.webp){kind=small}
Download Sample
Schedule a Meeting
.webp){kind=small}
Download Sample
.webp){kind=small}
Table of Content
NA : +1 804 441 9344
sales@towardsautomotive.com
August 2025
The intelligent transportation system market is predicted to expand from USD 60.32 billion in 2025 to USD 126.11 billion by 2034, growing at a CAGR of 8.54% during the forecast period from 2025 to 2034. The market is expanding at a CAGR of xx % between 2025 and 2034. The growing adoption of advanced traffic management solutions in urban areas coupled with rise in number of smart city projects in developed nations is playing a prominent role in shaping the industrial landscape.
Additionally, numerous government initiatives aimed at enhancing road safety along with technological advancements in the aviation sector has driven the market expansion. The rapid deployment of self-driving cars by ride-hailing companies is expected to create ample growth opportunities for the market players in the upcoming days.
Unlock Infinite Advantages: Subscribe to Annual Membership
The intelligent transportation system market is a crucial segment of the transportation industry. This industry deals in providing advanced transportation solutions across the world. There are several components of these transportation systems including hardware, software, communication system, services and some others. It finds application in numerous sectors consisting of traffic management, public transportation management, freight management, road safety, automated vehicles and some others. The end-users of this sector comprise of government, commercial, individuals and some others. This market is expected to rise drastically with the growth of the aviation sector in different parts of the globe.
The major trends in this market consists of government initiatives, deployment of freight management systems and popularity of autonomous vehicles.
The traffic management segment dominated the market. The rising demand for advanced traffic management solutions in developed nations to reduce congestion has driven the market expansion. Additionally, rising emphasis of municipal corporations on deploying AI-based traffic management solutions in urban areas is expected to drive the growth of the intelligent transportation system market.
The automated vehicles segment is expected to grow with a considerable CAGR during the forecast period. The increasing demand for autonomous vehicles in various countries such as the U.S., China, Japan, Germany and some others has boosted the market expansion. Moreover, rapid adoption of driverless cars by fleet operators due to declining rate of manual drivers is expected to propel the growth of the intelligent transportation system market.
The hardware segment led the market. The growing use of advanced cameras in modern roads for monitoring the movement of vehicles has boosted the market expansion. Additionally, technological advancements in the telecommunication systems coupled with increased adoption of advanced sensors in the railway sector to enhance safety has driven the growth of the intelligent transportation system market.
The service segment is expected to expand with a notable CAGR during the forecast period. The growing adoption of cloud-based services by the aviation sector to control air traffic has driven the market growth. Additionally, partnerships among ITS providers and roadway operators to manage professional services related to the automotive sector is expected to boost the growth of the intelligent transportation system market.
The roadway segment held the largest share of the market. The growing emphasis on deploying advanced transportation systems in modern roads to enhance the driving experience has boosted the market expansion. Additionally, rapid investment by government for developing expressways coupled with increasing cases of road accidents is expected to propel the growth of the intelligent transportation system market.
The aviation segment is expected to grow with a significant CAGR during the forecast period. The growing use of advanced air traffic management systems in the aviation sector has boosted the market growth. Additionally, rapid investment by government of several countries for strengthening the airline infrastructure along with the deployment of surveillance cameras in modern airports is expected to foster the growth of the intelligent transportation system market.
North America led the intelligent transportation system market. The increasing sales of autonomous cars in the U.S. and Canada has boosted the market expansion. Additionally, rapid investment by government for deploying smart transportation solutions coupled with growing emphasis of municipalities to solve the issues related to traffic congestions is playing a vital role in shaping the industrial landscape. Moreover, the presence of various market players such as Transcore, Honeywell, IBM and some others is expected to propel the growth of the intelligent transportation system market in this region.
Asia Pacific is expected to grow with a notable CAGR during the forecast period. The growing demand for advanced traffic management solutions in several nations such as India, China, Japan, Singapore, South Korea and some others has boosted the market growth. Also, numerous government initiatives aimed at developing the aviation sector coupled with rapid expansion of high-speed railways is contributing to the industry in a positive direction. Moreover, the presence of several local market players such as Denso Corporation, Hitachi, Advantech and some others is expected to foster the growth of the intelligent transportation system market in this region.
The intelligent transportation system market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Kapsch Trafficcom, Hitachi, Tomtom, IBM, AT&T, Transcore, Honeywell, Siemens, Inrix, Motorola Solutions, Thales Group, Garmin, Cubic Corporation, Alstom, Cisco and some others. These companies are constantly engaged in developing intelligent transportation solutions and adopting numerous strategies such as business expansions, launches, acquisitions, partnerships, joint ventures, collaborations and some others to maintain their dominance in this industry.
By Transportation Mode
By Application
By Component
By End Use
By Region
August 2025
July 2025
July 2025
July 2025
We offer automotive expertise for market projections and customizable research, adaptable to diverse strategic approaches.
Contact Us