The market for intelligent transportation systems and services is growing steadily with the rising need to reduce traffic congestion, particularly in metropolitan cities across the world. In addition, intelligent transportation systems offer benefits such as reduced fuel consumption, travel delays, and environmental protection.
Rising awareness about the benefits of this technology is expected to spur the demand for ITSS, particularly in emerging markets. This is expected to motivate players across the value chain of this industry to introduce innovative technologies to maintain their footholds in this potential industry.
Intelligent Transportation Systems And Services (Itss) Market Valued At US$ 80 Bn In 2028 And Is Projected To Reach US$ 120.29 Bn By 2028 Growing At A CAGR Of 6.0%.
- Intelligent Transportation Systems Manufacturers
- ITSS System Integrators
- Component Manufacturers
- ITS solutions Suppliers and Distributors
- ITSS Software Providers
- Traffic Authorities
- Other End-users
Other strategic analyses provided in the study include:
- Current and future market trends (technology and demand-supply trends)
- Market dynamics: drivers, market restraints, and their impact analysis
- PESTEL Analysis of ITSS industry
- Competitive analysis and market positioning
- Historical market size revenue (US$ Bn)
- Market Forecast for the period (2022 – 2028)
- SRC (Segment-Region-Country) Analysis
Application Segmentation Analysis – Intelligent Transportation Systems and Services (ITSS) Market
Intelligent transportation systems and services (ITSS) are used for several applications, which include road traffic management, efficient public transport facilities, freight management, road safety, environment protection, automotive telematics, parking management, electronic toll collection, and vehicle safety and security.
Road traffic management is the largest application segment in the overall Intelligent transportation systems and services (ITSS) market and accounted for the largest revenue share in 2021. With a rising population, a number of vehicles, and limited scope for road expansion, metropolitan cities across the world are continuously facing congestion problems.
In order to reduce congestion, metropolitan cities are expected to invest a significant amount in advanced traffic management solutions to reduce congestion problems. Moreover, the public transport segment is expected to be the most attractive segment as public transport authorities are investing a significant amount in advanced transportation and related solutions for more efficient services compared to private transportation facilities.
In addition, environment protection and automotive telematics applications are other attractive market segments for intelligent transportation systems and services (ITSS) vendors. Stringent emission control and road safety regulation in developed and developing markets are expected to influence the demand for environmental protection, traffic management, and road safety solutions in these markets.
Developed markets such as the U.S, UK, and Singapore have introduced stringent road charging policies to reduce congestion on major roads during peak times. Some other countries, particularly in the Asia Pacific and Europe, are expected to introduce such traffic control policies to reduce congestion during peak hours which is expected to spur the demand for road charging systems in these countries.
We have considered the following types of intelligent transportation systems in the scope of the “Intelligent Transportation Systems and Services Market” study.
- Advanced Transportation Management Systems
- Advanced Traveler Information Systems
- Road Pricing Systems
- Advanced Public Transportation Systems
- Co-operative Vehicle Systems
Advanced public transportation systems are expected to see lucrative growth through the forecast period 2022 – 2028. This is particularly due to the increasing installation of automotive telematics systems, electronic fare payment systems, and dynamic sign boards in order to improve the public confidence in public transport facilities over private transport. Advanced traffic management systems accounted for the largest revenue share in 2021 and are expected to remain the dominant segment over the forecast period with the rising need to reduce congestion, particularly in developed and emerging economies across the world.
Advanced vehicle information systems are another attractive market segment in this market, with rising demand for infotainment and navigation devices from both vehicle manufacturers and private vehicle owners in the aftermarket. The market for road pricing systems in developed economies is relatively mature and expected to grow with the new highway and expressway projects. However, the market for electronic toll collection (ETC) systems is growing rapidly in emerging markets such as China, Russia, Brazil, India, and South Africa, owing to new highway projects in these countries. There are two types of cooperative vehicle systems.
Vehicle to Infrastructure (V2I): Enables communication between vehicle and roadside infrastructure.
Vehicle to Vehicle (V2V): Enables communication between two vehicles.
Cooperative vehicle systems are most commonly used to provide dynamic traffic information to drivers and increase driver safety.
Intelligent transportation systems and services include the use of information and communication technologies in order to reduce transportation-related concerns such as traffic congestion, noise, and air pollution.
Evolution of intelligent transportation systems and services (ITSS):
The first phase of ITSS development (1960 – 1980)
The first ITS program was introduced in 1960 in the U.S. with the deployment of Electronic Route Guidance Systems (ERGS) in order to provide real-time information to drivers. In 1970, the ERGS system was integrated with interactive digital maps, and this upgraded system was popular as the Automatic Route Control System (ARCS) in the U.S.
Between 1970 and 1985, the U.S. introduced Urban Traffic Control System (UTCS) for connecting major traffic signals and for automated signal timings for controlling traffic flow. Japan also introduced its first ITS-related program Automobile Traffic Control System (ATCS), between 1960 and 1970 with an intention to develop interactive route guidance systems.
The second phase of ITSS development (1980 – 1995)
Conditions for ITS development improved during this phase, and the U.S., Japan, and Europe introduced several new ITS projects. In 1984, Japan started a new project road/automobile communication system (RACS) which formed the basis for today’s car navigation systems.
During this era Intelligent Vehicle-Highway Systems (IVHS) project was ongoing in the U.S. Europe had also introduced two more projects, Dedicated Road Infrastructure for Vehicle Safety in Europe (DRIVE) and Program for a European Traffic System with Higher Efficiency and Unprecedented Safety (PROMETHEUS) during this period.
Third Phase of ITSS development (1996 onwards)
Intelligent transportation systems and services have started gaining recognition during this phase, and several countries have started deploying advanced technologies to control traffic and transportation-related concerns.
With rising income opportunities, the global population in urban areas is increasing rapidly, and it is predicted that more than 75% of the global population will live in metropolitan cities across the world. The rising population and increasing number of vehicles in these cities will force government and traffic authorities to deploy advanced traffic management solutions for better traffic management. Japan, the U.S., Singapore, the UK, and Germany represent matured markets for ITS.
Most of the ITS technologies are first developed, tested, and implemented in these countries. North America and Europe have made it mandatory to install Electronic Stability Control (ESC) systems in both commercial and passenger cars since 2011. ESC is a driver assistance system that enables drivers to avoid accidents caused due to skidding.
Several countries have observed a massive improvement in the performance of transportation network operations after deploying intelligent transportation systems and services (ITSS) by improving the efficiency of their existing transportation networks, reducing fuel consumption, and the number of road accidents. ITSS is gaining popularity in emerging markets such as South Korea, China, Brazil, India, Russia, Australia, and many other countries across the world with the rising awareness about the benefits of these technologies.
The global intelligent transportation systems and services market is divided into four regional markets, i.e., Europe, North America, Asia Pacific, and the Rest of the World. North America was the largest regional market in 2021. The U.S. government and traffic authorities in the country are investing a significant amount in reducing congestion and introducing mandatory regulations to reduce accidents which are further expected to influence the growth of the ITSS market in the U.S. Canada and Mexico are also introducing U.S. transportation standards to improve the efficiency of their transportation networks.
The Asia Pacific is expected to be the fastest-growing regional market. This growth is primarily attributed to the rising adoption of intelligent transportation systems, particularly in China, Australia, and India. The rising number of vehicle registrations per year and limited space for road expansion are two major factors forcing India and China to invest in road transportation improvement programs.
In Europe, EU7 countries (UK, Germany, Spain, Italy, France, Netherlands, and Belgium) accounted for the largest market share in the overall Europe ITSS market. In Europe, the CIS (Commonwealth of Independent States) region is expected to observe the fastest growth during the forecast period 2022 – 2028. This growth is primarily attributed to the introduction of a new investment program for the deployment of intelligent transportation systems, particularly in Russia.
Russia is looking to improve the efficiency of the existing transportation network and reduce congestion in the country. In the rest of the world’s ITSS market, South America is the largest market, and Africa is expected to be the fastest growing region with the rising deployment of ITSS in South Africa to support its economic growth.