Global Intelligent Transportation Market Overview, 2024-29

Market Dynamic

Market Drivers • Technological Innovations: Technological innovations are a significant driver of the global intelligent transportation system (ITS) market, continually pushing the boundaries of what is possible in transportation management and efficiency. Advancements in areas such as artificial intelligence, the Internet of Things (IoT), big data analytics, and connected vehicle technologies are revolutionising how transportation networks operate and are managed. These innovations enable real-time data collection, analysis, and decision-making, allowing transportation authorities to optimise traffic flow, improve safety, and enhance the overall efficiency of transportation systems. For example, AI-powered traffic management systems can predict and mitigate traffic congestion before it occurs, while IoT sensors and smart infrastructure enable vehicles to communicate with each other and with transportation networks, enhancing coordination and reducing delays. • Economic Efficiency: Economic efficiency is another key driver of the global intelligent transportation system market, as transportation agencies and governments seek to maximise the productivity and cost-effectiveness of transportation infrastructure and services. ITS solutions offer economic benefits by reducing travel delays, fuel consumption, and vehicle operating costs for travelers. For example, real-time traffic management systems can optimise traffic signal timing to minimise wait times at intersections, reducing fuel consumption and emissions from idling vehicles. Additionally, dynamic pricing strategies, such as congestion pricing or tolling, can incentivize more efficient use of transportation infrastructure while generating revenue for transportation authorities. Market Challenges • User Acceptance and Behaviour Change: One of the significant challenges facing the global intelligent transportation system (ITS) market is user acceptance and behaviour change. Despite the numerous benefits that ITS solutions offer, such as improved mobility, reduced congestion, and enhanced safety, encouraging users to embrace new technologies and adopt alternative transportation behaviours can be challenging. Resistance to change, lack of awareness or understanding of ITS solutions, and ingrained travel habits are common barriers to user acceptance. Additionally, concerns about privacy, data security, and reliability may deter some users from fully engaging with ITS technologies. Overcoming these challenges requires comprehensive strategies that focus on education, communication, and incentives to promote the benefits of ITS solutions and encourage behaviour change. • Data Management and Analytics: Another significant challenge in the global intelligent transportation system market is data management and analytics. With the proliferation of sensors, cameras, GPS devices, and other data sources in transportation networks, managing and analysing large volumes of transportation data has become increasingly complex. Transportation agencies and stakeholders face challenges related to data quality, integration, storage, processing, and analysis. Additionally, privacy concerns, regulatory requirements, and interoperability issues may further complicate data management efforts. Inefficient data management practices can lead to delays, inaccuracies, and inconsistencies in data processing, limiting the effectiveness of ITS solutions and hindering decision-making. Addressing these challenges requires investments in data infrastructure, standardised data formats, and advanced analytics tools and techniques.

Key Development

• In July 2023, Hitachi Rail, a division of Hitachi, Ltd., announced the expansion of its digital transport app named 360Pass. Based on this development, Hitachi Rail signed a new contract with Genoa’s (U.S.) city transit authority to connect Genoa's whole public transport infrastructure, including 600,000 citizens and 3,500,000 annual visitors, with the 360-pass digital transport app. • In August 2023, Hitachi Rail, a division of Hitachi, Ltd., announced that it had won a contract worth USD 1.96 billion to design and implement digital signaling systems and tracks for a new High Speed/Capacity (HS/C) line traversing the Italian city of Vicenza. • In August 2023, NEC Corporation announced that it has been selected by the UP State Road Transport Corporation (UPSRTC) as an master system integrator for VLT-PSIS project. This will help curb safety concerns for buses and improve the overall experience as well. • In October 2023, DENSO CORPORATION and KOITO MANUFACTURING CO., LTD., a lighting equipment manufacturer for the automobile sector, collaborated to introduce a system to improve nighttime driving safety by enhancing the object recognition accuracy of vehicle image sensors through the coordination of lamps and sensors. • In October 2023, Alstom SA partnered with FLXO Robotics to develop technology for reducing wildlife collision accidents. The collaboration aims to keep away animals and lower the risk of collisions, the technology will utilize advanced image analytics and AI algorithms, the technology can identify animals in proximity and emit a tailored repellent noise to deter them.