Intelligent Transportation System Market by Offerings (Interface Board, Sensor, Camera, Monitoring & Detection), Mode (Roadways, Railways, Airways, Maritime) System (Advanced Traffic Management, ITS-enabled Transportation) - Global Forecast to 2029
Intelligent Transportation System Market Size Share Industry Growth and Trends
[280 Pages Report] The global intelligent transportation system market is expected to reach USD 70.7 billion in 2029 from USD 50.7 billion in 2024, at a CAGR of 6.9% during the forecast period. Advancements in technology that enhance traffic management and safety and the increasing demand for efficient and sustainable urban mobility solutions fuel the market's growth.
Intelligent Transportation System Market Forecast to 2029
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Intelligent Transportation System Market Trends & Dynamics:
Driver: Rapid urbanization to fuel the demand for intelligent transportation system
As populations move from rural to urban centers, the challenges associated with transportation infrastructure, traffic congestion, and environmental sustainability grow ever more critical for cities. This severance of people into urban areas raises the demand for proficient transportation solutions to satisfy mobility needs and ensure a smooth flow of goods and services. Greater urbanization brings increased vehicular traffic, eventually leading to roadway congestion and increased commute times for residents and commuters. This is what lowers the quality of life among urban dwellers and generates economic costs in hours lost in productivity and fuel consumption. In response, city authorities and transportation
Agencies are turning to ITS technologies in their quest to ameliorate traffic congestion, smooth the flow of transportation networks, and raise the general level of efficiency in urban mobility systems.
Restraint: High upfront costs of implementation
Typically, applying ITS technologies involves huge upfront investments in developing infrastructure, acquiring equipment, and deploying complex software. These represent huge financial commitments, which can be intimidating to public agencies or private enterprises with limited budgets. In these circumstances, there is a challenge of how to secure the funds needed and allocate them effectively across different ITS projects. Another never-ending concern is long-term financial sustainability for the ITS. While upfront costs are huge, ongoing maintenance, upgrading, and system optimization expenses also need to be factored in. It becomes very hard for public agencies in charge of transportation networks to consider the financial commitments of ITS investments in relation to competing priorities like healthcare, education, and infrastructure maintenance.
Opportunity: Growing demand from emerging economies
The ITS vendors have an opportunity to explore the growth of ITS in the new emerging markets with fast urbanization and related infrastructure development taking place in regions like Asia-Pacific, Latin America, and Africa. As the populations in these areas increase and cities grow, the need is felt for efficient transport solutions that will address the mobility problems and make urban areas really habitable places. Indeed, most of the metropolitan cities in these rapidly growing economies are today inundated by several undesirable issues relating to transportation, like traffic congestion, insufficiency of public transport infrastructure, and bad road safety. In this sense, intelligent transportation solutions are more and more needed in the fields of enhanced mobility, congestion reduction, and increasing overall efficiency in transport.
Challenge: Complexity of data management and privacy
ITS relies on vast volumes of data originating from several sources, including sensors, cameras, GPS devices, and connected vehicles. All this data is used in the optimization of transportation systems so that travel times may be reduced, traffic flow may be improved, safety may be enhanced, and insights that may be useful in decision-making may be provided. However, handling this data comes with considerable challenges. Since it is in huge volume, management of such data challenges conventional systems, and therefore infrastructural as well as sophisticated techniques in storing, processing, and analyzing the same are immensely required. At the same time, care has to be taken to protect the privacy of the data, mainly in the case of location-based information and personal travel data- ITS systems have to follow strict privacy regulations and guidelines for the purpose of protecting the individuals' right to privacy. It can be realized by anonymization and encrypting the data, access controls to these data, and instituting procedures for sharing data securely.
Intelligent Transportation System Market Ecosystem
The intelligent transportation system market is fragmented, with major companies such as Siemens (Germany), Hitachi Ltd. (Japan), Cubic Corporation (US), Conduent Incorporated (US), Kapsch TrafficCom AG (Austria), Denso Corporation (Japan), Teledyne Technologies Incorporated (US), Indra SIstemas S.A. (Spain), Garmin Ltd. (US), and Tomtom International BV (Netherlands) and numerous small- and medium-sized enterprises. Almost all players offer various services in the intelligent transportation system market. These products are used for roadways, railways, airways, and maritime.
Based on offerings, the software segment is expected to grow fastest during the forecast period.
The software segment is experiencing the fastest growth within the ITS sector due to several key factors. Factors includes Improving data analytics and artificial intelligence This drives demands for advanced software solutions that process and analyze vast transportation data volumes generated in real-time. This is crucially needed for the optimization of traffic management, safety enforcement, and general transport efficiency.
Based on the application, ticketing management segment is projected to dominate during the forecast period
Ticketing management is forecasted to capture the ITS market, for several reasons. Digital technologies and contactless payment innovations have effectively transformed ticketing systems into being efficient and user-friendly. This growth has been fueled by the wave of adoption in public transport where more streamlined payment processes increase convenience to passengers and decrease operational costs for transporters. Integrated ticketing solutions provide smooth travel between different modes, such as buses, trains, and trams, hence multimodal transport that fosters improved urban mobility in general..
Based on region, North America region is expected to dominate in the forecasted period.
The North American region is expected to dominate the intelligent transportation system sector for several reasons. Key factors among these are massive government support and investment in intelligent transportation initiatives and substantive funds are committed to infrastructure improvement and technological advancement. This includes programs at the federal and state level to make transportation more efficient, safer, and sustainable. Additionally, the region has a well-established infrastructure that support the deployment of these technologies. Moreover, the concerns of North America are attempts at reducing traffic congestion, enhancing safety on the roads, and ensuring there is sustainable urban mobility.
Intelligent Transportation System Market by Region
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Top Companies Intelligent Transportation System Market - Key Market Players
The intelligent transportation system companies is dominated by a few globally established players such as
- Siemens (Germany),
- Hitachi Ltd. (Japan),
- Cubic Corporation (US),
- Conduent Incorporated (US),
- Kapsch TrafficCom AG (Austria),
- Denso Corporation (Japan),
- Teledyne Technologies Incorporated (US),
- Indra SIstemas S.A. (Spain),
- Garmin Ltd. (US), and
- Tomtom International BV (Netherlands).
Scope of the Intelligent Transportation System Market Report
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Report Metric |
Details |
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Estimated Market Size
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USD 50.7 billion in 2024 |
| Projected Market Size | USD 70.7 billion in 2029 |
| Market Growth Rate | at a CAGR of 6.9% |
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Market Size Availability for Years |
2020–2029 |
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Base Year |
2023 |
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Forecast Period |
2024–2029 |
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Forecast Units |
Value (USD) |
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Segments Covered |
By mode, roadways by offerings, roadways by system, roadways by application, railways by application, airways by application, maritime by application, and region |
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Geographies Covered |
North America, Europe, Asia Pacific, and Rest of the world |
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Companies Covered |
Siemens (Germany), Hitachi Ltd. (Japan), Cubic Corporation (US), Conduent Incorporated (US), Kapsch TrafficCom AG (Austria), Denso Corporation (Japan), Teledyne Technologies Incorporated (US), Indra SIstemas S.A. (Spain), Garmin Ltd. (US), and Tomtom International BV (Netherlands) |
Intelligent Transportation System Market Highlights
This research report categorizes the intelligent transportation system market based on mode, roadways by offerings, roadways by system, roadways by application, railways by application, airways by application, maritime by application, and region
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Segment |
Subsegment |
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Intelligent Transport System, By Mode |
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Intelligent Transport System for Roadways, By Offerings |
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Intelligent Transport System for Roadways, By System |
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Intelligent Transport System for Roadways, By Application |
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Intelligent Transport System for Railways, By Application |
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Intelligent Transport System for Aviation, By Application |
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Intelligent Transport System for Maritime, By Application |
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Intelligent Transport System Market, By Region |
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Recent Developments
- In February 2024, The implemented system is a hybrid model that replaces traditional toll plazas connecting Switzerland, Italy, and France. Utilizing road cameras or DSRC tags, drivers are detected upon entering tolled sections. The toll amount is calculated, and drivers pay upon exiting at toll plazas, ensuring efficiency for both light and heavy vehicles.
- In February 2024, Kapsch TrafficCom secured a contract to implement and maintain a centralized traffic signal control and monitoring system across Sweden. The agreement involves using Kapsch TrafficCom's EcoTrafiX™ Command, adapted to the Nordic RSMP protocol, to enhance the efficiency and reliability of Sweden's traffic management.
- In January 2024, Conduent Transportation was chosen by the Oklahoma Turnpike Authority (OTA) to provide technologies and services for the PlatePay cashless tolling system. Under the contract, Conduent will securely retrieve vehicle registration ownership data to generate invoices for motorists without a PIKEPASS transponder.
- In December 2023, Conduent Incorporated announced the sale of its Curbside Management Solutions and Public Safety Solutions businesses to Modaxo, a division of Constellation Software Inc. The sale reflects Conduent's strategy to streamline its portfolio and focus on core capabilities, with proceeds intended to reduce debt primarily.
- In August 2023, Cubic Transportation Systems (CTS) has successfully implemented its Umo platform as the new automated fare collection system for BC Transit in the Victoria Regional Transit System. This system introduces account-based ticketing and contactless payment options, providing riders with enhanced convenience.
- In July 2023, the Los Angeles County Metropolitan Transportation Authority (Metro) introduced a new fare capping policy in collaboration with Cubic Transportation Systems. This system allows riders to use their TAP card for per-ride payments.
- In May 2023, Conduent Transportation secured a contract with the State of Victoria, Australia. Through its subsidiary, a partnership of Conduent and Convergint, the company will implement the next generation of Victoria's public transport ticketing system, known as Myki
Frequently Asked Questions (FAQs):
Which are the major companies in the intelligent transportation system market? What are their significant strategies to strengthen their market presence?
The major companies in the intelligent transportation system market are – Siemens (Germany), Hitachi Ltd. (Japan), Cubic Corporation (US), Conduent Incorporated (US), Kapsch TrafficCom AG (Austria). The major strategies adopted by these players are product launches and developments, collaborations, acquisitions, and expansions.
What is the potential market for the intelligent transportation system in terms of the region?
The North American region is expected to dominate the intelligent transportation system market due to the presence of major companies in various industries.
What are the opportunities for new market entrants?
There are significant opportunities in the intelligent transportation system market for start-up companies. These companies provide innovative and diverse service portfolios for roadways, railways, airways, and maritime.
What are the drivers and opportunities for the intelligent transportation system market?
Factors such as governmental strategic initiatives in developing nations and rising urbanization are fueling the growth.
What are the major intelligent transportation system applications expected to drive the market's growth in the next five years?
The major applications for the intelligent transportation system are Ticketing Management. The intelligent transportation system are also in demand in Fleet Management and Asset Monitoring, Intelligent Traffic Control, Collision Avoidance, Parking Management, Passenger Information Management, Emergency Vehicle Notification, and Automotive Telematics. They are expected to have a significant share in this market.
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The study used four major activities to estimate the market size of the intelligent transportation system. Exhaustive secondary research was conducted to gather information on the market and its peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Finally, market breakdown and data triangulation methods were utilized to estimate the market size for different segments and subsegments.
Secondary Research
In the secondary research process, various sources were referred to identify and collect information on the intelligent transportation system market for this study. Secondary sources for this research study include corporate filings (such as annual reports, investor presentations, and financial statements), trade, business, and professional associations, white papers, certified publications, articles by recognized authors, directories, and databases. The secondary data was collected and analyzed to determine the overall market size, further validated through primary research.
List of key secondary sources
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Source Name |
WebLink |
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Intelligent Transportation Society of America |
https://itsa.org/ |
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Intelligent Transportation Society of Australia |
https://its-australia.com.au/ |
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Intelligent Transportation Society of Canada |
https://www.itscanada.ca/ |
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IEEE Intelligent Transportation Systems Society (ITSS) |
https://ieee-itss.org/ |
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Intelligent Transportation Society of Michigan (ITS Michigan) |
https://www.itsmichigan.org/ |
Primary Research
Primary interviews were conducted to gather insights on market statistics, revenue data, market breakdowns, size estimations, and forecasting. Additionally, primary research was used to comprehend the various technology, application, vertical, and regional trends. Interviews with stakeholders from the demand side, including CIOs, CTOs, CSOs, and customers/end-users using intelligent transportation system, were also conducted to understand their perspective on suppliers, products, component providers, and their current and future use of intelligent transportation system, which will impact the overall market. Several primary interviews were conducted across major countries of North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
To estimate and validate the size of the intelligent transportation system market and its submarkets, both top-down and bottom-up approaches were utilized. Secondary research was conducted to identify the key players in the market, and primary and secondary research was used to determine their market share in specific regions. The entire process involved studying top players' annual and financial reports and conducting extensive interviews with industry leaders such as CEOs, VPs, directors, and marketing executives. Secondary sources were used to determine all percentage shares and breakdowns, which were verified through primary sources. All parameters that could impact the markets covered in this research study were accounted for, analyzed in detail, verified through primary research, and consolidated to obtain the final quantitative and qualitative data.
Global Intelligent Transportation System Market Size: Botton Up Approach
- Companies offering intelligent transportation system have been identified, and their mapping with respect to different parameters, such as mode, offerings, system, and application has been carried out.
- The market size has been estimated based on the demand for different intelligent transportation system for different applications. The anticipated change in demand for intelligent transportation system offered by these companies in the recession and company revenues have been analyzed and estimated.
- Primary research has been conducted with a few major players operating in the intelligent transportation system market to validate the global market size. Discussions included the impact of the recession on the intelligent transportation system ecosystem.
- The size of the intelligent transportation system market has been validated through secondary sources, which include the International Trade Centre (ITC), the World Trade Organization, and the World Economic Forum.
- The CAGR of the intelligent transportation system market has been calculated considering the historical and future market trends and the impact of the recession by understanding the adoption rate of intelligent transportation system for different applications.
- The estimates at every level have been verified and cross-checked through discussions with key opinion leaders, such as corporate executives (CXOs), directors, and sales heads, and with the domain experts in MarketsandMarkets.
- Various paid and unpaid information sources, such as company websites, annual reports, press releases, research journals, magazines, white papers, and databases, have also been studied.
Global Intelligent Transportation System Market Size: Top Down Approach
The top-down approach has been used to estimate and validate the total size of the intelligent transportation system market.
- Focusing initially on R&D investments and expenditures being made in the ecosystem of the intelligent transportation system market; further splitting the market on the basis of mode, offerings, system, applications and region and listing key developments
- Identifying leading players in the intelligent transportation system market through secondary research and verifying them through brief discussions with industry experts
- Analyzing revenue, product mix, geographic presence, and key applications for which all identified players serve products to estimate and arrive at percentage splits for all key segments
- Discussing splits with industry experts to validate the information and identify key growth pockets across all key segments
- Breaking down the total market based on verified splits and key growth pockets across all segments.
Data Triangulation
Once the overall size of the intelligent transportation system market was determined using the methods described above, it was divided into multiple segments and subsegments. Market engineering was performed for each segment and subsegment using market breakdown and data triangulation methods, as applicable, to obtain accurate statistics. To triangulate the data, various factors and trends from the demand and supply sides were studied. The market was validated using both top-down and bottom-up approaches.
Market Definition
An Intelligent Transportation System (ITS) refers to the integrated application of advanced information and communication technologies to transportation infrastructure and vehicles to improve the efficiency, safety, and sustainability of transportation networks. ITS encompasses a broad range of systems and services designed to enhance the operation of transportation networks, including traffic management, public transportation, toll collection, and traveler information systems. These systems leverage real-time data, sensors, software, and connectivity to optimize traffic flow, reduce congestion, improve road safety, facilitate seamless multimodal transportation, and enhance the overall user experience.
Key Stakeholders
- Original equipment manufacturers (OEMs)
- Raw material suppliers
- Technology investors
- System integrators
- Electronic hardware equipment manufacturers
- Assembly and packaging vendors
- Software solution providers
- Distributors
- Research organizations
- Market research and consulting firms
Report Objectives
- To describe and forecast the intelligent transportation system market, by mode, offerings, system, application and region, in terms of value
- To describe and forecast the market for various segments across four central regions, namely, North America, Europe, Asia Pacific, and Rest of the World (RoW), in terms of value
- To strategically analyze the micromarkets with regard to the individual growth trends, prospects, and contribution to the market
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the market
- To analyze opportunities for stakeholders by identifying high-growth segments in the market
- To provide a detailed overview of the value chain
- To strategically analyze the ecosystem, regulatory landscape, patent landscape, Porter’s five forces, import and export scenarios trade landscape, and case studies pertaining to the market under study
- To strategically profile key players in the intelligent transportation system market and comprehensively analyze their market shares and core competencies
- To strategically profile the key players and provide a detailed competitive landscape of the market
- To analyze competitive developments such as partnerships, acquisitions, expansions, collaborations, and product launches, along with research and development (R&D) in the intelligent transportation system market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of the intelligent transportation system market
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the intelligent transportation system market.
Generating Response ...
Growth opportunities and latent adjacency in Intelligent Transportation System Market
The deployment of intelligent transportation systems can help reduce the emission of greenhouse gases. It can also deliver environmental benefits by reducing traffic congestion. These factors has led to its high demand in the automotive sector. I'm interested in knowing the market for roadways.
I can see that the intelligent transportation systems market is witnessing significant growth in the APAC region. We are planning to expand our presence in this region, so would like to know if drivers, restraints, challenges, and opportunities specific to market in APAC available in the report?
The intelligent transportation systems market is having huge potential for growth in the APAC region. I want to know if we can get ITS market revenue split by applications for Australia, Singapore, and Hong Kong.
Interested in Road Traffic Signal System Market - Global scope.
The growth of the intelligent transportation systems market is highly impacted by the rapid developments and advancements in the IoT industry. How will be the growth trend of the market for next 3-5 years owing to these advancements?
Roadways is the largest application area for intelligent transportation systems. We want to get insights on other emerging application areas for intelligent transportation systems. Is this type of information covered in the report?