According to a new market report published by Transparency Market Research, the Intelligent Transportation System market was valued at USD 20.22 billion in 2015 and is expected to reach USD 57.44 billion by 2024, growing at a CAGR of 12.7% during forecast period 2015 to 2024.
Advanced transportation management systems (ATMS) used for traffic control and management accounted for the largest revenue share of the overall market in 2015. Significant investment is expected in this segment with increasing traffic problems in both developed and developing economies across the world.
Advanced vehicle pricing systems which include electronic toll collection, congestion pricing, vehicle mile travel and other road user charging systems are expected to have a huge demand across the world.
Deploying ITS benefits in the ratio of about 8 is to 1 when compared to traditional investment in transportation network expansion
Transportation service providers are seeking cost effective solutions to boost their productivity and higher financial benefits. ITS improves the overall performance of the supply chain process and yields higher benefit-cost ratio for users in a competitive environment. It is found that deploying ITS benefits in the ratio of about 8 is to 1 when compared to traditional investment in transportation network expansion.
In addition, use of advance traffic control system has a benefit cost ratio between 20:1 to 50:1 in terms of reduced congestion and fuel consumption. Using real time information systems can save tens of millions of dollars. Owing to high benefit to cost ratio, both public and commercial transportation service providers have increased their investments in ITS in the last five years globally. This investment is expected to increase further due to increase in awareness of economic benefits of ITS particularly in emerging markets such as India, China, Brazil, Russia and South Africa.
Traffic management is expected to grow at the fastest growth rate of 28.36% over the forecast period from 2016 to 2024. In addition, automotive telematics is another major segment in ITS applications. Huge demand for vehicle position systems and navigation systems are expected from both vehicle manufacturers and owners due to increasing need to access real-time information. Advancement in wireless technologies are playing important role in the development of automotive telematics market. In wireless technologies, market is moving from dedicated short range communication (DSRC) technology to more sophisticated satellite based vehicle positioning systems (VPS) due to their higher adaptability and flexibility.
Globally the intelligent transportation system (ITS) market has been broadly segmented into North America, Europe, Asia Pacific and rest of the world. Government initiative and promotional activities particularly in the US has increased the demand for ITS systems in both public and private sector in North America. Asia-Pacific is the fastest growing region in the global market through the estimated period and huge investment is expected from developing countries including India, China, Thailand and Malaysia. In addition, large development in ITS market is expected in Middle East, Africa and South America as countries in these regions are investing in the transportation sector to support their economic growth.