What Does the Historical and Current Intelligent Transportation Systems Market Size Trend Indicate?
The intelligent transportation systems market has seen considerable growth due to a variety of factors.
• The market size for intelligent transportation systems has seen significant growth in the past few years. It is projected to increase from $34.72 billion in 2024 to $37.75 billion in 2025, reflecting a compound annual growth rate (CAGR) of 8.7%. Various factors have contributed to this growth in the historic period, including efforts to reduce traffic congestion, enhance safety protocols, achieve environmental sustainability targets, manage emergencies and incidents more effectively, integrate public transportation, optimize freight and logistics efficiency, and improve traffic signal control.
What Is the Forecasted Market Size and Growth Rate for The Intelligent Transportation Systems Market in the Coming Years?
The Intelligent Transportation Systems market is expected to maintain its strong growth trajectory in upcoming years.
• The anticipated expansion of the intelligent transportation systems market is expected to be quick and impressive over the next few years. It is estimated to increase to $58.78 billion in 2029, with a compound annual growth rate (CAGR) of 11.7%.
Quick growth of connected vehicles, smart infrastructure investments, traffic prediction data analytics, dynamic road pricing systems, emphasis on last-mile connectivity, smart mobility as a service (maas), and integration of urban air mobility contribute to this expected growth during the forecast period. The prediction period also reflects significant trends such as IoT integration, advanced driver assistance systems (ADAS), smart parking solutions, cybersecurity measures, the use of augmented reality (AR) for navigation, 5g connectivity, the application of the blockchain for transportation security, and public-private collaboration.
What Factors Are Driving Growth In The Intelligent Transportation Systems Market?
The intelligent transportation systems market is projected to grow due to the rising number of road-related deaths. A road fatality refers to somebody who instantly loses their life or passes away within a month following a road injury or mishap. Intelligent transportation systems are designed to help drivers avert accidents by detecting nearby cars, bikes, and pedestrians, and then modifying their driving pace and the space between themselves and other vehicles. The increase in road traffic congestion is another factor that has boosted the demand for intelligent transportation. For example, the National Highway Traffic Safety Administration (NHTSA), a US agency working under the Department of Transportation, reported in August 2022 that 9,560 people lost their lives in road accidents during the first quarter of that year. This is a 7% rise from the anticipated 8,935 fatalities in the same period of 2021. As a result, the escalating road fatalities will serve as impetus for the intelligent transportation systems market.
What Are The Main Segments Of The Global Intelligent Transportation Systems Market?
The intelligent transportation systems market covered in this report is segmented –
1) By Offering: Hardware, Software, Services
2) By System: Advanced Traffic Management System, Cooperative Vehicle System, Advanced Public Transportation System, Advanced Traveler Information System, Advanced Transportation Pricing Systems
3) By Application: Roadways, Aviation, Railways, Maritime
Subsegments:
1) By Hardware: Traffic Management Devices, Communication Equipment, Onboard Units (OBUs) For Vehicles, Electronic Toll Collection (ETC) Devices
2) By Software: Traffic Management Software, Fleet Management Software, Advanced Traveler Information Systems (ATIS), Incident Management Software, Data Analytics Software
3) By Services: Consulting Services, System Integration Services, Maintenance And Support Services, Training And Education Services
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What Emerging Trends Are Influencing The Growth Of The Intelligent Transportation Systems Market?
The emergence of product innovations is a key trend observed in the intelligent transportation systems market. Major companies in this sector are aimed at maintaining their market dominance by creating innovative products such as sustainable and automated transportation systems. For example, in August 2024, Equans, a US-based technical services vendor, partnered with Optibus Ltd., a provider of transportation management software also based in the U.S, to roll out an intelligent transportation system designed to improve public transport services in the Greater Portland region. Key aspects of this collaboration include implementing a state-of-the-art Computer-Aided Dispatch and Automatic Vehicle Location (CAD/AVL) system, and integrating Automatic Passenger Counting (APC) and scheduling solutions. The ultimate goal of this partnership is to upgrade the infrastructure of GPTD's public transportation, thereby improving its efficiency, responsiveness, and user experience.
Who Are the Key Players In The Intelligent Transportation Systems Market?
Major companies operating in the intelligent transportation systems market include:
• Denso Corporation
• EFKON GmbH
• Garmin Ltd.
• Thales Group
• Kapsch TrafficCom AG
• Lanner Electronic Inc.
• Siemens Aktiengesellschaft
• Cubic Corporation
• TomTom International B.V.
• Indra Sistemas S.A.
• Q-Free ASA
• Iteris Inc.
• Hitachi Ltd.
• Nuance Communications Inc.
• Teledyne FLIR LLC
• The International Business Machines Corporation
• Advantech Co. Ltd.
• TransCore Holdings Inc.
• Savari Inc.
• Addco LLC
• Ricardo PLC
• Xerox Corporation
• Traffic Tech Inc.
• Alstom SA
• Cisco Systems Inc.
• Intel Corporation
• Omnitracs LLC
• Panasonic Corporation
• Qualcomm Technologies Inc.
• Trimble Inc.
What Is The Most Dominant Region In The Intelligent Transportation Systems Market?
North America was the largest region in the intelligent transportation system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global intelligent transportation systems optical components market share during the forecast period. The regions covered in the intelligent transportation systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
