Smart Mobility Overview of the Intelligent Transport Systems market
The swell of the middle class has driven the increased use of vehicles, whether personal cars or shared mobility options. With that rise in traffic, the needs to control traffic flow and increase safety are major factors for governments worldwide. That's where Intelligent Transport Systems (ITS) come into play, and it's a rapidly growing market. Here's where the market is right now, and where it's headed.
Intelligent Transport Systems, or ITS, have accelerated in popularity for smart cities and conservative communities alike, albeit at different paces. ITS refers to advanced technologies applied to vehicles, infrastructure, and control systems that lead to connected or intelligent mobility.
The ITS market is still in a relatively fledgling state, but it is predicted to grow in the coming years.
What's the current state of the ITS market?
As ITS goes far beyond simply connected cars for private citizens, the market is extremely vast. According to Mordor Intelligence, the ITS systems market in 2020 is centered primarily around North America. It's in the United States and Canada that ITS systems have been integrated into transportation successfully to manage traffic flow and public transportation systems. In the United States alone, the market value in 2019 was nearly $23 billion USD, and its compound annual growth rate (CAGR) is estimated at a little over 5 percent through 2025.
However, North America does not lead the world in terms of growth. Asia-Pacific countries are investing and developing in ITS at an aggressive pace. It's a logical process since high population densities, and traffic congestion are issues that are much more prevalent in that part of the world.
Interesting trends in ITS
Of course, ITS has its understood applications such as DSRC technology for ADAS systems and V2V integrations, traffic control systems, and commercial vehicle logistics. But there are trends in ITS that go beyond the common thought lines:
- Commercial drone growth and usage is experiencing exponential growth across the world, especially in areas like the U.S. The implementation of ITS as it relates to navigating the airways is expected within the next five years.
- Since motorcycles are among the most common transportation mode in many of the most progressive ITS countries, motorbikes have been an area of focus.
- Maritime fleet and freight management, not to mention the obvious safety management, are among the most important and profitable sectors for ITS that are trending.
Who is a force in ITS development?
Several companies have come to the forefront in the industry, progressing the development of ITS systems and their implementation.
- Siemens AG is perhaps the most influential in ITS. Their work has been integrated into major projects worldwide, including large-scale involvement in effective solutions for the New York City subway system and regenerative braking system development for carmakers.
- Thales Group has been important in developing solutions for traffic management, electronic toll collection, and free-flow tolling. Their intelligent road traffic management solutions focus on improving flow for streets and neighborhoods with increasingly heavy traffic.
- A well-known and recognizable name in ITS is IBM. Their solutions focus on three areas: traffic awareness, traffic prediction, and vehicle awareness and prediction.
Where is the ITS market headed?
There are two main driving forces for the ITS market. The first is a connected mobility experience that reduces accidents and makes travel more confident and convenient. The second is to improve traffic flow and lower the travel time for personal and commercial vehicles.
With those forces in mind, the ITS market ties closely together with the development and integration of V2X technology. Massive amounts of data are generated and processed by vehicles, infrastructure, and control systems. What you're likely to see are virtually all aspects of travel – from booking a Lyft ride to purchasing and tracking commercial products from overseas and especially traffic flow in cities—integrated into the ITS market. And certainly, the widespread implementation of 5G technology will make it even more viable than it is today.