Intelligent Transportation System Market Size, Share & Trends Analysis Report By Mode of Transportation (Roadways, Airways, Railways, Maritime), By Offering (Hardware, Software), By System Type (ATMS, APTS), By Application, By Region, And Segment Forecast

Intelligent Transportation System Market Growth & Trends

The global intelligent transportation system market size is anticipated to reach USD 90.4 billion by 2030, according to a new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 9.2% from 2025 to 2030. The continuous advancements in transportation network technologies have accelerated the demand for efficient transportation systems. The latest technologies, such as electronic toll collection, Next-Generation Air/Ground Communication (NEXCOM), drone traffic management, and blind-spot detection, resulted in heightened expectations for efficient traffic and transportation networks. The growing need to present real-time traffic information equipped with Artificial Intelligence (AI) and Virtual Reality (VR) for enhanced safety & security is boosting the growth of the intelligent transportation system (ITS) market.

The growing adoption of telecommunications technologies and evolution of IT systems are anticipated to assist in reducing traffic congestion and air pollution. Further, the implementation of an Advanced Traffic Management System (ATMS) that emphasizes real-time data utilization and simultaneously addresses the impact criteria is creating a positive ITS market outlook. The integration of energy distribution technologies such as Energy Storage Systems (ESS), smart grids, and charging technologies in ITS helps distribution agencies utilize real-time data to plan and implement capacity expansion strategies for the future, supporting the intelligent transportation system market growth. According to the reports drafted by the Department of Transport of the Republic of Korea on the ITS Development Strategy, ITS can help reduce fuel consumption, traffic congestion, and greenhouse emissions and prevent automobile idling.

The concept of smart cities has been gaining increased traction in recent years, with several governments across Asia Pacific devising favorable regulations to promote smart cities initiatives. Intelligent transportation systems are one of the integral components of smart cities initiatives. An ITS employs multiple next-generation technologies and solutions, such as traffic surveillance cameras, parking guidance systems, Collaborative Decision-Making (CDM), weather information & forecasting, and satellite communication in smart cities infrastructure, that enriches the operational efficiency of the transportation networks in the smart cities projects, creating a favorable environment for ITS market.

Intelligent Transportation System Market Report Highlights

• The maritime intelligent transportation system market is expected to register a considerable CAGR of 9.9% from 2025 to 2030. The significant growth of the maritime segment can be attributed to the significant digital transformation in the marine sector, proliferation of autonomous boats, and technological advancements in port infrastructure
• The roadway services segment is expected to witness a notable CAGR of 8.2% through 2030. Shifting focus on various roadway transport authorities to use ITS services to reduce operational costs and increase the operational efficiency of the ITS system is propelling the segment growth
• The roadway Advanced Public Transportation System (APTS) segment is expected to witness a considerable CAGR of 8.6% over the forecast period. APTS’s various benefits such as improved fuel efficiency of the vehicles, reduced traffic congestion, and an equitable transportation system are creating robust growth opportunities
• The roadway automotive telematics segment is anticipated to register the highest CAGR of 8.6% through 2030. Supportive government initiatives for the automobile sector, increasing role of smartphones in automotive applications, and advancements in 5G connectivity are expected to drive the segment growth from 2025 to 2030
• The railway services segment is expected to witness the highest CAGR of 9.0% from 2025 to 2030. Railway ITS services provide end-to-end development, installation, maintenance, and aftersales support for the railway ITS solutions that allow railway transport authorities to focus on other core business areas, supporting the segment growth
• Railway APTS is anticipated to witness a considerable CAGR of 9.9% over the forecast period. Factors such as the growing rail network and shifting passenger focus toward railway transport owing to its low cost and robust intermodal connectivity, are accelerating the APTS adoption in the railway intelligent transportation system market
• The railway smart ticketing segment is anticipated to witness the fastest CAGR of 9.4% from 2025 to 2030. The rise of multi-modal transport that allows passengers to avail of various transportation services through single apps is driving the segment growth
• The airway intelligent transport system services segment is expected to witness the highest CAGR of 11.4% from 2023 to 2030. The advancements in cloud technology are enabling various airport authorities to efficiently manage airport traffic and improve the passenger experience, creating a positive outlook for Airways ITS services
• The airway Advanced Traveler Information System (ATIS) is anticipated to witness a considerable CAGR of 11.4% from 2025 to 2030. This growth can be attributed to the inclination of various airport authorities to improve overall aviation efficiency and empower travelers to manage their journeys through mobile apps
• The airway traveler information management segment is expected to witness the highest CAGR of 11.3% from 2025 to 2030. ITS integration in the traveler information management application allows passengers to receive real-time updates on security wait times, flight changes, baggage handling, and gate changes, supporting segment growth
• The maritime services segment is anticipated to witness a considerable CAGR of 10.8% through 2030. Port authorities leverage various professional services that include support, deployment, & maintenance of ITS solutions to optimize their maintenance costs and facilitate real-time data sharing and communication between vessels
• The maritime ATIS segment is expected to witness the highest CAGR of 11.0% from 2025 to 2030. With ATIS, passengers in ferries, cruise ships, and other boats can access digital boarding passes, receive real-time updates about weather conditions, and voyage statuses, and can navigate the ships easily, creating a favorable environment for segment growth
• Maritime container movement scheduling segment is expected to witness the highest CAGR of 11.0% from 2025 to 2030. Rising public & private investment in port facilities, proliferation of automated container terminals, and the growing need for robust intermodal coordination for timely goods movement are boosting the adoption of ITS solutions in container movement scheduling
• The Asia Pacific intelligent transportation system market is expected to witness a considerable CAGR of 10.1% from 2025 to 2030. The high demand for advanced telecommunications and automotive technologies and heavy investments in the development and adoption of ITS solutions across Singapore, India, China, and Japan which is driving the growth. Moreover, rising adoption of the fourth industrial revolution is likely to boost the growth of smart cities across Asia Pacific countries, which, in turn, will accelerate the demand for intelligent transport solutions, supporting the industry trend
• Market players are adopting various business strategies to attract potential clients and achieve higher profitability from this potential ITS market. For instance, in January 2023, EFKON GmbH announced that it had won new contracts to renew and expand toll stations in the Norwegian cities of Oslo and Bergen. The company got important orders and framework agreements including the delivery and maintenance of toll stations in the cities for the next 4 years

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