Intelligent Transportation System Market size was over USD 50.79 billion in 2023 and is projected to exceed USD 141.49 billion by 2036, growing at over 8.2% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of intelligent transportation system is assessed at USD 54.12 billion.
The growth of the market can be attributed to the increasing cases of road accidents, traffic mismanagement, and lack of traffic data management, combined with the growing penetration of automation and artificial intelligence. As per the statistics by the World Health Organization, 1.3 million people die every year in road crashes. Moreover, most of the automobiles have inbuilt automatic security systems to curb the cases of mortality in road crashes. Further, traffic congestion is a major problem that aroused due to the increasing number of cars of road, which affects the economy negatively as it wastes fuel, time and productivity. According to the World Economic Forum, traffic congestion cost the economy of the US a loss of over USD 87 billion in 2018. This is why, traffic jams are a major concern for governments of various developed and developing countries, and governments are undertaking various initiatives involving the application of intelligent transportation systems. This is estimated to boost the market growth.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
8.2% |
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Base Year Market Size (2023) |
USD 50.79 billion |
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Forecast Year Market Size (2036) |
USD 141.49 billion |
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Regional Scope |
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The global intelligent transportation system market is segmented by system type into advanced traffic management system, advanced traveler information system, advanced public transportation system, and others, out of which, the advanced traffic management system segment is anticipated to hold a notable share in the market during the forecast period on account of increasing need for traffic management in order to curb the economic loss caused by congestion and road crashes. On the basis of application, the market is segmented into traffic management, parking management, passenger information management, and others. Out of these, the traffic management segment is anticipated to hold the major share throughout the forecast period, owing to the increasing traffic on roads, backed by rising disposable income and favorable deals provided by car dealers.
Our in-depth analysis of the global market includes the following segments:
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System Type |
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Application |
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Regionally, the intelligent transportation system market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America is anticipated to hold largest revenue share by 2036, on the back of increasing number of automobiles actively running on roads, excessive traffic congestions, especially during the work hours, and high cases of road accidents. In the U.S., over 200 million vehicles were actively used daily, in 2018. On the other hand, around 10 million vehicles were involved in a road accident in the same year.
The market in the Europe region is estimated to witness highest CAGR over the forecast period, owing to the presence of major automobile manufacturers in the region, along with growing adoption of automation in the automotive industry.
April 12, 2021: Denso Corporation announced the development of ‘Advanced Drive’ which is an advanced driver assistance technology, exclusively got Toyota Lexus LS.
June 30, 2021: Cubic Transportation Systems, a division of the Cubic Corporation, announced to develop Mobility as a Service (MaaS) as a solution to traffic Congestion.
Author Credits: Abhishek Verma
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