Intelligent Transportation System Market Size, Share, Opportunities, And Trends By Type (ATMS (Advanced Traffic Management System), ATIS (Advanced Traffic Information System), APTS (Advanced Public Transportation System), ITS-enabled Transportation Pricing System, Commercial Vehicle Operation), By Application (Collision Avoidance System, Traffic Monitoring, Parking Availability, Traffic Signal Control System, Fleet Management & Asset Monitoring, Others), And By Geography - Forecasts From 2023 To 2028

The global intelligent transportation system market is expected to grow at a CAGR of 8.42% from US$37.917 billion in 2021 to reach a market size of US$66.780 billion in 2028.

As urbanization continues to grow and the number of vehicles on the road increases, traffic congestion has become a significant problem in many cities. ITS systems can help to reduce traffic congestion by optimizing traffic flow and reducing travel times. This is particularly important in densely populated areas where traffic congestion is a major problem.

The rapid advancement in artificial intelligence, machine learning, and the Internet of Things (IoT) are enabling the development of more sophisticated and effective ITS systems. These technologies are allowing ITS systems to collect and analyse data in real-time, providing users with more accurate and up-to-date information about traffic conditions and travel times. For instance, in 2020, Bosch, a German multinational engineering and technology company, announced the launch of its new Community-Based Parking (CBP) system, which uses real-time data from connected vehicles to provide drivers with information about available parking spaces. Also, in 2020, Siemens, a German multinational conglomerate, announced the launch of its new Advanced Traffic Controller (ATC) system, which uses artificial intelligence and machine learning algorithms to improve traffic flow and reduce congestion.

Moreover, urbanization is also driving the growth of the intelligent transportation system market. As urban populations grow, so does the number of vehicles on the roads, leading to increased congestion and longer travel times. ITS solutions can help manage traffic flow, optimize signal timings, and provide real-time information to travelers to reduce congestion and improve mobility. With more people living in urban areas, there is an increasing demand for public transportation systems that are efficient, reliable, and accessible. For instance, in 2020, Siemens Mobility launched a new traffic management system called Sitraffic ESCoS. The system uses artificial intelligence (AI) algorithms to optimize traffic flow in real-time and reduce congestion.

Additionally, government initiatives play a critical role in driving the growth of the Intelligent Transportation System (ITS) market.

Governments often provide funding for ITS projects, either directly or through grants and subsidies. This funding helps spur innovation and accelerate the development and deployment of ITS solutions. Many governments are focused on reducing the environmental impact of transportation and promoting sustainable modes of transportation, such as public transit or electric vehicles. ITS solutions, such as traffic management systems that prioritize sustainable transportation modes, can help governments achieve their sustainability goals. For instance, in the US, the Federal Highway Administration (FHWA) has established the Advanced Transportation and Congestion Management Technologies Deployment (ATCMTD) program. The program provides funding to state and local governments for the deployment of ITS technologies that address congestion and other transportation challenges. In 2021, the FHWA awarded over US$60 million in grants to support 25 ITS projects across the country, including projects focused on traffic management, connected and automated vehicles, and transportation system resilience.

Key Developments:

• In March 2023, Daimler Buses introduced the Setra MultiClass 500 LE, a newly developed touring coach, shortly after the launch of the latest versions of the Setra ComfortClass 500 and TopClass 500 models.
• In December 2022, Honda Motor Co revealed the latest iterations of its safety and driver-assistive technologies, called Honda Sensing 360. The Honda Sensing 360 system provides all-around safety by eliminating blind spots around the vehicle, helping to prevent collisions and reduce driver fatigue. It offers new features to decrease driver stress, such as identifying unusual conditions that could cause accidents and taking preventive measures to avoid them by monitoring the driver and vehicle's surroundings.

The collision avoidance system application is a critical application of intelligent transportation systems (ITS) that help prevent accidents by warning drivers of potential collisions.

The number of motor vehicle fatalities substantially affects the collision avoidance system (CAS) market for transportation. As the number of motor vehicle fatalities increases, there is a greater awareness of the need for CAS to improve road safety and reduce accidents. In addition, advancements in sensor and radar technologies make CAS more effective and affordable, which increases demand for CAS in the transportation market. As such, the increasing number of motor vehicle fatalities is likely to favor the growth of the CAS market for transportation during the projected period.

The ITS market in the United States has been experiencing steady growth over the past few decades.

Based on geography, the intelligent transportation system market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific regions. In North America, growth can be attributed to various initiatives and projects aimed at improving the efficiency, safety, and sustainability of transportation. One of the major drivers of growth in the ITS market is the Intelligent Transportation Systems Joint Program Office (ITS JPO), which was established by the US Department of Transportation. This ITS JPO has been efficient owing to its involvement in numerous research and development projects related to ITS and has been instrumental in advancing the state of the art in transportation technology. In conclusion, the market has been experiencing growth in the US, driven by various initiatives and projects aimed at improving transportation efficiency, safety, and sustainability.

Global Intelligent Transportation System Market Scope:

Segmentation:

• By Type
  • ATMS (Advanced Traffic Management System)
  • ATIS (Advanced Traffic Information System)
  • APTS (Advanced Public Transportation System)
  • ITS-enabled Transportation Pricing System
  • Commercial Vehicle Operation
• By Application
  • Collision Avoidance System
  • Traffic Monitoring
  • Parking Availability
  • Traffic Signal Control System
  • Fleet Management & Asset Monitoring
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Other
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
    • Indonesia
    • Taiwan
    • Others