The global intelligent traffic management system market size is expected to reach USD 18.2 billion by 2025, according to a new report by Grand View Research, Inc., registering a CAGR of 12.0% over the forecast period. The ITMS market is expected to witness significant growth due to growing adoption of advanced traffic management systems to enhance road safety.
Traffic monitoring systems accounted for the largest revenue share owing to their rapid adoption in developed regions like North America and Europe. These solutions help in controlling signal lights, thereby ensuring smooth vehicle flow. Moreover, they help in reducing air pollution as well as road accidents by providing real time information.
Additionally, supportive government initiatives in order to improve vehicle flow, increase transportation system efficiency, increase economic productivity, enhance mobility, and reduce negative environmental effects are likely to support the market growth.
The intelligent driver information system (IDIS) is expected to be the fastest growing solution over the forecast period. IDIS provides real time and avoids potential collision with the help of auto brake solutions. Moreover, these solutions detect the speed of a vehicle in the lane, and thus helps in avoiding collisions.
North America dominated the smart traffic management system market in 2018 and is expected to maintain its lead throughout the forecast period. Demand for advanced traffic management systems is increasing in the region as they help to reduce road congestion and enhance driver and passenger safety. For instance, Grand View researchers found that in June 2016, the Texas Transportation Commission announced the approval of a USD 1.3 billion plan to reduce vehicular congestion in the most congested roadways in Texas. According to the commission, on an average, a Texas driver wastes around 52 hours annually stuck on the road, which costs over USD 1,200 annually.
Geographically speaking in terms of growth, Asia Pacific is anticipated to witness substantial market increase due to rapid urbanisation and growing population. A rise in the disposable income of the population will also fuel the demand for vehicles. This is expected to increase road congestion and boost the demand for advanced traffic management systems, thereby in turn fueling the growth of the ITMS market.
Grand View Research suggests that the global market is highly competitive due to the presence of global players like Siemens, Cisco, and Hitachi. Key industry competitors cited by the analysts include Siemens, Cubic Corporation, Kapsch Trafficcom, Q-Free, and Tomtom.
Major industry participants are investing in R&D activities to develop sustainable, market-oriented solutions and systems with an innovative edge. Moreover, companies are relying on acquisitions and partnerships to strengthen their position in the market. For instance in January 2019, Cubic Corporation acquired Gridsmart Technologies, Inc. in order to expand ITMS offerings.
