European Intelligent Transportation System Market
European Intelligent Transportation System Market by Security & Surveillance, Traffic & Operations Management, Information Management, Hardware, Software, Services, Ticketing, Roadways, Railways, Airways, and Maritime - Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The European intelligent transportation system market is expected to grow from USD 12.20 billion in 2025 to USD 15.25 billion by 2030, at a CAGR of 4.6%. The market is expanding as countries adopt AI-driven traffic management, V2X communication, automated tolling, and smart mobility platforms. Growing investments in 5G infrastructure, EV corridors, and smart-city initiatives are driving demand for scalable, sustainable, and connected transport solutions.
KEY TAKEAWAYS
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BY COUNTRYGermany is expected to dominate the European intelligent transportation system market, accounting for 28.7% of the overall market.
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BY APPLICATIONTraffic & operations management is expected to dominate the European intelligent transportation system market.
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BY MODEBy mode, the roadways segment is expected to dominate the European ITS market due to extensive deployment of smart traffic management, tolling, and urban mobility solutions.
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FOR ROADWAYS, BY SYSTEM TYPEFor roadways, the tolling & parking management segment is projected to register the highest CAGR of 8.5% during the forecast period, supported by rising congestion, digital payments, and smart-city initiatives.
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FOR ROADWAYS, BY SYSTEM TYPEFor railways, the rail operation systems segment is expected to dominate, holding a 38.6% market share in 2025, driven by investments in signalling modernization, traffic control, and network optimization.
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FOR RAILWAYS, BY SYSTEM TYPEFor airways, the information systems segment is anticipated to be the fastest growing, expanding at a CAGR of 7.0% from 2025 to 2030, supported by airport digitization and passenger experience enhancement.
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FOR MARITIME, BY SYSTEM TYPEFor maritime, the automatic identification systems (AIS) segment is expected to witness the highest growth at a CAGR of 2.9% during the forecast period, driven by port modernization and vessel traffic monitoring requirements.
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COMPETITIVE LANDSCAPE (KEY PLAYERS)Siemens Mobility, Hitachi Ltd., and Mundys were identified as key players in the European intelligent transportation system market, supported by strong technology portfolios, large-scale project deployments, and long-standing relationships with transport authorities.
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COMPETITIVE LANDSCAPE (STARTUPS/SMES)Carma Technology Corporation, Kapsch TrafficCom, and SWARCO, along with emerging ITS-focused SMEs and startups specializing in connected mobility, traffic analytics, and V2X platforms, are gaining traction by addressing niche applications and smart-city use cases, highlighting their potential as future contributors to growth.
The European intelligent transportation system market is growing rapidly as countries advance digital mobility, smart city programs, and sustainable transport initiatives. The adoption of AI-driven traffic systems, V2X communication, 5G mobility networks, and automated tolling is accelerating modernization and improving safety, efficiency, and commuter experience.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The European intelligent transportation system market is being reshaped by rapid advancements in AI-driven mobility analytics, connected vehicle technologies, 5G-enabled transport networks, and smart city infrastructure initiatives. These developments are accelerating the transition from legacy traffic and mobility systems to highly automated, digital, and data-centric transport solutions. As Europe advances toward integrated multimodal mobility, autonomous transport ecosystems, smart roadways, and sustainable urban infrastructure, demand for secure, reliable, and interoperable ITS platforms continues to rise. This transformation is further supported by major end users such as national transport authorities, rail operators, airport managers, and smart-city agencies, whose evolving requirements are influencing next-generation mobility innovations and seamless travel outcomes across the region.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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Growing need for congestion management and road safety
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Expansion of smart cities and sustainable mobility initiatives
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High upfront investment and long deployment timelines for ITS infrastructure
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Fragmented standards and legacy infrastructure
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Growing adoption of 5G, AI, V2X, and data-analytics platforms in mobility systems
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Public-private partnerships and EU-funded mobility programs
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Data privacy, cybersecurity, and regulatory compliance
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Managing interoperability across multimodal transport networks
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Growing need for congestion management and road safety
European cities are facing rising traffic density, urbanization, and mobility complexity, creating strong demand for intelligent transportation systems that enable real-time traffic monitoring, adaptive signal control, and incident management. Government-led road safety initiatives and Vision Zero targets are accelerating the deployment of smart traffic systems, V2X communication, and AI-enabled analytics to reduce accidents, improve traffic flow, and enhance commuter safety across urban and highway networks.
Restraint: Fragmented standards and legacy infrastructure
Europe’s fragmented transport ecosystem, characterized by legacy systems and varying national standards, poses integration challenges for ITS deployments. Interoperability issues between old and new systems increase implementation complexity, require customized interfaces, and raise overall deployment and maintenance costs, slowing large-scale system harmonization.
Opportunity: Public–private partnerships and EU-funded mobility programs
Increasing public–private partnerships and strong EU funding initiatives are creating favorable conditions for ITS adoption. Programs supporting smart mobility, digital infrastructure, and green transport offer opportunities for solution providers to participate in large-scale deployments, pilot projects, and cross-border transport initiatives, accelerating market expansion.
Challenge: Managing interoperability across multimodal transport networks
European ITS deployments must support seamless coordination across roadways, railways, airways, and maritime transport. Achieving real-time interoperability among diverse systems, operators, and jurisdictions adds complexity to system design, data integration, and long-term operations, particularly for cross-border mobility networks.
European Intelligent Transportation System Market: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Deployment of an AI-enabled adaptive traffic management system across major urban corridors in Germany, integrating smart signals, roadside sensors, and cloud-based analytics to dynamically manage congestion and incidents | Reduced traffic congestion, improved road safety, real-time traffic optimization, lower emissions, and enhanced commuter experience through adaptive signal control |
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Implementation of an integrated multimodal traffic control platform for a metropolitan transport authority in Spain, combining roadway monitoring, public transport coordination, and incident response systems | End-to-end network visibility, faster incident response, improved interoperability across transport modes, optimized traffic flow, and improved operational efficiency for city authorities |
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Deployment of advanced railway operation and signaling management systems across European rail networks, integrating predictive analytics, real-time passenger information, and condition-based maintenance tools | Improved punctuality and reliability, enhanced passenger experience, reduced maintenance costs, predictive asset management, and higher operational resilience |
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Implementation of fully electronic toll collection and smart parking management solutions across major European highways and urban centers using ANPR and GNSS-based technologies | Reduced tolling congestion, improved revenue assurance, seamless digital payments, optimized parking utilization, and lower operational costs for authorities |
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Deployment of automated traffic enforcement and road safety systems, including speed and red-light enforcement, integrated with urban traffic analytics platforms in European cities | Enhanced road safety, reduced traffic violations, improved compliance, data-driven policy decisions, and measurable reduction in accident rates |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The European intelligent transportation system market ecosystem is characterized by close collaboration among R&D organizations, manufacturers, system integrators, and public-sector end users. Innovation efforts advance traffic management, connectivity, and mobility platforms, while solution providers enable large-scale deployment. Transport authorities and infrastructure operators drive adoption through investments in smart roads, rail electrification, and digitally integrated mobility networks.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
European Intelligent Transportation System Market, By Mode
By mode, the roadways segment dominates the European ITS market due to extensive deployment of smart traffic management, congestion control, tolling, and urban mobility solutions. High road traffic density, urbanization, and strong government focus on road safety and sustainability are accelerating the adoption of intelligent roadway systems across major European cities and highway networks.
European Intelligent Transportation System Market, By Application
The traffic and operations management segment is expected to dominate the European ITS market as cities prioritize real-time traffic control, congestion mitigation, and incident response capabilities. Growing adoption of adaptive signal systems, centralized traffic platforms, and integrated command centers is enhancing network visibility and enabling data-driven decision-making. These solutions support smoother traffic flow, faster incident clearance, and improved overall mobility performance across urban and interurban corridors, reinforcing the segment’s leading position in Europe’s evolving transportation landscape.
European Intelligent Transportation System Market for Roadways, By System Type
Within roadways, tolling and parking management systems are expected to witness the fastest growth as cities increasingly adopt digital toll collection, smart parking platforms, and integrated payment systems. The need to reduce congestion, improve traffic flow, and optimize urban space utilization is driving widespread deployment of automated and data-driven tolling and parking solutions.
European Intelligent Transportation System Market for Railways, By System Type
In railways, rail operation systems dominate the market, supported by ongoing modernization of rail networks, signaling infrastructure, and traffic control platforms. Rail operators across Europe are prioritizing centralized operations, real-time monitoring, and automation to enhance network efficiency, improve punctuality, and support increasing passenger and freight volumes.
European Intelligent Transportation System Market for Airways, By System Type
For airways, information systems represent the fastest-growing system type, driven by airport digitalization initiatives and rising emphasis on passenger experience. Advanced flight information displays, airport operations management systems, and real-time data platforms are being adopted to improve operational visibility, reduce delays, and streamline passenger movement.
European Intelligent Transportation System Market for Maritime, By System Type
In the maritime segment, automatic identification systems are expected to witness the strongest growth, supported by port modernization efforts and increasing focus on vessel tracking, traffic monitoring, and maritime safety. The integration of AIS with port management and logistics systems is improving situational awareness and operational efficiency across European ports.
REGION
Germany is projected to lead the European intelligent transportation system market during the forecast period
Germany is expected to lead the European intelligent transportation system market due to its advanced transport infrastructure, strong automotive and mobility ecosystem, and early adoption of digital traffic and connected mobility technologies. Robust government support, smart-city initiatives, and large-scale investments in road, rail, and urban mobility systems further reinforce Germany’s leadership in driving regional ITS expansion.
European Intelligent Transportation System Market: COMPANY EVALUATION MATRIX
In the European intelligent transportation system market matrix, Siemens Mobility leads the landscape with its broad portfolio spanning smart traffic management, rail automation, and integrated digital mobility platforms, supported by deep relationships with public transport authorities across Europe. Its strong systems-integration capabilities and end-to-end ITS offerings position it as a key driver of large-scale deployments. Thales, positioned as an emerging leader, is steadily expanding its influence through advanced traffic management solutions, secure communication systems, and growing involvement in smart-city and multimodal transport projects. Thales’ focus on innovation, interoperability, and safety-critical technologies continues to strengthen its role in Europe’s evolving ITS ecosystem.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Siemens Mobility (Germany)
- Hitachi Ltd. (Japan)
- Cubic Corporation (US)
- Conduent Incorporated (US)
- Kapsch TrafficCom AG (Austria)
- Thales (France)
- Teledyne Technologies Incorporated (US)
- Indra Sistemas, S.A. (Spain)
- Mundys (Italy)
- Verra Mobility (US)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 11.87 Billion |
| Market Forecast in 2030 (Value) | USD 15.25 Billion |
| Growth Rate | CAGR of 4.6% from 2025-2030 |
| Years Considered | 2021-2030 |
| Base Year | 2024 |
| Forecast Period | 2025-2030 |
| Units Considered | Value (USD Million/Billion), Volume (Million Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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| Regional Scope | Europe (Germany, UK, France, Italy, Spain, Belgium, Denmark, Austria, Sweden, Rest of Europe) |
WHAT IS IN IT FOR YOU: European Intelligent Transportation System Market REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
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| Market Mapping of Intelligent Transportation Technologies | Analyzed adoption of smart traffic management, V2X communication, intelligent tolling, passenger information systems, and mobility analytics across major European countries |
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| Benchmarking of Key ITS Vendors | Compared portfolios and capabilities of leading ITS OEMs, system integrators, and solution providers across roadways, railways, airways, and maritime |
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| Mode-Specific Opportunity Assessment (Roadways, Railways, Airways, Maritime) | Evaluated digital maturity, modernization initiatives, and ITS deployment intensity across transport modes and regions in Europe |
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| Smart City & Urban Mobility Readiness Assessment | Assessed city-level deployment maturity for traffic management, parking, multimodal integration, and smart ticketing platforms |
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| Interoperability & Legacy System Modernization Analysis | Evaluated migration from legacy traffic and signaling systems to interoperable, cloud-enabled, and AI-driven ITS platforms |
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| Connected & Autonomous Mobility Enablement Analysis | Mapped adoption of 5G, V2X, edge analytics, and cooperative ITS deployments across Europe |
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RECENT DEVELOPMENTS
- November 2025: Siemens Mobility expanded its digital traffic management portfolio in Europe with enhanced AI-based traffic optimization and adaptive signaling solutions, targeting large metropolitan areas in Germany and neighboring EU countries. The upgrades focus on real-time congestion management, incident response, and integration with smart-city platforms.
- September 2025: Kapsch TrafficCom launched a next-generation electronic tolling and smart parking management platform for European road networks, supporting interoperable toll collection, ANPR-based enforcement, and digital payments in line with EU cross-border mobility and interoperability frameworks.
- October 2025: Thales Group introduced advanced rail and urban mobility information systems across European transport corridors, integrating passenger information, traffic supervision, and cybersecurity capabilities to enhance operational resilience and traveler experience in rail and multimodal networks.
- July 2024: Indra Sistemas announced new ITS deployments with European transport authorities focused on centralized traffic control centers, V2X-ready roadside infrastructure, and real-time analytics to support smart-city mobility programs and sustainable transport initiatives across Southern and Western Europe.
Table of Contents
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Methodology
The research study involved four major activities in estimating the European Intelligent Transportation System Market size. Exhaustive secondary research has been done to collect important information about the market and peer markets. The next step has been to validate these findings and assumptions and size them with the help of primary research with industry experts across the value chain. Both top-down and bottom-up approaches have been used to estimate the market size. The market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
In the secondary research process, various secondary sources were referred to identify and collect information required for this study. The secondary sources include annual reports, press releases, investor presentations of companies, white papers, and articles from recognized authors. Secondary research has been mainly done to obtain key information about the market's value chain, the pool of key market players, market segmentation according to industry trends, regional outlook, and developments from both market and technology perspectives.
Primary Research
In primary research, various sources from both the supply and demand sides have been interviewed to obtain the qualitative and quantitative insights required for this report. Primary sources from the supply side include experts such as CEOs, vice presidents, marketing directors, manufacturers, technology and innovation directors, end users, and related executives from multiple key companies and organizations operating in the European Intelligent Transportation System Market ecosystem. After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from our primary research. This, along with the in-house subject matter experts' opinions, has led us to the findings as described in the report. The breakdown of primary respondents is as follows:
Market Size Estimation
In the market engineering process, both top-down and bottom-up approaches and data triangulation methods have been used to estimate and validate the size of the European Intelligent Transportation System Market and other dependent submarkets. The research methodology used to estimate the market sizes includes the following:
The bottom-up procedure has been employed to arrive at the overall size of the European Intelligent Transportation System Market.
- Major companies that provide intelligent transportation systems were identified. This included analyzing company portfolios, product offerings, and presence across various regions.
- The segment-specific revenues of the companies, particularly those related to intelligent transportation systems, were determined.
- The product-specific revenues of the companies, particularly those related to intelligent transportation systems, were determined.
- These individual revenue figures were compiled to determine the total revenue generated across the identified companies within the sector.
- The global market size for intelligent transportation systems was obtained using this consolidated data.
The top-down approach has been used to estimate and validate the total size of the European Intelligent Transportation System Market.
- Identified top-line investments and spending in the ecosystem and major market developments to consider segment-level splits
- Estimated the overall European Intelligent Transportation System Market size, then segmented the global market by allocating shares based on the segments considered
- Distributed the segment-level markets into regions and countries by aligning regional intelligent transportation system activity with economic indicators, intelligent transportation system manufacturing presence, and national development initiatives
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market has been split into several segments and subsegments. Data triangulation and market breakdown procedures have been employed to complete the entire market engineering process and arrive at the exact statistics of each market segment and subsegment. The data has been triangulated by studying various factors and trends from the demand and supply sides of the European Intelligent Transportation System Market.
Market Definition
The European Intelligent Transportation System Market involves designing, integrating, and deploying advanced technologies and solutions that enhance transportation networks' efficiency, safety, and sustainability. ITS leverages a combination of communication technologies, sensors, control systems, and data analytics to monitor, manage, and optimize transportation systems across various modes, including roadways, railways, airways, and maritime. These systems are essential for addressing challenges related to traffic congestion, accident prevention, fuel consumption, and environmental impact. Key components of ITS include traffic management systems, advanced traveler information systems, etc. These technologies are integrated with centralized platforms that enable real-time traffic monitoring, predictive analytics, incident detection, and automated response mechanisms. The adoption of ITS is driven by the rising demand for efficient urban mobility, government initiatives to modernize transport infrastructure, and the need for safer and environmentally friendly transportation. With the increasing proliferation of connected vehicles, electric mobility, and 5G connectivity, ITS is evolving to support autonomous transport, integrated multimodal travel, and sustainable urban planning. Intelligent transportation systems play a vital role in reducing traffic congestion, enhancing commuter experience, lowering emissions, and supporting the development of future-ready smart cities.
Key Stakeholders
- Original equipment manufacturers (OEMs)
- Raw material suppliers
- Technology investors
- System integrators
- Electronic hardware equipment manufacturers
- Software solution providers
- Distributors
- Research organizations
Report Objectives
- To define, describe, segment, and forecast the European Intelligent Transportation System Market size by mode, by application, and by region, in terms of value
- For each mode (roadways, railways, aviation, maritime), a market has been defined, described, and segmented based on system type and offering in terms of value
- To assess the European Intelligent Transportation System Market size in four key regions: North America, Europe, Asia Pacific, and RoW, in terms of value
- To provide detailed information regarding the key factors such as drivers, restraints, opportunities, and challenges influencing the growth of the market
- To analyze the intelligent transportation system value chain and ecosystem, along with the average selling price by system and region
- To strategically study the regulatory landscape, tariffs, standards, patents, Porter's Five Forces, import & export scenarios, trade values, and case studies pertaining to the market under study
- To understand micromarkets with regard to individual growth trends, prospects, and contributions to the overall market
- To assess opportunities in the market for stakeholders by identifying high-growth segments
- To provide details of the competitive landscape for market leaders
- To offer the impact of AI/Gen AI on the European Intelligent Transportation System Market
- To outline the macroeconomic outlook for the regions under study
- To analyze strategies such as product launches, collaborations, acquisitions, and partnerships adopted by players in the European Intelligent Transportation System Market
- To profile key market players and comprehensively analyze their ranking based on their revenue, market share, and core competencies
Customization Options
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Country-wise Information:
- Country-wise breakdown for North America, Europe, Asia Pacific, and the RoW
Company Information:
- Detailed analysis and profiling of additional market players (up to five)
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Growth opportunities and latent adjacency in European Intelligent Transportation System Market