Intelligent Transportation System Market Report: Size, Share and Outlook by 2031

The Intelligent Transportation System (ITS) market was valued at approximately US$ 35.93 billion in 2023 and is projected to grow to US$ 66.33 billion by 2031, reflecting a compound annual growth rate (CAGR) of 7.9% from 2023 to 2031.

This market is categorized into five primary regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South & Central America. In 2023, North America led the market, followed closely by Europe and the Asia Pacific region.

To address the challenges posed by increasing urbanization, cities in Asia are adopting various advanced technologies. According to the Royal Bank of Canada, over half of the global population currently lives in urban areas, a figure expected to rise to 68% by 2050. In Asia, it is anticipated that 66% of the population will reside in cities by 2050, which is significant given that the region is home to 13 of the world's megacities. Furthermore, the ongoing infrastructure development initiatives in countries like China, India, Japan, and South Korea are likely to stimulate growth in the transportation sector, thereby increasing the demand for ITS solutions in the near future. Major modernization projects, such as those at Singapore Changi Airport, Beijing Capital International Airport, and Incheon International Airport, are expected to further enhance the growth of the ITS market during the forecast period.

In North America, the ITS market is divided into three key countries: the United States, Canada, and Mexico. The United States holds a dominant position in the market, driven by a strong demand for innovative technologies and rapid advancements in infrastructure. Continuous investments in technology upgrades are fueling the growth of intelligent transportation systems across the country.

From an offering perspective, the ITS market is divided into three segments: hardware, software, and services. In 2023, the hardware segment accounted for a significant share of the ITS market. This segment is primarily driven by the increasing need for sophisticated infrastructures that can effectively manage traffic flow and enhance safety. Key components within this segment include sensors, cameras, traffic signal controllers, and electronic toll collection systems. Leading companies such as Siemens and Kapsch TrafficCom are at the forefront of developing innovative technologies aimed at improving traffic management. For example, in July 2021, Siemens Intelligent Traffic Systems rebranded as Yunex Traffic, operating as a new business entity under Siemens Mobility, with a focus on providing comprehensive and innovative mobility solutions for urban environments.

Key players in the Intelligent Transportation System (ITS) market include Hitachi, Siemens, DENSO, Cisco Systems, Inc., INDRA SISTEMAS, SA, EFKON GmbH, Cubic Transportation Systems, Inc., Kapsch TrafficCom AG, TomTom International BV, and Teledyne FLIR LLC. These companies are profiled in the market study, highlighting their contributions to the ITS landscape.

The overall size of the Intelligent Transportation System (ITS) market has been determined through a combination of primary and secondary research methodologies. Extensive secondary research was conducted using both internal and external sources to gather qualitative and quantitative data regarding the ITS market size. This approach also facilitated an overview and forecast of the market across all segments. Additionally, numerous primary interviews were held with industry stakeholders to validate the findings and gain deeper analytical insights. This process involved engaging with industry experts, including Vice Presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the Intelligent Transportation System (ITS) market.