Global Intelligent Transportation Systems Market Size, Share, Growth Analysis, By offering(Hardware, Software), By system(Advanced Traffic Management Systems (ATMS), Advanced Traveler Information Systems (ATIS)) - Industry Forecast 2024-2031

Global Intelligent Transportation Systems Market size was valued at USD 51.19 billion in 2022 and is poised to grow from USD 54.82 billion in 2023 to USD 94.91 billion by 2031, growing at a CAGR of 7.10% during the forecast period (2024-2031).

The Intelligent Transportation Systems (ITS) Industry harnesses emerging information and communication technologies to enhance driving experiences, encompassing various modes of transportation equipped with intelligent communication systems. ITS leverages both wireless and wired connections within the Internet of Things framework, revolutionizing Traffic Management Centers (TMCs) by tackling key transportation challenges: insufficient information, inaccuracies, and coordination deficits. Information technology empowers TMCs to make informed network decisions by furnishing real-time, precise data. The market is poised for expansion due to escalating demands for advanced traffic control systems, telecommunications-integrated smart vehicles, and sophisticated surveillance technologies like modern cameras and license plate readers. This growth is propelled by increasing vehicle numbers, aging infrastructure, and the imperative for improved traffic data management, prompting the development of innovative traffic management systems and the adoption of modern data analytics by transportation authorities striving for more efficient management of urban streets and highways.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Intelligent Transportation Systems Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Intelligent Transportation Systems Market Segmental Analysis

Intelligent transportation systems Industry is segmented based on the offering, System and region. Based on offering, it is segmented into Hardware, Software and other. Based on the system, Advanced Traffic Management Systems (ATMS), Advanced Traveler Information Systems (ATIS), ITS-enabled Transportation Pricing Systems (ITPS), Advanced Public Transportation Systems (APTS) and Commercial Vehicle Operation (CVO) Systems. Based on Region it is categorized into North America, Europe, Latin America, Asia Pacific, and MEA.

Drivers of the Global Intelligent Transportation Systems Market

Government initiatives worldwide are propelling the traffic management market forward, with a focus on implementing Intelligent Transportation Systems (ITS) to enhance road safety, operational efficiency, and environmental sustainability. Substantial investments are required for ITS implementation, with countries like the United States, Dubai, Japan, and the UK heavily investing in diverse ITS projects. For instance, the UK government allocated USD 1.9 million across three projects aimed at testing innovative technologies to alleviate traffic congestion, improve driving conditions, and minimize time spent in traffic jams. By deploying next-generation AI-powered ITS, governments aim to instill confidence in drivers by facilitating seamless trip planning and reducing concerns about congestion. These systems not only alleviate traffic congestion, delays, and air pollution but also foster innovation for a cleaner, greener, and more sustainable transportation network in the UK.

Restraints in the Global Intelligent Transportation Systems Market

The Intelligent Transportation Systems Industry (ITC) faces challenges stemming from the high expenses associated with installation. A pivotal component of such systems is a sophisticated centralized Traffic Management Center (TMC), essential for processing real-time traffic data and alleviating congestion. Establishing this center alongside transportation managers, system operators, and emergency response agencies requires substantial financial investment. Moreover, implementing ITS involves a plethora of components like CCTV cameras, microwave detectors, dynamic message sign boards, advanced traveler information systems, highway advisory radios, fleet management systems, and mobile data terminals, each adding to the overall cost. These mobile data terminals serve as multifunctional onboard devices facilitating two-way communication between vehicles and control centers. As reported by the US Department of Transportation, capital costs for mobile data terminals range from USD 1,000 to USD 4,000 per unit, with additional installation expenses varying between USD 500 to USD 1,000.

Market Trends of the Global Intelligent Transportation Systems Market

The integration of artificial intelligence and virtual reality technologies holds the potential to revolutionize the intelligent transportation systems industry. These advancements offer enhancements across global transportation networks, leveraging innovations such as vehicle head-up displays and visualization tools to aid drivers and system users. AI capabilities are reshaping system modeling, with traffic management solution providers increasingly embracing AI-driven approaches. Notably, in March 2020, Taiwanese manufacturer Lilin introduced the Aida ALPR series, featuring an AI-based traffic management system alongside a range of surveillance cameras and urban infrastructure equipment. This comprehensive system excels in accurate object detection for tasks like license plate recognition, vehicle speed monitoring, parking space identification, and enforcement of traffic regulations for various vehicle types and pedestrians.