Intelligent Transport System Market Report 2025

The intelligent transport system market size has grown rapidly in recent years. It will grow from $36.34 billion in 2024 to $40.2 billion in 2025 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to government initiatives, increased safety concerns, environmental sustainability, rising vehicle ownership, urbanization trends.

The intelligent transport system market size is expected to see rapid growth in the next few years. It will grow to $63.04 billion in 2029 at a compound annual growth rate (CAGR) of 11.9%. The growth in the forecast period can be attributed to emergence of autonomous vehicles, iot integration, smart city initiatives, environmental regulations, public-private partnerships. Major trends in the forecast period include integration of ai and machine learning, connected vehicle technologies, electrification and sustainable mobility, cybersecurity in transportation, data analytics for traffic optimization.

The anticipated rise in the number of road accidents is poised to drive the growth of the intelligent transport system market in the future. Road accidents, involving collisions on public roads resulting in injuries or fatalities, have prompted the adoption of Intelligent Transport System (ITS) applications. These applications, including traffic signal control systems, speed cameras, and road safety cameras, contribute to monitoring and enforcing traffic rules, ensuring adherence to road safety regulations. For instance, as of September 2022, the National Highway Traffic Safety Administration reported an estimated 20,175 fatalities in on-road car accidents during the first half of 2022 in the U.S., indicating a 0.5% increase from 2021. Therefore, the increasing incidence of road accidents is a driving force for the intelligent transport system market.

The increasing number of vehicles on the road is expected to drive the growth of the intelligent transport systems market in the coming years. Factors such as population growth, urbanization, economic development, and greater access to personal transportation are contributing to the rise in vehicle numbers, which can lead to traffic challenges. The implementation of intelligent transportation systems aims to enhance traffic efficiency and reduce issues like congestion. As a result, the rising vehicle numbers will fuel demand for intelligent transport systems. For example, in February 2024, the Australian Department of Infrastructure, Transport, Regional Development, Communications, and the Arts reported that, as of January 31, 2022, there were 20.7 million registered motor vehicles, a 2% increase from January 2021. Battery electric vehicles (BEVs) reached about 40,000, doubling from 2021, with 34,200 of them being cars in 2022, a 118% increase from the previous year. Hybrid-electric vehicles (HEVs) totaled approximately 277,000 in 2022, reflecting a 35% growth from 2021. Thus, the rising number of vehicles on the road is driving the expansion of the intelligent transport systems market.

Major companies in the intelligent transport systems sector are innovating by developing products such as the Onboard Driver Assistance and Warning System (ODAWS) to enhance highway infrastructure and road safety. ODAWS, part of the Intelligent Transportation System (ITS) developed under the InTranSE-II program by the Ministry of Electronics and Information Technology (MeitY) in India, provides real-time notifications to drivers. For instance, in April 2022, MeitY launched ITS solutions, including ODAWS, Bus Signal Priority System, and Common SMart IoT Connectivity (CoSMiC) software, aiming to boost road safety and improve public transport efficiency.

Leading companies in the intelligent transport systems market are increasingly focusing on developing advanced real-time vehicle tracking systems to improve traffic management, enhance safety, and deliver better customer service using accurate location data and predictive analytics. These real-time tracking systems support intelligent transport systems by enabling efficient monitoring of vehicle positions, leading to improved route optimization, reduced traffic congestion, and faster emergency response times. For example, in September 2024, Puducherry Road Transport Corporation (PRTC), an India-based road transport corporation, introduced an intelligent transport system (ITS) that allows real-time bus tracking and automated ticketing with integrated payment options. Equipped with vehicle tracking and public information systems, this ITS uses GPS technology to boost operational efficiency and service reliability. This initiative marks a significant step in modernizing public transportation and enhancing urban mobility, making it a key development in the intelligent transport systems market.

In November 2022, KKR, a US-based investment firm, acquired Hitachi Transport System for an undisclosed sum. KKR aims to utilize its global network and expertise to help Hitachi Transport System (HTS) become a leading third-party logistics (3PL) provider in Asia. Hitachi Transport System, based in Japan, specializes in logistics services such as transportation, warehousing, and supply chain management solutions.

Major companies operating in the intelligent transport system market include Thales Group, Siemens AG, Garmin International Inc., Kapsch TrafficCom AG, TomTom International BV, Denso Corporation, Efkon GmbH, Ricardo plc, Lanner Inc., Q-Free ASA, TransCore, Atkins Group, Iteris Inc., Savari Inc., Teledyne FLIR LLC, IBM Corporation, Addco LLC, Cubic Corporation, Alstom SA, Hitachi Ltd., Indra Sistemas S.A., Advantech Co. Ltd., Nuance Communications Inc., Conduent Incorporate, Cohda Wireless, Sensys Networks Inc., Rapid Flow Technologies Inc., Verra Mobility, Xerox Corporation.

North America was the largest region in the intelligent transport system market in 2024. The regions covered in the intelligent transport system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the intelligent transport system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An intelligent transport system (ITS) is an integration of advanced technologies and communication systems aimed at enhancing the efficiency, safety, and sustainability of transportation systems. ITS endeavors to improve traffic efficiency and alleviate transportation challenges by providing users with access to historical traffic data, nearby amenities, real-time scheduling information, and seat availability.

The primary components of an intelligent transport system include hardware, software, and services. Hardware refers to the physical components of a computer or other electronic equipment. Various system types encompass Advanced Traffic Management Systems (ATMS), Advanced Traveler Information Systems (ATIS), Advanced Transportation Pricing Systems (ATPS), Advanced Public Transportation Systems (APTS), and Emergency Medical Systems (EMS) implemented in roadways, railways, and airways. Diverse applications of ITS include intelligent traffic control, collision avoidance, parking management, ticketing management, automotive telematics, fleet management and asset monitoring, among others.

The intelligent transport system market research report is one of a series of new reports that provides intelligent transport system market statistics, including intelligent transport system industry global market size, regional shares, competitors with a intelligent transport system market share, detailed intelligent transport system market segments, market trends and opportunities, and any further data you may need to thrive in the intelligent transport system industry. This intelligent transport system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The intelligent transport system market consists of revenues earned by entities by providing fleet management, public transport management, emergency management and intelligent traffic management. The market value includes the value of related goods sold by the service provider or included within the service offering. The intelligent transport system market also includes sales of automatic vehicle identifiers, GPS based automatic vehicle locators, sensors, and cameras which are used in providing intelligent transport system services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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