Intelligent Transportation Systems: The March towards Congestion-Free Roads
Traffic congestion in urban areas continues to be a grappling issue, laying critical burden on traffic management in metropolitan cities. According to research, the number of vehicles on the road will double to reach 2 billion by 2050. This alarming number may not only increases air pollution through motorized road transport but lead to high mobility costs. These environmental and socio-economic aspects necessitate the need to integrate advanced technology into mainstream traffic management. The implementation of intelligent transportation systems (ITS), being a verified route to minimize traffic congestion on the roads, remains the preferred technology as far as traffic management is concerned. The deployment of intelligent transportation systems is backed by government support, as they essentially reduce the burden on the global GDP by mitigating road accidents and injuries.
Although lack of interoperability acts as a bottleneck in the market, numerous governments are striving to standardize the ITS frame to overcome this challenge. Moreover, manufacturers are developing systems with enhanced cybersecurity to enhance the integrity of connected vehicles. Gauging the significance of intelligent transportation systems in the economic and social development of countries across the globe, Transparency Market Research conducted comprehensive research on the intelligent transportation system market. TMR’s endeavors were further supported by the popularity of ITS as a robust traffic management system. In its latest offering, TMR lays bare the key trends in the market, and their impact on the future of traffic management.
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Evolutionary Landscape of the Intelligent Transportation System Market
The origin of intelligent transportation systems dates back to the 1960s, when the Electronic Route Guidance System was developed in the U.S. However, the ITS World Congress in Paris in 1994 accelerated the development and deployment of intelligent transportation systems to enhance the traffic control systems across the globe. Since then, numerous ITS applications have been developed by various organizations around the world and customized as per specific needs. This has now become a global phenomenon, garnering attention from the automotive industry, transportation professionals, and political decision makers alike. While the conventional stage of ITS was focused on creating a technical foundation, the present stage is characterized by the development of feasible ITS products.
The extensity of an intelligent transportation system makes it a collaborative effort of the private sector, public sector, and academia. Public and private sector partnerships in the market are backed by the knowledge of the academicians. Analyzing the economic burden of road accidents and the contribution of transport to the world’s energy related CO2 emissions, TMR expects that the global intelligent transportation system (ITS) market will experience promising growth during the forecast period of 2019 to 2027. The market will burgeon at a CAGR of around 13%, to exceed a valuation of USD 80 billion by 2027.
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Key Trends Contributing to the Transition of the Intelligent Transportation System Market
An overarching trend gaining prominence in the intelligent transportation system market is the increasing adoption of advanced navigation and infotainment systems by car manufacturers. Travelers want information regarding traffic congestion, weather conditions, and safety warnings to be at their fingertips. This need for real-time information pertaining to trips has encouraged manufacturers to incorporate Advanced Traveler Information Systems (ATIS) and Advanced Transportation Management Systems (ATMS) in their cars. The ATIS and ATMS segments collectively accounted for more than 50% of the market share in 2018. According to sources, over 20% of the 1.2 billion cars on the road are anticipated to be connected vehicles by 2020. This trend promoting the growth of connected vehicles has further prompted car manufacturers to deploy advanced AI-integrated security systems to prevent cyber intrusion. Manufacturers are using this strategy to differentiate themselves from other connected vehicle manufacturers.
Another key trend reforming the intelligent transportation system market is the shift in consumer preference towards automation, when it comes to vehicles. The global ITS market in automated vehicles is projected to surpass a value of US$ 1.5 billion by the end of the forecast period. Development and deployment of autonomous vehicles continue to soar with the advancement and standardization of wireless technology. Moreover, numerous cities are fielding automated shuttles as a part of their smart city efforts. This is expected to form a big part of the landscape of future cities. Manufacturers are capitalizing on this trend by building strong networks with automated car manufacturers and developing ITS software that supports autonomous vehicles.
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Key Strategies to Strengthen Regional Stronghold
North America sits at the pedestal of the intelligent transportation system (ITS) market. It accounted for a major share of more than 40% of the intelligent transportation system market in 2018, and is expected to hold its leading position throughout the forecast period. The U.S. alone holds more than 85% of the market share in North America. Strong government support and strategic public-private partnerships have been instrumental in the market’s growth in this region.
Key players in the intelligent transport system market are striving to consolidate their position in the U.S., sensing the opportunities presented by the standardization of the ITS framework by the U.S. Department of Transportation (DOT). Proliferation in the U.S. market gives players easy access to the ITS markets in Mexico and Canada. This is not only because of proximity but also due to the implementation of U.S. transportation standards in Canada and Mexico. Players are also cashing in on the trend of zero-emission vehicles in this region. Manufacturers are laying considerable emphasis on research and development activities to develop ITS technology aligning with zero-emission vehicles.
Analysis of the Competitive Landscape
The global intelligent transportation system market features a fragmented landscape with a large number of domestic and foreign manufacturers, and no clear leaders dominating the market. Prominent companies in the intelligent transportation system market include Garmin International, Hitachi Ltd., TomTom N.V., and Siemens AG (Germany).
Strategic acquisitions, robust advertising campaigns, and developing public-private partnerships continue to be the preferred winning strategies to expand footprints in the global intelligent transportation system market. The acquisition of Rockwell’s Integrated Local Government (ILG) business by Siemens AG is one of the key acquisitions to take place in the market. It helped Siemens AG gain access to the expanding road safety market. Similarly, Nuance Communications Inc. acquired Loquendo in 2011 to accelerate the adoption of voice-enabled solutions.
Apart from these strategies, key players in the market are expected to extend their service offerings to solidify their position in the market. For instance, WS Atkins PLC has extended its service offerings from traffic management solutions to incident management solutions to gain an edge over other players. Additionally, sensing the opportunities in developed countries such as the U.S., Japan, and Canada, partakers are focusing on expanding their customer base in these regions.
Analysts’ Viewpoint on the Market
Authors of the report on the intelligent system market remain optimistic about its growth, as the market is expected to grow at a double-digit rate during the forecast period. Big shots in the market are building strong alliances with service providers and the public sector to gain a stronghold in the market. Enhancing the interoperability and infrastructure of the intelligent transportation system will remain a key challenge for market players in the coming years.
However, manufacturers engaging in research and development activities and developing ITS software complaint with autonomous cars will gain momentum in the intelligent transportation system market. Manufacturers will further expand their precincts in the market by banking on new technological inventions and extending their service offerings. This will not only give them an edge over the other players but help them build a differentiated brand image.
Intelligent Transportation System Market - Key Insights
- The global intelligent transportation system market is projected to expand at a CAGR of around 13% between 2019 and 2027.
- Advanced traffic management systems (ATMSs) was a major segment of the intelligent transportation system market, and held a 40.22% share of the global intelligent transportation system market in 2018.
- Intelligent transportation systems (ITSs) are majorly preferred for traffic management. Therefore, the traffic management segment held a major share of the market, as it presently has higher penetration. It accounted for 30.80% share of the intelligent transportation system market in 2018; however, the other segments in the intelligent transportation system market are expected to challenge this segment during the forecast period.
- Intelligent transportation systems (ITSs) witnessed high penetration in North America in 2018; however, several other regions such as Europe and Asia Pacific are expected to challenge North America, and are estimated to gain share of the global intelligent transportation system market during the forecast period. North America held a 40.32% share of the global ITS market in 2018, followed by Europe and Asia Pacific.
Drivers of the Intelligent Transportation System Market
Intelligent transportation systems are primarily utilized to control traffic and reduce the chances of accidents by sharing accurate real-time information with drivers. This is a major factor driving the ITS market.
- Wireless technologies employed in intelligent transportation systems are evolving consistently to improve the interoperability and reliability of transportation networks. Wireless communication technologies are improving regularly to boost the application of intelligent transportation systems, irrespective of the distance traveled by the vehicle.
- The demand for intelligent transportation systems is increasing due to the rise in the number of vehicles on the roads, which are facing increasing issues such as heavy traffic and accidents. Consequently, the governments of various countries are adopting intelligent transportation systems to reduce the impact of such problems. These are the key factors driving the intelligent transportation system market.
- Wireless communication technologies are used for diverse applications in intelligent transportation systems, including electronic toll charging (ETC), vehicle navigation systems, and other advanced traveler information systems.
- A new technology introduced was the 5.9 MHz DSRC system, which can be used to improve the performance and efficiency of toll systems on highways. Europe has incorporated the ETC technology on its highways.
- Standardization and continuous development of the DSRC technology are expected to increase its applications in the field of V2X communication systems to reduce accidents and improve road safety.
Challenges for the Intelligent Transportation System Market
- The setup and maintenance cost of an ITS is very high, which can hamper its adoption in developing countries. Therefore, intelligent transportation systems are presently used by countries that are economically stable.
- Proper infrastructure is required to maintain the continuous channel of communication between the ITS and the vehicle.
The global intelligent transportation system market has been segmented based on type, application, and region.
Based on type, the advanced transportation management systems (ATMSs) segment held a prominent share of the intelligent transportation system market. The ATMSs segment is expected to maintain its position in the market; however, it is expected to be challenged by other segments, which can hamper its share in the intelligent transportation system market.
- ATMSs has been the dominant segment of the market in the last few years, due to an increase in the demand for traffic management solutions, particularly for adaptive signaling systems, across the globe. Highway operators, worldwide, are installing electronic toll charging systems, which would reduce the traffic at toll centers.
- The advanced public transportation segment is projected to expand at a rapid pace during the forecast period. Various public transport operators are focused on investing in dynamic display systems and electronic fare collection systems.
Based on application, traffic management was the dominant segment in 2018, due to higher application of ITSs in traffic management. Investments by governments to control traffic and provide fast & efficient solutions for traffic management is a major factor driving the segment in the intelligent transportation system market.
Intelligent Transportation System Market: Regional Analysis
In terms of region, equal participation from both, public and private sectors is the key reason for North America to hold a prominent share of the global intelligent transportation system market. The Asia Pacific ITS market is estimated to multiply at a significant pace over the forecast period. The U.S., U.K., and Japan are developed markets for intelligent transportation systems, and their governments have invested heavily in these advanced technologies.
Intelligent Transportation System Market: Competitive Landscape
Key market players operating in the global intelligent transportation system market include
- WS Atkins PLC
- Siemens AG
- Thales Group
- Nuance Communications Incorporation
- Garmin International Inc.
- Hitachi Ltd.,
- EFKON AG
- Iteris Inc.
- Telenav Inc.
- TomTom NV.
Transparency Market Research recently published a report on the intelligent transportation system (ITS) market. The report covers the regional and technological trends that are impacting the dynamics of the intelligent transportation system market. It provides a comprehensive analysis of the intelligent transportation system industry in terms of market size and CAGR for the forecast period of 2019 to 2027.
TMR’s study on the ITS market divulges key insights on the new developments and current trends in the market. The information presented in the report helps stakeholders devise long-term strategies for their business and identify key growth opportunities. The study arms new entrants with the ability to take strategic business-related decisions to expand their revenue share in the global intelligent transportation system market.
Through this report on the intelligent transportation system market, industry enthusiasts can obtain actionable insights regarding the factors contributing to the rise in the adoption of intelligent transportation systems. The report analyzes the changes in the business models and consumer behavior, to help key enterprises gauge the growth prospects in the intelligent transportation system market.
Key Questions Answered in the Intelligent Transportation System Market Report
The study provides insightful information on the intelligent transportation system market based on numerous microeconomic and macroeconomic factors. It analyzes the nodes and internodes of the market, and answers salient questions for key companies functioning in the intelligent transportation system market. Some of these questions include:
- What are the key business strategies being adopted by new entrants in the intelligent transportation system market?
- How have technological advancements shaped the growth of the ITS market?
- How are market big shots monetizing the current trends in the intelligent transportation system market?
- Which application type in the intelligent transportation system market recorded the highest sales in 2018?
- Which region is expected to present lucrative growth opportunities for established players in the ITS market?
Intelligent Transportation System Market Report: Research Methodology
TMR’s analysts have opted for the bottom-up approach to assess the market numbers for each product category in the ITS market. Current and historical trends have been analyzed to forecast the data. Exhaustive primary and secondary research has been conducted to understand the dynamics and prominent trends in the intelligent transportation system market.
For primary research, TMR analysts have conducted one-to-one interviews with market stakeholders, industry leaders, CEOs, brand managers, and leading manufacturers. On the other hand, for secondary research, the analysts relied on annual reports, company websites, investor presentations, SEC filings, news articles, press releases, and statistical databases.
With the help of industry-verified data that has been gathered through numerous primary and secondary sources, TMR’s study offers actionable insights on the current and future prospects of the ITS market. Factors such as yearly changes in inflation rates and historical trends were considered while forecasting the market numbers. Country-specific market penetration is determined based on increasing smart cities and transportation as a service.
Segmentation of the Intelligent Transportation System Market
Information on the intelligent transportation system market has been segmented in three broad categories – type, application, and region. Each segment has been assessed on the basis of the key trends, opportunities, drivers, and restraints. The study on the ITS market encompasses statistically refined forecasts for each region analyzed in terms of application and type.
Advanced Traveler Information Systems (ATIS)
Advanced Transportation Management Systems (ATMS)
Advanced Transportation Pricing Systems (ATPS)
Advanced Public Transportation Systems (APTS)
Automatic Number Plate Recognition Systems (ANPR)
Road Safety and Surveillance
Road User Charging
Middle East and Africa