Intelligent transportation systems market expected to reach $57.44 billion in 2024
Promotional activities, particularly in the US, have increased the demand for intelligent transportation systems in both the public and private sector in North America, but a recent study reveals ITS is due to grow globally…
Transparency Market Research has published a new report on the intelligent transportation systems (ITS) Market that shows the market value will grow at a rate of 12.7 per cent between 2015 and 2024, reaching $54.44 billion.
Intelligent transportation systems require more ATMS
Advanced Transportation Management Systems (ATMS) used for traffic management and control accounted for the largest revenue share of the overall market in 2015. Significant investment in both developing and developed economies is still required in this segment given the increasing traffic problems right across the world.
Alongside the management systems, advanced vehicle pricing systems, including electronic toll collection, congestion pricing, vehicle mile travel and other road user charging systems are also expected to experience a huge demand globally.
Transport service providers are seeking cost effective solutions to boost their productivity and increase their financial benefits. Intelligent transportation systems can improve the overall performance of the supply chain process and it was found that deploying an intelligent transportation system profited the benefit-cost ratio of approximately eight to one when compared to traditional investment in transportation network expansion.
In addition, traffic control systems can have a benefit cost ratio between 20:1 to 50:1 in terms of reduced congestion and fuel consumption.
Proven benefits will lead to increased investment
Significant use of real-time information systems enables users to save tens of millions of dollars. Both public and commercial transportation service providers have increased their investments in ITS in the last five years globally. This investment is expected to increase further due to the rise in awareness of the potential benefits.
Traffic management, an application of ITS, is also expected to grow at the fastest rate of 28.36 per cent over the forecast period from 2016 to 2024. In addition, automotive telematics is another major segment in ITS applications. Huge demand for vehicle position systems and navigation systems are expected from both vehicle manufacturers and owners due to the increasing need to access real-time information. Advancement in wireless technologies are playing an important role in the development of the automotive telematics market.
Globally the intelligent transportation system (ITS) market has been broadly segmented into North America, Europe, Asia Pacific and Rest of the World (RoW), however Transparent Market Research’s study showed that significant development in the ITS market is expected in the Middle East, Africa and South America as countries in these regions are investing in the transportation sector to support their economic growth.