Middle East & Africa Intelligent Transportation Market Outlook, 2029

Middle East & Africa Intelligent Transportation Market Outlook, 2029

The MEA region's cities are seeing rapid urbanisation and population increases, which is driving up the need for effective transport infrastructure. The demand for ways to reduce traffic, increase mobility, and upgrade transportation infrastructure is growing as more people migrate into cities. Smart city initiatives are gaining momentum in the MEA region, with governments and municipalities deploying ITS solutions to create more livable, sustainable, and efficient urban environments. ITS technologies play a key role in smart city initiatives by enabling integrated transportation management, real-time data analytics, and citizen-centric services. Many cities in the MEA region face significant traffic congestion and infrastructure challenges, including inadequate road networks, outdated transportation systems, and limited public transit options. ITS solutions offer opportunities to address these challenges by optimising traffic flow, reducing congestion, and improving the overall efficiency of transportation networks. Furthermore, the MEA area, which connects several nations and regions through vast networks of ports, airports, and roads, is a key centre for commerce and transportation logistics. By optimising goods movement, cutting transit times, and lowering transportation costs, ITS systems help organisations become more competitive, optimise logistics operations, and increase supply chain efficiency. As well, the governments in the MEA region are investing heavily in transportation infrastructure and ITS projects as part of their efforts to modernise cities, improve transportation efficiency, and enhance economic competitiveness. These investments include the development of smart cities, intelligent transportation networks, and sustainable mobility solutions.

According to the research report ""Middle East and Africa Intelligent Transportation System Market Outlook, 2029,"" published by Bonafide Research, the Middle East and Africa Intelligent Transportation System market is expected to reach a market size of more than USD 3 Billion by 2029. In many of the cities in the MEA area, traffic congestion is a serious problem that increases travel times, fuel use, and pollution. Intelligent traffic management systems, dynamic route advice, and real-time traffic monitoring are a few examples of ITS solutions that help to optimise traffic flow, lessen congestion, and increase overall transportation efficiency. The MEA region is a major hub for international trade and logistics, with significant volumes of goods transported through ports, airports, and land routes. ITS solutions, such as freight management systems, cargo tracking, and intelligent supply chain logistics, help streamline logistics operations, improve freight efficiency, and enhance trade competitiveness. Environmental sustainability is becoming increasingly important in the MEA region, with growing awareness of climate change and air quality issues. ITS solutions, such as eco-friendly transportation modes, electric vehicle infrastructure, and emissions monitoring systems, support environmental goals by promoting sustainable transportation options and reducing carbon emissions. Furthermore, road safety is a priority in the MEA region due to the high rates of traffic accidents and fatalities. ITS technologies, such as intelligent speed management systems, automatic emergency braking, and vehicle-to-infrastructure communication, enhance road safety by detecting hazards, enforcing traffic laws, and providing real-time alerts to drivers and authorities.

Market Drivers

• Smart City Initiatives: Smart City initiatives in the Middle East and Africa stimulate the use of Intelligent Transport Systems (ITS) by endorsing technologically advanced, integrated solutions that optimise urban transportation and elevate the standard of living for inhabitants. In order to maximise transportation efficiency, lessen congestion, and improve connectivity within metropolitan regions, smart city initiatives make use of ITS technology, such as integrated public transit networks, real-time traffic monitoring, and smart traffic control systems. Smart City programmes integrate transit with other urban services and infrastructure, such as electricity, water, and public safety, to make cities more resilient, sustainable, and habitable.

• Logistics and Trade: Because they make it easier for products and services to travel across the vast transportation networks across the Middle East and Africa, commerce and logistics are key factors in the development of intelligent transportation systems (ITS) in these regions. Intelligent Transportation Systems (ITS) solutions, such as cargo management systems, tracking systems, and intelligent supply chain logistics, increase trade competitiveness, optimise freight transportation operations, and improve supply chain efficiency. The logistics and commerce sector fuels the demand for creative transportation solutions to promote regional integration initiatives and economic growth by using ITS technology to expedite logistical operations, shorten transit times, and improve cargo visibility and security.

Market Challenges

• Interoperability and Standardisation: The absence of standardisation and compatibility across ITS systems and technologies is one of the major issues confronting the Middle East and Africa (MEA) ITS sector. Proprietary technology, communication protocols, and data formats may be used by many nations, regions, and stakeholders; this might result in dispersed ITS installations and compatibility problems. This lack of interoperability impedes the smooth functioning and efficacy of international transport networks by making it difficult to integrate and transfer data between various ITS systems. For ITS stakeholders in the MEA area to collaborate, communicate, and share data seamlessly, common standards and interoperability frameworks have to be established.

• Capacity Building and Skills Shortages: The absence of qualified workers and measures to increase capacity is another difficulty for the MEA IT sector. The development, installation, and maintenance of ITS solutions are hampered by a lack of trained experts, poor training programmes, and limited technical experience. In order to properly implement and run ITS systems, transportation professionals need to be equipped with the skills and knowledge that come with training and capacity development programmes. Governments, universities, businesses, and international organisations must work together to close the skills gap and provide the infrastructure required to support the MEA region's ITS market's expansion.

Based on the type, they are segmented into Advanced Traffic Management Systems (ATMS), Advanced Traveller Information Systems (ATIS), Advanced Transportation Pricing Systems (ATPS), Advanced Public Transportation Systems (APTS), Emergency Medical Systems (EMS), Commercial Vehicle Operation (CVO), and Automatic Number Plate Recognition (ANPR).

In the region, Advanced Transportation Pricing Systems (ATPS) significantly contribute to the market. In MEA cities, population expansion and rapid urbanisation have raised the need for effective public transit options. Innovative solutions to urban mobility problems, including air pollution, traffic congestion, and limited accessibility, are provided by APTS technology. Governments in the MEA region are investing in the development and modernization of public transportation infrastructure as part of their efforts to promote sustainable urban development and improve quality of life. APTS projects receive significant funding and support from governments and international organisations to enhance public transportation systems. Many cities in the MEA region are implementing smart city initiatives that prioritise the integration of technology and data-driven approaches to improve urban mobility. APTS solutions play a crucial role in Smart City projects by providing real-time passenger information, intelligent route planning, and integrated fare payment systems to enhance the efficiency and accessibility of public transportation services. ATPS facilitates better use of transport infrastructure by more effectively controlling capacity and demand. ATPS ensures that transportation infrastructure is used more efficiently by maximising the throughput of the MEA region's current highways and transportation networks, minimising bottlenecks, and enhancing traffic flow. It does this by dynamically altering tolls or taxes according to traffic circumstances.

In terms of mode of transportation, they are bifurcated into roads, railways, airlines, and marine. In terms of components, they are segmented into hardware, software, and services.

In the region, Airways significantly contributes to the market. The demand for air travel is developing quickly in the MEA area due to reasons including rising corporate travel, growing disposable income, and a burgeoning tourist industry. Consequently, there is an increasing demand for sophisticated Intelligent Transportation Systems (ITS) to maximise air traffic control, elevate airport operations, and elevate the entire traveller experience. Many countries in the MEA region are investing in the expansion and modernization of their airport infrastructure to accommodate the growing demand for air travel. ITS technologies such as advanced air traffic control systems, airport management software, and passenger processing solutions play a crucial role in enhancing airport capacity, efficiency, and safety. Safety and security are top priorities for aviation authorities in the MEA region. ITS solutions help enhance safety and security at airports and in airspace by providing real-time monitoring of air traffic, detecting potential threats, and improving coordination among air traffic control agencies, airlines, and airport security personnel. Furthermore, the services contribute to the market; outsourcing ITS services can be cost-effective for organisations in the MEA region as it eliminates the need for upfront investments in technology infrastructure, equipment, and personnel. Service providers offer flexible pricing models, such as subscription-based or pay-per-use arrangements, allowing clients to scale their ITS initiatives according to their budget and requirements.

Based on the report, the major countries covered include the UAE, Saudi Arabia, South Africa, and the rest of the Middle East and Africa.

The United Arab Emirates has made significant expenditures on public transport, roads, and smart city projects. The nation's dedication to developing its infrastructure has made it possible to apply ITS technologies to improve the sustainability, safety, and efficiency of transportation. The UAE is at the forefront of smart city initiatives, with cities like Dubai and Abu Dhabi leading the way in implementing innovative technologies to improve urban mobility. Smart City projects in the UAE incorporate ITS solutions such as intelligent traffic management systems, real-time monitoring, and smart transportation networks to optimise traffic flow, reduce congestion, and enhance the overall quality of life for residents and visitors. The UAE government has demonstrated strong support for ITS deployment through policies, incentives, and partnerships with private sector companies. Initiatives such as the Dubai Autonomous Transportation Strategy aim to transform Dubai into the smartest city in the world by leveraging advanced technologies, including autonomous vehicles, drones, and smart mobility solutions. The UAE's strategic location as a major transportation hub in the MEA region makes it an ideal market for its deployment. With its extensive air, sea, and land transportation networks, the UAE serves as a gateway for international trade and travel, driving the demand for advanced ITS solutions to support the efficient movement of people and goods.

The key companies are collaborating with expert ITS companies for design and product development. They are also developing advanced products for hassle-free and better service. Furthermore, many small enterprises are also working with the government to provide better transportation services. At present, many small market companies are also great players withholding substantial intelligent transportation system market share. The dominance of the key players is also current owing to the provision of advanced and developed products. Key companies leading the market are Denso, Siemens Ag, EFKON GmbH, and Hitachi, among other prominent players.

Recent Developments

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Intelligent Transportation market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Advanced Traffic Management Systems (ATMS)
• Advanced Traveller Information Systems (ATIS)
• Advanced Transportation Pricing Systems (ATPS)
• Advanced Public Transportation Systems (APTS)
• Emergency Medical Systems (EMS)
• Commercial Vehicle Operation (CVO)
• Automatic Number Plate Recognition (ANPR)

By Mode of Transportation
• Roadways (Traffic management, Road safety, Parking management, Freight management, Automotive Telematics, Others (Ticketing Management, Emergency Vehicle Notification, Environment Protection, etc.)
• Railways (Rail-running Operation and Collision Avoidance, Passenger Information Management, Smart Ticketing, Security Surveillance, Emergency Notification, Others)
• Airways (Security & Surveillance, Shuttle Bus Tracking, Traveller Information Management, Smart Ticketing, Aircraft Management, Emergency Notification, Others)
• Marine (Freight Arrival & Transit, Real-time Weather Information Tracking, Container Movement Scheduling, Emergency Notification, Others)

By Component
• Hardware (Interface Boards, Sensors, Surveillance Cameras, Telecommunication Networks, Monitoring and Detection Systems, Others (Linked traffic controller & Variable message signboard))
• Software (Visualization Software, Video Detection Management Software, Transit Management Software, Others)
• Services (Business and Cloud Services and Support and Maintenance Services)

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Intelligent Transportation industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.
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