The growing population has led to space congestion within the city limits, which in turn has increased the need of a more sophisticated and advanced systems to manage traffic and space. Thus, the emerging technology of intelligent transportation system (ITS) has come to the rescue. The overall demand for ITS has increased owing to the aforementioned factors and the global intelligent transportation system market is expected to rise at a CAGR of 7.9% over the period of 2016 to 2022.

ITS is a consolidated system which evaluates the condition of the vehicle and its surrounding in order to integrate enhanced performance measures into the vehicle to achieve traffic efficiency, enhance safety and improve environmental quality. ITS industry has evolved rapidly since its inception in the 1960s and has been a major part of the transportation system. It has been beneficial for travellers as well as concerned authorities. Investment by government and growing public-private partnership to install ITS are factors promoting ITS on a global scale.

The global ITS market is expected to reach $72.32 billion by 2022. The growing concern for environment protection, increasing traffic congestion and escalating demand for road safety and security are driving the market towards an exponential growth. However, need for interoperability and standardization, along with lack of infrastructure in developing countries are restraining the growth of the market, although, developing countries are being acknowledged as a potential market for ITS. With the introduction of autonomous vehicles and increased public-private partnership, the market is expected to be influenced positively.

In terms of application, ITS technologies are applied widely for roadways, which helps in enhancing mobility, safety, improve environmental conditions and reduce traffic congestion. In 2015, traffic management generated maximum revenue and accounted for 38% of the share in the ITS market. However, among roadways applications, the parking management section is expected to grow at the highest rate, owing to the increasing number of vehicle ownerships. Advanced Traffic Management System (ATMS) accounted for the maximum revenue in ITS market for roadways, due to growing migration from rural to urban areas. However, Advanced Public Transportation System (APTS) is expected to grow at the fastest rate, owing to increasing public-private partnerships and growing investment on real-time information systems for bus and rail passengers.

For many countries, railway is the major transportation network, wherein deployment of ITS will increase its overall efficiency and safety. However, among all major modes of transportation application in ITS, airways is expected to grow at the highest CAGR by 2022. Air traffic management and control application of the ITS market for airways contributed maximum to the revenue. And now, the marine sector is looking forward to the deployment of ITS with the increasing developments in electronic sensors, telecommunications, and computing.

Geographically, North America leads the global ITS market, although, it is Asia Pacific region which is expected to grow at the highest rate by 2022. BIS Automotive has compiled an extensive market research report on ‘Global Intelligent Transportation Systems Market, Analysis and Forecast: 2016 – 2022’. The market analysis report provides an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which includes drivers, restraints and opportunities prevailing in the industry.