Intelligent Transportation Systems Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Component (Hardware, Software, Services), By Mode of Transport (Roadways, Railways, Waterways, Airways), By Type (Advanced Traffic Management System (ATMS), Advanced Traveler Information System (ATIS), ITS-Enabled Transportation Pricing System (ITPS), Advanced Public Transportation System (APTS), Commercial Vehicle Operations (CVO) System), By Applications (Traffic Management, Road Safety and Security, Freight Management, Public Transport, Environment Protection), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 39.02 Billion
CAGR (2026-2031)	8.02%
Fastest Growing Segment	Advanced Traveler Information System (ATIS)
Largest Market	North America
Market Size (2031)	USD 61.99 Billion

Market Overview

The Global Intelligent Transportation Systems Market will grow from USD 39.02 Billion in 2025 to USD 61.99 Billion by 2031 at a 8.02% CAGR. Intelligent Transportation Systems (ITS) are advanced applications that integrate information and communication technologies into transportation infrastructure and vehicles to enhance safety, efficiency, and sustainability. The primary drivers fueling market growth include rapid urbanization and the critical need to alleviate traffic congestion, which necessitate smarter traffic management solutions. Additionally, robust government support is accelerating deployment; for instance, according to ERTICO – ITS Europe, in 2025, European Union programs had allocated €208 million in funding to support 27 Connected, Cooperative, and Automated Mobility projects since 2021. These legislative and financial incentives are pivotal in establishing the necessary framework for widespread adoption.

Despite this positive trajectory, a significant challenge hindering broader market expansion is the high capital investment required for infrastructure modernization. The substantial costs associated with installing sensors, communication networks, and data centers can be prohibitive for municipalities with limited budgets. Furthermore, ensuring technical interoperability between legacy infrastructure and new smart technologies remains difficult, potentially creating fragmented systems that impede the seamless data exchange essential for a fully integrated global transportation network.

Key Market Drivers

The imperative for enhanced road safety and accident prevention acts as a critical catalyst for the Global Intelligent Transportation Systems Market, compelling governments to modernize legacy infrastructure. With traffic incidents imposing severe social and economic burdens, regulatory bodies are increasingly mandating the deployment of automated detection and collision avoidance technologies to mitigate human error. For instance, according to the European Commission, March 2024, in the 'Road safety in the EU' release, road crashes claimed approximately 20,400 lives across the European Union in 2023, underscoring the urgent necessity for intelligent intervention systems. This stark reality drives the adoption of advanced traffic management solutions capable of predictive risk analysis and real-time incident response, thereby shifting the sector's focus from reactive measures to proactive safety protocols.

Simultaneously, the integration of advanced AI, IoT, and 5G communication technologies is fundamentally reshaping market capabilities by enabling seamless Vehicle-to-Everything (V2X) connectivity. High-speed, low-latency networks allow roadside infrastructure and vehicles to exchange critical operational data instantaneously, a requirement for the safe operation of autonomous logistics and transit networks. According to Ericsson, June 2024, in the 'Mobility Report', about 300 communications service providers globally had launched 5G services by April 2024, establishing the digital backbone essential for these sophisticated applications. Capitalizing on this technological maturation, public agencies are setting aggressive deployment targets; according to the U.S. Department of Transportation, August 2024, in the 'Saving Lives with Connectivity' plan, the department aims to deploy V2X technology across 20% of the National Highway System by 2028 to maximize network efficiency and safety.

Download Free Sample Report

Key Market Challenges

The high capital investment required for infrastructure modernization constitutes a substantial barrier to the expansion of the Global Intelligent Transportation Systems market. Implementing smart mobility solutions demands not only the deployment of advanced digital layers—such as sensors, communication nodes, and data management centers—but often necessitates the retrofitting or complete overhaul of aging physical assets. This dual financial burden places immense strain on the budgets of municipalities and transportation authorities, forcing them to prioritize immediate structural repairs over technological upgrades. Consequently, the lack of sufficient capital frequently results in piecemeal adoption rather than comprehensive system integration, significantly reducing the scalability and efficacy of intelligent transport networks.

The magnitude of this financial shortfall is evident in recent industry assessments regarding infrastructure funding deficits. According to the American Society of Civil Engineers, in 2025, the United States faces a projected $684 billion funding gap specifically for roadway infrastructure modernization over the next decade. This substantial deficit highlights the difficulty government bodies encounter in allocating resources toward advanced ITS deployments when basic physical maintenance needs remain unmet. Such budgetary constraints directly decelerate the pace of market growth, as the foundational connectivity and quality required for fully cooperative and automated mobility remain financially out of reach for many regions.

Key Market Trends

The Integration of Electric Vehicle Charging with ITS Networks is becoming a pivotal trend as the transportation sector aligns with global sustainability goals and manages the operational demands of electrified fleets. This convergence allows for the real-time exchange of data between vehicles, charging stations, and the power grid, facilitating smart charging solutions that balance energy loads and provide drivers with accurate availability information to mitigate range anxiety. The rapid scaling of this infrastructure is evident in global deployment metrics; according to the International Energy Agency (IEA), April 2024, in the 'Global EV Outlook 2024', the global stock of public charging points increased by more than 40% in 2023 to reach approximately 4 million units, creating a massive digital footprint that requires sophisticated ITS management.

Simultaneously, the Expansion of Mobility-as-a-Service (MaaS) Ecosystems is fundamentally altering urban transit by consolidating disparate transport modes into unified, user-centric digital platforms. By integrating payment, booking, and route planning for public transit, ride-sharing, and micro-mobility options, MaaS platforms offer a seamless alternative to private vehicle ownership, prioritizing convenience and service accessibility over asset possession. This shift is supported by a strong resurgence in demand for shared mobility backbone services; according to the International Association of Public Transport (UITP), January 2024, in the 'Global Economic Outlook 2024', 83% of public transport organizations surveyed expected ridership numbers to increase in 2024 compared to the previous year, signaling a robust market appetite for the integrated mobility solutions that these digital ecosystems are designed to serve.

Segmental Insights

The Advanced Traveler Information System segment is emerging as the fastest growing category within the Global Intelligent Transportation Systems market due to heightened demand for real-time traffic management solutions. This expansion is supported by initiatives from entities such as the United States Department of Transportation which prioritize congestion reduction and improved road safety through data dissemination. Drivers increasingly rely on these systems for immediate access to navigation, weather updates, and transit schedules. Consequently, the integration of mobile connectivity with transportation infrastructure is fostering widespread adoption of these information services across major urban centers.

Regional Insights

North America holds the leading position in the Global Intelligent Transportation Systems market, driven by extensive investments in modernizing roadway infrastructure and a strategic focus on enhancing road safety. This dominance is supported by robust government frameworks, particularly through the United States Department of Transportation (USDOT), which allocates significant funding for the deployment of connected vehicle technologies and smart traffic management solutions. Furthermore, the high adoption rate of automation to address urban congestion and improve operational efficiency cements the region's status as the central driver of market development.

Recent Developments

• In November 2024, Yunex Traffic announced the completion of the first phase of its artificial intelligence-enabled traffic control system deployment in Prague. In collaboration with the Technical Road Administration Prague, the company implemented its adaptive traffic management solution, Yutraffic FUSION, to optimize signal timing and improve vehicle flow at intersections. This system utilizes intelligent optimization methods to adjust signal plans based on real-time traffic conditions, aiming to minimize delays and reduce emissions. The project represents a significant step in the city's adoption of advanced technologies for smoother and more efficient urban mobility management.
• In October 2024, Kapsch TrafficCom secured a ten-year contract extension from the Riverside County Transportation Commission to enhance toll and traffic management services in Southern California. Under this agreement, the company will continue to provide comprehensive end-to-end solutions, including roadside toll operations and maintenance for the I-15 Express Lanes and the State Route 91 Express Lanes through 2041. This extension builds upon a partnership established in 2017 and includes the integration of the new 15/91 Express Lanes Connector, ensuring continued support for one of the most heavily traveled regions in the United States.
• In September 2024, Siemens Mobility unveiled Signaling X, a cloud-based platform designed to digitalize rail signaling and control systems. Launched at the InnoTrans trade fair, this new suite integrates various signaling systems into a single cloud environment, utilizing standardized interfaces to enhance operational efficiency. The platform enables seamless management of mainline and mass transit networks from a centralized data center. According to the CEO of Siemens Mobility, this innovation opens interfaces to further functionalities, allowing operators to optimize rail operations, reduce energy consumption, and increase network capacity through advanced diagnostics and train planning integration.
• In August 2024, Iteris, Inc. entered into a definitive merger agreement to be acquired by Almaviva S.p.A. in an all-cash transaction valuing the company at approximately $335 million. This strategic move aims to integrate Iteris’s AI-powered smart mobility infrastructure management solutions with Almaviva’s extensive digital innovation portfolio. The acquisition is expected to expand the global adoption of the ClearMobility Platform and enhance capabilities in monitoring and optimizing mobility infrastructures. The President and CEO of Iteris stated that the transaction would position the organization to further innovate and deliver comprehensive digital mobility solutions to public agencies and private-sector enterprises.

Key Market Players

• Hitachi, Ltd.
• DENSO Corporation
• Siemens AG
• Thales Group
• Kapsch TrafficCom AG
• EFKON GmbH
• Xerox Corporation
• NVIDIA Corporation

By Component	By Mode of Transport	By Type	By Applications	By Region
Hardware Software Services	Roadways Railways Waterways Airways	Advanced Traffic Management System (ATMS) Advanced Traveler Information System (ATIS) ITS-Enabled Transportation Pricing System (ITPS) Advanced Public Transportation System (APTS) Commercial Vehicle Operations (CVO) System	Traffic Management Road Safety and Security Freight Management Public Transport Environment Protection	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Intelligent Transportation Systems Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Intelligent Transportation Systems Market, By Component:

• Hardware
• Software
• Services

• Intelligent Transportation Systems Market, By Mode of Transport:

• Roadways
• Railways
• Waterways
• Airways

• Intelligent Transportation Systems Market, By Type:

• Advanced Traffic Management System (ATMS)
• Advanced Traveler Information System (ATIS)
• ITS-Enabled Transportation Pricing System (ITPS)
• Advanced Public Transportation System (APTS)
• Commercial Vehicle Operations (CVO) System

• Intelligent Transportation Systems Market, By Applications:

• Traffic Management
• Road Safety and Security
• Freight Management
• Public Transport
• Environment Protection

• Intelligent Transportation Systems Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE