The increase in traffic congestion, together with the rise in the number of road accidents, is expected to drive the growth of the ITS market between now and 2024.
The intelligent transport system (ITS) market is forecast to grow by $32.47 billion between 2020 and 2024, due to increased traffic congestion and road accidents, a new study finds.
The predicted growth of smart cities during the forecast period is expected to have a positive impact on the market and contribute to its growth significantly.
According to Technavio, growing urbanisation and the ever-rising use of cars, resulting from the rising middle-class population, are intensifying traffic congestion.
These factors are far more prevalent in developing countries, and, as a result, government organisations are seeking to implement ITS solutions such as congestion charging, road user charging and electronic toll collection to control traffic.
The market research report highlights the Indonesian government, which has partnered with Kapsch TrafficCom and Q-Free to provide tolling equipment to its road transportation sector.
“Factors such as the growing popularity of smart factories, and the growing use of data centre management will have a positive impact on the growth of the intelligent transport system market.”
Digital technologies include ITS solutions such as traffic control and safe and intelligent transportation. The use of such technologies will help to analyse and efficiently utilise resources. It will also improve transportation facilities leading to faster connectivity.
“Factors such as the growing popularity of smart factories and the growing use of data centre management will have a positive impact on the growth of the intelligent transport system market during the forecast period,” the report states.
The market research report segments the ITS market by application (traffic management, toll management, automotive and infotainment telematics, public transport and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa (MEA)).
The North American region led the ITS market in 2019, followed by Europe, APAC, South America and MEA.
During the forecast period, the North American region is expected to register the highest incremental growth due to factors such as the increased adoption of ITS solutions by end-user industries, the shift from conventional transportation systems to intelligent transportation systems, growth in end-user industries, and government initiatives for the implementation of ITS solutions.
Technavio is a global technology research and advisory company which focuses on emerging market trends.
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