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An "intelligent transportation system (ITS)" is an advanced application which, without embodying intelligence as such, aims to provide innovative services relating to different modes of transport and traffic management and enable users to be better informed and make safer, more coordinated, and ‘smarter’ use of transport networks.
The term, intelligent transportation system, was coined more than two decades ago to describe transportation systems powered by the latest advancements in computer, information and telecommunications technology. Today, this is still true — but the technology that powers ITS has changed significantly.
The ITS market size is projected to reach US$8474.2 million by 2027 and is expected to exhibit a CAGR of 22.3% during the forecast period, according to Fortune Business Insights. Driving this growth is “increased demand for smart transport communication technologies in vehicles to make driving safe and easy.” In most cases, this means internet of things devices — small, wirelessly collected sensors — that collect huge amounts of data that businesses can use to make better decisions.
The market also stands to benefit from the growing focus shed on ITS, as an important tool to reduce carbon footprint of the transportation industry. With 27% share in global CO2 emissions, transportation remains a major area for reductions. ITS through higher efficiency hold the promise to reduce CO2 emissions.
Smart traffic lights and optimized traffic flow mean lower emissions due to congestions. Smart and shared mobility results in higher utilization per vehicle and lower volumes of vehicles on road. Automated and connected driving significantly enhances fuel efficiency and reduces tailpipe emissions. Eco-driving support; eco-routing; truck platooning; smart parking, all enabled by ITS have the potential to reduce emissions.
Electronic toll collection systems (ETC), a part of ITS, will also help bring in sizable improvements in automotive emissions and fuel consumption. ITS will play a key role in the safety of autonomous vehicles in the coming decade. Several factors will drive artificial intelligence’s (AI) adoption in ITS including the ability to solve several challenges that currently elude answers. Smart mobile applications will emerge to revolutionize ITS. 5G will finally provide the building blocks needed to create a reliable vehicular Ad Hoc network and delivery of collaborative vehicular network services.
Increasing need for traffic management to favor growth in Asia-Pacific
Among the regions, the market in Asia-Pacific is expected to remain at the forefront during the forecast period, reports Fortune Business Insights. This is attributable to factors such as increasing need for efficient management of the growing traffic in the region. On the other hand, Europe will witness substantial growth and is expected to be the second-most leading region in the forthcoming years. Increasing demand for efficient emergency services will bode well for the growth of the market between 2019 and 2026, the market research firm further reports.
Increasing need for traffic management to favor growth in Asia-Pacific
Among the regions, the market in Asia-Pacific is expected to remain at the forefront during the forecast period, reports Fortune Business Insights. This is attributable to factors such as increasing need for efficient management of the growing traffic in the region. On the other hand, Europe will witness substantial growth and is expected to be the second-most leading region in the forthcoming years. Increasing demand for efficient emergency services will bode well for the growth of the market between 2019 and 2026, the market research firm further reports.
IoT changing ITS
IoT is driving the biggest changes in intelligent transportation systems right now — as new technology like 5G becomes available, IoT may become even more popular. Businesses are using IoT sensors to inform decision making processes and build systems that respond to the needs of modern logistics. Right now in transportation, many different processes are becoming smart. It may become standard in the future for business transportation systems to communicate with city transportation systems.
Competitive landscape
The intelligent transport systems market is highly competitive and moving toward a fragmented stage due to the presence of many large and small players in the market. Players in the market are focusing on technological innovation and compatibility of their products and services as well as using strategies, such as acquisitions and collaborations to strengthen their presence in the market.
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