Intelligent Transportation System (ITS) Market Size By Application (Road Safety and Security, Traffic Management, Freight Management, Parking Management, Public Transport, Environment Protection, Road User Charging, Automotive Telematics), By Product (ATMS, ATPS, ATIS, APTS, Cooperative vehicle systems), Competitive Analysis & Forecast To 2020
Global Intelligent Transportation System (ITS) market size is likely to attain over USD 38,500 million by 2020, growing at 13% over the next six years. Performance enhancement of transportation systems coupled with need for road safety is expected to drive intelligent transportation system market growth over the forecast period. Several initiatives are being undertaken in order to deploy advanced traffic management systems and overall awareness regarding the importance of road safety. This is expected to drive demand for vehicle to infrastructure (V2I) and vehicle to vehicle (V2V) during the next few years.
ATPS was valued USD 5,000 million in 2014 and is likely to attain USD 10,500 million by 2020, growing at CAGR of 13% over 2014 to 2020. Intelligent transportation system enhances the supply chain process performance and yield high cost ratio. Deployment of intelligent transportation system has granted economic benefits in emerging nations such as Brazil, Russia, India, China and South Africa. The system assists the users in reducing overall fuel consumption and travel time by avoiding congested routes. Key manufacturers in established and emerging industries are installing these systems in their vehicles to differentiate their products from competitors.
Developed markets of Europe and North America have mandated the usage of electronic stability control (ESC) systems, a driver assistance system, in passenger as well as commercial vehicles. This is expected to favorably impact ITS market growth. Increasing death due to road traffic has lead to high cost incurred and may even account for close to 2% of a country’s GDP. The impact on economic development is particularly acute in middle and low income countries. As a result, there is strong focus on deployment of advanced traffic systems and reducing the number of road accidents.
Need for interoperability is expected to hamper industry growth over the forecast period. Interoperability is a major issue for electronic toll collection systems (ETC), on account of the difference in toll collection technologies used by operators across numerous regions. For instance, in Europe, (DSRC) technology and GPS/GSM is employed for ETC systems for toll collection on highways. However, this restraint is expected to be minimized by increasing standardization in ITS and services.
ATMS market size was valued USD 7,000 million in 2014, and was the foremost product segment. It is liable to observe considerable gains, with forecast of USD 15,000 million. ATMS helps in detecting accidents, roadway hazards and dangerous weather conditions. It also creates a holistic integrated view of overall traffic flow. They are integrated with existing traffic control systems that mainly help reduce congestion and ensure efficient use of road space.
APTS increases the efficiency and enhances overall safety. It was likely to reach USD 4,500 million by 2020, at a CAGR of 13.7% from 2014 to 2020. Its applications include real-time passenger information systems, bus arrival notification systems and automatic vehicle location systems which are projected to excite the industry growth.
Traffic management system includes vehicle detection systems, bridge traffic management systems and ramp metering. It leads the global ITS market, accounted for about 30% of the total share in 2014, with gains estimated at 12% over the next six years. The system enhances reliability and operation performance of road networks.
Road user charging was anticipated to reach over USD 8,000 million by 2020, growing at a CAGR of over 12% over the forecast period. This segment is expected to dominate the intelligent transportation system market, owing to development of new technology solutions such as high-occupancy toll (HOT) lanes and vehicle miles travelled (VMT).
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North America ITS market was valued over USD 8,000 million in 2014. It is expected to reach USD 16,000 million by 2020 at a CAGR of 12% over the forecast period. Government initiatives along with promotional activities have spurred the demand growth in this region. Europe was anticipated to attain USD 9,500 million by 2020, with gains estimated of 12% over the next few years. The European commission has taken initiatives to make investments such as eSafety, EasyWay and Galileo among others which is further expected to stimulate the demand growth.
Asia Pacific intelligent transportation system market was valued over USD 4,000 million in 2014 and is likely to attain USD 9,500 million by 2020. The region is predictable to grow at elevated growth rate owing to advancements in sensor technologies in the region. Increasing need for sensors that can be integrated into handheld devices coupled with government legislations including the Industrial Safety, Wealth and Welfare Act are expected to fuel regional industry growth.
Competitive Market Share:
The global ITS market share is fairly competitive, with the top ten major participants accounting majority of shares in 2013. The key companies namely Siemens AG, Kapsch TrafficCom, Hitachi Ltd., SWARCO AG, Q-Free ASA, TomTom NV, Denso, Garmin International, Xerox Corp. and IBM Corp.