Intelligent Transportation System (ITS) Market Size By Mode of Transportation, By Railway, By Road, By Air, By Marine, Growth Forecast 2025 – 2034

Intelligent Transportation System Market Size

The intelligent transportation system market was valued at USD 47.2 billion in 2024 and is estimated to register a CAGR of 10.3% between 2025 and 2034.
 

The increased focus on smart cities is a major driver of growth in the market. With the rapid increase in the urban population, cities are becoming overpopulated, hence requiring more sustainable, efficient, and safe mobility options. The revenue forecast for smart cities is expected to rise from 634 billion USD in 2024 with a compounded annual growth rate of 15.8% from 2025 to 2034.
 

The development of intelligent transport systems will greatly aid in the advancement of smart cities with the aid of digital technology. The optimization of traffic flow, reduction of congestion, and improvement of the public transport service is achieved by the integrated approach towards management of traffic systems provided by ITS solutions. The integration includes advanced traffic management, real time data analytical, interconnectivity, and public transport systems.
 

With the goal of enhancing sustainable smart city initiatives, new technologies are progressively being integrated to facilitate the use of electric vehicles, shared transport services, and associated emission reduction. For example, the estimation provided by the UN which predicts 68% of the population will reside in urban areas in 27 years is a direct indicator for sustainability. This development will lead to 2.9 billion more vehicles on the road. The increasing needs of the citizens are sure to put strain on and impede the long-term sustainable objectives of the existing transport system.
 

Moreover, smart IoT, AI, and analytical technologies often transform the mobility approaches in smart cities auguring better development of transport infrastructures. The system effortlessly incorporates various modes of transportation such as buses, trams, bicycles, and even autonomous cars into one multi-modal transport system. People are informed in advance about schedules, traffic, and detours through the real-time information systems which makes traveling from one point to another easier.
 

As most governments and municipalities work towards smart city policies, there is a stronger focus with investments in ITS because dealing with urban transport issues requires a high level of digitized mobility ecosystem integration. This shift towards more emphasis on digitally integrated mobility systems is encouraging the adoption of ITS in cities looking for safer, more sustainable, and efficient urban transport systems.
 

Intelligent Transportation System Market Trends

• The introduction of automated vehicle technology has also created new opportunities within the ITS sector, which will have a significant effect on design and functionalities of vehicles.
   
• In addition, the self-driving capabilities of Automated Vehicles are made possible by the applications of machine learning somatic sensors, AI, along with data streaming, which allows for movement and decision making without a human interface.
   
• The Statista report says that the market of self-driving cars had circulation of more than 17 thousand units in 2022 and it is projected to expand with another 127 thousand units by the year 2030.
   
• The use of AVs in the public transportation systems such as shuttle services, buses as well as taxis increases safety and lessens overdependence on human manual drivers which leads to reduced road accidents. Self-driving vehicles working with other vehicles in congested urban regions improve traffic flow, road utilization, and city transportation system management dramatically. Self-driving vehicles working with other vehicles in congested urban regions improve traffic flow, road utilization, and city transportation system management dramatically.
   
• Tesla is one of the companies which has recently introduced fully self-driving capabilities in hopes of increasing the number of miles driven before driver assistance is required. The company intends to resolve all remaining problems within the system where he is not expected to intervene for one complete year, provided all drivers are aware of problems regarding the car.
   
• In addition, AV technologies stand to improve public transport as they would be made more cost effective, flexible, and easier to access. Autonomous vehicles operate in demand or sharing modes, which improve the effectiveness of vehicles and resources in areas of low patronage and in the “last mile” of service delivery.
   
• This cost-effective and more accessible option serves in the provision of services in the gap left, especially in the suburban or peripheral underserved areas. Also, AVs contribute to the goals of sustainable mobility more broadly by being integrated with electric cars and easing emission levels.
   
• With the development of AV technologies and their further incorporation into the smart city infrastructure, cities will begin to rethink their approaches to urban mobility in order to make it safer, greener, and more accessible to all the while resolving most of the reaming issues posed by public transportation.
   

Intelligent Transportation System Market Analysis

Based on mode of transportation, the market is divided into rail, road, air and marine. The rail segment held more than 40% of the market share in 2024 but road segment will reach over USD 25 billion by 2034.
 

• The intelligent transportation system industry is witnessing significant growth due to high-bid tenders for roadway enhancements aimed at fulfilling the rising traffic circulation expectations. A good example, is, the Indian Government tendered for the first phase of the 10,000 kilometers of roads to be built in March 2024.
   
• As stated by the authority, the project encompasses a multidisciplinary approach; civil works for the improvement and rehabilitation of central intersections coupled with a detailed design. These projects not only will help in mitigating congestion and improving the traffic flow but also will increase the need for real-time monitoring and traffic management systems, which will help in fueling growth in the ITS roadways sector.
   

Based on railway application, the intelligent transportation system market is categorized into smart ticketing, passenger information management, operation and collision avoidance, security, emergency notification, and others.
 

• The passenger information management segment held a market share of around 27.9% in 2024 and the smart ticketing segment is expected to grow at CAGR of around 13% by 2034.
   
• With the help of a Passenger Information System (PIS) train users can receive train notifications in real-time. A PIS can be presented on available screens, indicators at platforms, panels, etc. The growing digital transformation in different organizations is reaching new heights with the use of audio & visual subsystems, In-train computers, Wi-Fi, GPS trackers, and control & command centers.
   
• Improving the experience of passengers is one of the core goals of modern transport systems. The passenger information systems are vital in this aspect because they provide accurate and up-to-date information regarding routes, time schedules, service delays, and service changes, which makes travel convenient and hassle-free.
   
• As an example, in October 2024, Wabtec signed a contract with Siemens Mobility for the latter’s supply of NPCUs for the Munich S-Bahn trains. This multi-million-dollar contract aims to enhance the travel experience by providing better real-time travel updates.
   

Based on air system, the intelligent transportation system market is divided into information display system, tracking and monitoring system, self-service baggage system, kiosks, communication and networking, smart gate system, and others. The tracking and monitoring system segment dominated the market accounting for USD 2 billion in 2024.
 

• The combination of GPS and IoT technologies has boosted the creation of tracking and monitoring systems in aviation. Today, airline companies and airports can track the movements of their aircrafts, passengers, and even bags in real time. Enhanced situational awareness such as this enables operating, safety and disruption mitigation, and people and asset management to be more efficient.
   
• For example, Collins Aerospace unveiled its Airport Surface Awareness System (ASAS) in April 2024. This ASAS technology aims to enhance the effectiveness and security of operations on the ground. ASAS enables real time surveillance, tracking and recording of aircraft movement on the airport surface by airports, airlines and ground handlers.
   

Based on road offering, the market is divided into hardware, software and services. The hardware segment dominated the market accounting by over 55% of market share in 2024.
 

• A new addition to the hardware of road systems is the integration of advanced GPS units, sensors, and high-definition cameras for tracking purposes. The incorporation of IoT and Ruggedized devices boosts connectivity as well as the durability of the devices. Moreover, edge computing allows data processing directly on the vehicle which increases operational efficiency as well as ensures the safety of the passengers during travel.
   
• Communication monitoring systems provide new ways of integration by making possible the transfer of information between buses, passengers, and the central control centers. This advanced technology enhances scheduling efficiency, makes accurate real-time rider updates possible, allows for better traffic incident control, all of which leads to service reliability and enhanced user experience.
   

In 2024, the U.S. dominate the North American intelligent transportation system market with revenue around USD 10.6 billion.
 

• Public Transit has begun incorporating shared mobility services which demonstrate multi-model transport implementation across the country. Cities are adopting an integrated approach to mobility that encompasses bike and e-scooter sharing, as well as ride-sharing services. These initiatives are exemplified by the pilot e-scooter sharing program in San Francisco, and the bike-sharing program in Washington D.C., which aim to reduce congestion and improve connectivity using sustainable transportation.
   
• Public transport was able to rapidly implement smart ticketing with contactless payment capabilities. Chicago, Vancouver and Washington D.C. are implementing systems for contactless fare payment via smartphone, smart cards, or bank cards. Passengers no longer need physical tickets. These digital methods make the boarding easier and reduce the congestion at the collection points and queues during the payment.
   
• As an example, Umo Mobility Platform deployment was completed by Cubic Corporation at Bloomington Transit. This has enhanced public transport services in Bloomington, Indiana. Bloomington is one step further towards modernization of Transit systems and increased efficiency in operations.
   

Predictions suggest that from 2025-2034, the UK intelligent transportation system market will grow tremendously.
 

• Mobility-as-a-Service (MaaS) is rapidly developing in the UK. Several cities are now combining various means of transport into single systems. These systems combine buses, trains, bicycles, and ride-hailing services so that passengers can use one mobile application to plan, book, and pay for multi-mode journeys. This advancement enhances convenience and flexibility for travelers in metropolitan areas.
   
• England in January 2024 made progress on the implementation of the multimodal ticketing project aimed at simplifying the transfers between various modes of public transport. This activity is intended to make even better the effectiveness and the use of the transport network as these buses, trains, and trams are included.
   
• The application of positive train control (PTC) and European Train Control System (ETCS), combined with other features of rail transport safety, enhances the efficiency and safety of the industry. The same applies to the adoption of smart and contactless payment methods for the purchasing of services by passengers.
   

The Chinese intelligent transportation system market will experience prosperous growth during the prediction period from 2025 through 2034.
 

• The constantly increasing number of vehicles on the roads is driving demand for smart transportation systems. In 2024, the Ministry of Public Security of China reported that the ownership of new energy vehicles in the country exceeded 31.4 million. These statistics are pushing the government to integrate intelligent transportation systems with the hope of managing traffic jams, minimizing carbon footprint, and improving road safety. As new government policies are put in place, market growth is likely to increase at a faster rate.
   
• China is applying data analytics and artificial intelligence (AI) to enhance its systems of transportation. These technologies, as well as machine learning, greatly enhance the accuracy of planned maintenance of transport infrastructure and vehicles which increases their durability and decreases the chances of failures.
   
• These technologies are forecasted to eliminate transit delays and enhance the efficacy of public transit networks across China. By using real-time analytics of transport network data AI systems in cities make adjustments to routes, schedules, and the flow of traffic which subsequently improves service delivery and satisfaction.
   

Intelligent Transportation System Market Share

• The seven biggest companies in the market are Thales, Cisco, Siemens, Clever Devices, Trapeze Group, IBM, and Huawei which have around 40% of the market value in 2024.
   
• IBM’s specialized focus on AI, cloud engineering, and data analytics consulting positions it as a worldwide leader in technology. In the context of public ITS, IBM leverages its integrated smart transportation solutions with the IBM Maximo Application Suite and the IBM Cloud Pak® for Business Automation.
   
• These applications permit the automated real-time administration of traffic, forecast maintenance, and streamlining public transport. IBM actively works on enhancing and deploying AI-powered predictive analytics and IoT frameworks for better and safer urban transit systems. Collaborations with governmental bodies and public organizations are vital for the successful integration of scalable and most importantly, sustainable Intelligent Transport Systems.
   
• Huawei is a foremost integrated provider of information and communications technology (ICT) infrastructure and public smart devices, with heavy involvement in public ITS. The company’s FusionTransport solutions enable optimized urban transit systems through the integration of AI, cloud, and 5G technologies.
   
• Huawei’s specialists develop intelligent urban rail and smart road systems designed for monitoring, predictive analytics, and vehicle infrastructure communication. Huawei aims to mitigate urban congestion, enhance safety, and improve passenger experience using advanced ITS systems through collaborative partnerships in multiple international markets.
   
• Thales Group is a renowned global leader in the aerospace, defense and transportation industries. In the public ITS market, the Group is distinguished for their all-inclusive urban rail signaling and transit systems which improve reliability and efficiency of the systems.
   
• The company’s strategy focuses on market IT-deployable integrated multimodal transport management systems that are cyber-secure and powered by artificial intelligence technologies. Through partnerships with public authorities, Thales develops custom systems such as automated ticketing, traffic control, and real-time passenger information to provide efficient and sustainable urban mobility solutions worldwide.
   

Intelligent Transportation System Market Companies

Major players operating in the intelligent transportation system (ITS) industry include:

• Cisco
• Clever Devices
• Garmin
• Huawei
• IBM
• Nisshinbo
• Raytheon
• Siemens
• Thales
• Trapeze Group
   

The primary participants within the intelligent transportation systems (ITS) sector are noted to be forming strategic alliances, joint ventures, and even mergers and acquisitions while spending on new products, services, and R&D initiatives. These steps facilitate companies to incorporate the most modern features of transportation technologies which correspond to modern requirements to the construction infrastructure. By working with major actors within the ecosystem, producers can increase their market share, obtain dependable sources of raw materials, and create new advanced mobility services. To stay competitive in the market, the major players in ITS spend considerable resources on Research & Development to consistently receive new technologies that are propellant of the growth within the industry.
 

Further, companies aim at improving their services within the context scope of value for money in the different modes of transport provided. This covers the control of metropolitan area traffic, V2X communication, smart traffic signals, and the integration of self-driving automobiles. The broadening of services provided by the ITS vendors not only makes it possible to pursue new market segments but also makes It possible to adapt to rapid shifts in the laws and policies as well as the requirements of the business of transportation.
 

Intelligent Transportation System Industry News

• In October 2024, the Federal Highway Administration, which is part of the Department of Transportation, provided funding worth over USD 96.5 million for 20 projects across 16 states through which the Advanced Transportation Technology and Innovation ATTAIN program will be implemented.
   
• In June 2024, Waymo has expanded its autonomous taxi ride hailing service to include Los Angeles, San Francisco, and Phoenix. They've also expanded the service to anyone in San Francisco.
   
• In May 2024, Hitachi Rail finalized the acquisition of Thales’ Ground Transportation Systems (GTS) for USD 1.750 million, which increased Hitachi’s industrial footprint to 51 countries. The firm’s revenue sources shifted to more profitable signaling and systems business encompassing the majority of revenues.
   
• In April 2022, IIT Madras along with CDAC developed the Onboard Driver Assistance and Warning System, Bus Signal Priority System, and CoSMiC software. The Ministry of Electronics and IT India integrated these products into the Intelligent Transportation System ITS.
   

The intelligent transportation system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Mode of Transport

• Rail
• Road
• Air
• Marine

Market, By Rail

• Component
  • Solution
    • Rail traffic management
    • Asset management software
    • Rail communication & networking
    • Real-time passenger information system
    • Rail analytics
  • Service
    • Professional service
    • Installation, maintenance, and operation
• Application
  • Smart ticketing
  • Passenger information management
  • Operation and collision avoidance
  • Security
  • Emergency notification
  • Others

Market, By Road

• System
  • Advanced traffic management system (ATMS)
  • Advanced traveler information system (ATIS)
  • Advanced transportation pricing system (ATPS)
  • Advanced public transport system (APTS)
  • Advanced rural transportation system (ARTS)
  • Commercial vehicle operation (CVO)
• Component
  • Hardware
    • Telecommunication networks
    • Interface boards
    • Sensors
    • Monitoring & detection systems
    • Surveillance camera
  • Software
    • Visualization software
    • Video detection management software
    • Transit management system
    • Others
  • Service
    • Professional service
    • Installation, maintenance, and operation
• Application
  • Traffic management
  • Road safety
  • Freight management
  • Parking management
  • Road-user charging/ETC
  • Telematics

Market, By Air

• System
  • Information display system
  • Tracking & monitoring system
  • Self-service baggage system
  • Kiosks
  • Communication & networking
  • Smart gate system
  • Others
• Application
  • Security
  • Smart ticketing
  • Bus tracking
  • Fleet management (aircraft management)
  • Emergency notification
  • Passenger information
  • Others

Market, By Marine

• System
  • Maritime navigation and information system
  • Tracking and monitoring system
  • Vessel traffic management system
• Application
  • Freight movement (container)
  • Security and emergency notification
  • Weather information
  • Marine arrival and transit
  • Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Italy
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Singapore
  • Australia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa