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Advanced Traffic Management System (ATMS) Market Size

Report ID: GMI12744
Published Date: Dec 2024
Report Format: PDF

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Advanced Traffic Management System Market Size

The global advanced traffic management system market size was valued at USD 6.2 billion in 2024 and is estimated to register a CAGR of 9.3% between 2025 and 2034. The increasing need for efficient traffic management solutions, rapid urbanization, and the implementation of government-led smart city initiatives are the primary drivers propelling the market.

Advanced Traffic Management System (ATMS) Market

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The market is witnessing significant advancements as key players collaborate to offer integrated and scalable solutions. For instance, in April 2024, Umovity and Derq announced an AI-powered joint solution that connects Derq’s Insight application with Econolite’s Centracs Mobility. This collaboration underscores the growing demand for AI-driven ATMS to optimize urban mobility and ensure the safety of all road users.

Advanced Traffic Management System Market Report Attributes
Report Attribute	Details
Base Year:	2024
Advanced Traffic Management System Market Size in 2024:	USD 6.2 Billion
Forecast Period:	2025 - 2034
Forecast Period 2025 - 2034 CAGR:	9.3%
2034 Value Projection:	USD 14.6 Billion
Historical Data for:	2021 - 2024
No. of Pages:	175
Tables, Charts & Figures:	190
Segments covered:	Component, Deployment Mode, Application, End Use
Growth Drivers:	Increasing urbanization and population growth Rising demand for smart city initiatives Enhanced focus on traffic safety and incident management Advancements in IoT and AI technologies
Pitfalls & Challenges:	High implementation costs and budget constraints Complexity of integrating with existing infrastructure

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Additionally, the growing need for intelligent transportation solutions is driving the adoption of both cloud-based and on-premises Advanced Traffic Management Systems (ATMS). These systems are designed to optimize urban mobility by providing enhanced traffic flow management, real-time incident detection and response, and comprehensive safety monitoring.

Cloud-based ATMS solutions enable scalability and seamless integration with other smart city technologies, offering authorities the flexibility to manage and analyze vast amounts of traffic data remotely whereas on-premises provide robust control and security. The Intelligent Transportation Solutions (ITS) is projected to grow and generate revenue of around USD 95 billion by 2032, with an annual growth rate of over 8%.

Authors: Preeti Wadhwani, Satyam Jaiswal

Frequently Asked Questions (FAQ) :

The market size of advanced traffic management system reached USD 6.2 billion in 2024 and is set to grow at a 9.3% CAGR from 2025 to 2034, driven by the increasing need for efficient traffic solutions and smart city initiatives.

The hardware segment was valued at over USD 2.5 billion in 2024, fueled by the deployment of traffic controllers, sensors, and AI-powered cameras for real-time traffic management.

The North America market accounted for 30% of the revenue share in 2024, led by the U.S., where AI and IoT-enabled solutions are extensively deployed to reduce congestion and enhance public safety.

The key players in the market include Cubic Corporation, Econolite, Hitachi, Indra Sistemas, Kapsch TrafficCom, Q-Free ASA, Siemens Mobility, Swarco, TomTom, and TransCore.