Global Intelligent Transport Systems Market - Segmented by Component (Hardware, Software, and Services), Mode of Transport (Roadways, Railways, Airways, and Maritime), Application (Advanced Traveler Information System (ATIS), Advanced Traffic Management System (ATMS), Advanced Public Transportation System (APTS)), and Region - Growth, Trends, and Forecast (2018 - 2023)
Intelligent Transport Systems Market was valued at USD 20.47 billion in 2017 and is expected to reach a value of USD 27.80 billion by 2023 at a CAGR of 5.02% over the forecast period (2018 - 2023).
The advancements in IoT has affected all the industries including the automotive and transportation sector. Automotive and transportation is one of the significant sources of demand to IoT solutions all over the world. In recent years, applications of IoT in automotive and transportation sector has given rise to Intelligent Transport Systems (ITS) enabling advanced security, infotainment and communication solutions in cars, jets, containerships, drones and even rail cars.
Stringent laws over road safety and transportation all over the world have led to rapid adoption of intelligent transport systems in many public sector applications such as traffic management, public transport management, and monitoring, etc. With the growing trend of smart cities all over the globe, intelligent transport systems are increasingly becoming famous in traffic and other public-sector applications and are expected to gain extreme levels of penetration, especially in the Asia Pacific region.
North America to Present New Opportunities
North America is the most advanced market for Intelligent Transport Systems (ITS). The region is well established with several ITS systems, primarily to manage emergency systems, traffic, and public transport. The region is increasingly finding several advanced applications in controlling increased air traffic, especially in the United States. According to Federal Aviation Administration (FAA), there were more than 770,000 U.S. drone registrations filed from January 2016 to March 2017, indicating an increase of 100,000 registrations in the first quarter of 2017.
This exponential growth in the sales of commercial drones in the region and with countries like the US imposing strong laws on drone pilots and registrations are expected to create substantial demand form the airways sector for ITS systems over the forecast period. In case of cars, trucks, and other road vehicles North America has a strong demand for dedicated short-range communications devices that are driving the demand for ITS systems in the region. As of 2016, US alone had 15.8 million recreational boats in the country (National Marine Manufacturers Association). This creates a massive demand for ITS in the maritime industry. With such scale of demand form all the transport modes in the region, North America is expected to retain its position as the most significant market for ITS over the forecast period.
Applications in Roadways are Increasingly Becoming Popular
Roadways stand to be the fastest growing segment for Intelligent Transport Systems (ITS). With increasing number of commercial fleets all over the world due to increased e-commerce activity and manufacturing are encouraging many logistics players to deploy asset monitoring and management systems. Companies, like GE Capital, AT&T have adopted telematics fleet solutions for continuous monitoring of fleet emission and real-time location status, which helps the companies to schedule trips that could reduce the cost of maintenance and increases the driver’s productivity once they diagnose the entire vehicle with information generated from ITS.
Countries, like U.S, Germany, U.A.E, and India, have considerably increased their investments and have established laws that make telematics installations mandatory in many of the vehicles. The primary concern for road safety, as these countries face high accident mortality rates, is driving the growth of ITS market in these countries. Further, the increasing number of electric vehicles and cars with autonomous driving capabilities, which heavily rely on vehicle-to-infrastructure communication and intelligent onboard systems, increasing adoption of IoT solutions in the automotive sector and number of electric car manufacturers are expected to create considerable demand for ITS in the near future.
Key Developments in the Market