Intelligent transportation system market is expected to reach $57.44 billion in 2024
The intelligent transportation system market was valued at $20.22 billion in 2015 and is expected to reach $57.44 billion by 2024, growing at a CAGR of 12.7% during the forecast period from 2015 to 2024.
These projections are according to a new market report, "Intelligent Transportation System Market Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2016 – 2024," published by Transparency Market Research.
Advanced transportation management systems (ATMS) used for traffic control and management accounted for the largest revenue share of the overall market in 2015. Significant investment is expected in this segment with increasing traffic problems in both developed and developing economies across the world. Advanced vehicle pricing systems which include electronic toll collection, congestion pricing, vehicle mile travel, and other road user charging systems are expected to be in huge demand across the world with the focus on systems to diminish traffic on both inter-urban and urban transportation networks.
Transportation service providers are seeking cost-effective solutions to boost their productivity and improve financial benefits. ITSs improve the overall performance of the supply chain process and yield higher benefit-cost ratio for users in a competitive environment. Deploying ITS systems produced benefits of about 8 to 1 when compared to traditional investment in transportation network expansion. In addition, use of advanced traffic control systems have a benefit-cost ratio between 20:1 to 50:1 in terms of reduced congestion and fuel consumption. Significant use of real-time information systems can enable users to save tens of millions of dollars. Because of the high benefit-to-cost ratio, both public and commercial transportation service providers have increased their investments in ITSs in the past five years globally. This investment is expected to increase further due to increase in awareness of economic benefits of ITS, particularly in emerging markets such as India, China, Brazil, Russia, and South Africa.
Traffic management and road user charging are two dominating applications for the intelligent transportation system market in 2015. Traffic management is expected to grow at the fastest growth rate of 28.36% over the forecast period from 2016 to 2024. In addition, automotive telematics is another major segment in ITS applications. Huge demand for vehicle position systems and navigation systems are expected from both vehicle manufacturers and owners due to increasing need to access real-time information. Advancement in wireless technologies is playing an important role in the development of the automotive telematics market. In wireless technologies, the market is moving from dedicated short-range communication (DSRC) technology to more sophisticated satellite-based vehicle positioning systems (VPS) due to their higher adaptability and flexibility.
Globally, the intelligent transportation system (ITS) market has been broadly segmented into North America, Europe, Asia Pacific, and the rest of the world (RoW). The global intelligent transportation system market was dominated by North America for the total revenue share in 2015. Government initiative and promotional activities, particularly in the U.S., has increased the demand for ITS systems in both public and private sectors in North America. Asia-Pacific is the fastest growing region in the global market through the estimated period, and huge investment is expected from developing countries including India, China, Thailand, and Malaysia. In addition, large development in the ITS market is expected in the Middle East, Africa, and South America as countries in these regions are investing in the transportation sector to support their economic growth.
The global ITS industry comprises a large number of domestic and international players. Each player has fragmented market share and is looking to increase market share through technology innovation and global expansion. Some of the key players in the intelligent transportation system market are Siemens AG (Germany), Hitachi Ltd (Japan), WS Atkins PLC (U.K.), Nuance Communications Incorporation (U.S), EFKON AG (Austria), Garmin International Inc. (U.S.), Iteris Inc. (U.S.), Telenav Inc. (U.S.), Thales Group (France), TomTom NV. (The Netherlands).
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