Intelligent Transportation System Market Thrives as Cities Seek Smarter Commute
The global intelligent transportation system (ITS) market has witnessed consistent expansion over the past few years. The primary growth drivers in this market include promising government regulations towards road safety, transport management, and adoption of advanced technologies in urban development and smart city programs. Moreover, challenges pertaining to growing traffic on roads, road congestion, and public safety have also contributed to build a strong case for sound investments in the global ITS market.
Intelligent transportation systems essentially utilize information processing, communications technologies, and advanced electronics to deliver transport improvements. Latest ITS systems have the potential to save over 20% of monetary investments that would otherwise go towards improving physical road transportation infrastructures. ITS comprises both road transport and underground or metro rail systems and involves revamping of technological transport management aspects such as GPS, license plate recognitions (LPRs), communication access for land mobiles (CALM), and AI-enabled systems among others. In the coming years, the role of ITS in enhancing road safety and uniform surveillance of local transport systems is projected to be the foremost growth driver in the global intelligent transportation system market.
Strong Government Support Paves Way for Innovation-Driven Traffic Management
World over, governments of developed and emerging economies are rapidly adopting advanced technologies and sustainable innovation to create cities for the future. As a result, research and development initiatives and existing programs aimed at creating smart cities have garnered immense economic and social support from governments across the world. In this context, the intelligent transportation system market has emerged as the foremost solution to improve road safety, operational performance of the transport system, and to mitigate environmental damage posed by inefficient transport systems.
For instance, the Netherlands has a dedicated programme, Krachtenbundeling Smart Mobility, where local, regional, and national authorities work together to create a positive impact through ITS solutions. In UK too, ITS, an organization that is driven to optimize the use of technology to strengthen transport facilities, has made substantial progress to make public transport safer, advanced, and environment-friendly. Such initiatives are going strong across countries in Europe and in the near future, owing to robust government support they are expected to open fresh revenue streams for prominent manufacturers in the global intelligent transportation systems market.
Emerging Technologies, Concern for Public Safety Propels Growth in Advanced Traffic Management System Segment
Advancements in artificial intelligence are expected to foster next-level create in the intelligent transportation system market. Over the forecast period, emerging technologies to manage road transport issues more efficiently and uniformly are projected to new channels of growth in the market. In terms of system, the ITS market is segmented into advanced traveler information systems (ATIS), advanced public transportation systems (APTS), advanced traffic management systems (ATMS), commercial vehicle operations (CVO) systems, and ITS-enabled transportation pricing systems.
Among these, the ATMS segment is anticipated to hold the largest market share by 2026. The main reason for this is extremely high traffic congestion on roads which causes serious safety concerns for citizens across the world. Every year, almost 1.3 million lose their lives to road accidents, costing countries almost 3% of their GDP. Consequently, this alarming number is the major factor behind the world’s steady drive towards advanced traffic management systems.
Call for Uniformity in International ITS Architecture Drives Public-Private Collaboration
In the recent past, a recurring challenge for stakeholders in the intelligent transportation system market is the lack of universal standards in ITS infrastructure. An ITS infrastructure requires the integration of various heterogeneous devices that can lead to compatibility issues. These challenges range from different types of onboard unit (OBU) devices used across countries, inability of electronic toll collection OBUs to receive or transmit messages, and problems in display units. For governments world over, the overarching barrier in implementing ITS is efficiently integrating it with information technology.
To effectively overcome these barriers, multiple international organizations are on track to develop and implement sound frameworks focused on harmonizing the ITS architecture. For instance, in 2020, the United Nations Economic Commission for Europe prepared a road map on ITS, for 2021 to 2025, to harmonize policies, forge international cooperation, ensure data security, and facilitate interoperability through suitable ITS reference architecture. In the coming years, such developments are poised to improve the prospects of global public-private collaboration in the intelligent transportation system market, creating headways for strategic business partnerships and open innovation opportunities.
North America Dominates Global ITS Market; APAC an Emerging Market
In 2020, North America held a prominent share of the global intelligent transportation system market. Given this region’s prominence as the world’s technology hub, it has emerged as a promising region for product innovation and R&D initiatives in the ITS market. Moreover, the presence of global market players in North America plays in favor of its regional intelligent transportation system market. The highly favorable landscape is supported by sound government regulations and support which further strengthen North America’s position as the leading region across the world’s intelligent transportation system market.
In addition to North America, Asia Pacific is also rising as a key player in the intelligent transportation system market. Countries such as India, China, and Japan have made promising strides to expand their regional ITS markets. In these regions, issues pertaining to traffic congestion, road safety, sharp increase in vehicle ownership, and transport-related environmental hazards are the foremost growth drivers. Between 2022 to 2026, Asia Pacific is set to witness the fastest growth rate in the global intelligent transportation system market.
Inspired by the positive outlook of the global intelligent transportation system market, major market players are driven towards robust innovation, internal process improvement, strategic mergers and partnerships to meet the growing demand for safer and advanced transport management systems. For instance, in 2021, DENSO CORPORATION partnered with Aeva to develop sensing and perception systems, whereas, in 2020, Hitachi, Ltd. introduced a heavy-duty automated parking brake especially designed for LCVs, SUVs, vans, and pickup trucks. The most prominent market players leading such developments in the global intelligent transportation system market include Thales Group, Hitachi, Ltd., Agero, Inc., DENSO CORPORATION, Sensys Networks, Inc., Siemens AG, Garmin Ltd., Nuance Communications, Inc., TransCore, among others.
The Global Intelligent Transportation System Market is Segmented as Below:
ITS Market, by Offering
ITS Market, by System
ITS Market, by Application - Roadways
ITS Market, by Application - Railways
ITS Market, by Application - Aviation
ITS Market, by Application - Maritime
Key Elements Included In The Study: Global Intelligent Transportation System (ITS) Market
Post Sale Support, Research Updates & Offerings
We value the trust shown by our customers in Fairfield Market Research. We support our clients through our post sale support, research updates and offerings.
Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.View Methodology