Intelligent transportation system market could hit $47.6 billion by 2022
The intelligent transportation system (ITS) market is expected to be worth more than $47.6 billion by 2024. A new research report by Global Market Insights reveals that the advanced traffic management system (ATMS) ITS market size was the leading product segment; it was worth $7.1 billion in 2014 and is forecast to reach $18.4 billion by 2022, growing at a CAGR of 12.7%. These systems are deployed to ensure proficient use of road space and reduce traffic congestion.
The industry is fairly competitive, with the top ten industry participants accounting for the major intelligent transportation system market share in 2014. Notable participants include Kapsch TrafficCom, Siemens AG, Hitachi Ltd., Q-Free ASA, SWARCO AG, TomTom NV, Garmin International, Denso, IBM Corp., and Xerox Corp.
The advanced public transportation system (APTS) market was valued at $4.8 billion in 2014 and is likely to be worth $13.2 billion by 2022, growing at over 13%. High cost ratio and improved supply chain processes offered by deployment of ITS systems have granted economic benefits in emerging countries including Brazil, India, China, South Africa, and Russia. In addition, these systems assist users in diminishing overall travel time and fuel consumption by avoiding overcrowded routes. Chief manufacturers in emerging and established industries are installing these systems to differentiate their products from competitors.
Attributes such as performance enhancement of transportation systems along with the need for road safety is expected to drive the industry demand for APTS systems. Numerous initiatives are being undertaken to set up advanced traffic management systems and increase awareness regarding the importance of road safety measures. Key applications of APTS systems include bus arrival notification systems, automatic vehicle location systems, and real-time passenger information systems.
Traffic management systems include bridge traffic management systems, ramp metering, and vehicle detection systems. The systems help in enhancing operation performance and also offer reliable road networks.
Road user charging is anticipated to grow at 12% from 2015 to 2022. The segment is expected to dominate the industry because of development of new technology solutions such as vehicle miles traveled and high-occupancy toll lanes.
Developed markets such as North America and Europe have mandated the usage of ESC (electronic stability control) systems, a driver assistance system in commercial as well as passenger vehicles. Proliferating applications of these systems is anticipated to positively impact the intelligent transportation system market growth over the next several years. Increasing death rate due to rising road traffic has incurred high cost and is likely to account for around 2% of the country’s gross domestic product (GDP). The impact on economic development is critical in low- and middle-income economies.
The Asia Pacific intelligent transportation system market size is predicted to experience significant growth due to rising advancements in sensor technologies. This can be credited to significant adoption in countries such as India and China. Latin America ITS market size is estimated to grow at over 13% during the next seven years.
The North America ITS market share was valued at more than $7 billion in 2014, for a market share of approximately 41%. Favorable regulatory initiatives paired with promotional activities are likely to spur the demand in the region. The European Commission has taken initiatives to make investments such as EasyWay, Galileo, and eSafety, which are further expected to stimulate the regional industry growth. The Germany ITS market size is forecast to grow at over 11% from now to 2022.
Rising need for interoperability is projected to hinder the intelligent transportation system market growth over the forecast period. It is a major issue for electronic toll collection (ETC) systems because of differences in toll collection technologies implemented by operators across the globe. For instance, in Europe, dedicated short range communications (DSRC) and GPS/GSM technology is employed for ETC systems for toll collection on highways. Conversely, this restraint is likely to be diminished by increasing standardization in services as well as the ITS market.