Intelligent Transportation System Market Size

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.