Skip to main content

Global ITS market expected to reach US$38.7 billion by 2020

The global market for intelligent transportation systems is expected to reach US$38.7 billion by 2020, according to a new study by Grand View Research. Growing demand for optimising fuel consumption and reducing emissions is expected to be the key driving force for the market. ITS aids in reducing incidents such as road accidents and boost safety, which is estimated to positively impact demand over the next six years. Increasing need for enhancing existing transportation networks coupled with demand for
March 24, 2014 Read time: 2 mins
The global market for intelligent transportation systems is expected to reach US$38.7 billion by 2020, according to a new study by Grand View Research. Growing demand for optimising fuel consumption and reducing emissions is expected to be the key driving force for the market. ITS aids in reducing incidents such as road accidents and boost safety, which is estimated to positively impact demand over the next six years.

Increasing need for enhancing existing transportation networks coupled with demand for alleviating traffic congestion is expected to fuel market growth during the forecast period. However, interoperability and standardization issues may restrain the market over the next few years. Technological advancements have led to enhancement in wireless communication technologies, which is an opportunity for market participants.

Further key findings from the study suggest:

Advanced transportation management systems (ATMS) accounted for the largest market share of 39.9 per cent in 2013; it is expected to continue dominating the overall industry over the next six years. Advanced public transportation systems (APTS) is expected to be the fastest growing segment, at an estimated CAGR of 13.7 per cent from 2014 to 2020.

Traffic management is expected to remain the largest ITS application through the forecast period and was valued at US$5.16 billion in 2013. Road user charging (RUC) also accounted for considerable market share in 2013, driven by technological advancements in electronic toll collection (ETC). Environment protection is expected to grow at the fastest CAGR of 18.2 per cent from 2014 to 2020, due to increasing focus on reducing pollution and emission levels.

North America accounted for 43.8 per cent of the global market in 2013 and is expected to remain the most dominant ITS market over the next six years. This can primarily be attributed to favourable regulatory initiatives from transportation authorities for increasing driver safety and reducing traffic congestion. Asia Pacific ITS market is expected to register the fastest growth of 14 per cent from 2014 to 2020, as a result of need for improvement of transportation networks and high growth expected in India and China.

Related Content

  • ADAS and AV software and hardware revenues ‘to exceed US$35 billion by 2020’
    January 9, 2017
    A new study from Juniper Research forecasts that the advanced driver assistance systems (ADAS) and autonomous vehicle (AV) market will reach a total global value of US$35 billion in 2020, before representing a fourfold increase to reach US$144 billion in revenues by 2025.
  • Sales of light duty electric vehicles expected to rise
    January 23, 2015
    A recent report from Navigant Research, Electric Vehicle Market Forecasts, provides a comprehensive overview of the overall light duty vehicle (LDV) and the light duty electric vehicle (EV) markets, including global forecasts for annual vehicle sales and vehicles in use through 2023. It indicates that worldwide sales of light duty EVs are expected to increase from 2.7 million in 2014 to 6.4 million in 2023. The use of EVs, which now account for a small but growing share of the world’s LDV market, has bee
  • Fleet management systems to reach 7.1 million in Europe by 2018
    October 15, 2014
    According to a new research report from analyst firm Berg Insight, the number of active fleet management systems deployed in commercial vehicle fleets in Europe was 3.65 million in quarter 4 2013. Growing at a compound annual growth rate (CAGR) of 14.2 per cent, this number is expected to reach 7.10 million by 2018. A group of international aftermarket solution providers has emerged as leaders in the European fleet management market. Masternaut reported an active installed base of close to 350,000 units
  • IRD announces continued growth in second quarter 2015
    July 16, 2015
    International Road Dynamics has announced solid growth in the three and six months ended 31 May 2015, with increased revenue on strong growth in key geographic markets and product segments For the three and six months ended 31 May, consolidated revenue increased 12.2 per cent and 8.1 per cent respectively, compared to the same period s in 2014, due primarily to continued growth in the Company's Canada, United States, Latin America and Mexico markets, as well as an increase in the value of the US dollar.