Key Opportunities and Challenges in Intelligent Transportation System Market

The intelligent transportation system market was valued at USD 23.4 billion in 2018 and is projected to reach USD 30.7 billion by 2023, at a CAGR of 5.7%.

https://www.marketsandmarkets.com/Market-Reports/intelligent-transport-systems-its-market-764.html

Will increasing public–private partnerships (PPPs) create opportunities in the intelligent
transportation system market?
ITS cannot be deployed by a single stakeholder; it requires a joint effort from entities in various domains such as telecom operators, infrastructure providers, manufacturers, service providers, the public sector, and user groups. Thus, public–private partnership (PPP) would be a key to the success of the ITS in the intelligent transportation system market.

Many nonprofit organizations - such as ITS Canada, ITS America, ITS Thailand, ITS India, and ITS Germany—are coming up with strategic partnerships with different associations that work on roads and transport projects. ITS Canada entered into a partnership with the Indian Association of Roads and Transport for the development of ITS architecture in India. To deploy ITS in European countries, ITS Europe (ERTICO) signed a public–private partnership with different stakeholders such as service providers, telecom operators, and infrastructure providers in the intelligent transportation system market.

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Why is achieving interoperable and standard ITS architecture posing a challenge in the intelligent transportation system market?
Establishment of an ITS infrastructure involves the integration of various heterogeneous devices that are likely to create compatibility issues quite often. The synchronization of these heterogeneous devices need standardization in the implementation of various ITS systems. However, the lack of standard ITS infrastructure is an issue; for instance, an electronic toll collection on-board unit does not have any display and performs only validation functions. Besides, it cannot receive or transmit any message, and moreover, every country has a different type of on-board unit (OBU) device. The major problem in implementing ITS is to integrate it with information technology. The implementation and significant use of information technology is a process of interrelated steps. Any error in any of the stages during the implementation reduces the efficiency.

In 2014, the European Commission introduced a new standard for ITSs—EN 302 637 3—that defines the Decentralized Environmental Notification (DEN) basic service and supports road hazard warning; this European standard is different from the US standard. DEN provides information related to a road hazard or an abnormal traffic condition, including its type and position. During an event of any mishap, an alert message is sent to nearby ITS stations via direct V2V or V2I communication, to alert drivers regarding a potentially dangerous event.

European countries, such as France, Spain, and Italy, use dedicated short-range communication (DSRC) in ITS, whereas countries in North America, such as the US, use GPS/GSM-based systems in the intelligent transportation system market. DSRC cannot be included in an integrated technology platform as it would be unable to work with other national transport systems.

These differences in the protocol of different countries are creating a challenge in designing a centralized ITS infrastructure.
Furthermore, numerous countries across the world are taking initiatives to reduce carbon dioxide emission from vehicles. For instance, New Zealand has set a target of 50% reduction of net greenhouse gas emissions by 2050, and Germany aims at 40% reduction by 2020 and up to 95% by 2050. These initiatives are expected to empower the market for ITS and accelerate its deployment worldwide.
High expenses associated with ITS installation
A sophisticated centralized traffic management center (TMC) is required—which can deal with the real-time traffic data and help reduce the traffic congestion - to be co-located with transportation managers, system operators, dispatchers, and response agencies. All these lead to a huge investment.

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This release was published on openPR.