The Intelligent Transportation System (ITS) market is expected to grow from USD 17.9 billion in 2020 to USD 36.5 billion by 2027, at a CAGR of 15.3 %. Intelligent transportation systems have garnered immense popularity over the past couple of decades, due to considerable advancements in information technology, onset of cost-effective smart devices, and giant strides taken by sensing technologies. At present, stakeholders from the Information Technology (IT) and the electronics domain are increasingly eyeing opportunities in the intelligent transportation system market landscape by collaborating with government agencies and other players involved. In addition, development in data analytics due to considerable progress made by novel technologies, including Artificial Intelligence (AI) and machine learning are some of the other factors that are expected to play an imperative role in the development of the global intelligent transportation system market during the forecast period.
The growth in global population, particularly in urban regions, has compelled government bodies, local municipalities, and urban planners to innovate and introduce new and innovative intelligent transportation systems. The increasing demand for efficient traffic management, parking management, automotive telematics, freight management, and efficiency in public transport is expected to spearhead the growth of the global intelligent transportation system market in the forthcoming decade. Moreover, as governments across the world continue to invest in smart city projects and urban development, the intelligent transportation system market is staring at a bright future.
A sophisticated centralized traffic management center (TMC) is required—which can deal with real-time traffic data and help reduce traffic congestion—to be co-located with transportation managers, system operators, dispatchers, and response agencies. The implementation of ITS includes CCTV cameras, microwave detectors, dynamic message signs (DMS), advanced traveler information systems (ATISs), and highway advisory radio (HAR); other factors such as mobile data terminals (MDTs) are an important component of the transit fleet management systems. All these lead to huge investments.
The introduction of cooperative, connected, and automated mobility (CCAM) programs are likely to transform the mobility industry worldwide. It will allow road users and traffic managers to share traffic-related information and coordinate effectively. Also, this cooperative element will help in establishing connections among vehicles (V2V), as well as between vehicles and transport infrastructure (V2I). C-ITS includes technologies and applications that allow wireless data exchange within the transport system between V2V and between V2I. The complete implementation of a C-ITS program is likely to improve road safety, traffic efficiency, and comfort of driving significantly by helping the driver make the right decisions and adapt to the traffic situation.
Major players in the ITS market include Thales Group (France), Siemens (Germany), KapschTrafficCom (Austria), Garmin (US), TomTom International BV (Netherlands), Cubic Corporation (US), Q-Free ASA (Norway), EFKON GmbH (Austria), FLIR Systems, Inc. (US), IndraSistemas (Spain), and Denso Corporation (Japan).
The ITS market for roadways based on geography has been broadly classified into North America, Europe, APAC, and RoW. The market in North America is expected to hold the largest share during the forecast period. The adoption of ITS to counter traffic congestion and boost safety on roads is propelling the growth of the ITS market in North America. Government funding and support for the implementation of ITS in North America is another major driver for this market.
The outbreak of novel coronavirus, which started from China at the end of 2019 and later shifted its epicenter from China to Europe and then to the US, has caused a serious crisis. Border closures and lockdowns led to disruptions in the supply chain as well as social distancing led to the closure of manufacturing and assembling units in the US and Canada. Due to the shortage of manpower and lay-offs, the ongoing transport projects are delayed. The ITS ecosystem, which is majorly dependent on the electronics and telecommunication sector, is expected to witness a potential short-term slowdown owing to the supply chain disruption. This may lead to a reduction in the deployment of smart transport systems.
The growth in global population, particularly in urban regions, has compelled government bodies, local municipalities, and urban planners to innovate and introduce new and innovative intelligent transportation systems. The increasing demand for efficient traffic management, parking management, automotive telematics, freight management, and efficiency in public transport is expected to spearhead the growth of the global intelligent transportation system market in the forthcoming decade. Moreover, as governments across the world continue to invest in smart city projects and urban development, the intelligent transportation system market is staring at a bright future.
A sophisticated centralized traffic management center (TMC) is required—which can deal with real-time traffic data and help reduce traffic congestion—to be co-located with transportation managers, system operators, dispatchers, and response agencies. The implementation of ITS includes CCTV cameras, microwave detectors, dynamic message signs (DMS), advanced traveler information systems (ATISs), and highway advisory radio (HAR); other factors such as mobile data terminals (MDTs) are an important component of the transit fleet management systems. All these lead to huge investments.
The introduction of cooperative, connected, and automated mobility (CCAM) programs are likely to transform the mobility industry worldwide. It will allow road users and traffic managers to share traffic-related information and coordinate effectively. Also, this cooperative element will help in establishing connections among vehicles (V2V), as well as between vehicles and transport infrastructure (V2I). C-ITS includes technologies and applications that allow wireless data exchange within the transport system between V2V and between V2I. The complete implementation of a C-ITS program is likely to improve road safety, traffic efficiency, and comfort of driving significantly by helping the driver make the right decisions and adapt to the traffic situation.
Major players in the ITS market include Thales Group (France), Siemens (Germany), KapschTrafficCom (Austria), Garmin (US), TomTom International BV (Netherlands), Cubic Corporation (US), Q-Free ASA (Norway), EFKON GmbH (Austria), FLIR Systems, Inc. (US), IndraSistemas (Spain), and Denso Corporation (Japan).
The ITS market for roadways based on geography has been broadly classified into North America, Europe, APAC, and RoW. The market in North America is expected to hold the largest share during the forecast period. The adoption of ITS to counter traffic congestion and boost safety on roads is propelling the growth of the ITS market in North America. Government funding and support for the implementation of ITS in North America is another major driver for this market.
The outbreak of novel coronavirus, which started from China at the end of 2019 and later shifted its epicenter from China to Europe and then to the US, has caused a serious crisis. Border closures and lockdowns led to disruptions in the supply chain as well as social distancing led to the closure of manufacturing and assembling units in the US and Canada. Due to the shortage of manpower and lay-offs, the ongoing transport projects are delayed. The ITS ecosystem, which is majorly dependent on the electronics and telecommunication sector, is expected to witness a potential short-term slowdown owing to the supply chain disruption. This may lead to a reduction in the deployment of smart transport systems.
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