SecurityWorldMarket

04/06/2020

ITS market predicted to reach $37.64 B by 2027

San Francisco, Ca

The global intelligent transportation system market size is expected to reach USD 37.64 billion by 2027, exhibiting a CAGR of 5.8% over the forecast period, according to a study conducted by Grand View Research, Inc. Necessity to reduce traffic congestion and improve road safety and security, implementation of data analytics and cloud computing in traffic management systems, and cost-effectiveness of intelligent transportation systems is projected to fuel the market growth.

Rapidly changing consumer demand has subsequently posed new challenges for manufacturers and retailers. Consumers particularly demand reliability and efficiency, same-day deliveries, and real-time shipment tracking facilities. Timely delivery down to reduced in-transit time and tracking facilities are some of the features that are in specific demand according to the researchers. Provisioning these features would require a comprehensive transportation management system capable enough of bridging the gap between order management and warehouse fulfillment. As a result, ITS vendors are introducing the latest solutions that can effectively meet the challenges posed by the growth of the e-commerce industry and the changing consumer behaviour.

In addition to being one of the leading causes of accidents, lack of road safety also results in high costs and adversely impacts the overall economic development. Numerous initiatives are being undertaken to install technologically advanced traffic management systems and overall awareness about the importance of road security and safety. This is expected to result in the demand for vehicle-to-vehicle (V2V) and vehicle to infrastructure (V2I) over the forecast period. The developed markets of Europe and North America have mandated the use of electronic stability control (ESC) systems, a driver assistance system, and in passenger as well as commercial vehicles. This is expected to favourably impact the overall demand for intelligent transportation systems over the forecast period.

However, in 2020, the ITS market will be hampered due to the COVID-19 crisis, which has impacted demand, interrupted production, and disrupted supply chains. Thus, various market players are experiencing flat or lower unit sales. However, with economic stimulus packages announced by many countries such as Japan, U.S., China, France, Italy, India, U.K., and Germany, it is anticipated that there will be great opportunities for transportation infrastructure development.

North America dominated the ITS market in 2019 and the analysts project that this will continue over the coming years. The research shows that the U.S. alone holds more than 75% of the market share in North America. The U.S. government has developed a national architecture that offers guidance to private companies and urban areas likely to implement an intelligent transportation system, for which functions and communication technologies are essential to be compatible with other systems. This architecture is specifically aimed at providing interoperability for ITS across the U.S. Moreover, strong government support, R&D activities, and strategic public-private partnerships aimed at improving the transportation network across the region are some major factors fuelling the growth of the market for intelligent transportation systems.


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