ITMS solutions eliminate delays, ease traffic congestion, and send accurate information to commuters and transportation planners. Rising government initiatives across the globe to implement smart cities with developed road networks and transportation systems, which is expected to have a positive impact on the growth of the intelligent traffic management system market.

Costly infrastructure upgrades

Intelligent traffic management systems require vast, scalable, and advanced data infrastructure for real-time data processing. However, the infrastructure required to introduce the new technology has not expanded rapidly and replacing the existing equipment remains costly. Governments of various regions continue to invest in road infrastructure, to upgrade their transportation systems in an attempt to reduce traffic congestion.

For instance, according to the research, in April 2021, SNC-Lavalin Group, an engineering, procurement, and construction service provider, was awarded a 3-year contract worth USD 15 million by the California department of transportation (Caltrans) to provide a Transportation Asset Management System (TAMS). Under this contract, the company’s Data Transfer Solutions (DTS) business unit would provide services such as software licensing and maintenance, implementation of the TAMS solution, and optional post-implementation support. These developments would further boost the demand for ITMS solutions during the forecast period.

Addressing lack of standards and road safety issues

However, the lack of standards, and the technology homogeneity and safety issues related to traffic management systems may adversely affect the growth of the intelligent traffic management system market. To curb accidents, the United Nations Economic Commission for Europe (UNECE) assists in the administration of legal instruments on road safety. Various aspects such as road infrastructure, traffic management, traffic signs and signals are negotiated and legally binding for member states. ITMS can help reduce traffic accidents and improve safety.

Geographical position

Countries such as the U.S. and China are actively investing in ITMS solutions, which should bode well for the market during the forecast period. In fact according to the analysts at Grand View Research, North America dominated the market and accounted for the largest share of 38.7% in 2024. The United States Department of Transportation (DOT) is aggressively investing in research and development, implementation, and adoption of intelligent traffic management systems across the country.

In terms of products and services, the report suggests that the traffic monitoring system segment accounted for the largest share of 21.4% in 2024. Inadequate signal controls can lead to road congestion and increase the overall travel time to a large extent.  In addition, the traffic signal control segment is expected to grow at a significant CAGR during the forecast period. 

Active players

Companies named as being active in this market sector include businesses such as, Cubic Corporation, SNC-Lavalin Group, Thales Group, IBM, General Electric, Siemens, Kapsch Trafficcom, Tomtom, Q-Free ASA and Transcore.