Rise when it comes to traffic jams because of growing urbanization in developing countries, an increase in terms of investment within railway infrastructure, and a growing inclination of numerous governments towards CO2 emission reduction from the transportation sector drive the growth of the global intelligent transportation system – ITS market. The global intelligent transportation market size in 2022 was valued at almost $48 billion and is anticipated to touch around $98 billion by 2032 by registering a CAGR of 7.5% between 2023 and 2032. Rise within traffic jams across the globe, growing investment when it comes to railways along with a steep bent for governments’ CO2 emission reduction task from the transportation sector, have indeed driven the growth of the global intelligent transport system market. But factors such as the rising cost of technology are indeed a barrier to the market growth.
Review of the segment
On the basis of the component, the hardware segment went on to hold the highest market share in 2022 by comprising almost 50% of the global intelligent transportation system market revenue, and it is estimated to maintain its leadership across the forecast period. The segment is anticipated to reach the highest CAGR of 7.8% till 2032, thereby owing to growth with an investment when it comes to CCTV as well as other communication equipment in terms of security and surveillance throughout the globe.
On the basis of the application, the other segment held the highest market share in 2022, thereby accounting for almost one-fourth of the global intelligent transportation system market and is all set to manifest its highest CAGR of 9.1% between 2023 and 2032 due to the need for personalized solutions for intelligent transportation systems that are effective and efficient.
On the basis of the end user, the roadways segment comprised the largest share in 2022, contributing almost one-third of the global intelligent transportation system market revenue, and is all set to touch a CAGR of 8.3% between 2023 and 2032. The growth and government investment when it comes to the development of road networks throughout the globe are anticipated to push the market growth even further.
This kind of sharing of data will enable the drivers as well as governments to efficiently take care of the flow of traffic in the region and will also establish partnership between the member EU states on the usage of spectrum as far as 5G testing for connected automobiles and data sharing is concerned. The cooperative partnership between countries in the European Union will elevate vehicle-to-vehicle (V2V) as well as vehicle-to-infrastructure (V2I) communication by helping to enhance road safety along with managing traffic effectively, thereby furthering the creation of demand for the intelligent transportation system market.
Regional insights
On the basis of region, Asia Pacific happens to hold the highest market share when it comes to revenue in 2022, comprising one-third of the global intelligent transportation system market revenue, and is all set to witness the fastest CAGR of 8.5% between 2023 and 2032. The robust economic growth within the region has resulted in a growing demand for the intelligent transportation system market so as to effectively manage the growing transport sector.
It’s worth noting that the global intelligent transportation system market is segmented on the basis of application, end use, and component. On the basis of application, the market has been divided into traffic management, advanced travel information systems, freight management, advanced public transportation systems, and security, as well as surveillance, along with ticketing and tolling systems, etc. In terms of end use, the global intelligent transportation system market is fragmented into waterways, railways, airways, and roadways. When it comes to components, the market is segregated into software, hardware, and services.
In terms of region, the market is evaluated on the basis of Europe, North America, Asia Pacific, and LAMEA.
