Intelligent Transportation System Market to Reach USD 137.8 Billion by 2035 with Smart Mobility Solutions Driving Growth
Intelligent Transportation System Market
Intelligent transportation systems accelerate road safety, efficiency, and connectivity, supporting manufacturers’ growth from 2025 to 2035
NEWARK, DE, UNITED STATES, August 22, 2025 /EINPresswire.com/ -- The Intelligent Transportation System (ITS) market, valued at USD 60.4 billion in 2025, is set to expand to USD 137.8 billion by 2035, reflecting a CAGR of 8.6%. This growth trajectory signals robust opportunities for manufacturers as demand intensifies for safer, faster, and more efficient mobility solutions worldwide.
The coming decade will add nearly USD 77.4 billion to the ITS industry, with each year delivering incremental value through expanded deployment of traffic management platforms, real-time data analytics, and connected vehicle technologies. Manufacturers positioned to address urban congestion, logistics delays, and safety risks stand to capture a pivotal role in shaping global transportation networks.
Growth Anchored by Rising Congestion and Road Safety Needs
Urbanization remains a defining driver for ITS adoption. With more than 55% of the world’s population living in cities—a share expected to exceed 60% by 2030—transport systems face mounting strain. Road accidents, contributing to over 1.1 million fatalities annually, further underscore the urgency for smarter mobility infrastructure.
Manufacturers are responding with adaptive signal systems, incident detection platforms, and automated monitoring tools that cut travel delays by up to 20% and reduce accident risk substantially. As both developed and developing markets modernize mobility frameworks, manufacturers who deliver scalable, interoperable, and cost-efficient solutions are well-positioned to lead this transformation.
5G and Vehicle-to-Everything Connectivity Open New Frontiers
The convergence of ITS with 5G and V2X connectivity is reshaping real-time mobility. Ultra-low latency networks—capable of communication in under one millisecond—support instant exchanges between vehicles and infrastructure.
Controlled projects have already demonstrated congestion reductions of up to 35% and accident risk drops of 70% with integrated 5G-enabled ITS systems. For manufacturers, this presents an unprecedented opportunity to build products that merge sensors, controllers, and communication modules into fully connected ecosystems. The emergence of smart corridors, digital highways, and integrated freight solutions is expected to fuel sustained demand across automotive, telecom, and infrastructure sectors.
Smart City Programs Accelerate ITS Adoption
As urban populations expand by 2.5 billion people by 2050, cities are embedding ITS into smart city strategies. Connected traffic signals, digital tolling systems, and real-time transport management platforms are helping urban authorities reduce congestion by 15–25% and improve fuel efficiency by 8–10%.
For manufacturers, participation in smart city contracts represents a significant growth pathway. Governments across Asia, Europe, and North America are funding ITS as part of sustainability, safety, and efficiency initiatives, ensuring long-term project pipelines. Companies delivering hardware, software, and communication systems that seamlessly integrate with municipal networks will secure repeat opportunities in large-scale deployments.
Balancing Growth with Cost Challenges
While opportunities are clear, manufacturers must also address cost-related barriers. Advanced ITS infrastructure can cost between USD 500,000 and USD 1 million per freeway mile, with maintenance adding another 10–15% annually. Rising cyber risks and the need for skilled workforce training add to deployment complexity.
Despite these hurdles, government-backed funding schemes and public-private partnerships are helping bridge cost gaps. Vendors who innovate with modular, cost-efficient designs and prioritize cybersecurity will remain competitive in both mature and emerging economies.
Key Investment Segments Driving Market Growth
• Railways (40% share): Modernization projects and predictive maintenance software supported by Siemens, Alstom, Thales, Hitachi Rail, and Wabtec are fueling demand for onboard units and centralized control systems.
• Traffic Management (30% share): Companies like Kapsch, Cubic, Indra, Iteris, and Siemens are expanding adaptive signal and incident detection deployments across high-density corridors.
• Hardware (45% share): Manufacturers such as Siemens, Bosch, FLIR ITS, and Axis Communications lead in supplying durable traffic controllers, sensors, and advanced cameras.
• Government End Use (55% share): National contracts remain the backbone of ITS adoption, with long-term tenders bundling infrastructure and services into integrated agreements.
These segments present immediate and long-term opportunities for manufacturers investing in durability, interoperability, and digital integration.
Regional Outlook: Accelerated Growth Across Global Markets
• China leads with a 16% CAGR, integrating ITS with smart cities, freight logistics, and autonomous vehicle ecosystems.
• India follows at 10% CAGR, propelled by the Smart Cities Mission and widespread deployment of electronic tolling and real-time bus tracking.
• United States grows at 9% CAGR, supported by federal investments in connected vehicle corridors and predictive analytics.
• United Kingdom (7% CAGR) and Germany (6% CAGR) show steady integration of ITS in road and rail, aligned with government-backed digital transport initiatives.
Manufacturers with regional strategies that balance high-growth BRICS markets and steady OECD adoption will maximize their footprint over the next decade.
Leading Manufacturers and Strategic Collaborations
Global players are shaping the competitive landscape through innovation and partnerships. KapschTrafficCom, Hitachi, IBM, Cisco, Siemens, Thales, Alstom, Honeywell, Cubic, and Garmin are driving advancements across tolling, analytics, signaling, and communication systems.
Notably, Bentley Systems recently introduced an open API for transportation AI, aimed at removing integration barriers and encouraging cross-industry collaboration. Such initiatives reflect a broader industry push toward interoperability, enabling manufacturers to co-develop solutions that support smarter, safer, and more sustainable transportation ecosystems.
Request Intelligent Transportation System Market Draft Report - https://www.futuremarketinsights.com/reports/sample/rep-gb-23499
For more on their methodology and market coverage, visit https://www.futuremarketinsights.com/about-us.
The Intelligent Transportation System market is entering a decade of rapid transformation, driven by innovation, investment, and global demand for safer, smarter mobility. Manufacturers and technology providers that align with these shifts will play a defining role in shaping the future of transportation worldwide.
Explore Related Insights
Intelligent Torque Controlled Coupling (ITCC) Market:
https://www.futuremarketinsights.com/reports/intelligent-torque-controlled-coupling-itcc-market
Intelligent Virtual Store Design Solution Market:
https://www.futuremarketinsights.com/reports/intelligent-virtual-store-design-solution-market
Intelligent Rubber Tracks Market:
https://www.futuremarketinsights.com/reports/intelligent-rubber-tracks-market
Editor’s Note:
This press release is based entirely on verified market insights from the Intelligent Transportation System (ITS) industry. All figures, forecasts, and company mentions are drawn exclusively from the provided research scope. The release is designed to inform manufacturers, technology providers, and stakeholders about emerging opportunities, growth challenges, and strategic pathways within the ITS market from 2025 to 2035.
Rahul Singh
Future Market Insights Inc.
+1 347-918-3531
email us here
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
