Intelligent Transportation Systems Market

Date: 1/26/2015

The global intelligent transportation systems market was estimated to be valued at USD 14.59 billion in 2012 which is expected to reach USD 38.68 billion by 2020

  • By: Grand View Research, Inc.
  • Publishing Date: March 2014
  • ISBN Code: 978-1-68038-036-1

Intelligent Transport Systems (ITS) add ITS and Information Communications Technology ICT to transport infrastructures and vehicles in an effort to improve their safety, reliability, efficiency and quality.

Growing number of vehicles and increasing population has led to the need for effective traffic management. An Intelligent Transportation System (ITS) integrates the transportation network with ICT (Information and Communications Technology) to improve performance, enable multimodal transport and help alleviate road accidents and optimize fuel consumption. Besides being used for road transport, ITS is also used for rail, water and air transport and navigation systems. With the help of sensors, navigation systems, video surveillance devices, and vehicle probes, real-time data is collected. It is then analyzed and communicated to the user via dynamic sign boards, internet, mobile telephony, etc. The usage of ITS to reduce road accidents and increase safety in general is a major driving force for the market. Demand for vehicle to vehicle (V2V) and vehicle to infrastructure (V2I) communication in order to enhance road safety is expected to gain momentum over the next few years. Interoperability issues in between the user and the road or control units may act as a restraint to the industry in the near future. Establishment of standardization and a unified technology is necessary for effective communication.

Key Intelligent Transportation Systems:

  • Advanced transportation management systems (ATMS): ATMS help transportation network operations as well as aid in alleviating pollution and traffic congestion in order to enhance quality of life. ITS market revenue share by 40.0% in 2012.
  • Advanced transportation pricing systems (ATPS): ATPS provide a combine data processing technology as well as sensors and communication to ensure real-time management of transportation networks’ operations; information gathered and processed is beneficial to drivers and travelers alike. ITS market revenue share by 26.9% in 2012.
  • Advanced traveler information systems (ATIS): ATIS provide real-time traffic, navigation, weather information, etc. ITS market revenue share by 13.2% in 2012.
  • Advanced public transportation systems (APTS): APTS help to increasing the efficiency public transit systems’ operations as well as boost overall safety. APTS applications include bus arrival notification systems, real-time passenger information systems, automatic vehicle location systems, etc. ITS market revenue share by 12.0% in 2012.
  • Cooperative vehicle systems: Cooperative vehicle systems, also known as cooperative vehicle infrastructure systems (CVIS) enable vehicles and transport infrastructure to exchange information in a dynamic fashion. This information includes data related to location, traffic and road conditions, and helps warn travelers and drivers in advance to incidents, blockages and hazards. ITS market revenue share by 8% in 2012.

Key Findings:

  • North America accounted for 43.8% of the global market in 2013 and is expected to remain the most dominant ITS market over the next six years. This can primarily be attributed to favorable regulatory initiatives from transportation authorities for increasing driver safety and reducing traffic congestion.
  • Asia Pacific ITS market is expected to register the fastest growth of 14.0% from 2014 to 2020, as a result of need for improvement of transportation networks and high growth expected in India and China.
  • Advanced Transportation Management Systems (ATMS) accounted for the largest market share of 39.9% in 2013; it is expected to continue dominating the overall industry over the next six years.
  • Advanced Public Transportation Systems (APTS) is expected to be the fastest growing segment, at an estimated CAGR of 13.7% from 2014 to 2020.
  • APTS deal in the use of IT and transportation management in order to boost the safety and effectiveness of public transit systems.
  • Traffic management is expected to remain the largest ITS application through the forecast period and was valued at USD 5.16 billion in 2013.
  • Road user charging (RUC) also accounted for considerable market share in 2013, driven by technological advancements in electronic toll collection (ETC).
  • Environment protection is expected to grow at the fastest CAGR of 18.2% from 2014 to 2020, due to increasing focus on reducing pollution and emission levels.