Intelligent Transport System Market

Intelligent Transport System Market Outlook (2024 to 2034)

Revenue from the global intelligent transport system market size is estimated at US$ 30.66 billion in 2024 and is projected to climb to US$ 63.77 billion by the end of 2034. The market has been evaluated to expand at a noteworthy CAGR of 7.6% from 2024 to 2034.

Advanced traffic management systems (ATMS) are the talk of the town as authorities and public safety organizations are able respond to accidents and emergencies more quickly and effectively with these systems at their disposal. Such solutions are used to improve road infrastructure and networks. The intelligent transport network helps improve the competence of the overall transport process and passenger safety. Availability of advanced transportation systems helps reduce travel time besides road accidents.

Intelligent transport technology is used in traffic control systems, automatic recognition of number plates, weather information, CCTV cameras, and vehicle navigation. Governments worldwide are spending more on transportation management systems, which is benefitting market players to a great extent.

Key Market Growth Drivers

• A key intelligent transport system market trend is the growing need for real-time traffic data to evaluate maps and forecast traffic congestion.
• Increasing integration of electronic and communication technologies in transport systems in several countries to effectively deal with traffic concerns.
• Demand for intelligent transportation systems is increasing at a significant pace as they help provide easy access to transportation services and improve passenger and freight mobility.
• Intelligent transportation systems are contributing to the reduction of greenhouse gas emissions and fuel consumption by decreasing the level of traffic congestion.
• Governments across the world are investing heavily in the development of smart transportation infrastructure to enhance public safety and reduce traffic congestion, substantially contributing to the intelligent transport system market growth.
• Integration of the Internet of Things (IoT), machine learning, and big data analytics is improving the efficiency of intelligent transport solutions.
• With the help of the latest technologies, market players are enabling real-time processing, efficient traffic management, and predictive analytics.
• Several countries such as India, Japan, China, and others are focusing on developing smart cities, which is contributing to the intelligent transport system market size expansion as these are required for safe and sustainable transportation systems.
• In today’s digital and globalization age, which has helped boom the e-Commerce industry, the need for smart transport systems has skyrocketed across the world.

Report Attribute	Detail
Intelligent Transport System Market Size (2024E)	US$ 30.66 Billion
Forecasted Market Value (2034F)	US$ 63.77 Billion
Global Market Growth Rate (2024 to 2034)	7.6% CAGR
North America Market Share (2024E)	33%
East Asia Market Growth Rate (2024 to 2034)	8.7% CAGR
Hardware Segment Value (2034F)	US$ 31.89 Billion
Intelligent Traffic Control Segment Value (2034F)	US$ 16.58 Billion
Key Companies Profiled	Thales Group; TransCore; Siemens AG; Garmin Ltd.; Efkon AG; Lanner Electronics Inc.; Kapsch Trafficcom; Ricardo Plc; Tomtom International BV; Iteris Inc.; Q-Free ASA; Atkins Group; Denso Corporation; Parsons Corporation.

What is Negatively Influencing Market Growth to Some Extent?

“Compatibility and Integrity Issues with Existing Infrastructure”

The main issue that is negatively affecting the adoption of ITS is integrating these with existing infrastructure due to the necessity for smooth operability among various systems and technologies. As such, revamping or modifying the current traffic control methods, data platforms, and communication channels will have to be resorted to accommodate the ITS constituents which is always a tough task. Sometimes compatibility issues arise from different standards, protocols, and technologies used by legacy systems and new intelligent transport systems.

Ensuring continuous operation during integration processes can be operationally challenging, requiring careful planning and coordination to avoid disruptions in transportation services. These complexities necessitate significant technical expertise and resources, making the integration of smart transport systems a formidable task for several countries.

Country-wise Insights

The North American region is expected to hold 33% of the worldwide intelligent transport system market share in 2024. Demand for intelligent transport systems is being driven by the significant emphasis that various government organizations in the region are placing on enhancing the regional transportation network. Rising traffic and the subsequent congestion and several public-private collaboration attempts to implement intelligent vehicle systems are driving market growth in the region.

What Makes the United States a Lucrative Market for Intelligent Transport System Providers?

“Focus on Integrating Latest Technologies for Better Traffic Management”

Attribute	United States
Market Value (2024E)	US$ 4.5 Billion
Growth Rate (2024 to 2034)	7.4% CAGR
Projected Value (2034F)	US$ 9.16 Billion

The United States is among the top leaders in terms of technological innovations. Intelligent transport system companies are focusing on the integration of artificial intelligence, IoT, ML, and big data analytics to facilitate real-time traffic monitoring, analysis of traffic patterns, and immediate data collection.

Use of predictive analytics helps forecast traffic challenges and improve traffic flow, where decision-making processes are enhanced by AI algorithms in traffic management. Therefore, these technologies are integrated into ITS for better management of transportation networks that are more efficient and effective, the result being minimized congestion alongside enhancement of mobility.

What is the Demand Outlook for Intelligent Transport Systems in South Korea?

“Government Initiatives Promoting Development of Smart Cities”

Attribute	South Korea
Market Value (2024E)	US$ 1.6 Billion
Growth Rate (2024 to 2034)	9.1% CAGR
Projected Value (2034F)	US$ 3.83 Billion

The South Korean government is participating actively in the expansion of the market for intelligent transport systems, which involves several initiatives and significant investments. Advanced ITS technologies are becoming popular courtesy of programs geared toward smart city schemes. Thus, these undertakings are helping boost the security of public places, lessening jams on roads, as well as advancing how mass transit systems work efficiently.

These drive the desire to develop public safety, lessen the congestion of transport, and alter public systems for transportation to be effective. Instead, the public bodies dedicate themselves to a better, secure, sustainable urban transport system that is more efficient through ITS development and implementation, and which, in addition, supports the country’s development.

Category-wise Insights

Based on system, the market is classified into advanced traffic management systems, advanced traveler information systems, advanced transportation pricing systems, advanced public transportation systems, and emergency medical systems. Advanced traffic management systems are maintaining the lead in the market. Rising investments by governments in such systems, the use of high-end technology to ensure safe and comfortable commutes, and the penetration of advanced infrastructure by the regional transportation department due to less traffic congestion are the factors driving the demand for advanced traffic management systems.

Why is Demand for the Intelligent Transport System Hardware So High?

“ITS Hardware Facilitating Data Collection and Real-Time Traffic Management”

Attribute	Hardware
Segment Value (2024E)	US$ 16.56 Billion
Growth Rate (2024 to 2034)	8.1% CAGR
Projected Value (2034F)	US$ 31.89 Billion

Demand for intelligent transport hardware is rising due to the indispensable and tangible nature of these components in the implementation of ITS solutions. Core hardware such as traffic cameras, sensors, traffic signal controllers, and electronic display boards build up the physical infrastructure of ITS. In data collection, real-time traffic management, and vehicular-traffic systems communication these tools perform important roles.

Software and services are vital for data analysis as well as support provision, but installation and maintenance of hardware are overwhelmingly essential for the initial setup and effectiveness of ITS solutions.

Why is Adoption of Intelligent Traffic Control Gaining Traction?

“Role of Intelligent Traffic Control in Ensuring Smooth Traffic Flow”

Attribute	Intelligent Traffic Control
Segment Value (2024E)	US$ 7.66 Billion
Growth Rate (2024 to 2034)	8% CAGR
Projected Value (2034F)	US$ 16.58 Billion

Application of intelligent transport systems is increasing in intelligent traffic control since they offer advanced solutions for controlling and optimizing traffic flow at any given time. ITS technologies such as adaptive traffic signal control, real-time traffic monitoring, and predictive analytics allow for an effective way of traffic congestion management which decreases travel times and ensures safety on roads.

Intelligent traffic control systems use data from several sources such as sensors, cameras, and GPS, to obtain real-time traffic data delivery for drivers, change signals, and respond to emergencies more quickly. This further results in smooth traffic flow, making ITS the preferred choice by various countries' governments for traffic control.

Competitive Landscape

Significant partnerships with governments are expected to open new avenues for key players in the intelligent transport system market. Such collaborations are having a positive response from both, the people and government, towards intelligent transport systems, which is driving market expansion.

• In June 2024, Dubai's Roads and Transport Authority (RTA) began the study and design of Phase II of the ITS Improvement and Expansion Project following the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to broaden the scope of intelligent traffic systems and support Dubai's efforts to become the smartest city in the world.
• In January 2024, along with many partners, the United States-based technology company Parsons Corporation introduced the Freight Intelligent Transportation System (FITS) at the Port of Oakland. Parsons' present role as a FITS system integrator will be expanded by the five-year contract to include 24-hour operations and maintenance of FITS devices and applications.
• In April 2022, as part of the InTranSE- II program, the Ministry of Electronics and Information Technology (MeitY) introduced several applications under the Intelligent Transportation System (ITS) to enhance the traffic situation in India.

Fact.MR provides detailed information about the price points of key providers of intelligent transport systems positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Intelligent Transport System Market Research

• By Product Offering :

  • Hardware
  • Software
  • Services

• By System :

  • Advanced Traffic Management System (ATMS)
  • Advanced Traveler Information System (ATIS)
  • Advanced Transportation Pricing System (ATPS)
  • Advanced Public Transportation System (APTS)
  • Emergency Medical System (EMS)

• By Application :

  • Intelligent Traffic Control
  • Collision Avoidance
  • Parking Management
  • Ticketing Management
  • Automotive Telematics
  • Fleet Management & Asset Monitoring

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa