The global intelligent transportation system market size is projected to reach USD 51,09 billion by 2025, at a CAGR of 10.5% over the forecast period, according to a new report by Grand View Research, Inc. Road traffic related deaths have been increasing over the past few years. The usage of ITS to reduce road accidents and to increase safety, in general, is a major driving force for the ITS market. The demand for Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) communication to enhance the road safety is expected to gain momentum over the next few years.
An effective transportation system is critical for the socio-economic development of any country. ITS associations estimate that the use of systems, such as the Advanced Traffic Management Systems (ATMS) effectively reduce the travel time by 25% and the waiting time at a signal by 20% to 30%. They also help curb emissions of greenhouse gasses such as methane, carbon dioxide, and nitrous oxide. The use of Electronic Tolling Systems (ETS) and ramp metering systems also helps reduce the traffic congestion and maintain the overall traffic flow. The limited space for transportation network expansion is expected to further impact congestion costs, which in turn will fuel the demand over the forecast period.
Intelligent transportation system helps improve the supply chain process performance and yields a high benefit to cost ratio; deploying these systems results in a significantly high ratio (8:1) as compared to a traditional transportation network. Users can also cut down on costs through real-time transportation systems. On account of these factors, transportation service providers have increased the investment in ITS over the past few years.
To request a sample copy or view summary of this report, click the link below:
Further key findings from the study suggest:
- Advanced public transport system is expected to witness the fastest CAGR of 12.1% from 2019 to 2025
- Stringent regulations to improve driver safety in developed markets of Europe and North America are expected to contribute to the ITS market growth
- The U.S. road tolling systems segment is expected to expand at a CAGR of 7.1%, while public transport segment is projected to witness the highest CAGR of 8.6% over the forecast period
- Asia Pacific is expected to grow at a significant CAGR of 13% during the forecast period, owing to increasing government initiatives and deployments of ITS
The United States Department of Transportation (DOT) has been investing heavily in R&D, adoption, and deployment of ITS across the region. The University of Michigan Transportation Research Institute and (DOT) conducted a Safety Pilot Model Deployment (SPMD) in Michigan from 2015 to 2013 using DSRC-enabled equipment in a real world environment. Moreover, in 2015, DOT announced that it would push towards mandating V2V technology in U.S. for all light vehicles based on SPMD.
The economic benefits of ITS deployment are particularly notable in developing markets of Brazil, Russia, India, China, and South Africa (BRICS) nations. In-vehicle and cooperative systems not only provide financial benefits to car owners but also aid in avoiding congested routes and reducing the overall fuel consumption and travel time. Car manufacturers in both established and emerging markets are installing these systems in their new car models to differentiate their products from competitors.
Intelligent Transportation System (ITS) Market Share Insights
Key players in the ITS market include Siemens AG, Kapsch TrafficCom, and Hitachi Ltd. This is mainly on account of diversified customer base and a wide range of advanced technology types employed in the intelligent transportation system industry. Other prominent vendors include Denso Corporation, Efkon Ag, Garmin International, and Lanner Electronics among others.
Grand View Research has segmented the global Intelligent Transportation System market on the basis of application, type, and region:
Intelligent Transportation System Type Outlook (Revenue, USD Million, 2015 – 2025)
Intelligent Transportation System Application Type Outlook (Revenue, USD Million, 2015 – 2025)
- Traffic Management
- Road Safety and Security
- Freight Management
- Public Transport
- Environment Protection
- Automotive Telematics
- Parking Management
- Road Tolling System
Intelligent Transportation System Regional Outlook (Revenue, USD Million, 2015 – 2025)
- North America
- Asia Pacific
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.