The global intelligent transportation system market is set for explosive growth, with projections indicating a surge to $66.35 Billion by 2031. This remarkable expansion, driven by increasing smart city initiatives and infrastructure development across the globe.
According to a new comprehensive report from The Insight Partners, “Intelligent Transportation System Market Size and Forecast (2021 – 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component, Application, and End User, and Geography”, the global intelligent transportation system (ITS) market is observing significant growth owing to rapid urbanization across regions and government initiatives to enhance road safety.
The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the intelligent transportation system (ITS) is applicable to a vast array of applications that are expected to register strength during the coming years.
Overview of Report Findings
Market Growth: The Intelligent Transportation System (ITS) Market is expected to reach US$ 66.36 billion by 2031 from US 35.94 billion in 2023, at a CAGR of 8.0% during the forecast period. Intelligent transportation systems (ITS) use state-of-the-art wireless, electronic, and automated technologies to monitor, assess, and control transportation networks. They use information and communications technology (ICT) to connect automobiles and transportation infrastructure. Thus, the advantages of wireless devices, sensor technologies, and smart ICT services have led to a surge in the adoption of ITS. Further, ITS has numerous applications in tolling, commercial vehicle operations, traffic operations, traveler information, and public transportation to improve traffic flow, prevent collisions, and enhance passenger comfort and safety.
Increasing Smart City Initiatives and Infrastructure Development: Intelligent transportation systems (ITS), when combined with infrastructure and technology, help improve transportation in urban cities. Interconnected networks of sensors and cameras gather information and data in real-time to power the system. Adaptive traffic management is powered by this data, allowing for quick reactions to accidents and traffic jams. Smart city projects are increasing rapidly with significant investment from governments of several countries across the world. According to the Organization for Economic Cooperation and Development (OECD), the smart city market was valued at US$ 511.6 billion in 2022 and is projected to reach US$ 1,024 billion by 2027; it is expected to register a CAGR of 15.0% during the forecast period.
Government Focus on Transportation Infrastructure: The construction of metro facilities, new airports, and railway networks is growing worldwide. In March 2023, the Canadian Kelowna City Council approved the funding of US$ 90 million for the Kelowna Airport terminal expansion project. As of 2023, six new airports were under construction in the US. In 2022, the Government of India announced its plans to build 220 airports by the end of 2025. In 2023, the Indian government approved US$ 3.93 billion for seven transformative railway projects to boost connectivity.
Geographical Insights: In 2023, North America led the market with a substantial revenue share, followed by Europe and Asia Pacific. Asia Pacific is expected to register the highest CAGR during the forecast period.
