Intelligent Transportation System Market with COVID-19 Impact Analysis by Offering, System (Advanced Traffic Management System, ITS-Enabled Transportation Pricing System, and Others), Application, and Geography - Global Forecast to 2025
[217 Pages Report] The Intelligent Transportation System Market for roadways is expected to grow from USD 17.9 billion in 2020 to USD 36.5 billion by 2025, at a CAGR of 15.3%. The market growth can be attributed to several factors, such as increasing concerns toward public safety, growing traffic congestion problems, rising favorable government initiatives for effective traffic management, increasing adoption of eco-friendly automobile technologies, and development of smart cities across the world.
COVID-19 Impact on the Global ITS Market in Roadways
The Intelligent Transportation System Market includes major Tier I and II suppliers such as Thales Group (France), Siemens (Germany), Kapsch TrafficCom (Austria), Garmin (US), TomTom International BV (Netherlands), Cubic Corporation (US), Q-Free ASA (Norway), EFKON GmbH (Austria), FLIR Systems, Inc. (US), Indra Sistemas (Spain), and Denso Corporation (Japan). These suppliers have their manufacturing facilities spread across various countries across North America, Europe, APAC, and RoW. COVID-19 has impacted their businesses as well.
• To lower the impact of COVID-19, Thales is implementing a global adaptation plan to maintain its productive capacities for customers, lower the financial impact of this crisis, and strengthen the funding capacity if the crisis persists or worsens.
• According to Garmin, the economic uncertainty and impact on consumer behavior caused by COVID-19 have affected business; accordingly, the company has withdrawn its fiscal 2020 guidance. However, it is optimistic for the long term because the markets it serves and the products it offers are well-positioned to flourish in the future.
Market Dynamics of ITS in Roadways
Driver: Growing traffic congestion
The deployment of ITS helps in providing real-time traffic statistics that can help in resolving growing traffic congestion concerns. Intelligent signal controls gather information from sensors that quantify vehicle speed, traffic signals, pre-emption alarms, and other traffic-related information. Data received from various sensors run through refined algorithms and send information back to the controllers. Collecting real-time traffic statistics helps in controlling traffic signals. ITS helps drivers identify shorter routes and traffic-free routes to improve mobility.
Restaraint: Expensive ITS installation
A sophisticated centralized traffic management center (TMC) is required—which can deal with real-time traffic data and help reduce traffic congestion—to be co-located with transportation managers, system operators, dispatchers, and response agencies. The implementation of ITS includes CCTV cameras, microwave detectors, dynamic message signs (DMS), advanced traveler information systems (ATISs), and highway advisory radio (HAR); other factors such as mobile data terminals (MDTs) are an important component of the transit fleet management systems. All these lead to huge investments.
Opportunity: Designing and developing smart vehicles compatible with ITS
The introduction of cooperative, connected, and automated mobility (CCAM) programs are likely to transform the mobility industry worldwide. It will allow road users and traffic managers to share traffic-related information and coordinate effectively. Also, this cooperative element will help in establishing connections among vehicles (V2V), as well as between vehicles and transport infrastructure (V2I). C-ITS includes technologies and applications that allow wireless data exchange within the transport system between V2V and between V2I. The complete implementation of a C-ITS program is likely to improve road safety, traffic efficiency, and comfort of driving significantly by helping the driver make the right decisions and adapt to the traffic situation.
Challenge: Achieving interoperable and standard ITS architecture worldwide
The establishment of an Intelligent Transportation System infrastructure involves the integration of various heterogeneous devices that are likely to create compatibility issues quite often. The synchronization of these heterogeneous devices needs standardization in the implementation of various ITS systems. However, the lack of a standard ITS infrastructure is an issue. The implementation and significant use of information technology is a process of interrelated steps. Any error in any of the stages during the implementation reduces efficiency.
Advanced traffic management system (ATMS) held the highest share in Intelligent Transportation System Market for roadways in 2019
Based on system, the market is categorized into advanced traffic management system, advanced traveler information system, its-enabled transportation pricing system, advanced public transportation system, commercial vehicle operation. The largest market size of the advanced traffic management system is attributed to the increasing traffic congestion on roads across the world. In addition, the increasing affordability of vehicles, due to the availability of favorable deals offered by the automobile manufacturers and changing lifestyles, is also resulting in traffic congestion. To address this concern, it is expected that the advanced traffic management system will be deployed significantly across the globe.
The automotive telematics application is expected to register the highest CAGR during the forecast period
On the basis of roadways application, Intelligent Transportation System Market has been segmented into fleet management and asset monitoring, intelligent traffic control, collision avoidance, parking management, passenger information management, ticketing management, emergency vehicle notification, and automotive telematics. The rising demand for driving assistance systems and automatic driving systems is supporting market growth. Additionaly, the factors such as the need to reduce traffic congestion and increasing funding by various governments for the implementation of ITS in automobile telematics systems are contributing towards the high growth of the market.
North America is leading the market for ITS in roadways in 2019
The Intelligent Transportation System Market for roadways based on geography has been broadly classified into North America, Europe, APAC, and RoW. The market in North America is expected to hold the largest share during the forecast period. The adoption of ITS to counter traffic congestion and boost safety on roads is propelling the growth of the ITS market in North America. Government funding and support for the implementation of ITS in North America is another major driver for this market.
The outbreak of novel coronavirus, which started from China at the end of 2019 and later shifted its epicenter from China to Europe and then to the US, has caused a serious crisis. Border closures and lockdowns led to disruptions in the supply chain as well as social distancing led to the closure of manufacturing and assembling units in the US and Canada. Due to the shortage of manpower and lay-offs, the ongoing transport projects are delayed. The ITS ecosystem, which is majorly dependent on the electronics and telecommunication sector, is expected to witness a potential short-term slowdown owing to the supply chain disruption. This may lead to a reduction in the deployment of smart transport systems.
Key Market Players
Major players in the ITS market include Thales Group (France), Siemens (Germany), Kapsch TrafficCom (Austria), Garmin (US), TomTom International BV (Netherlands), Cubic Corporation (US), Q-Free ASA (Norway), EFKON GmbH (Austria), FLIR Systems, Inc. (US), Indra Sistemas (Spain), and Denso Corporation (Japan).
Scope of the Report
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Report Metric |
Details |
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Market size available for years |
2017–2025 |
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Base year considered |
2019 |
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Forecast period |
2020–2025 |
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Forecast units |
Value (USD Billion/USD Million), Volume (Million Units) |
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Segments covered |
Offering, System, Application, and Region |
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Geographies covered |
North America, Europe, APAC, and RoW |
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Companies covered |
Thales Group (France), Siemens (Germany), Kapsch TrafficCom (Austria), Garmin (US), TomTom International BV (Netherlands), Cubic Corporation (US), Q-Free ASA (Norway), EFKON GmbH (Austria), FLIR Systems, Inc. (US), Indra Sistemas (Spain), and Denso Corporation (Japan). |
In this research report, the ITS market in Roadways has been segmented on the basis of offering, system, application, and geography.
Intelligent Transportation System Market in Roadways, by Offering
- Hardware
- Software
- Services
Intelligent Transportation System Market in Roadways, by System
- Advanced Traffic Management System
- Advanced Traveler Information System
- ITS-Enabled Transportation Pricing System
- Advanced Public Transportation System
- Commercial Vehicle Operation
Intelligent Transportation System Market in Roadways, by Application
- Fleet Management and Asset Monitoring
- Intelligent Traffic Control
- Collision Avoidance
- Parking Management
- Passenger Information Management
- Ticketing Management
- Emergency Vehicle Notification
- Automotive Telematics
Geographic Analysis
- North America
- Europe
- APAC
- RoW
Recent Developments
- In March 2020, TomTom, Toyota Research Institute - Advanced Development, Inc. (TRI-AD) (Japan), and DENSO (Japan), announced a successful proof of concept demonstrating a fast high definition (HD) map-building method for roads, essential for safer autonomous driving.
- In October 2019, Cubic Transportation Systems (CTS) signed an agreement with Google to integrate contactless transit cards with Google Pay, making it fast and easy for travelers to use their mobile phones to pay for their journeys.
- In May 2019, Kapsch TrafficCom implemented an intelligent mobility management solution in Valladolid, Spain. The new system allows citizens to plan their journeys efficiently.
Frequently Asked Questions (FAQ):
What is the current size of the global ITS market for roadways?
The ITS market for roadways is expected to grow from USD 17.9 billion in 2020 to USD 36.5 billion by 2025, at a CAGR of 15.3%.
Who are the winers in the global ITS market?
Some of the key companies operating in the ITS market are Thales Group (France), Siemens (Germany), Kapsch TrafficCom (Austria), Garmin (US), TomTom International BV (Netherlands), Cubic Corporation (US), Q-Free ASA (Norway), EFKON GmbH (Austria), FLIR Systems, Inc. (US), Indra Sistemas (Spain), and Denso Corporation (Japan). These players have adopted various growth strategies such as product launches, partnerships, contracts, collaborations, acquisitions, and expansion to expand their global presence and increase their share in the global ITS market.
What are the major drivers for the ITS market?
The factors such as increasing concerns toward public safety, growing traffic congestion problems, rising favorable government initiatives for effective traffic management, increasing adoption of eco-friendly automobile technologies, and development of smart cities across the world have proved to be the major driving forces for ITS market for roadways.
What are the growing applications in the ITS market?
Intelligent traffic control application is currently holding the largest share in the ITS market in roadways. It involves a much closer interaction between all of its constituents: drivers, pedestrians, public transportation, and traffic management systems.
The growing demand for driving assistance systems and automatic driving systems is supporting market growth for automotive telematics market.
What are the impact of COVID-19 on the global ITS market?
Due to COVID-19, the manufacturing units are highly hampered due to worldwide lockdown and limited availability of labor and raw material. This has resulted in a delay in ongoing transport projects to a greater extent. Some experts argue that the governments may rethink on their recently announced transport project plans to curb traffic congestion. However, they may come up with a revised plan in the next 6–8 months. It is likely that by 2021, the business and projects will see a smooth functioning once there is an ease in restrictions. .
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The study involved four major activities in estimating the size of the Intelligent Transportation System (ITS) market. Exhaustive secondary research was done to collect information on the market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market’s size. After that, market breakdown and data triangulation were used to determine the market sizes of segments and sub-segments.
Secondary Research
The secondary sources referred to for this research study include organizations such as ITS America, ITS Asia-Pacific, and so on; corporate filings (such as annual reports, investor presentations, and financial statements); and trade, and business. Secondary data has been collected and analyzed to arrive at the overall market size, which is further validated by primary research.
Primary Research
Extensive primary research has been conducted after acquiring an understanding of the ITS market scenario through secondary research. Several primary interviews have been conducted with market experts from both the demand- (automotive manufacturers) and supply-side (OEM/ODM, system integrators, solution providers) players across four major regions, namely, North America, Europe, APAC, and Rest of the World (South America, Africa, Middle East). Approximately 75% and 25% of primary interviews have been conducted from the demand and supply side, respectively. Primary data has been collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, various departments within organizations, such as sales, operations, and administration, were covered to provide a holistic viewpoint in our report.
After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report.
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the ITS market. These methods were also extensively used to estimate the sizes of various market sub-segments. The research methodology used to estimate the market sizes includes the following:
- The key players in the market were identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of value, were determined through primary and secondary research.
All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. Qualitative aspects such as market drivers, restraints, opportunities, and challenges have been taken into consideration while calculating and forecasting the market size.
Data Triangulation
After arriving at the overall market size—using the market size estimation processes explained above—the market was split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Report Objectives:
- To define, describe, segment, and forecast the global intelligent transportation system (ITS) market, in terms of value, on the basis of offering, system, application, and geography
- To forecast the global ITS market, in terms of volume, segmented on the basis of hardware component
- To forecast the market size of the segments with respect to 4 main regions—North America, Europe, APAC, and RoW
- To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To provide a detailed value chain for the ITS industry
- To analyze the impact of COVID-19 on the ITS ecosystem
- To strategically analyze the micromarkets with respect to individual growth trends, prospects, and contributions to the total market
- To analyze the opportunities for stakeholders in the market and detail the competitive landscape of the market leaders
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
- To analyze the competitive strategies, such as contracts, joint ventures, mergers and acquisitions, product launches and developments, and research and developments, adopted by the ITS market players
- To map the competitive intelligence on the basis of company profiles, key player strategies, and game-changing developments, such as contracts, product launches, collaborations, and acquisitions
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Company Information
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Growth opportunities and latent adjacency in Intelligent Transportation System Market
The deployment of intelligent transportation systems can help reduce the emission of greenhouse gases. It can also deliver environmental benefits by reducing traffic congestion. These factors has led to its high demand in the automotive sector. I'm interested in knowing the market for roadways.
I can see that the intelligent transportation systems market is witnessing significant growth in the APAC region. We are planning to expand our presence in this region, so would like to know if drivers, restraints, challenges, and opportunities specific to market in APAC available in the report?
The intelligent transportation systems market is having huge potential for growth in the APAC region. I want to know if we can get ITS market revenue split by applications for Australia, Singapore, and Hong Kong.
The growth of the intelligent transportation systems market is highly impacted by the rapid developments and advancements in the IoT industry. How will be the growth trend of the market for next 3-5 years owing to these advancements?
Roadways is the largest application area for intelligent transportation systems. We want to get insights on other emerging application areas for intelligent transportation systems. Is this type of information covered in the report?