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Intelligent Transportation Systems Market Set for Explosive Growth, Reaching USD 170 Billion by 2034

07-23-2025 07:38 PM CET | IT, New Media & Software

Press release from: Future Market Insights

Intelligent Transport System (ITS) Market

Intelligent Transport System (ITS) Market

The global Intelligent Transportation Systems (ITS) market is poised for a period of unprecedented expansion, with its value projected to surge from an estimated USD 48.61 billion in 2024 to a remarkable USD 170.94 billion by 2034. This impressive growth trajectory, reflecting a Compound Annual Growth Rate (CAGR) of 13.4%, underscores the critical role ITS solutions play in addressing the escalating challenges of urban mobility and traffic management worldwide.

The increasing rate of urbanization is a primary driver, demanding more sophisticated traffic congestion management. ITS solutions, by integrating communication technologies and advanced electronic chipsets, are proving indispensable in enhancing urban transport networks. The growing prevalence of road accidents and the rising number of vehicles on the road due to overpopulation further amplify the need for efficient ITS solutions. Governments globally are investing significantly in road transport and management systems, diversifying the applications of intelligent transport systems and securing their future.

Thorough Market Evaluation: Full Report
https://www.futuremarketinsights.com/reports/intelligent-transportation-system-its-market

AI and Smart Cities Propel Future Growth

The ITS market has demonstrated robust historical growth, propelling at a CAGR of 12.3% from USD 26.98 billion in 2019 to USD 42.87 billion in 2023. This period saw significant refinements in traffic congestion management using ITS solutions, laying the foundation for future expansion. The forecasted period (2024-2034) will be profoundly influenced by the inclusion of autonomous vehicles (AVs), which are set to revolutionize transportation systems and fuel the prosperous future of intelligent transportation systems.

Smart city development is another pivotal fueling factor. The requirement for enhanced traffic congestion management within smart cities is driving the embedding of Artificial Intelligence (AI) into ITS. The role of AI in intelligent transportation systems is to deliver predictive analysis, enabling proactive maintenance and optimizing system performance. The growing prevalence of road accidents, coupled with the expansion of global transport infrastructure, promises to further swell the ITS market size. Technological acquisition, particularly the accessibility of AI, is a key market driver, ensuring efficient solutions and accelerating market growth.

Regional Dynamics and Investment Hotspots

Geographically, the ITS market exhibits strong growth across diverse regions. Asia, with its rapidly growing population and accelerating urbanization, presents a lucrative growth landscape, particularly for the future of intelligent transportation systems. Europe, known for its extreme traffic discipline, is focusing on embedding ITS in its traditional traffic monitoring systems. North America, being technologically advanced, is emphasizing the role of AI in intelligent transportation systems and prioritizing cybersecurity considerations for ITS infrastructure, offering lucrative opportunities.

Country-wise analysis highlights key growth engines: China is projected to lead with a staggering CAGR of 15.5%, driven by its growing population, accelerated urbanization, megacity projects, and the inclusion of 5G technology. The United States is expected to grow at an impressive CAGR of 11.3%, fueled by smart city initiatives and the efficient implementation of AI in ITS. Australia and New Zealand are likely to register a promising CAGR of 9.5%, driven by a focus on road safety initiatives. Japan, as a global events host, will require extended applications of intelligent transport systems, projecting a 5.6% CAGR, while Germany, with its growing urban population, registers a 4.7% CAGR.

Challenges and Segmentation Insights

Despite the promising outlook, the ITS market faces challenges. The high cost of installing bleeding-edge ITS tools can be a barrier for developing economies, hindering market growth. Additionally, the high requirement for skilled operators and technicians poses a key market challenge, affecting the prosperous future of intelligent transportation systems.

In terms of segmentation, Intelligent Traffic Management Systems are expected to hold a significant market share of 15.9% in 2024, driven by their ability to provide predictive insights for traffic congestion management and enhanced emergency response. Roadways, as an application segment, are projected to account for 28.7% of the market share in 2024, reflecting their inherent susceptibility to traffic congestion and the efficiency of ITS solutions in resolving these issues.

Competitive Landscape: Collaboration and Innovation Drive Leadership

The ITS market is characterized by a broad competitive landscape, with key players continuously enhancing their product portfolios by integrating AI into intelligent transportation systems. Market expansion modes often include partnerships, collaborations, and product innovation, with acquisitions and partnerships yielding positive results for competitors.

Key market developments underscore this collaborative and innovation-driven environment: In March 2024, Siemens AG and NVIDIA collaborated to deliver augmented products of Siemens Xcelerator and NVIDIA Omniverse Cloud APIs, enabling real-time generative AI-driven visualization for ITS. In April 2024, Thales Group AD collaborated with Presagis and Université Laval on the Autonomy of Future Air Mobility (AMAF) project, accelerating R&D initiatives and bolstering their market positions. These strategic alliances, along with continuous investment in advanced technologies and a focus on addressing urban mobility challenges, position leading ITS companies to thrive in this dynamic and rapidly expanding market.

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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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