The Intelligent Transportation System Market for roadways is expected to grow from USD 17.9 billion in 2020 to USD 36.5 billion by 2025, at a CAGR of 15.3%. The market growth can be attributed to several factors, such as increasing concerns toward public safety, growing traffic congestion problems, rising favorable government initiatives for effective traffic management, increasing adoption of eco-friendly automobile technologies, and development of smart cities across the world.
COVID-19 Impact on the Global ITS Market in Roadways
The Intelligent Transportation System Market includes major Tier I and II suppliers such as Thales Group (France), Siemens (Germany), Kapsch TrafficCom (Austria), Garmin (US), TomTom International BV (Netherlands), Cubic Corporation (US), Q-Free ASA (Norway), EFKON GmbH (Austria), FLIR Systems, Inc. (US), Indra Sistemas (Spain), and Denso Corporation (Japan). These suppliers have their manufacturing facilities spread across various countries across North America, Europe, APAC, and RoW. COVID-19 has impacted their businesses as well.
- To lower the impact of COVID-19, Thales is implementing a global adaptation plan to maintain its productive capacities for customers, lower the financial impact of this crisis, and strengthen the funding capacity if the crisis persists or worsens.
- According to Garmin, the economic uncertainty and impact on consumer behavior caused by COVID-19 have affected business; accordingly, the company has withdrawn its fiscal 2020 guidance. However, it is optimistic for the long term because the markets it serves and the products it offers are well-positioned to flourish in the future.
Market Dynamics of ITS in Roadways
Driver: Growing traffic congestion
The deployment of ITS helps in providing real-time traffic statistics that can help in resolving growing traffic congestion concerns. Intelligent signal controls gather information from sensors that quantify vehicle speed, traffic signals, pre-emption alarms, and other traffic-related information. Data received from various sensors run through refined algorithms and send information back to the controllers. Collecting real-time traffic statistics helps in controlling traffic signals. ITS helps drivers identify shorter routes and traffic-free routes to improve mobility.
Restaraint: Expensive ITS installation
A sophisticated centralized traffic management center (TMC) is required—which can deal with real-time traffic data and help reduce traffic congestion—to be co-located with transportation managers, system operators, dispatchers, and response agencies. The implementation of ITS includes CCTV cameras, microwave detectors, dynamic message signs (DMS), advanced traveler information systems (ATISs), and highway advisory radio (HAR); other factors such as mobile data terminals (MDTs) are an important component of the transit fleet management systems. All these lead to huge investments.
Opportunity: Designing and developing smart vehicles compatible with ITS
The introduction of cooperative, connected, and automated mobility (CCAM) programs are likely to transform the mobility industry worldwide. It will allow road users and traffic managers to share traffic-related information and coordinate effectively. Also, this cooperative element will help in establishing connections among vehicles (V2V), as well as between vehicles and transport infrastructure (V2I). C-ITS includes technologies and applications that allow wireless data exchange within the transport system between V2V and between V2I. The complete implementation of a C-ITS program is likely to improve road safety, traffic efficiency, and comfort of driving significantly by helping the driver make the right decisions and adapt to the traffic situation.
Challenge: Achieving interoperable and standard ITS architecture worldwide
The establishment of an Intelligent Transportation System infrastructure involves the integration of various heterogeneous devices that are likely to create compatibility issues quite often. The synchronization of these heterogeneous devices needs standardization in the implementation of various ITS systems. However, the lack of a standard ITS infrastructure is an issue. 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 efficiency.
Advanced traffic management system (ATMS) held the highest share in Intelligent Transportation System Market for roadways in 2019
Based on system, the market is categorized into advanced traffic management system, advanced traveler information system, its-enabled transportation pricing system, advanced public transportation system, commercial vehicle operation. The largest market size of the advanced traffic management system is attributed to the increasing traffic congestion on roads across the world. In addition, the increasing affordability of vehicles, due to the availability of favorable deals offered by the automobile manufacturers and changing lifestyles, is also resulting in traffic congestion. To address this concern, it is expected that the advanced traffic management system will be deployed significantly across the globe.
The automotive telematics application is expected to register the highest CAGR during the forecast period
On the basis of roadways application, Intelligent Transportation System Market has been segmented into fleet management and asset monitoring, intelligent traffic control, collision avoidance, parking management, passenger information management, ticketing management, emergency vehicle notification, and automotive telematics. The rising demand for driving assistance systems and automatic driving systems is supporting market growth. Additionaly, the factors such as the need to reduce traffic congestion and increasing funding by various governments for the implementation of ITS in automobile telematics systems are contributing towards the high growth of the market.
North America is leading the market for ITS in roadways in 2019
The Intelligent Transportation System Market for roadways based on geography has been broadly classified into North America, Europe, APAC, and RoW. The market in North America is expected to hold the largest share during the forecast period. The adoption of ITS to counter traffic congestion and boost safety on roads is propelling the growth of the ITS market in North America. Government funding and support for the implementation of ITS in North America is another major driver for this market.
The outbreak of novel coronavirus, which started from China at the end of 2019 and later shifted its epicenter from China to Europe and then to the US, has caused a serious crisis. Border closures and lockdowns led to disruptions in the supply chain as well as social distancing led to the closure of manufacturing and assembling units in the US and Canada. Due to the shortage of manpower and lay-offs, the ongoing transport projects are delayed. The ITS ecosystem, which is majorly dependent on the electronics and telecommunication sector, is expected to witness a potential short-term slowdown owing to the supply chain disruption. This may lead to a reduction in the deployment of smart transport systems.
Key Market Players
Major players : Thales Group (France), Siemens (Germany), Kapsch TrafficCom (Austria), Garmin (US), TomTom International BV (Netherlands), Cubic Corporation (US), Q-Free ASA (Norway), EFKON GmbH (Austria), FLIR Systems, Inc. (US), Indra Sistemas (Spain), and Denso Corporation (Japan).