Global Intelligent Transportation System Market Size, Forecast, and Trend Highlights Over 2025-2037
Intelligent Transportation System Market size was valued at USD 55 billion in 2024 and is projected to reach USD 155 billion by the end of 2037, rising at a CAGR of 8.5% during the forecast period, i.e., 2025-2037. In 2025, the intelligent transportation system is estimated at USD 59 billion.
The Intelligent Transportation System (ITS) market is undergoing major supply chain shifts driven by rising production costs, consumer price changes, and increased investment. Between January 2024 and January 2025, the Producer Price Index (PPI) for transportation equipment rose 1.5%, reflecting growing freight and equipment costs. Mode-specific PPI changes included a 3.6% rise in air transport, 3.1% in trucking, 1.6% in rail, while water transport dropped by 0.9%. Freight and cargo service coordination surged by 9.8% in the same period.
On the demand side, the Consumer Price Index (CPI) for transportation goods and services rose 3.2%. Key drivers included an 11.8% rise in motor vehicle insurance, representing about 10.9% of the total rise in consumer goods pricing. Maintenance and repair costs rose by 2.4%, and airline fares by 1.9%. Additionally, technological progress continues to shape the market. The Federal Highway Administration awarded more than $96 million in Advanced Transportation Technology and Innovation (ATTAIN) grants for 20 projects across 16 states, covering smart, multimodal solutions for underserved regions. ITS development depends heavily on international trade for critical components. Rising input costs and CPI increases signal a constrained supply chain, highlighting the need for optimized logistics and forward-looking investment strategies.
