World ITS market expected to grow at a steady rate to 2020

The global market for intelligent transportation systems (ITS) is expected to reach US$38.68 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.
August 4, 2014 Read time: 2 mins

The global market for intelligent transportation systems (ITS) is expected to reach US$38.68 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.

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. APTS deal in the use of IT and transportation management in order to boost the safety and effectiveness of public transit systems.

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 14.0 per cent from 2014 to 2020, as a result of need for improvement of transportation networks and high growth expected in India and China.

Urban Traffic Control Enforcement

Related Content

  • Intelligent transportation system (ITS) market worth US$63.66 Billion by 2022
    July 15, 2016
    According to a new market research report, Intelligent Transportation System Market by Roadway (Hardware, Software, & Services), Aviation Tool (Kiosk, Multi-User Flight Information Display, and Smart Gate System), Railway, Maritime, Protocol, Application, and Geography - Global Forecast to 2022", published by MarketsandMarkets, the ITS market size, in terms of value, is expected to grow from US436.10 billion in 2015 to US$63.66 billion by 2022, at a CAGR of 8.3 per cent between 2016 and 2022. The major g
    Read More
  • Report analyses multiple ITS projects to highlight cost and benefits
    March 16, 2015
    Every year in America cost benefit analysis is carried out on dozens of ITS installations and pilot studies and the findings, along with the lessons learned, are entered into the Department of Transportation’s (USDOT’s) web-based ITS Knowledge Resources database. This database holds more than 1,600 reports and periodically the USDOT reviews the material on file to draw conclusions from this wider body of evidence. It has just published one such review ITS Benefits, Costs, and Lessons Learned: 2014 Update Re
    Read More
  • Progress with RFID in China
    August 19, 2015
    In its new report, RFID in China 2015-2025, IDTechEx Research has identified over 150 Chinese companies supplying RFID and tracked how the industry in China will grow to become a US$4.3 billion opportunity in 2025. Historically, the development of RFID in China has been heavily supported by the Chinese government. These include large projects such as national identification cards, passports and subway ticket applications. The entry barrier is usually high for those applications, as the suppliers need to
    Read More
  • Growth of smart parking market and parking reservation systems
    August 6, 2015
    ReportsnReports.com’s latest research report, Global Smart Parking Market 2015-2019 says increased use of data analytics to optimise parking is one of the key trends being witnessed in this market across the globe. The research discusses trends, forecasts and growth prospects segmented by geography along with information on leading players of the worldwide industry. Data analytics software is predominantly used these days to provide better parking facilities to consumers. Data analytics provide an approp
    Read More

Highlighted Content