In terms of revenue, the Global Intelligent Transportation System Market is expected to reach USD 68.8 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 9.50% from 2022 to 2028.
Initiatives taken by the government all over the globe for traffic management and an increase in road traffic congestion are expected to drive market growth during the forecast period.
Key Highlights from Report:
- Part of the Advanced Public Transportation System (APTS) segment is expected to record significant growth during the forecast period. APTS provides improved visibility of the overall timeliness of buses and trains. With fewer people using public transportation, any significant investment in real-time information systems can help share real-time information about buses, trains, and passengers.
- The traffic management segment is projected to grow at a considerable Compound Annual Growth Rate (CAGR) during the forecast period. Vehicle management systems improve the reliability and performance of road networks. These systems may generally include vehicle detection systems, bridge traffic control systems, and ramp measuring systems, among other systems. Frequent traffic congestion often leads to significant financial losses, resulting in increased travel time and fuel consumption. Traffic jams have a devastating effect on the country's economic and social growth. Therefore, government agencies in various parts of the world place great emphasis on using traffic control systems as part of efforts to reduce government financial burden.
- Asia Pacific currently dominates the global market and is expected to contribute to this market over the forecast period significantly. China is the second market leader in this region, owing to the country's colossal funding from the Chinese government. On the other hand, South Korea has the most considerable financing in this region for ITS deployment.
Governments worldwide are adopting it to improve road pollution, raise the overall safety and improve the operational performance of the transport system while targetting on reducing the impact of transportation on the environment. However, sufficient funds are required to execute the ITS. Few countries, such as the US and Dubai, are heavily investing in different projects of ITS. For example, in 2020, the UK government invested $1.9 million in three projects to try naive technologies and new ways to improve driving conditions, reduce traffic congestion, and reduce time spent in traffic jams.
Furthermore, the government hopes that deploying next-generation artificial intelligence-powered transport systems will give drivers the confidence to plan and execute their trips without fearing being stuck in traffic. These systems reduce traffic congestion, delays, and air pollution as well. Innovators in the UK are provided with over $368 million in funds to build a cleaner, greener, and sustainable transport network to help reduce traffic jams and effectively manage traffic. Incremental government efforts to develop transport infrastructure bolster economic development are driving the ITS market.
The Government of Thailand is focused on reducing logistics costs from 14% of GDP in 2016 to 12% in 2021. The country is adopting various digital platforms to lower traffic congestion and fuel consumption and maintain timely delivery of goods. However, the number of vehicles on the road is growing daily, and the lack of appropriate transportation infrastructure results in traffic congestion. Rising road traffic congestion, in turn, leads to a negative impact on the environment due to harmful emissions that vehicles emit, which causes an increase in road fatalities and many health issues. Approximately 1.35 million deaths across the globe were reported due to road accidents, and a few health issues were caused by the pollution emitted by vehicles.
Moreover, the key factors driving the ITS market growth include the need for showcasing real-time traffic information to the drivers and passengers. The increased traffic congestion due to the rising number of vehicles has contributed to the need for advanced public traffic management systems. In addition, increasingly stringent emission norms, a rise in consumer awareness, and imperative government efforts are projected to boost ITS adoption. Lightening congestion and shortening travel time leading to lower carbon emissions. Furthermore, it also plays a crucial role in reducing the carbon footprint.
Asia Pacific dominated the global market in 2020, as per the reports, with a market share of over 40%. This region is considered a technology hub for developing and aggressively implementing the latest, advanced technologies, for instance, machine learning, big data, cloud computing, and IoT, to name a few. The region is also known as home to major global market players. The strong emphasis various regional governments are putting on improving transportation infrastructure is driving the adoption of intelligent transportation systems. Several public-private collaborative efforts to introduce intelligent transportation systems are materializing in various cities across North America due to the increasing traffic and subsequent congestion.