Demand for enhanced traffic management drives ITS market

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The global intelligent transportation system market size is expected to reach USD 90.39 billion by 2030 and grow at a significant CAGR of 8.5% from 2023 to 2030, according to the new reports of Grand View Research, Inc. The findings show that continuous advancements in transportation network technologies have accelerated the demand for efficient transportation systems. And, the growing need to present real-time traffic information equipped with Artificial Intelligence (AI) and Virtual Reality (VR) for enhanced safety & security is boosting the growth of the intelligent transportation system (ITS) market.

The latest technologies, such as electronic toll collection, Next-Generation Air/Ground Communication (NEXCOM), drone traffic management, and blind-spot detection, have resulted in heightened expectations for efficient traffic and transportation networks.

The growing adoption of telecommunications technologies and evolution of IT systems are anticipated to assist in reducing traffic congestion and air pollution. Further, the implementation of an Advanced Traffic Management System (ATMS) that emphasises real-time data utilisation and simultaneously addresses the impact criteria is creating a positive ITS market outlook.

The integration of energy distribution technologies such as Energy Storage Systems (ESS), smart grids, and charging technologies in ITS helps distribution agencies utilise real-time data to plan and implement capacity expansion strategies for the future, supporting the intelligent transportation system market growth. According to the reports drafted by the Department of Transport of the Republic of Korea on the ITS Development Strategy, ITS can help reduce fuel consumption, traffic congestion, and greenhouse emissions and prevent automobile idling.

Smart cities gaining traction

The concept of smart cities has been gaining increased traction in recent years, with several governments across Asia Pacific devising favourable regulations to promote smart cities initiatives. Intelligent transportation systems are one of the integral components of smart cities initiatives. An ITS employs multiple next-generation technologies and solutions, such as traffic surveillance cameras, parking guidance systems, Collaborative Decision-Making (CDM), weather information & forecasting, and satellite communication in smart cities infrastructure, that enriches the operational efficiency of the transportation networks in the smart cities projects, creating a favorable environment for ITS market.

The report shows that just about all segments within this field, for example the maritime, roads, railways and airways sub-sectors will all experience considerable growth in services, systems, telematics and traveller ticketing and convenience.  The most notable of which are highlighted below:

  • The roadways automotive telematics segment is anticipated to register the highest CAGR of 8.6% through 2030. Supportive government initiatives for the automobile sector, increasing role of smartphones in automotive applications, and advancements in 5G connectivity are expected to drive the segment growth from 2023 to 2030.
  • The railway services segment is expected to witness the highest CAGR of 9.0% from 2023 to 2030. Railway ITS services provide end-to-end development, installation, maintenance, and aftersales support for the railway ITS solutions that allow railway transport authorities to focus on other core business areas, supporting the segment growth.
  • The railway smart ticketing segment is anticipated to witness the fastest CAGR of 9.4% from 2023 to 2030. The rise of multi-modal transport that allows passengers to avail of various transportation services through single apps is driving the segment growth.
  • The airways intelligent transport system services segment is expected to witness the highest CAGR of 11.4% from 2023 to 2030. The advancements in cloud technology are enabling various airport authorities to efficiently manage airport traffic and improve the passenger experience, creating a positive outlook for Airways ITS services.
  • The airway traveller information management segment is expected to witness the highest CAGR of 11.3% from 2023 to 2030. ITS integration in the traveler information management application allows passengers to receive real-time updates on security wait times, flight changes, baggage handling, and gate changes, supporting segment growth
  • The maritime ATIS segment is expected to witness the highest CAGR of 11.0% from 2023 to 2030. With ATIS, passengers in ferries, cruise ships, and other boats can access digital boarding passes, receive real-time updates about weather conditions, and voyage statuses, and can navigate the ships easily, creating a favorable environment for segment growth
  • Maritime container movement scheduling segment is expected to witness the highest CAGR of 11.0% from 2023 to 2030. Rising public & private investment in port facilities, proliferation of automated container terminals, and the growing need for robust intermodal coordination for timely goods movement are boosting the adoption of ITS solutions in container movement scheduling.


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