The global intelligent transportation system market is expected to grow at a CAGR of 7.17% from US$57.33 billion in 2025 to US$81.06 billion in 2030.
As urbanization intensifies and vehicle numbers rise, traffic congestion plagues many cities. ITS systems mitigate this by optimizing traffic flow and reducing travel times, especially in densely populated regions.
Advancements in artificial intelligence, machine learning, and the Internet of Things (IoT) are driving the development of sophisticated ITS solutions. These technologies enable real-time data collection and analysis, delivering accurate traffic and travel time updates to users. For example, Bosch’s Community-Based Parking (CBP) system, launched in 2020, uses data from connected vehicles to locate parking spaces. By 2024, Bosch expanded this with AI-enhanced predictive parking features, reflecting ongoing innovation. Similarly, Siemens’ Sitraffic ESCoS, introduced in 2020, now integrates 5G to enhance real-time traffic optimization.
Urbanization is fuelling the ITS market growth as rising urban populations increase road congestion. ITS solutions manage traffic flow, optimize signal timings, and provide real-time traveler information to improve mobility. Demand for efficient, reliable public transportation systems is also surging in cities. Government initiatives further accelerate growth by funding ITS projects and promoting sustainability.
• In December 2022, Honda Motor Co. unveiled Honda Sensing 360, a safety and driver-assistive system that eliminates blind spots, prevents collisions, and reduces driver fatigue by monitoring surroundings and preempting risks.
Collision avoidance systems (CAS), a vital ITS application, warn drivers of potential crashes. Rising motor vehicle fatalities—42,915 in the US in 2021 (NHTSA)—heighten CAS demand by underscoring road safety needs. Advances in sensor and radar technologies enhance CAS affordability and effectiveness, boosting market growth through 2029.
Geographically, the ITS market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. North America benefits from initiatives like the US Department of Transportation’s Intelligent Transportation Systems Joint Program Office (ITS JPO). The ITS JPO drives R&D, with its 2023-2028 Strategic Plan emphasizing automation and sustainability, advancing transportation technology. In conclusion, the ITS market thrives on urbanization, technological innovation, and government support, delivering efficiency, safety, and sustainability gains.
The Intelligent Transportation System (ITS) industry landscape provides strategic and executive-level insights, supported by data-driven forecasts and in-depth analysis. This regularly updated report empowers decision-makers with actionable intelligence on prevailing market trends, emerging opportunities, and competitive dynamics. It evaluates demand across various ITS categories, including types such as ATMS (Advanced Traffic Management System), ATIS (Advanced Traffic Information System), APTS (Advanced Public Transportation System), ITS-enabled Transportation Pricing Systems, and Commercial Vehicle Operations, as well as components like hardware (sensors, cameras, radar), software (traffic management and analytics platforms), and services (consulting and integration).
The report also explores applications such as collision avoidance, traffic monitoring, parking availability, traffic signal control, and fleet management, alongside end-user segments including government/public sector, private sector, and consumers. Additionally, it delves into technological advancements, key government policies, regulations, and macroeconomic factors, delivering a holistic view of the ITS market.
Intelligent Transportation System Market Segmentation by type
The market is analyzed by type into the following:
Intelligent Transportation System Market Segmentation by application
The report analyzes the market by application as below:
Intelligent Transportation System Market Segmentation by end-user
The report analyzes the market by end-user as below:
Intelligent Transportation System Market Segmentation by regions:
The study also analyzed the Intelligent Transportation System Market into the following regions, with country-level forecasts and analysis as below:
The global Intelligent Transportation System Market features key players such as 3M, Transcore, Denso, Thales Group, Siemens AG, Kapsch TrafficCom, EFKON, Hitachi, and Related, among others.
This report provides extensive coverage as explained in the points below:
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| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Intelligent Transportation System Market Size in 2025 | US$57.33 billion |
| Intelligent Transportation System Market Size in 2030 | US$81.06 billion |
| Growth Rate | CAGR of 7.17% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Intelligent Transportation System Market |
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| Customization Scope | Free report customization with purchase |