CAGR: 13.1%Current Market Size: USD 10.7 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The global intelligent traffic management system market is expected to grow from USD 10.7 billion in 2022 to USD 28.6 billion by 2030, at a CAGR of 13.1% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the rising demand for intelligent transportation systems to reduce road traffic problems.
An intelligent transportation system uses analysis, communication, sensing, and control technologies to improve mobility, efficiency, and safety in transportation. Railways, roadways etc., can all benefit from these technologies in terms of regulation, communication, identification, and analysis for ground transportation purposes to increase portability, well-being and expertise for ground transportation purposes. In spite of the pandemic outbreak, the market is expected to gain immense traction, although the growth rate is expected to be irregular. Although the demand is unlikely to decrease outright, project delays and shifts in product segments are inevitable, and the intelligent traffic management system market is expected to grow over the Projection period as traffic effectiveness improves. There is an increasing demand for traffic management systems as urbanization and industrialization increase, creating a pool of opportunities for vendors of traffic management systems. Traffic management systems are required to cope with the rapid growth in on-road vehicles as the population increases. With the rise of road congestion, carbon emissions increase, resulting in a high level of environmental pollution. A significant concern for any nation can be the cost related to traffic congestion, such as increased fuel consumption and travel time. However, implementing the most recent and innovative real-time traffic management technology frequently requires reorganizing the current infrastructure.
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Market Dynamics:
Drivers:
In smart traffic and smart cities, big data analytics and the internet of things are becoming increasingly important. Internet of Things refers to devices that are connected to the internet, such as sensors, vehicle information systems, and even mobile phones. Data is sent to a central system through the internet for analysis, where big data analysts analyze this information and use it to improve traffic flow and management.
Restraints:
As the market transitions from legacy infrastructure to smart traffic solutions, there will be restraints due to a lack of standardized and uniform technologies, according to the Projectioned period. Traffic management is faced with numerous challenges due to security threats and hackers. In addition to constant system and infrastructure upgrades, traffic management systems also require constant maintenance, which is hampering the market growth.
Opportunities:
A major contributor to air pollution is road congestion. As intelligent traffic systems make monitoring easier, harmful emissions are reduced, which is expected to positively affect the market's growth. Increasing smart city development, rapid urbanization, and the growing population in developing countries will lead to an exponential increase in demand for intelligent traffic solutions in the future.
Challenges:
The high cost of replacing current equipment necessitates significant expenditures, and government agencies limit the amount they can invest in the road network. Currently, traffic management businesses have the ability to approach the governments of different nations for help in improving their country's traffic system and reducing congestion.
Segmentation Analysis:
The global intelligent traffic management system market has been segmented based on spender type, system, component, and region.
By Spender-Type
The spender-type segment includes infrastructure enterprises & PPPs, federal & provincial government and industries & commercial enterprises. The industries & commercial enterprises segment led the largest share of the intelligent traffic management system market with a market share of around 48% in 2022. Industry & commercial enterprises accounted for 36.12% of the market in 2021. The factors that are credited with improving the movement on roads regulated by traffic signals, resulting in less overcrowding and sparing drivers’ time and fuel, are driving this market.
By System
The system segment includes a traffic management system, advanced public transportation system, advanced traveller information system, ITS-enable transportation pricing system and commercial vehicle operation. The traffic management system segment led the largest share of the intelligent traffic management system market with a market share of around 31% in 2022. A lack of signal control can lead to large amounts of traffic congestion and a significant increase in travel time. In addition to favourable government initiatives aimed at developing traffic infrastructure, smart city initiatives, and the rise of adaptive intelligent traffic controls & analytics, traffic monitoring systems is a growing necessity.
By Component
The component segment includes traffic controllers & signals, surveillance cameras and video walls. The surveillance cameras segment led the largest share of the intelligent traffic management system market with a market share of around 46% in 2022. Smart traffic systems use communication and information technology to improve traffic management and commuter experiences in urban planning. Surveillance Cameras are expected to grow rapidly during the Projection period. A smart traffic system's cameras provide real-time traffic insight and facilitate traffic flow improvements.
Global Intelligent Traffic Management System Market- Sales Analysis.
The sale of intelligent traffic management systems expanded at a CAGR of 12.2% from 2016 to 2022.
Virtual reality and artificial intelligence have the potential to make transportation systems more effective throughout the world. These technologies involve the development of visualizations and head-up displays for motorized transportation. It is possible for AI to alter the way the transportation system is modelled, which benefits both drivers and other users.
Furthermore, telematics services have a significant impact on security and safety in vehicles. In addition to enhancing driver safety, they also reduce fuel consumption, improve driver behaviour, and save money. Using Radio Frequency Identification, vehicles can be accessed and activated remotely through telematics tracking systems.
Smart cities use big data to improve traffic management and vehicle flow, as well as IoT devices embedded in infrastructure for real-time analysis, such as sensors.
Thus, owing to the aforementioned factors, the global intelligent traffic management system market is expected to grow at a CAGR of 13.1% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the intelligent traffic management system market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region dominated the intelligent traffic management system market and held a 38.1% share of the market revenue in 2022.
Global Intelligent Traffic Management System Market - Country Analysis:
Germany's intelligent traffic management system market size was valued at USD 0.78 billion in 2022 and is expected to reach USD 2.1 billion by 2030, at a CAGR of 13.2% from 2023 to 2030.
A smart transportation management system will enable road authorities to change traffic signal lights based on literal traffic density for the transportation sector. Germany dominated the European intelligent traffic management system market by country in 2020 and is expected to remain so until 2027. Decentralized environmental notifications provide information on abnormal traffic conditions, such as location and type of road hazards.
China’s intelligent traffic management system market size was valued at USD 0.83 billion in 2022 and is expected to reach USD 2.28 billion by 2030, at a CAGR of 13.5% from 2023 to 2030.
With an increase in the population of elderly people in China, the Digital Pathology market is expected to grow during the Projection period. Additionally, the increasing demand for Digital Pathology in the healthcare industry is driving its growth. As a result of advances such as microarrays and the incorporation of multiple predictive models, including hybrid models and API algorithms, the demand for digital image analysis is expected to continue to rise.
India's intelligent traffic management system market size was valued at USD 0.64 billion in 2022 and is expected to reach USD 1.7 billion by 2030, at a CAGR of 13.4% from 2023 to 2030.
In India, as road accidents and fatalities increase, more solutions are being sought to improve vehicle and operation safety, resulting in improved road safety and fewer collisions, respectively. Increasingly, intelligent driver information systems can assist drivers, strengthen security, and provide additional functionality like collision warnings and automatic braking as a result of technological advancements.
Key Industry Players Analysis:
To increase their market position in the global intelligent traffic management system market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
13.1% |
Market Size |
10.7 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Spender-Type, By System, By Component, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Imtech, IBM Corporation, Siemens AG, TransCore, Fujitsu, SWARCO, International Business Machines Corporation, TomTom International BV, Baumer Holding AG, Q-Free ASA, Kapsch TrafficCom, Iteris Inc., and Dahua Technology Co., Ltd. |
By Spender-Type |
|
By System |
|
By Component |
|
Regional scope |
|
Scope of the Report
Global Intelligent Traffic Management System Market by Spender-Type:
Global Intelligent Traffic Management System Market by System:
Global Intelligent Traffic Management System Market by Component:
Global Intelligent Traffic Management System Market by Region:
Global intelligent traffic management system market is expected to reach USD 10.7 billion by 2030, at a CAGR of 13.1% from 2023 to 2030.
Road congestion and advancement in technology.
North American region will witness more growth in the intelligent traffic management system market.
Based on the spender-type, the intelligent traffic management system market is segmented into infrastructure enterprises & PPPs, federal & provincial government, and industries & commercial enterprises.
Leading players in the intelligent traffic management system market are Imtech, IBM Corporation, Siemens AG, TransCore, Fujitsu, SWARCO, International Business Machines Corporation, TomTom International BV, Baumer Holding AG, Q-Free ASA, Kapsch TrafficCom, Iteris Inc., Dahua Technology Co., Ltd. among others.
Political Factors- Tax breaks make it easy for markets like the intelligent traffic management system sector to expand. Furthermore, thanks to government subsidies and favourable tax rates, the intelligent traffic management system sector will be able to maintain its competitiveness by lowering operational expenses. Furthermore, corporate expenses will not be passed on to customers, providing them with appealing and competitive prices. Markets such as intelligent traffic management system will be able to expand as a result of favourable tax regulations that encourage company growth and development, which will also contribute to the creation of economic value for the country.
Economic Factors- If the interest rate is moderate, businesses such as the intelligent traffic management system market will find it easier to secure bank loans. The purpose of this business loan is to promote growth and development. Business loans would also play an important part in the expansion and development of the sector's infrastructure. People may be able to receive personal loans with low interest rates. When interest rates are low to moderate, personal loans will enhance consumer expenditure and consumption. This would boost consumer spending, sales, and market share for businesses such as the intelligent traffic management system market.
Social Factors- The general populace is adopting health and well-being trends. The health and wellness movement has influenced consumer decisions and habits. The intelligent traffic management system market has introduced health-related features to its goods and incorporated health-related variables into its marketing, according to consumer research and behavioural evaluations. As a result of increased health consciousness, the intelligent traffic management system market has collaborated and undertaken CSR programmes that focus on not only physical health and well-being but also mental and emotional well-being.
Technological Factors- The nation's technological R&D receives significant domestic and foreign investment. The significant investment helps industries advance by giving them with modern, adaptable, and efficient methods of conducting business and carrying out other business activities. Increased investment and accompanying research have also enabled a higher rate of innovation. Businesses benefit from innovation and development by expanding the industrial sector as a whole and gaining a competitive advantage on the international market. Individual player adaptations, such as the intelligent traffic management system market, also aid in the development of substantial competitive advantages.
Environmental Factors- The country is gradually shifting to renewable energy for operations and economic activities across all industries. This is done to reduce both the carbon footprint and the market's environmental footprint. The intelligent traffic management system market and related sector participants are increasingly utilising solar energy and hydroplanes for operation management and business activities. The intelligent traffic management system market has a small-scale, company-controlled hydro plant to help with manufacturing operations.
Legal Factors- The country's population and market are varied. There are many immigrants, and the country's businesses operate in many other countries. As a result, the intelligent traffic management system market has long supported worker diversity and established internal corporate regulations to foster it. From hiring to promoting, the company follows anti-discrimination regulations in all of its operations. Every employee regularly attends diversity trainings and workshops to understand how to avoid racist and biassed acts that could have negative implications. The intelligent traffic management system market, like other rivals in the market, is an equal-opportunity employer.
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