Global Intelligent Transportation Market Research Report, 2024-29

The global Intelligent Transportation System (ITS) market represents a dynamic and rapidly evolving landscape at the intersection of transportation and technology. ITS encompasses a diverse range of innovative solutions and services aimed at optimising the efficiency, safety, and sustainability of transportation networks worldwide. From smart traffic management systems and advanced vehicle technologies to integrated public transit networks and intelligent logistics solutions, ITS is revolutionising the way people and goods move within and between cities, regions, and countries. With urbanisation, population growth, and increasing mobility demands, the need for intelligent transportation solutions has never been more pressing. Governments, transportation authorities, and private sector stakeholders are embracing ITS as a strategic tool to address transportation challenges, improve mobility, reduce congestion, enhance safety, and mitigate environmental impact. The global ITS market is propelled by technological advancements such as artificial intelligence, the Internet of Things (IoT), big data analytics, and connected vehicle technologies, which are driving innovation and unlocking new possibilities for smarter, more efficient transportation systems. Moreover, the COVID-19 pandemic has underscored the importance of resilient and adaptable transportation networks, accelerating the adoption of digital technologies and remote mobility solutions within the ITS market. As the world continues to urbanise and embrace digital transformation, the global ITS market is poised for robust growth, offering immense opportunities for innovation, investment, and collaboration to shape the future of transportation and mobility on a global scale. According to the research report, “Global Intelligent Transportation System Market Research Report, 2029” published by Actual Market Research, the market is anticipated to cross USD 44 Billion by 2029, increasing from USD 28.13 Billion in 2023. The market is expected to grow with 8.20% CAGR by 2024-29. As more people move to cities, the demand for efficient transportation solutions increases. ITS offers innovative ways to manage urban mobility challenges such as traffic congestion, air pollution, and limited parking space. With a growing global population, the need for effective transportation systems becomes more critical. ITS helps optimise existing infrastructure, improves safety, and enhances the overall transportation experience for commuters. Road safety is a priority for governments and transportation authorities. ITS technologies like advanced driver assistance systems (ADAS), collision avoidance systems, and intelligent traffic management help prevent accidents and reduce fatalities on the roads. Traffic congestion is a significant problem in urban areas globally, leading to wasted time, fuel consumption, and environmental pollution. ITS solutions, such as traffic signal optimisation and intelligent routing, help alleviate congestion and improve traffic flow. Advances in technology, including artificial intelligence, IoT, big data analytics, and connected vehicle technologies, drive innovation in the ITS market. These technologies enable real-time data collection, analysis, and decision-making, improving the efficiency and effectiveness of transportation systems. Consumers expect seamless and convenient transportation experiences. ITS solutions, such as real-time transit information, mobile ticketing, and ride-sharing apps, meet these expectations by providing personalised and efficient travel options.

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Market Drivers • Technological Innovations: Technological innovations are a significant driver of the global intelligent transportation system (ITS) market, continually pushing the boundaries of what is possible in transportation management and efficiency. Advancements in areas such as artificial intelligence, the Internet of Things (IoT), big data analytics, and connected vehicle technologies are revolutionising how transportation networks operate and are managed. These innovations enable real-time data collection, analysis, and decision-making, allowing transportation authorities to optimise traffic flow, improve safety, and enhance the overall efficiency of transportation systems. For example, AI-powered traffic management systems can predict and mitigate traffic congestion before it occurs, while IoT sensors and smart infrastructure enable vehicles to communicate with each other and with transportation networks, enhancing coordination and reducing delays. • Economic Efficiency: Economic efficiency is another key driver of the global intelligent transportation system market, as transportation agencies and governments seek to maximise the productivity and cost-effectiveness of transportation infrastructure and services. ITS solutions offer economic benefits by reducing travel delays, fuel consumption, and vehicle operating costs for travelers. For example, real-time traffic management systems can optimise traffic signal timing to minimise wait times at intersections, reducing fuel consumption and emissions from idling vehicles. Additionally, dynamic pricing strategies, such as congestion pricing or tolling, can incentivize more efficient use of transportation infrastructure while generating revenue for transportation authorities.

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Market Challenges • User Acceptance and Behaviour Change: One of the significant challenges facing the global intelligent transportation system (ITS) market is user acceptance and behaviour change. Despite the numerous benefits that ITS solutions offer, such as improved mobility, reduced congestion, and enhanced safety, encouraging users to embrace new technologies and adopt alternative transportation behaviours can be challenging. Resistance to change, lack of awareness or understanding of ITS solutions, and ingrained travel habits are common barriers to user acceptance. Additionally, concerns about privacy, data security, and reliability may deter some users from fully engaging with ITS technologies. Overcoming these challenges requires comprehensive strategies that focus on education, communication, and incentives to promote the benefits of ITS solutions and encourage behaviour change. • Data Management and Analytics: Another significant challenge in the global intelligent transportation system market is data management and analytics. With the proliferation of sensors, cameras, GPS devices, and other data sources in transportation networks, managing and analysing large volumes of transportation data has become increasingly complex. Transportation agencies and stakeholders face challenges related to data quality, integration, storage, processing, and analysis. Additionally, privacy concerns, regulatory requirements, and interoperability issues may further complicate data management efforts. Inefficient data management practices can lead to delays, inaccuracies, and inconsistencies in data processing, limiting the effectiveness of ITS solutions and hindering decision-making. Addressing these challenges requires investments in data infrastructure, standardised data formats, and advanced analytics tools and techniques.

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Based on the type, they are segmented into Advanced Traffic Management Systems (ATMS), Advanced Traveller Information Systems (ATIS), Advanced Transportation Pricing Systems (ATPS), Advanced Public Transportation Systems (APTS), Emergency Medical Systems (EMS), Commercial Vehicle Operation (CVO), and Automatic Number Plate Recognition (ANPR). Advanced Traveller Information Systems (ATIS) significantly contributes to the market by giving travellers access to real-time data on traffic, accidents, public transportation timetables, and other routes. ATIS empowers travellers to plan their trips more effectively and make well-informed decisions. Commuters' journey times are shortened, and their entire transit experience is improved by this increased mobility. By providing timely and accurate information to travellers, ATIS helps manage traffic flow and congestion on roadways. Dynamic message signs, variable speed limits, and incident alerts allow transportation agencies to communicate with drivers and implement control measures to mitigate traffic congestion and improve safety. ATIS solutions integrate public transit information with other transportation modes, such as walking, cycling, and ridesharing, to offer travellers comprehensive multimodal journey planning options. This integration encourages the use of public transit and alternative transportation modes, reducing reliance on single-occupancy vehicles and alleviating traffic congestion. Furthermore, by promoting more efficient travel routes, reducing congestion, and encouraging the use of public transit and alternative modes of transportation, ATIS contributes to environmental sustainability goals. These systems help reduce greenhouse gas emissions, air pollution, and energy consumption associated with transportation. In terms of mode of transportation, they are bifurcated into roads, railways, airlines, and marine. In terms of components, they are segmented into hardware, software, and services. Airways are a growing market, and intelligent transportation systems are increasingly being deployed to optimise air traffic management processes. These systems leverage advanced technologies such as radar surveillance, satellite navigation, and data analytics to improve airspace capacity, reduce congestion, and enhance the efficiency of air traffic flow. Airports are adopting ITS solutions to streamline ground operations, enhance passenger experiences, and improve safety and security. Advanced technologies such as automated baggage handling systems, biometric authentication, and smart security screening processes contribute to smoother and more efficient airport operations. In terms of the components Software is growing; to manage and analyse the massive volumes of data produced by transportation systems, software solutions are necessary. Transportation organisations may optimise transportation operations and enhance decision-making by using advanced analytics tools to extract meaningful insights from data, including traffic patterns, congestion hotspots, and travel behaviour trends. Software solutions play a vital role in managing fleets of vehicles and optimising logistics operations. Fleet management software enables companies to track vehicle locations, monitor fuel consumption, schedule maintenance, and optimise routes, leading to cost savings, improved efficiency, and better customer service. Based on the report, the five regions covered in the report include North America, Europe, Asia Pacific, South America, the Middle East, and Africa. Asia Pacific significantly contributes to the market; some of the cities with the greatest rates of urbanisation in the world are located in the Asia Pacific area, which has raised demand for effective transportation options. The increasing number of people living in cities means that ITS technologies are more important in order to reduce traffic, increase mobility, and improve the quality of transportation as a whole. Many countries in the Asia-Pacific region are investing heavily in transportation infrastructure, including roads, railways, airports, and public transit systems. These infrastructure investments create opportunities for the deployment of ITS solutions to optimise transportation operations, improve safety, and reduce environmental impact. Governments in the Asia-Pacific area are putting plans and strategies into action to update transit infrastructure and solve issues with urban mobility. The region's ITS market is expanding due to investments in ITS technology, smart city initiatives, and sustainable transportation legislation. With rising incomes and changing consumer preferences, there is a growing demand for mobility services such as ridesharing, bike-sharing, and electric scooters in the Asia-Pacific region. ITS solutions play a crucial role in enabling and optimising these mobility services, contributing to the growth of the ITS market. The key companies are collaborating with expert ITS companies for design and product development. They are also developing advanced products for hassle-free and better service. Furthermore, many small enterprises are also working with the government to provide better transportation services. At present, many small market companies are also great players withholding substantial intelligent transportation system market share. The dominance of the key players is also current owing to the provision of advanced and developed products. Key companies leading the market are Denso, Siemens Ag, EFKON GmbH, and Hitachi, among other prominent players. • In July 2023, Hitachi Rail, a division of Hitachi, Ltd., announced the expansion of its digital transport app named 360Pass. Based on this development, Hitachi Rail signed a new contract with Genoa’s (U.S.) city transit authority to connect Genoa's whole public transport infrastructure, including 600,000 citizens and 3,500,000 annual visitors, with the 360-pass digital transport app. • In August 2023, Hitachi Rail, a division of Hitachi, Ltd., announced that it had won a contract worth USD 1.96 billion to design and implement digital signaling systems and tracks for a new High Speed/Capacity (HS/C) line traversing the Italian city of Vicenza. • In August 2023, NEC Corporation announced that it has been selected by the UP State Road Transport Corporation (UPSRTC) as an master system integrator for VLT-PSIS project. This will help curb safety concerns for buses and improve the overall experience as well. • In October 2023, DENSO CORPORATION and KOITO MANUFACTURING CO., LTD., a lighting equipment manufacturer for the automobile sector, collaborated to introduce a system to improve nighttime driving safety by enhancing the object recognition accuracy of vehicle image sensors through the coordination of lamps and sensors. • In October 2023, Alstom SA partnered with FLXO Robotics to develop technology for reducing wildlife collision accidents. The collaboration aims to keep away animals and lower the risk of collisions, the technology will utilize advanced image analytics and AI algorithms, the technology can identify animals in proximity and emit a tailored repellent noise to deter them. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Intelligent Transportation market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Advanced Traffic Management Systems (ATMS) • Advanced Traveller Information Systems (ATIS) • Advanced Transportation Pricing Systems (ATPS) • Advanced Public Transportation Systems (APTS) • Emergency Medical Systems (EMS) • Commercial Vehicle Operation (CVO) • Automatic Number Plate Recognition (ANPR) By Mode of Transportation • Roadways (Traffic management, Road safety, Parking management, Freight management, Automotive Telematics, Others (Ticketing Management, Emergency Vehicle Notification, Environment Protection, etc.) • Railways (Rail-running Operation and Collision Avoidance, Passenger Information Management, Smart Ticketing, Security Surveillance, Emergency Notification, Others) • Airways (Security & Surveillance, Shuttle Bus Tracking, Traveller Information Management, Smart Ticketing, Aircraft Management, Emergency Notification, Others) • Marine (Freight Arrival & Transit, Real-time Weather Information Tracking, Container Movement Scheduling, Emergency Notification, Others) By Component • Hardware (Interface Boards, Sensors, Surveillance Cameras, Telecommunication Networks, Monitoring and Detection Systems, Others (Linked traffic controller & Variable message signboard)) • Software (Visualization Software, Video Detection Management Software, Transit Management Software, Others) • Services (Business and Cloud Services and Support and Maintenance Services) The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Intelligent Transportation industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.