31st March 2020 – The global
Intelligent Transportation System (ITS) Market
is anticipated to reach USD 66.5 billion by 2024. Rising awareness of
road safety and need to improve existing transportation performance are
expected to be the key driving factor for market growth. High traffic
congestion due to urbanization and increasing number of on road vehicles
has contributed to the demand for advanced traffic management systems
for public. Consequent need for smart automobiles with public and
private partnerships is forecasted to be a major growth opportunity for
the intelligent transport system market. Various initiatives to deploy
advanced traffic management systems such as vehicle to vehicle (V2V) and
vehicle to infrastructure (V2I) communication is also expected to be
witnessed as a key growth strategy.
Developed regions including North America
and Europe have made the use of driver assistance system, electronic
stability control (ESC) systems in commercial and passenger vehicles
mandatory. Car manufacturers in both emerging and established economies
are implementing these systems in their new car models to differentiate
their products from the competitors. These factors are anticipated to
drive the market growth in the foreseeable future. Intelligent
transportation systems are expected to help improve the performance of
supply chain process and yield high benefit to the organizations. Users
can also reduce the costs through real-time transportation systems. On
account of the above factors, transportation service providers have
increased investment in this technology over the past few years.
Investment across the intelligent
transport system is expected to increase on account of high benefit cost
ratio that strongly influences vehicle owners and government
authorities to invest in this technology that includes vehicle to
Infrastructure (V2I) communication, Vehicle to Vehicle (V2V)
communication, mobility application and environment application.
However, slow growth in infrastructure sector can act as a challenge to
the market. Interoperability and standardization pose a major challenge
for the market growth. Development of connection assurance systems is
expected to be the top agenda of various nations. Achieving
interoperability ensures that transport systems are not simply
interconnected but that the boundaries between different networks are
effective. Technical interoperability is achieved when different
transport systems are linked in ways which effectively extend the
network of services. Technical interoperability requires the various
systems of physical infrastructure in different transport systems to
interface efficiently. High cost of these systems can also be attributed
as a major restraint to the market growth.
On the basis of product, intelligent
transportation system can be segmented into Advanced Transportation
Management Systems (ATMS), Advanced Transportation Pricing Systems
(ATPS), Advanced Public Transportation Systems (APTS) and Advanced
Traveler Information Systems (ATIS). ATMS is expected to be the largest
market product segment since it provides enhanced management services
which help in alleviation traffic congestion, pollution and also
increases the efficiency of transportation operations. These systems are
coupled with communications and sensors to ensure real time management.
ATPS is estimated to witness high growth rate over the forecast period
owing to its increased operations efficiency and overall transportation
safety. These systems are widely used in automatic vehicle location
systems, passenger information, and real time bus arrival notification
systems.
On the basis of applications, the
intelligent transportation system can be classified into, environment
protection, traffic management, public transport, freight management,
automotive telematics, road safety and security, parking management and
road user charging. Traffic management is expected to be the largest
application segment in the market. ATMS is used in traffic management to
enhance road network by reducing financial burden on regulatory
authorities thereby decreasing the cost of investment in traffic
congestion control. Environmental protection is anticipated to witness
significant growth in the market over the forecast period owing to
increase in environmental awareness coupled with various government
initiatives to curb vehicle pollutant emissions.
Globally, North America is expected to
have the largest market over the forecast period. Increasing demand for
efficient transporting systems across various sectors including public,
private and government regulations coupled with promotional activities
for road safety. Asia Pacific is anticipated to witness the fastest
growth owing to technological innovations that includes integrated
handheld devices with sensors to enhance transportation networks.
Emerging economies such as India and china are investing more in R&D
and regulatory initiatives including wealth and welfare act and
industrial safety that are expected to fuel the market growth in this
region Major players operating in the ITS market include Thales Group,
Garmin International Inc, TomTom International BV, Kapsch TrafficCom AG
Q-Free ASA and Nuance Communication Inc. Other industry participants
include Denso Corporation, savari, transcore and EFCON AG.
Key company strategies of the companies
include innovation and product development with mergers and
acquisitions. In addition, market players provide maintenance and
construction services for large deployments of the technology. For
instance, Thales group introduced employed signaling, communications and
supervision solutions in railway transportation. Thales’ signaling
system is based on electronic interlocking, field, Altrac ETCS level 1
as ATP train protection system, energy systems, hotbox detectors, cables
and interfaces with existing signaling systems on adjacent lines.
Comments
Post a Comment