Intelligent Transport System Global Market Opportunities and Strategies to 2033

This report describes and explains the intelligent transport system market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global intelligent transport system market reached a value of nearly $33.17 billion in 2023, having grown at a compound annual growth rate (CAGR) of 12.04% since 2018. The market is expected to grow from $33.17 billion in 2023 to $58.58 billion in 2028 at a rate of 12.04%. The market is then expected to grow at a CAGR of 10.35% from 2028 and reach $95.86 billion in 2033.

Growth in the historic period resulted from increasing number of road accidents, growing number of vehicles on the road, rising air pollution levels, increasing smart city projects around the globe, increasing demand for efficient traffic management markets. Factors that negatively affected growth in the historic period was lack of skilled workforce.

Going forward, increasing urban populations, expansion of the e-commerce industry, strong economic growth in emerging markets, increasing reliance on public transportation systems, increasing government initiatives will drive the growth. Factor that could hinder the growth of the intelligent transport system market in the future include high initial investment costs.

The intelligent transport system market is segmented by component into hardware, software and services. The hardware market was the largest segment of the intelligent transport system market segmented by component, accounting for 54.44% or $18.061.34 million of the total in 2023. Going forward, the software segment is expected to be the fastest growing segment in the intelligent transport system market segmented by component, at a CAGR of 13.27% during 2023-2028.

The intelligent transport system market is segmented by application into intelligent traffic control, collision avoidance, parking management, ticketing management, automotive telematics, fleet management and asset monitoring and other applications. The intelligent traffic control market was the largest segment of the intelligent transport system market segmented by application, accounting for 26.93% or $8.93 billion of the total in 2023. Going forward, the collision avoidance segment is expected to be the fastest growing segment in the intelligent transport system market segmented by application, at a CAGR of 14.50% during 2023-2028.

The intelligent transport system market is segmented by system into advanced traffic management systems (ATMS), advanced traveler information systems (ATIS), advanced transportation pricing systems (ATPS), advanced public transportation systems (APTS) and other systems. The advanced traffic management systems (ATMS) market was the largest segment of the intelligent transport system market segmented by system, accounting for 34.95% or $11.59 billion of the total in 2023. Going forward, the advanced traveler information systems (ATIS) segment is expected to be the fastest growing segment in the intelligent transport system market segmented by system, at a CAGR of 13.21% during 2023-2028.

The intelligent transport system market is segmented by mode of transport into roadways, railways, airways and maritime. The roadways market was the largest segment of the intelligent transport system market segmented by mode of transport, accounting for 55.27% or $18.33 billion of the total in 2023. Going forward, the roadways segment is expected to be the fastest growing segment in the intelligent transport system market segmented by mode of transport, at a CAGR of 13.04% during 2023-2028.

North America was the largest region in the intelligent transport system market, accounting for 34.93% or $11.59 billion of the total in 2023. It was followed by Western Europe, Asia Pacific and then the other regions. Going forward, the fastest-growing regions in the intelligent transport system market will be Asia Pacific and Africa where growth will be at CAGRs of 14.15% and 13.72% respectively. These will be followed by Middle East and South America where the markets are expected to grow at CAGRs of 13.32% and 12.74% respectively.

The global intelligent transport system market is fairly fragmented, with a large number of small players in the market. The top ten competitors in the market made up to 20.68% of the total market in 2023. The market fragmentation can be attributed to the presence of large number of small players in different geographies. Thales Group was the largest competitor with a 2.99% share of the market, followed by Siemens AG with 2.77%, Atos with 2.50%, Honeywell International Inc. with 2.46%, Verizon Communications Inc. with 1.82%, Huawei Technologies Co. Ltd. with 1.81%, Cubic Corporation with 1.81%, Kapsch TrafficCom AG with 1.77%, Teledyne FLIR Systems Inc. with 1.70% and Conduent Inc. with 1.05%.

The top opportunities in the intelligent transport system market segmented by component will arise in the hardware segment, which will gain $13.02 billion of global annual sales by 2028. The top opportunities in the intelligent transport system market segmented by system will arise in the advanced traffic management systems (ATMS) segment, which will gain $9.55 billion of global annual sales by 2028. The top opportunities in the intelligent transport system market segmented by mode of transport will arise in the roadways segment, which will gain $15.5 billion of global annual sales by 2028. The top opportunities in the intelligent transport system market segmented by application will arise in the intelligent traffic control segment, which will gain $7.6 billion of global annual sales by 2028. The intelligent transport system market size will gain the most in the USA at $6.53 billion.

Market-trend-based strategies for the intelligent transport system market include developing adopting new technologies, expanding ITS product catalogs to offer a diverse range of innovative solutions, adopting a strategic partnership approach for business expansion.

Player-adopted strategies in the intelligent transport system market include focus on enhancing its operational capabilities through the launch of new products.

To take advantage of the opportunities, the analyst recommends the intelligent transport system companies to focus on technological advancements and sustainability, focus on expanding its product catalogs, focus on software market to maximize growth, focus on advanced traveler information systems (atis), expand in emerging markets, continue to focus on developed markets, focus on expanding strategic partnerships for distribution, focus on competitive and value-based pricing, partner with industry stakeholders and focus on enhancing end-user engagement for collision avoidance systems.