Governments around the globe are placing emphasis on the development of smart cities. Under the umbrella of smart cities, the development of intelligent transportation systems is a major trend says the research company. Various governments are entering into partnerships with companies such as Honeywell International, Inc.; AT&T; Siemens; and IBM Corporation for the development of traffic management programmes that bodes well for the market growth. The study also finds that governments are focusing on the development of self-operated fuel stations and electric vehicle charging stations, especially in Europe. During the day-time, petrol stations in many European countries such as U.K., Germany, and France are operated in self-service modes.

Overcrowded roads in the cities have put immense pressure on the civic bodies to develop technologically advanced solutions to deal with the road safety issues. This is a major factor instrumental for the implementation of automatic number plate recognition (ANPR) systems for the monitoring of traffic violations and crime incidents. In recent years, there has been a rise in the number of automobile crimes such as vehicular homicide, carjacking, hit and run, and reckless driving that has forced the law enforcement agencies to adopt ANPR system for the recognition of vehicles. Moreover, excessive speed has been identified as a long-standing and significant contributing factor to accidents on roads worldwide. The use of speed cameras have certain limitations as they cannot accurately identify speeding vehicles. Hence, the need for advanced ANPR systems with analytical solutions are expected to drive the market over the forecast period.

Further key findings from the report suggest that portable ANPR systems are projected to emerge as the fastest-growing sub-sector over the forecast period due to the emergence of microelectromechanical systems or MEMS technology that has led to the miniaturisation of devices.  Software is also anticipated to emerge as one of the fastest-growing segments as a result of the advancements in cloud computing technology and increasing demand for mobile-based applications

In terms of applications, toll collection is expected to grow significantly over the forecast period as a result of the growing demand for Electronic Toll Collection (ETC) from road transport agencies.

Geographically, the Asia Pacific region is expected to witness the highest CAGR during the period as regional governments are placing great emphasis on the expansion and digitalisation of road networks.

The key players in the market according to Grand View Research include, Bosch; Siemens; Axis; Kapsch; Genetec; NDI Recognition Systems; Vaxtor Technologies; Tattile and Selex.