The global intelligent transportation system (ITS) market is projected to reach USD 98.2 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.5% from 2023 to 2032, according to Allied Market Research.
This significant growth represents a substantial increase from the USD 48.36 billion revenue generated in 2022, signifying an impressive development over the next decade.
Understanding the Key Insights
The study highlights the primary factors that drive the market’s growth, including the increasing global traffic congestion and growing government investments in railway and road infrastructure development promoting green mobility.
The expansion of global trade, ongoing infrastructure projects, and increasing demand for efficient transportation solutions are fueling the ITS market’s continued moderate growth.
Technological advancements, the rise of connected and autonomous vehicles, and improved internet connectivity emerge as the sector’s key factors that deliver significant opportunities.
However, the ITS sector faces challenges that include regulatory compliance, safety concerns, and volatile raw material prices. The research emphasized that the market’s future growth is linked to industry-specific demands, global economic stability, and technological advancements.
Notable Developments in ITS
The report spotlighted significant advancements in the ITS sector including strategies in acquisition, agreements, expansion, partnership, contracts, and product launches, which have strengthened their market position.
In October 2023, Alstom SA partnered with FLXO Robotics to develop innovative solutions that reduce wildlife collision accidents. By leveraging advanced image analytics and artificial intelligence (AI) algorithms, the system recognizes animals in proximity, releasing a tailored repellent noise to daunt them.
Siemens AG’s acquisition of HMH, s.r.o, in November 2023 solidified its position as Europe’s leading rail infrastructure provider. Meanwhile, NEC collaborated with India’s Uttar Pradesh State Road Transport Corporation (UPSRTC) to establish the Vehicle Location Tracking-Passenger Information System (VLT-PSIS) initiative, which provides live bus tracking through an Integrated Command Control Center, ultimately addressing the growing safety concerns in traveling.
Market Segments and Regional Outlook
The hardware segment is expected to maintain its dominance, projecting a CAGR of 7.8% from the 2023 to 2032 forecast period. This growth is attributed to global investments in CCTV and other communication equipment for security and surveillance purposes.
The ITS market’s application segment is projected to reach a CAGR of 9.1%, driven by the need for efficient and customized ITS solutions.
Additionally, the roadways segment is expected to attain 8.3% in market growth, driven by the increasing government investments in road network developments.
Geographically, the Asia-Pacific region is set to lead the market share in revenue, projected to experience the fastest CAGR of 8.5% in the forecasted period. The region’s strong economic growth is driving the growing demand for ITS to manage the rising transportation industry.