles across the world.
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The traffic management segment shows a gradual increase in the market share of USD 13.18 billion in 2017 and continued to grow by 2021. Players operating in the transportation industry and travel service providers are increasing transportation costs because of the growing traffic congestion. Health concerns regarding rising pollution levels because of traffic congestion and increased consumption of fuel are leading to economic losses. For example, in Europe, the cost of transporting goods is increasing by 0.9% on a day-to-day basis because of traffic congestion.
Therefore, many European countries, including France, the UK, and Spain, are investing in ITS for traffic management. Developing countries such as India and China are rapidly adopting ITS for traffic management. The innovative solutions developed under this project help authorities manage traffic congestion efficiently and smartly. Initiatives such as these are expected to drive the growth of the intelligent transport systems market focus during the forecast period.
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APAC is projected to contribute 33% by 2023. Another region offering significant growth opportunities to vendors in North America. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the intelligent transport systems market during the forecast period.
The market in North America is expected to grow at a steady rate during the forecast period. The US is the key 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. The focus of the government on the use of ITS solutions is expected to contribute to the overall demand for ITS solutions in North America. Start-up culture in North America, especially in the US, is expected to fuel the number of end-user industries, which will fuel the demand for ITS solutions.
The outbreak of COVID-19 negatively affected the regional market in 2020 due to nationwide lockdowns and disruptions in the supply chain. However, in 2021, the regional market witnessed recovery as the stimulus package was provided by the governments of several countries to businesses for infrastructure development activities. In Q2 2021, strict safety norms were followed, and large-scale governmental vaccination drives were organized. This led to the resumption of manufacturing operations in the ITS market. The market was on a recovery path in Q3 2021, which is expected to continue during the forecast period.
North America ITS market - The market share will grow at a CAGR of 6.49%, in terms of revenue, during 2014-2019.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by application, type, and region.
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Intelligent Transport System (ITS) Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.49% |
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Market growth 2023-2027 |
USD 33.39 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
6.89 |
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Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
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Performing market contribution |
APAC at 33% |
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Key countries |
US, Japan, China, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
3M Co., Advantech Co. Ltd., AECOM, Atlantia SPA, Axiomtek Co. Ltd., Cubic Corp., Dornier Group GmbH, EFKON GmbH, GMV Innovating Solutions SL, Hitachi Ltd., HNTB Co., HR Green Inc., Indra Sistemas SA, Kapsch TrafficCom AG, Serco Group Plc, SICE TyS, Siemens AG, Stantec Inc., Sumitomo Electric Industries Ltd., Teledyne FLIR LLC, Thales, and Trapeze Software ULC |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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