Intelligent Transportation Systems (ITS) enable vehicles, roads, traffic lights, message signs and other elements to become intelligent by embedding them with microchips and sensors and empowering them to communicate with each other through wireless technologies. ITS improves transportation system performance, including reduced congestion and increased safety and traveler convenience. Leaders in ITS infrastructure development, such as Japan, Singapore, and South Korea, are breeding grounds for technology supplier opportunity. This report assesses the global market for ITS applications and products and forecasts the growth opportunities for ITS suppliers, manufacturers, and end-users through 2015.
Chapter I - Executive Summary
Chapter II - Introduction
Intelligent Transportation Systems Defined
Intelligent Transportation Systems leverage electronics, communications, and information processing technologies to improve all facets of transportation. ITS technology improves efficiencies around traffic flow, transportation safety, roadway hazards, traveler mobility, and traveler convenience, among other aspects.
ITS applications vary in technologies applied, from basic management systems such as car navigation; traffic signal control systems; container management systems; variable message signs; enforcement systems to monitoring applications, such as security closed-circuit TV systems; and to more advanced applications that integrate live data and feedback from a number of other sources, such as parking guidance and information systems, and weather information.
Benefits of Intelligent Transportation Systems
Applying information technology to a country’s transportation network delivers five key classes of benefits:
ITS technology can significantly improve a city’s transportation infrastructure. Global leaders in ITS deployment, most notably Japan, Singapore, and South Korea, have documented substantial improvements in their traffic flow efficiencies, traveler satisfaction, accident reduction, road repairs, and environmental effects
Asia Leads in ITS Deployment
Asia has emerged as the geographic breadwinner in ITS deployment and manufacturing. Several countries on the continent were early adopters of ITS technologies due to three key reasons: A decaying transportation infrastructure that required constant maintenance and led to an increasing number of accidents and traffic delays; Population growth in major cities directly affected the growth of vehicular traffic, which led to increased roadway congestion and reduced travel time, all of which adversely affected the local economy and the ability to move goods; Home-grown ITS applications, including roadway sensors, traffic management devices, and toll automation, made for easy integration and deployment in populous cities.
U.S. Has Long ITS Road Ahead
Long recognized as a leader in early adoption of all facets of technology, the U.S. is a laggard in deployment of ITS-related technologies. Since 2000, the U.S. has marginally invested in ITS product - mainly for traffic management, ramp metering, and travel information provision - but has not accelerated adoption as rapidly as most other nations in Asia.
Europe Paves Way for ITS Future
Nations of the European Union made a concerted effort to invest in ITS technologies nearly five years ago when it launched the i2010 initiative to create a unified European information space. i2010 emphasizes the contribution of information communication technologies to growth and employment and identifies ITS as one of the core applications.
Chapter IV Global Market for ITS Products
ITS Deployment Spending, 2006 to 2010
SBI Energy’s analysis of regional spending on ITS technologies includes the cost of buying ITS applications, hardware and technology, and the capital expenditures associated with constructing, maintaining, and repairing products and facilities, such as traffic management centers, emergency response centers, and fleet management centers.
The Cost of ITS Deployment
Government support for ITS adoption often depends on the costs to upgrade transportation infrastructure with ITS technologies compared to expanding roadways or constructing new roads. Officials weigh the long-term benefits of ITS deployment in relieving traffic congestion and reducing accidents compared with the logistics of planning and building additional highway lanes.
Growth of Intelligent Transportation System Costs
Through 2015, SBI Energy expects costs of ITS components to increase globally at an average CAGR rate of 10%. We attribute our moderate growth estimate in ITS product prices to a gradual rise in demand for ITS systems in regions that have committed to ITS deployment. In the U.S., for example, prices will rise considerably in roadside detection and control products as many states begin to assertively roll out ITS-enabled traffic management devices.
Growth in ITS Spending
Despite the moderate increase in ITS product costs, nations will assertively spend their government-backed funds on ITS components through 2015. Double-digit CAGR growth is expected to occur in the U.S. on all facets of ITS manufacturing sectors, particularly commercial vehicle screening and emergency response centers.
Global ITS Product Manufacturing
Manufacturing of ITS products is largely concentrated in Asia where nations such as Japan, South Korea, and China acquired the skilled labor and facilities to mass produce ITS components and technology. SBI Energy estimates the current market value of ITS manufacturing in Asia at $24.5 billion and that figure has grown at about a 10% CAGR rate since 2006.
Through 2020, spending on ITS products will remain healthy globally as ITS technology improves and nations look to replace legacy ITS components with innovative solutions in real-time traffic management. Vehicle integration of ITS devices, such as GPS systems and dashboard sensors that receive vital traffic information, will standardize and sales will proliferate among automobile manufacturers.
Chapter V Competitive Profiles
Manufacturers of ITS products will mobilize their sales forces during 2011 to capitalize on the immediate growth opportunities in ITS development. Their success in securing long-term agreements with governments and public utilities will not come easy, however, as many regions remain in a spending freeze due to local economic woes.
Government Policy for ITS Projects
Government funding for ITS initiatives has become more readily available in several nations as the move to improve transportation safety and traffic management becomes increasingly important. In the U.S., for example, the American Recovery and Reinvestment Act of 2009 provides a significant transportation spending component.
ITS Deployment: The EU Legislative Policy
In Europe, the Multi-annual Indicative Program (MIP) was created to stimulate ITS deployment. Within the MIP, the program specifically dedicated to road ITS deployment, TEMPO, initially increases funding to more than $150 million (from the previous $125 million) over a five-year period.
What Are ITS Standards?
Hundreds of standards are used across all different types of transportation, such as vehicle safety standards, road and pavement standards, and rail standards. ITS standards define how ITS systems, products, and components can interconnect, exchange information and interact to deliver services within a transportation network.
In the News
SOTU Lays Framework for Advances in American Transportation Infrastructure,
Transportation Systems toward a $14 Billion Industry by 2015
New York, January 31, 2011 — U.S. President Barack Obama’s January 25th State of the Union Address (SOTU) delivered a strong message about rebuilding America’s transportation network. "To attract new businesses to our shores, we need the fastest, most reliable ways to move people, goods, and information-from high-speed rail to high-speed Internet," the President remarked.
Over the past two years, the United States has implemented new construction projects for its roads and bridges, due in part to American Recovery and Reinvestment Act (ARRA) benefits, and has created thousands of jobs. In Tuesday’s speech, the President proposed to redouble these efforts.
"While the U.S. government support for Intelligent Transportation Systems (ITS), via federal funding and legislation, has been lagging, government involvement seems to be making a U-turn," reports analyst Darren Bosik, author of ‘Global Intelligent Transportation Systems Products Market,’ an SBI Energy publication.
The market research firm analyzed the opportunities and challenges facing the industry and forecasted double-digit growth in all facets of ITS manufacturing sectors in the U.S., particularly commercial vehicle screening and emergency response centers, through 2015. "With 2010 as the spending benchmark point, total cumulative spending on ITS technologies in the U.S. will grow to more than $14.5 billion through 2015," noted Shelley Carr, publisher for SBI Energy.
Through 2015, SBI Energy expects costs of ITS components to increase globally at a compound annual growth rate (CAGR) of 10%. The market research publisher attributes the moderate growth estimate in ITS product prices to a gradual rise in demand for ITS systems in regions that have committed to ITS deployment. In the U.S., for example, prices will rise considerably in roadside detection and control products as many states begin to assertively roll out ITS-enabled traffic management devices. The U.S. will continue to depend on imports of ITS products from Asia, and pay a premium for technology-heavy devices, such as sensors.
"Within 25 years, our goal is to give 80 percent of Americans access to high-speed rail. This could allow you to go places in half the time it takes to travel by car," President Obama projected in his speech. "For some trips, it will be faster than flying-without the pat-down. As we speak, routes in California and the Midwest are already underway."
The U.S., which has spent a sum total of $3.7 billion on ITS since 2006, has several ongoing ITS investment initiatives that have contributed to the accumulated outlay. Among the more notable are the following:
Dallas Area Rapid Transit is contributing $3 million and receiving $5.3 million from the U.S. Department of Transportation for using a transportation management model to predict travel conditions 30 minutes into the future. Travelers will be able to access real-time information about traffic, public transit and expected travel times, through wireless and Web-based alerts.
The San Diego Association of Governments will contribute $2.2 million and receive $8.7 million from the federal government for a project along Interstate 15 using a "smart" traffic management system combining road sensors, video and traveler information to take steps to reduce congestion. The system will deliver information to commuters via the Internet and message signs along the road. It will also enable managers to adjust traffic signals and ramp meters to direct travelers to high occupancy vehicle and high-occupancy toll lanes, bus rapid transit and other options.
Tennessee’s multimillion-dollar, eight-year expansion of Nashville’s traffic monitoring system, scheduled for completion this fall, seeks to double the number of overhead message boards and traffic cameras that warn motorists of problems ahead on the interstate.
A year ago the country’s Department of Transportation’s Research and Innovative Technology Administration’s (RITA) ITS Joint Program Office (JPO) unveiled a new, five-year ‘ITS Strategic Research Plan, 2010-2014.’ While the Strategic Plan represents an important step forward, the U.S. is still mired in ITS "research mode," rather than full-scale investment, construction, and deployment of ITS applications. With the additional push from the U.S. government, investments in ITS technologies will continue growth-speeding up job creation and economic recovery.
Global Intelligent Transportation Systems Products Market examines at length ITS applications, trends, technologies, product manufacturing and costs associated with this expansive industry-both domestically and internationally. The report forecasts market value through 2020, separating out spending on deployment, emergency response, and product and technology manufacturing. Further, the report divulges the competitive profiles of industry leaders including IBM, Efkon, Scania, Vitronic, Iteris, Moru Industrial, Sumitomo Electric, Traffic Data Systems, Telvent, Denso, Image Sensing Systems, and Kapsch.
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