Global Intelligent Transportation System Market Size, Share & Trends Analysis Report, By Type, By Region Forecasts, 2024-2032

Global Intelligent Transportation System Market Size, Share & Trends Analysis Report, By Type, By Region Forecasts, 2024-2032

The market for intelligent transportation systems was estimated to be worth US$22.91 billion in 2023 and is projected to rise at a compound annual growth rate (CAGR) of 9.34% to reach US$42.80 billion by 2032.

The markets for new transport technologies, the creation of smart cities, and the requirements for efficient urban mobility management are currently seeing rapid expansion.

Traffic jams cause significant declines in global economic production for many countries, making them a daily source of concern. The primary impediments to the expansion of the infrastructure and the growing number of cars continue to be those of money and space. Currently, a number of nations are implementing innovative wireless communication safety systems as part of intelligent transportation system initiatives to reduce traffic jams and avoid collisions involving vehicles. Similar goals are shared by automated vehicle systems, wireless devices, traffic lights, electronic toll collection systems, and pedestrian safety systems.

The government is involved in the introduction of new technologies to the nation as well as the implementation of ITS. The environment is negatively impacted by traffic congestion. There are numerous immediate benefits to implementing an intelligent transportation system in terms of mobility, security, and environmental safety. Additionally, there's a connection between the combination of these technologies and the traffic jams you encounter on your way home during rush hour. By using less oil when the car is stopped in traffic, it also increases the efficiency of the vehicle. In addition, nations utilise these facilities to prevent economic downturns and lower air pollution. It's also important to highlight that passenger comfort on transit and the number of fatalities on highways have declined. All components linked to transport infrastructures are integrated through these systems, serving a multitude of user objectives. When the time comes for automated and networked automobiles, those nations who implement Intelligent Transportation Systems (ITS) will reap more advantages than others.

“Advanced Traffic Management System segment, by type, is expected to be dominating market from 2023 to 2030.”

It is projected that the advanced traffic management system (ATMS) segment will maintain a leading position over the course of the forecast period. The market growth of this market segment is expected to be stimulated by decreased traffic congestion, the development of smart infrastructure by the regional department of transportation, increased government investment in this industry, and the integration of cutting-edge technologies into the system to guarantee safe and effective commutes. Over the course of the forecast period, it is projected that growing bus route planning and structure development in several countries will favourably impact the advanced public transportation system (APTS) segment's growth in the ITA market. Throughout the course of the forecast period, it is projected that the advanced traveller information system (ATIS) sector will see robust growth due to the use of gadgets to obtain information on weather conditions and other modes of transportation. The advanced transport pricing system (ATPS) sector of the market is expected to increase steadily during the estimated period of time. The growing deployment of e-toll collection centres across many nations is driving the expansion of this market segment.

“Manufacturing segment, by end-use, is expected to be dominating market from 2023 to 2030.”

In 2023, the manufacturing sector achieved a market share of 18%, and it is anticipated to maintain its leading position for the duration of the projection period. Industry 4.0 has led to a significant increase in the use of IoT technology in discrete and continuous manufacturing processes. This technology helps to maximise efficiency, minimise downtime, and enable real-time data-driven decisions, all of which help to improve profitability and reduce costs at a rapid rate of return. Furthermore, it is anticipated that the manufacturing industry would quickly adopt digital manufacturing, with IoT supporting this technology's critical role in propelling market expansion.

“Asia Pacific is expected to be largest region in intelligent transportation systems market.”

Asia-Pacific already accounts for a sizeable portion of the worldwide market, and this region is expected to continue playing a significant role in the sector going forward. It is crucial to remember that China is the second-most-invested country in the world, behind the United States, among those with significant ITS roll-out expenditures. Because of this, South Korea is leading the aforementioned region in terms of significant financial support for the implementation of ITS.

Europe's market is anticipated to rise strongly throughout the course of the forecast. United Kingdom sets the standard for significant integration of ITS for domestic public transport. Furthermore, the expansion of this sector is aided by other European nations.

The market in North America will keep expanding unabatedly due to Canada's slow adoption of the ITS. The United States is the main driver of regional growth, thanks to the passage of the FAST Act, the quick uptake of contemporary technologies, and the general government commitment to smart city development efforts. Furthermore, there are great hopes for the market's growth in this region, where nations like Mexico and Brazil provide assistance with implementation or with the creation of jobs.

Intelligent transportation systems Competitive Landscape

The competitive landscape of the Intelligent transportation systems market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Intelligent transportation systems technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Intelligent transportation systems market is highly competitive, with numerous companies vying for market share. Prominent companies in the Advanced Manufacturing Market include:

Denso Corporation (Kariya, Aichi, Japan), Hitachi, Ltd. (Chiyoda City, Tokyo, Japan), Siemens AG (Munich, Germany), EFKON GmbH (Raaba, Austria), Thales Group (Paris, France), Q-Free ASA (Trondheim, Norway), Kapsch TrafficCom AG (Vienna, Austria), Lanner Inc. (New Taipei City, Taiwan), Cubic Corporation (San Diego, U.S.), Garmin (Olathe, U.S.) and others.

Recent Developments:

January 2020: Qualcomm Technologies and Denso Corporation are working together to build the next generation of navigation systems. With the introduction of this system, it should be easier to use in-car infotainment systems.

May 2021: Intel and renowned technology services provider L&T collaborated to create an artificial intelligence-powered intelligent parking advice system. Using AI-enabled surveillance, this solution provides operators with augmented video analytics to track occupancy in outdoor public places including stadiums, airports, office campuses, and retail malls in real time—all without the need for sensors.