Advanced transportation management systems (ATMS) used for traffic control and management accounted for the largest revenue share of the overall market in 2015. Significant investment is expected in this segment with increasing traffic problems in both developed and developing economies across the world. Advanced vehicle pricing systems which include electronic toll collection, congestion pricing, vehicle mile travel and other road user charging systems are expected to have a huge demand across the world.
Globally the intelligent transportation system (ITS) market has been broadly segmented into North America, Europe, Asia Pacific and Rest of the World (RoW). North America accounted for the largest market share in the global ITS market with a market share in 2015 and is expected to maintain market dominance throughout the forecast period. Strong government support, research activities and public-private partnerships aimed at improving the transportation network are major influencing factors for ITS growth. Canada and Mexico are now implementing U.S. transportation standards to improve the performance of their transportation networks. This represents strong growth in these markets.
The Europe ITS market comprises of countries such as Germany, France, U.K., and Italy among others. UK and Germany are some of the early adopters of ITSs and invested significant amounts in these technologies to overcome traffic and road safety problems. Germany accounted for the largest market share for the intelligent transportation system market in Europe for 2015.
Asia Pacific is the most attractive region for the intelligent transportation system market to grow over the forecast period in the report. Japan was one of the early adopters of ITSs in the world and represents the largest individual ITS market by revenue in Asia-Pacific. Japan accounted for the largest market share in term of revenue in Asia Pacific in 2015. However, India and China are the fastest growing countries in the Asia-Pacific. India and China are expected to be the most attractive region for the intelligent transportation system market as a lot of investment is made in these countries. This is expected to drive the demand for the intelligent transportation system market in these counties.
In these emerging economies, the number of vehicle owners is increasing rapidly compared to road infrastructure in their major cities due to limited road expansion space. This results in increased congestion in these cities during peak travel hours. Because of this, these emerging economies are increasing their investments in ITS to improve the efficiency of their existing transportation networks.
The Middle East has a high potential for growth due to which the region is experiencing rapid industrialization. Countries such as United Arab Emirates and Qatar are witnessing strong growth in terms of industrialization. Further, rapid infrastructural development in some of the countries in Middle East and the initiatives taken up by their respective governments regarding infrastructure has complemented the growth of the ITS market in that region. U.A.E accounted for the largest market share in terms of revenue for ITS market in the Middle East.
Major countries in Africa are witnessing a weak growth compared to the other countries in other regions due to weak economic strength and weak infrastructural development. However, strong infrastructural build-up in countries such as South Africa is attributing to the growth of the ITS market in Africa. South Africa accounted for the largest market share in Africa in 2015.
The global ITS industry comprises with a large number of domestic and international players. Each player has a fragmented market share and looking to increase their market share through technology innovation and global expansion. Some of the key players in the intelligent transportation system market are Siemens AG (Germany), Hitachi Ltd (Japan), WS Atkins PLC (U.K.), Nuance Communications Incorporation (U.S), EFKON AG (Austria), Garmin International Inc. (U.S.), Iteris Inc. (U.S.), Telenav Inc. (U.S.), Thales Group (France), TomTom NV. (The Netherlands)