Intelligent Transportation System (ITS) Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the intelligent transportation system market was valued at USD 35.9 billion in 2022, and a CAGR of 14.1% is expected during the forecast period. Growing rapid urbanization is driving significant growth in traffic congestion. Influence in ITS solutions in such cases enhances the growth in the intelligent transportation system market. Cybersecurity solutions for ITS infrastructure are driving growth in the market.

The role of artificial intelligence is driving the demand in intelligent transportation system markets. The growing number of vehicles on the road is creating traffic congestion and is indirectly driving the growth in the market. Enhancing the transportation networks and technological innovations are driving growth in the market.

Growth Drivers

Smart city establishments and the growing prevalence of road accidents are driving growth in the market significantly. Rising disposable income and increasing urbanization are driving growth in the market significantly. Increasing investment by the government in road transport and management systems, along with technological acquisition, is the key driver in the market. Growing smart city projects and rising autonomous vehicles are driving growth in the market. Emerging smart city consideration is driving growth in the market. The requirement for skilled professionals and technicians is driving growth in the market. Extreme traffic discipline all over the world is driving growth in the market. The efficiency of traffic congestion management using ITS solutions depicts the segment's popularity.

Innovations in technology such as IoT, AI, and ITS solutions to manage and reduce ITS solutions. Growing concerns about road safety and security push the adoption of ITS solutions like automated traffic management systems and vehicle-to-everything communication. ITS helps in reducing vehicle emissions and fuel consumption by optimizing traffic flow and reducing idle time, addressing environmental and sustainability goals. The rise of smart city projects worldwide includes integrating ITS to enhance urban mobility and infrastructure efficiency. Growth in autonomous and connected vehicles is driving the need for ITS infrastructure to enhance urban mobility and infrastructure efficiency. The growth is connected, and autonomous vehicles are driving the need for ITS infrastructure to support these technologies and ensure their effective integration into existing transportation systems.

Segmentation

By Application

·         Roadways

·         Railways

·         Airways

·         Seaways/Marine

By Systems

·         Intelligent Traffic Management Systems

·         Traffic Enforcement Systems

·         Vehicle Tracking Systems

·         Passenger Information Systems

·         Emergency Vehicle Warning System

·         Smart Packing Systems

·         Vessel Tracking Systems

·         Others

Regional Outlook

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

·         Asia Pacific

Intelligent Transportation Systems Market by Application Segmentation

On the basis of the application, the intelligent transportation systems market is segmented into roads, airlines, seaways, and marine. Roadways is the leading segment and is expected to dominate during the forecast period. This is largely due to the widespread adoption of ITS technologies for managing traffic, enhancing road safety, and improving efficiency in road transport. Roadway ITS applications include traffic management systems, vehicle-to-everything communication, and smart traffic signals. While airways, seaways, and marine signals are also growing, the roadway sector generally holds the largest market share due to its extensive infrastructure and significant investment in smart transportation solutions.

Roadways basically lead the market because road networks handle the majority of transportation activities, including personal vehicles, commercial trucks, and public transportation. High volume drives significant demand for ITS solutions to manage and optimize traffic flow. Roadways systems require sophisticated traffic management to address issues like congestion, accidents, and emissions. ITS technologies like adaptive traffic management to address issues like congestion accidents and emissions. ITS technologies like adaptive traffic signals, congestion management systems, and real-time traffic monitoring are essential for these purposes.

Roadways provide abundant data through sensors and cameras, which is useful to improve traffic patterns and inform infrastructure planning. Airways, Seaways, and Marine are the leading segment in the market after roadways because these sectors involve complex operations and logistics that benefit greatly from ITS solutions. ITS technologies enhance safety and operational efficiency in these sectors. In aviation, systems like air traffic control and collision avoidance systems are crucial. In maritime transport, technologies such as automation identification systems and radar improve navigation and collision avoidance.

 Regional Outlook

On the basis of the regions, the Intelligent Transportation Systems market is segmented into 5 parts: Asia Pacific, North America, Middle East and Africa, Europe, and Latin America. North America is the leading segment in the market due to increasing awareness among the people about better transportation systems, and betterment in road infrastructure is driving growth in the market significantly. Advancement in technology and increasing growth in artificial intelligence are driving growth in the market significantly. US and Canada are prominent contributors due to their investment in smart traffic management, connected vehicles, and autonomous driving technologies.

Asia Pacific is another leading region due to increasing urbanization and industrialization in the market. Emerging economies are witnessing significant growth in the market due to increasing awareness among the people about better transportation systems. Countries like China, Japan, and South Korea are witnessing significant growth in the market. The region is experiencing rapid growth in the ITS market due to heavy investment in smart transportation solutions, smart cities, and vehicles-to-everything communication technology. Europe is also a key market in ITS, with a focus on sustainable transportation and smart mobility solutions. European Union policies on reducing emissions and improving traffic efficiency in countries like Germany, France, Spain, England, and Holland are the leading markets.

Overall, North America leads in technology adoption and innovation. Asia Pacific is growing rapidly due to large-scale infrastructure projects. Europe is focusing on sustainability and smart mobility. Increasing regulatory requirements for safety and environmental standards in the aviation and maritime sectors drive the adoption of ITS technologies. Integration of advanced technologies such as satellite navigation, data analytics, and automation into airways and seaways enhances operational capabilities and decision-making processes. Expansion of global trade has demanded the need for effective ITS management solutions in the market significantly.

 Key Players

·         Thales Group AD

·         Siemens AG

·         Garmin Ltd.

·         Kapsch Traficcom

·         Tomtom International BV

·         Denso Corporation

·         Savari Inc.

·         Lanner Electronics Inc.

·         Ricardo Plc

·         Efkon AG

·         Atkins Group

·         Q-FREE ASA

·         Others