Intelligent Transportation System Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Intelligent Transportation System Market Report is Segmented by System Type (Advanced Traffic Management Systems, and More), Component (Hardware Interface Boards, and More), Application (Fleet Management and Asset Monitoring, and More), Transport (Roadways, and More), Deployment Mode (On-Premise and Cloud), End-User, and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Intelligent Transport Systems Market Size and Share

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Compare market size and growth of Intelligent Transport Systems Market with other markets in Technology, Media and Telecom Industry

Intelligent Transport Systems Market Analysis by Mordor Intelligence

The Intelligent transportation systems market stood at USD 50.26 billion in 2025 and is projected to advance to USD 77.83 billion by 2030, reflecting a brisk 9.40% CAGR. Expanding urban populations, mounting congestion costs, and stepped-up climate targets are pushing cities to digitize traffic operations and embrace data-driven mobility orchestration. 5G roll-outs, low-cost sensors, and edge AI allow intersection controllers, roadside units, and fleet platforms to act on sub-second conditions instead of fixed schedules. This shift is redefining business models across hardware, software, and services as agencies pivot from capital-intensive, siloed assets to cloud-enabled, subscription-based platforms. Suppliers that can bundle adaptive analytics with lifecycle support and cyber-secure connectivity are positioned to capture the fastest-growing opportunities

Key Takeaways

  • By system type, Advanced Traffic Management Systems captured 32.21% of the intelligent transportation systems market share in 2024, while Advanced Public Transportation Systems are projected to expand at a 15.34% CAGR through 2030.
  • By component, sensors held 40.19% of revenue in 2024; cloud/SaaS software platforms are poised to grow at a 20.65% CAGR between 2025-2030.
  • By application, traffic monitoring and incident detection accounted for 26.59% of 2024 spending, whereas traffic signal control is advancing at a 17.24% CAGR over the forecast period.
  • By transportation mode, roadways commanded 72.21% of the intelligent transportation systems market size in 2024, while railways represent the fastest lane with a 10.74% CAGR to 2030.
  • By deployment model, on-premise solutions held 57.52% share in 2024; cloud/edge deployments are set to climb at an 18.21% CAGR through 2030.
  • By end-user, public-sector authorities controlled 53.76% of outlays in 2024, whereas commercial fleet operators are rising quickly at a 13.47% CAGR.
  • By geography, North America led with a 38.16% share in 2024, while Asia-Pacific is forecast to register an 11.54% CAGR between 2025-2030.

Segment Analysis

By System Type: Advanced Traffic Management Systems Dominates, Advanced Public Transportation Systems Accelerates

Mature Advanced Traffic Management Systems currently underpin the intelligent transportation systems market size, holding roughly 32.21% of global revenue in 2024. Integrated CCTV, loop detectors, and dynamic message signs enable agencies to smooth traffic flow, lower crash rates, and coordinate incident response. Growth is steady rather than spectacular because many metropolitan areas already operate first-generation platforms, yet upgrades around AI prediction and 5G backhaul sustain a solid pipeline.

Advanced Public Transportation Systems now record the fastest climb - 15.34% CAGR—driven by electrified bus fleets, account-based ticketing, and real-time passenger information. Karsan’s quiet, sensor-laden e-buses illustrate how OEM innovation converges with cloud dispatch to elevate rider experience while slashing emissions. Across Europe and select North American corridors, integrated head-end platforms feed schedule adherence, occupancy, and energy-use data into multimodal hubs, heralding the shift from car-centric congestion control toward rider-centric network orchestration.

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

By Component: Hardware Foundations, Software Acceleration

Sensing and communications hardware still accounts for 40.19% of spending, reflecting the capital needed to equip intersections, corridors, and fleets with reliable data collectors. Cameras, radar, lidar, and environmental probes create the raw streams that supervisory algorithms depend on. 

Yet the center of gravity is moving: cloud platforms post a 20.65% CAGR as agencies favor pay-as-you-go analytics, digital twin visualization, and API-ready data marketplaces. Iteris’ ClearAsset illustrates the appeal—transportation teams can track inventories, schedule preventive maintenance, and justify funding renewals without maintaining servers on-site. Tighter coupling between hardware diagnostics and over-the-air firmware pushes ensures that future upgrades require less fieldwork, prolonging component life and reinforcing the value of integrated stacks within the intelligent transportation systems market.

By Application: Monitoring Leads, Signal Control Advances

Traffic monitoring and incident detection comprise 26.59% of 2024 outlays, underscoring the primacy of situational awareness. Agencies lean on AI-supported video analytics to flag stopped vehicles, wrong-way drivers, and pedestrian conflicts in real time. These insights feed dispatch tools that cut response minutes and prevent secondary crashes, outcomes central to Vision Zero strategies. However, the intelligent transportation systems market size for traffic signal control is scaling faster at a 17.24% CAGR as deep-reinforcement models dynamically optimize splits, offsets, and phase orders. Research confirms these self-learning controllers can trim conflict points by 40% compared with fixed-time plans.

Back-office analytics convert raw feeds into performance scorecards, allowing agencies to defend investment requests. Parking guidance, toll enforcement, and fleet telematics round out the use-case palette, each benefiting from shared communications infrastructure and common cybersecurity services that lower incremental deployment costs.

By Transportation Mode: Roadways Predominate, Railways Accelerate

Highway and arterial projects account for nearly 72.21% in 2024, reflecting the ubiquity of passenger cars and freight trucks. Ramp metering, queue-warning beacons, and smart work-zone systems continue to attract funds because their benefits materialize quickly. Railways register a 10.74% CAGR as operators upgrade signaling, integrate automatic train operation, and extend condition-based asset management. European radio-block upgrades and Asian high-speed corridors drive large package orders for train-borne sensors, wayside units, and centralized traffic management centers. Aviation and maritime nodes add niche opportunities; projects in major ports use lidar gateways to choreograph cranes, yard trucks, and autonomous shuttles, illustrating how modal diversity enriches solution portfolios within the intelligent transportation systems industry.

By Deployment Model: On-Premise Legacy, Cloud Future

On-premise deployments retain a 57.52% footprint because many agencies value direct oversight of safety-critical controls and must conform to stringent procurement statutes. Local data centers also resolve latency and linkage worries where broadband resilience is immature. However, cloud/edge hybrids are climbing at an 18.21% CAGR. Cubic’s Umo platform demonstrates why: a metropolitan transit authority can introduce contactless payments, journey planning, and traveler notifications via a subscription model that sidesteps capital sprawl. Hybrid blueprints keep low-latency logic at intersections while pushing analytics and machine-learning refinement to regional clouds—a pattern that balances determinism, scalability, and cybersecurity.

Intelligent Transport Systems Market: Market Share by Deployment Model Type
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

By End-User: Public Sector Leads, Commercial Fleets Advance

Government agencies captured 53.76% of 2024 expenditure, consistent with their stewardship of transport corridors and public accountability for safety. Programs like Alexandria, Virginia’s Smart Mobility initiative, underline how regional authorities merge connected-vehicle infrastructure with multimodal hubs to cut travel times and emissions.[5]“FY 25 Smart Mobility Program Annual Report,”, City of Alexandria, alexandriava.gov Expanding at 13.47% CAGR, commercial fleet operators see direct operating savings from route optimization, predictive maintenance, and driver-behavior coaching. As electric and autonomous trucks enter mainstream logistics, fleet firms demand integrated energy, telematics, and compliance dashboards—needs that dovetail with cloud-heavy offerings, reinforcing cross-segment in the intelligent transportation systems market.

Geography Analysis

North America commanded 38.16% of global revenue in 2024, supported by mature telecom networks, federal grants, and early pilot adoption. The National V2X Deployment Plan aims to outfit major U.S. corridors and 75,000 intersections by 2036, setting a roadmap for suppliers and municipalities. Cross-industry forums tackle spectrum, standards, and liability, even as the FCC’s final 5.9 GHz allocation leaves only 30 MHz for C-V2X and provokes calls for more efficient waveform design. Cybersecurity remains high on city agendas; the Department of Homeland Security advises uniform 5G protections across connected road assets.

Asia-Pacific is pacing the global field with an 11.54% CAGR to 2030. Massive urbanization, smartphone ubiquity, and green-city mandates propel extensive trials in China, Japan, and South Korea. Taiwan’s “Smart City Taiwan” policy illustrates state-enabled clustering: local governments become anchor customers, lifting domestic ICT firms from hardware supply to integrated software services. Mainland pilot corridors apply roadside 5G MEC nodes for centimeter-level positioning and cooperative perception. Regional knowledge transfer accelerates timeline compression, as newly urbanizing areas skip legacy phases and incorporate AI edge logic from day one.

Europe sustains a cohesive regulatory push anchored in decarbonization goals. The TANGENT project, covering Athens, Lisbon, Greater Manchester, and Rennes, spotlights data-interoperability frameworks that streamline multimodal orchestration. Zero-emission transport zones and Euro-style carbon-credit schemes spur cities to quantify avoidance metrics, opening new funding channels for ITS deployments. Meanwhile, South America, the Middle East, and Africa start from smaller bases but log double-digit growth as greenfield smart-city projects in Riyadh, Lagos, and Santiago bake connected corridors into master plans. Technology transfer agreements allow local integrators to adapt proven architectures, ensuring that the intelligent transportation systems market gains truly global momentum.

Intelligent Transport Systems Market CAGR (%), Growth Rate by Region
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Competitive Landscape

Market structure is moderately concentrated, with global conglomerates such as Siemens, Thales, and Kapsch TrafficCom supplying multi-layer stacks that bundle roadside hardware, C-V2X modules, and cloud analytics. Integrated suites lock in long-term service revenues and create switching frictions. Mid-tier specialists like Yunex Traffic, Cubic, and Iteris differentiate through agile software roadmaps and open APIs, often forming alliances with mapping giants and telecom operators.

White-space opportunities favor firms that bridge transportation data with carbon markets, energy grids, and urban-planning platforms. Blockchain auditors, cyber-defense start-ups, and digital-twin providers are carving niches by addressing resilience and monetization gaps. Miovision’s CES 2025 showcase of V2X-ready intersection controllers underscores how nimble entrants can win city contracts by solving narrowly defined pain points and upselling analytics layers. Hardware commoditization exerts margin pressure, but software subscriptions and data-licensing models buoy profitability for firms that own scalable algorithms.

Competitive intensity varies by region: North American clients prioritize interoperability and cybersecurity certification; Asian counterparts favor aggressive functional roadmaps enabled by domestic 5G ecosystems. European buyers lean on open-standards compliance and life-cycle carbon accounting. Across all geographies, suppliers able to provide outcome-based contracting—guaranteeing throughput gains or emission reductions—win favorable payment terms, sustaining investment flows into advanced R&D that will shape the next growth phase of the intelligent transportation systems market

Intelligent Transport Systems Industry Leaders

  1. Siemens AG

  2. Thales Group

  3. Denso Corporation

  4. Kapsch TrafficCom AG

  5. TomTom N.V.

  6. *Disclaimer: Major Players sorted in no particular order
Siemens AG, Thales Group, IBM Corporation, Cubic Corporation, Denso Corporation
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Need More Details on Market Players and Competitors?
Download PDF

Recent Industry Developments

  • March 2025: The City of Alexandria secured USD 5 million from the Northern Virginia Transportation Authority for its Smart & Connected Vehicle Infrastructure project.
  • December 2024: Karsan showcased electric-bus upgrades featuring real-time passenger information and cabin-comfort enhancements.
  • May 2024: The Intelligent Transportation Society of America released an update on C-V2X waivers and 5.9 GHz spectrum status, noting 50 approved deployments.

Table of Contents for Intelligent Transport Systems Industry Report

1. Introduction

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Urban congestion mitigation demand
    • 4.2.2 Government smart-city and ITS funding
    • 4.2.3 Falling IoT and sensor costs
    • 4.2.4 AI edge-processing for adaptive control
    • 4.2.5 MaaS data-monetisation opportunities
    • 4.2.6 Carbon-credit monetisation for ITS
  • 4.3 Market Restraints
    • 4.3.1 High capex and Operations and Maintenance costs
    • 4.3.2 Data privacy and cyber-risk exposure
    • 4.3.3 Municipal procurement talent gap
    • 4.3.4 Legacy-5G/V2X interoperability issues
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry
  • 4.8 Investment and Funding Trends

5. Market Size and Growth Forecasts (Value (USD))

  • 5.1 By System Type
    • 5.1.1 Advanced Traffic Management Systems
    • 5.1.2 Advanced Traveler Information Systems
    • 5.1.3 Advanced Public Transportation Systems
    • 5.1.4 Commercial Vehicle Operations
    • 5.1.5 Advanced Transportation Pricing/Revenue Systems
  • 5.2 By Component
    • 5.2.1 Hardware Interface Boards
    • 5.2.1.1 Sensors
    • 5.2.1.2 Surveillance Cameras
    • 5.2.2 Software Platforms
    • 5.2.3 Communications Networks
    • 5.2.4 Monitoring and Detection Systems
  • 5.3 By Application
    • 5.3.1 Fleet Management and Asset Monitoring
    • 5.3.2 Traffic Monitoring and Incident Detection
    • 5.3.3 Traffic Signal Control
    • 5.3.4 Parking Convenience and Guidance
    • 5.3.5 Traffic Enforcement and Tolling
    • 5.3.6 Accident Avoidance and Safety Systems
  • 5.4 By Transportation Mode
    • 5.4.1 Roadways
    • 5.4.2 Railways
    • 5.4.3 Aviation
    • 5.4.4 Maritime
  • 5.5 By Deployment Model
    • 5.5.1 On-Premise
    • 5.5.2 Cloud / Edge
  • 5.6 By End-User
    • 5.6.1 Public Sector Authorities
    • 5.6.2 Infrastructure Enterprises and Concessionaires
    • 5.6.3 Commercial Fleet Operators
  • 5.7 By Geography
    • 5.7.1 North America
    • 5.7.1.1 United States
    • 5.7.1.2 Canada
    • 5.7.1.3 Rest of North America
    • 5.7.2 South America
    • 5.7.2.1 Brazil
    • 5.7.2.2 Argentina
    • 5.7.2.3 Rest of South America
    • 5.7.3 Europe
    • 5.7.3.1 Germany
    • 5.7.3.2 United Kingdom
    • 5.7.3.3 France
    • 5.7.3.4 Italy
    • 5.7.3.5 Spain
    • 5.7.3.6 Rest of Europe
    • 5.7.4 Asia-Pacific
    • 5.7.4.1 China
    • 5.7.4.2 Japan
    • 5.7.4.3 India
    • 5.7.4.4 South Korea
    • 5.7.4.5 Rest of Asia-Pacific
    • 5.7.5 Middle East and Africa
    • 5.7.5.1 Middle East
    • 5.7.5.1.1 Saudi Arabia
    • 5.7.5.1.2 United Arab Emirates
    • 5.7.5.1.3 Rest of Middle East
    • 5.7.5.2 Africa
    • 5.7.5.2.1 South Africa
    • 5.7.5.2.2 Ghana
    • 5.7.5.2.3 Nigeria
    • 5.7.5.2.4 Rest of Africa

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (Includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Denso Corporation
    • 6.4.2 Siemens AG
    • 6.4.3 Kapsch TrafficCom AG
    • 6.4.4 Thales Group
    • 6.4.5 TomTom N.V.
    • 6.4.6 Nokia Corporation
    • 6.4.7 Cubic Corporation
    • 6.4.8 Q-Free ASA
    • 6.4.9 TransCore (Roper Tech.)
    • 6.4.10 Iteris Inc.
    • 6.4.11 Huawei Technologies Co. Ltd.
    • 6.4.12 IBM Corporation
    • 6.4.13 Cisco Systems Inc.
    • 6.4.14 Hitachi Ltd.
    • 6.4.15 Advantech Co. Ltd.
    • 6.4.16 EFKON GmbH
    • 6.4.17 SWARCO AG
    • 6.4.18 Sensys Networks Inc.
    • 6.4.19 Savari Inc.
    • 6.4.20 Atkins (SNC-Lavalin)
    • 6.4.21 Continental AG

7. Market Opportunities and Future Outlook

  • 7.1 White-space and Unmet-Need Assessment
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Global Intelligent Transport Systems Market Report Scope

Intelligent transportation system (ITS) is the application of sensing, analysis, control, and communications technologies in transportation in order to improve safety, mobility, and efficiency. They can be applied to different modes of transport like roadways, railways, airways.

By System Type Advanced Traffic Management Systems
Advanced Traveler Information Systems
Advanced Public Transportation Systems
Commercial Vehicle Operations
Advanced Transportation Pricing/Revenue Systems
By Component Hardware Interface Boards Sensors
Surveillance Cameras
Software Platforms
Communications Networks
Monitoring and Detection Systems
By Application Fleet Management and Asset Monitoring
Traffic Monitoring and Incident Detection
Traffic Signal Control
Parking Convenience and Guidance
Traffic Enforcement and Tolling
Accident Avoidance and Safety Systems
By Transportation Mode Roadways
Railways
Aviation
Maritime
By Deployment Model On-Premise
Cloud / Edge
By End-User Public Sector Authorities
Infrastructure Enterprises and Concessionaires
Commercial Fleet Operators
By Geography North America United States
Canada
Rest of North America
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Rest of Middle East
Africa South Africa
Ghana
Nigeria
Rest of Africa
By System Type
Advanced Traffic Management Systems
Advanced Traveler Information Systems
Advanced Public Transportation Systems
Commercial Vehicle Operations
Advanced Transportation Pricing/Revenue Systems
By Component
Hardware Interface Boards Sensors
Surveillance Cameras
Software Platforms
Communications Networks
Monitoring and Detection Systems
By Application
Fleet Management and Asset Monitoring
Traffic Monitoring and Incident Detection
Traffic Signal Control
Parking Convenience and Guidance
Traffic Enforcement and Tolling
Accident Avoidance and Safety Systems
By Transportation Mode
Roadways
Railways
Aviation
Maritime
By Deployment Model
On-Premise
Cloud / Edge
By End-User
Public Sector Authorities
Infrastructure Enterprises and Concessionaires
Commercial Fleet Operators
By Geography
North America United States
Canada
Rest of North America
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Rest of Middle East
Africa South Africa
Ghana
Nigeria
Rest of Africa
Need A Different Region or Segment?
Customize Now

Key Questions Answered in the Report

What is the current size of the intelligent transportation systems market?

The Intelligent transportation systems market size reached USD 50.26 billion in 2025 and is forecast to climb to USD 77.83 billion by 2030 at a 9.40% CAGR.

Why are cloud platforms gaining traction in ITS?

Cloud and edge solutions offer lower upfront costs, elastic scaling, continuous updates, and facilitate cross-agency data sharing, driving an 18.5% CAGR in cloud deployments.

Which is the fastest growing region in Intelligent Transport Systems Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

What is the main restraint to wider ITS rollout?

High capital and ongoing maintenance costs remain the top barrier, especially for smaller municipalities, trimming overall growth by an estimated 0.9% in the near term.

How are cybersecurity concerns being addressed?

Agencies are deploying blockchain-based credentials, zero-trust network designs, and AI anomaly detection to mitigate data-poisoning and other cyber threats across connected road assets.

Page last updated on: July 7, 2025

Intelligent Transport Systems Market Report Snapshots