The revenue of the global intelligent transportation systems market stood at $20.22 bn in 2015 and the market is expected to reach $57.44 billion by the end of the forecast period, developing at a CAGR of 12.7% during the forecast period.
North America to Witness Marginal Loss in Market Share by 2024
On the basis of type, advanced transportation management systems accounted for the leading share of 41.0% in 2015, fueled by the rising demand for advanced traffic management and control solutions to maintain the flow of traffic in urban as well as inter-urban networks. Public transportation systems, on the other hand, is likely to offer promising opportunities through 2024, exhibiting a strong CAGR of 12.9%.
Based on application, ITSs for traffic management accounted for the dominant share in 2015 and is projected to retain its leading position throughout the forecast period. The automotive telematics segment is anticipated to witness strong growth in the after-market with vehicle owners installing these systems at an increasing rate.
By geography, North America accounted for a leading share of 41.2% in 2015. "Although the region is projected to lose market share by the end of the forecast period, it is expected to retain its dominance through the coming years," the TMR analyst predicts.
Adoption of ITS Fueled by Need to Tackle Traffic Issues
Transport forms the backbone of any country's social as well as economic development. However, traffic congestion is a major issue in terms of fuel consumption, travel time, and cost. Intelligent transportation systems have emerged as a key solution to combat these hurdles, which is a prominent factor driving its adoption.
"Various ITS associations across the world have found that advanced traffic management systems minimize waiting times at a signal by 20%-30% and travel time by at least 25%," the author of the study reports. This works in favor of the overall ITS market.
The growing need to improve road safety is also a major factor driving the intelligent transportation system market. "Road accidents are one of the leading causes of death and account for over 2% of all global deaths. These accidents also cost an estimated US$520 bn per year worldwide," the TMR analyst found. Countries are therefore focused on reducing the number of road accidents by deploying advanced traffic management systems, which is propelling the global ITS market.
