Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
An intelligent transportation system is an advanced application, whose primary objective is to provide innovative services related to different modes of transportation and traffic management and allow users to be well-informed. It also provides safer, more coordinated, and smarter transport networks. Advancements in wireless technologies to share real-time information are playing an important role in the effective development and deployment of connected vehicle systems. Wireless technologies such as DSRC, 3G, and 4G mobile networks ensure multi-modal data transmission and improve the interoperability of transportation networks.
The global intelligent transportation systems (ITS) market is estimated to account for US$ 74.3 Bn in terms of value by the end of 2027.
Market Dynamics- Drivers
- Enhancement in existing performance of transportation networks is expected to drive growth of the global intelligent transportation systems (ITS) market during the forecast period
Transport plays a major role in a country’s economic and social development. Inadequate working of traffic signals and traffic incidents are major causes of all traffic jams and increased carbon emissions in urban and interurban networks. According to various, ITS associations such as ITS Canada, ITS Turkey, etc. advanced traffic management systems (ATMS) reduce the waiting time at a signal by 20% to 30% and the travel time by 25%, which in turn helps in saving a huge chunk of notified congestion. These systems also reduce greenhouse gas emissions such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) etc. For every hour of delay time reduced in traffic, one lightweight vehicle can save 0.7 gallons of fuel and a truck can save 1.93 gallons. Therefore, these factors are expected to drive growth of the global intelligent transportation systems (ITS) market during the forecast period.
- Growing need to improve road safety is expected to propel the global intelligent transportation systems (ITS) market growth over the forecast period
According to the Association for Safe International Road Travel (ASIRT), 2012, around 1.3 million people per year and an average of 3,287 people die per day in road accidents. Road traffic accounts for more than 2.2% of all deaths globally. According to the same sources, in 2012, road accident was the 9th leading cause of deaths and accounted for more than 2% of all global deaths. Road accidents alone cost around US$ 520 billion per day globally. Many countries are mitigating these challenges by implementing advanced traffic management systems in their road networks. Furthermore, increasing awareness about road safety among vehicle owners is expected to increase the demand for cooperative systems such as vehicle to vehicle (V2V) and vehicle to infrastructure (V2I) in the near future. Developed regions are fully committed and implementing stringent regulations and policies to reduce the number of road fatalities. Thus, these factors are expected to propel the global intelligent transportation systems (ITS) market growth over the forecast period.
North America held dominant position in the global intelligent transportation systems (ITS) market in 2019, accounting for 40.2% share in terms of value, followed by APAC and Europe respectively.
Figure 1: Global Intelligent Transportation Systems (ITS) Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraint
- Negative impact of economic slowdown on ITS funding is expected to restrain growth of the global intelligent transportation systems (ITS) market during the forecast period
Lower funding for ITS projects is a major challenge for transportation agencies, in order to deploy ITS technologies. State and national governments of several countries across the world including developed nations are giving priority to expansion and maintenance of transportation networks over deploying advanced ITS technologies. In the last few years, both developed and emerging economies are struggling with the economic slowdown. According to International Monetary Fund growth in the global economy is expected to be slow in 2013 which in turn will impact the market of ITS in the near future. Therefore, these factors expected to restrain growth of the global intelligent transportation systems (ITS) market during the forecast period.
- Lack of interoperability between ITS and infrastructure is expected to hinder the global intelligent transportation (ITS) market growth over the forecast period
ITSs use information and communication technologies to share the transportation information between vehicle and road users, transportation authorities, and traffic control units. ITS system’s architectural deployment is facing interoperability challenges to share the information and to facilitate transportation in a more effective manner. Interoperability is the major issue for electronic toll collection systems (ETC) due to difference in toll collection concepts and different technologies used by highway toll collection operators. Hence, these factors are expected to hinder the global intelligent transportation (ITS) market growth over the forecast period.
Intelligent Transportation Systems (ITS) Market Report Coverage
||Market Size in 2019:
||US$ 30.1 Bn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 74.3 Bn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East and Africa: GCC Countries, South Africa and Rest of Middle East and Africa
- By Type: Advanced Traveler Information System (ATIS), Advanced Traffic Management System (ATMS), Advanced Transportation Pricing Systems (ATPS), Advanced Public Transport System (APTS), Co-operative Vehicle Systems (CVS).
- By Application: Traffic management, Road safety and surveillance, Freight management, Public transport, Environment protection, Automotive telematics, Parking management, Road user charging.
Siemens AG, TomTom NV, Hitachi Ltd, Thales Group, WS Atkins PLC, Telenav, Inc., Nuance Communications Incorporation, Kapsch TrafficCom AG, EFKON AG, Iteris, Inc., and Garmin International Inc.
- Enhancement in existing performance of transportation networks
- Growing need to improve road safety
|Restraints & Challenges:
- Negative impact of economic slowdown on ITS funding
- Lack of interoperability between ITS and infrastructure
- Improving the standardization of wireless communication technologies can present lucrative growth opportunities in the global intelligent transportation systems (ITS) market
Wireless technologies used in ITS systems are developing constantly to improve the reliability and interoperability of transportation networks. Both short distance and long-distance wireless communication technologies are advancing rapidly to support current and future applications of ITS. These wireless communication technologies have a wide range of applications in ITS including electronic toll charging (ETC), vehicle navigation systems, and other advanced traveler information systems. Recently, 5.9 MHz DSRC was introduced to improve the performance of toll systems at highway tolls. Europe has also approved this technology for ETC on highways. Continuous development and standardization of the DSRC technology is expected to increase its applications in the field of V2X communication systems to reduce accidents and improve road safety. Communication Air Interface Long and Medium (CALM) range also has a huge potential as it provides continuous wireless communication between roadside infrastructure and vehicles.
- Contracts and agreements among market players can provide major business opportunities in the global intelligent transportation systems (ITS) market
Major companies in the market are involved in contracts and agreements, in order to gain a competitive edge in the market. For instance, in June 2013, Siemens received the contract to supply it's advanced ITS solutions for Poznan in Poland. Furthermore, in January 2012, Hitachi Ltd., Mitsubishi Corporation, and Mitsubishi Heavy Industries Ltd received the contract from Malaga Smartcity project (Spain).
Figure 2: Global Intelligent Transportation Systems (ITS) Market Value (US$ Bn), 2017 - 2027
The global intelligent transportation systems (ITS) market was valued at US$ 30.1 Bn in 2019 and is forecast to reach a value of US$ 74.3 Bn by 2027 at a CAGR of 11.9% between 2020 and 2027.
- Research and development activities by market players
Major players in the market are focused on research and development activities, in order to enhance the market presence. For instance, in March 2013, Hitachi Ltd introduced a tiny self-driving car i.e. ROPITS (Robot for Personal Intelligent Transportation System). This car is specially designed to offer to pick and drop facilities for growing number of elderly citizens and for physically disabled people. In July 2011, Nuance Communications Inc. launched the Natural Language Understanding (NLU) Interactive Voice Response (IVR) system for US Airways in order to deliver a fast and personalized travelling experience
- Mergers and acquisitions among market players
Key players are involved in mergers and acquisitions, in order to enhance the market presence. For instance, in August 2011, Nuance Communications Inc. acquired Loquendo in order to accelerate the availability and adoption of world-class voice-enabled solutions.
Value Chain Analysis
Transport authorities: This includes regional and national transportation authorities who install ITSs to control and manage operations of transportation networks. Some of transportation authorities also act as regulatory bodies to set standards and regulations for implementation and development of ITSs. They also collaboratively work with equipment and software suppliers for innovations and improve the functionality of the existing systems.
Global Intelligent Transportation Systems (ITS) Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. The disruption in the supply chain adversely affected the manufacturing industry. The industry is facing a reduction in production, disruption in supply, and price fluctuations. Due to this pandemic manufacturers are forced to slow down their manufacturing operations till the time this situation is recovered. In addition, the scarcity of raw material can still pose a challenge to this industry. Due to this situation most of the manufacturing companies are now focusing on saving their business instead of investing in smart manufacturing of products and solutions. Thus, in turn decreases the demand for intelligent transportation system (ITS) market.
Major companies operating in the global intelligent transportation systems (ITS) market are Siemens AG, TomTom NV, Hitachi Ltd, Thales Group, WS Atkins PLC, Telenav, Inc., Nuance Communications Incorporation, Kapsch TrafficCom AG, EFKON AG, Iteris, Inc., and Garmin International Inc.
Key market players are involved in contracts and agreements, in order to gain a competitive edge in the market. For instance, in April 2019, Iteris, Inc. received a US$ 1 million contract to update Florida’s Intelligent Transpiration Systems Architectures.