The Global Intelligent Transportation Systems (ITS) Market, By Type (ATIS, ATMS, ATPS, APTS and Cooperative systems), By Application (Traffic management, Road safety and surveillance, Freight management, Public transport, Environment protection, Automotive telematics, Parking management and Road user charging), and by Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Global Forecast to 2027, is expected to be valued at US$ 74.3 billion by 2027, exhibiting a CAGR of 11.9% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Intelligent transportation systems (ITS) are a combination of leading-edge information and communication technologies used in traffic and transportation management systems. It is used to improve the efficiency, safety, and sustainability of transportation networks to reduce traffic congestion and enhance drivers’ experience. It involves a wide range of applications including traffic management, ease congestion, minimizes environmental impact, and also increase the benefits of transportation to commercial users. 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.
High benefit to cost ration is expected to propel the global intelligent transportation systems (ITS) market growth over the forecast period
Transportation service providers are seeking cost-effective solutions to boost their productivity and higher financial benefits. ITSs improve the overall performance of the supply chain process and yields a higher benefit-cost ratio for users in a competitive environment. It is found that that deploying ITS system benefits in the ratio of about 8 is to 1 when compared to traditional investment in transportation network expansion. Furthermore, the use of advanced traffic control systems has a benefit cost ratio between 20:1 to 50:1 in terms of reduced congestions and fuel consumption. With significant use of real time information systems, users can save tens of millions of dollars. This investment is expected to increase further due to an increase in awareness of the economic benefits of ITS particularly in emerging markets such as India, China, Brazil, Russia, and South Africa. Therefore, these factors are expected to drive growth of the global intelligent transportation systems (ITS) market in the near future.
Development of smart vehicles compatible with ITS can provide major business opportunities in the global intelligent transportation systems (ITS) market
Many automobile and technology companies are developing smart vehicles that are compatible with ITS Companies such as BMW, Chevrolet, Chrysler, Dodge, Audi, Jeep, and more are developing smart vehicles, which has increased adoption of ITS. Key players in the market can capitalize on these opportunities by providing novel products and gain a competitive edge in the market.
High cost associated with ITS is expected to hamper the global intelligent transportation systems (ITS) market growth over the forecast period
ITS installation is significantly expensive as compared to other technologies. As a result of this, not many automobile manufacturers are actively adopting this technology. This, in turn, increases the overall cost of the vehicle. Hence, these factors are expected to hamper the global intelligent transportation systems (ITS) market growth in the near future.
Among regions, North America is expected to witness significant growth in the global intelligent transportation systems (ITS) market. This is owing to rapid growth of roadways in North America and Canada. Furthermore, presence of major market players across the regions is expected to boost the regional market growth over the forecast period.
Europe is expected to register a robust growth rate in the global intelligent transportation systems (ITS) market over the forecast period. This is owing to high traffic density in Spain and the major role of ITS in the French transport policy. Moreover, rising research and development activities are expected to accelerate regional market growth over the forecast period.
Global Intelligent Transportation Systems (ITS) Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to slow down due to shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. Thus, in turn, decreases the demand for global 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.