IoT in Intelligent Transport System Market

IoT in Intelligent Transport System Market Outlook (2022 to 2032)

The Global IoT in Intelligent Transport System Market size is anticipated to cross a valuation of US$ 377.0 billion by 2032. It is likely to exhibit a steady CAGR of around 7.9% from 2022 to 2032. The market stood at about US$ 176.0 billion in 2022.

The internet of things (IoT) is the connection of tangible tools and machines. It has implications in the automobile, communications, healthcare, industrial, and retail industries.

To detect or control items remotely, it uses device connectivity. It provides a wide range of services, including remote monitoring, road tax & payment systems, vehicle telematics, surveillance & safety systems, and traffic congestion control.

Smart cities, smart homes, smart grids, and digital energy plants are just a few places where it can be found. The internet of things is one of the most important channels for technologies such as intelligent electrical systems, as well as connected cities (IoT).

IoT technology helps to provide customers with more accurate, up-to-date, and actual statistics to aid in trip planning and improve communication. It tries to measure factors such as train speeds, aircraft part problems, highway conditions, and the variety of cars at crossroads.

IoT-enabled technology has the potential to help boost the security of a nation’s transportation system around the world. Although there is a ton of promise for IoT in the transportation sector, it also greatly depends on how quickly businesses adopt new technologies. It would be possible to offer users, governments, and businesses an excellent customer experience in combination with enhanced economic possibilities with such a speedy shift.

Requirement for intelligent traffic control is anticipated to increase in the next ten years, as will the safety of transportation. It is attributed to rising adoption of IoT-connected devices and investments made by market leaders to broaden their brand portfolios with cutting-edge IoT-driven technologies.

Growing focus on research & development to improve IoT integrated software is another crucial factor that would drive the market. Several companies are nowadays conducting research work to reduce operating costs, which is set to help expand IoT in intelligent transport system demand.

How Will Sales of IoT in Intelligent Transport System between 2017 and 2021 Outpace the Demand from 2022 to 2032?

As per Persistence Market Research (PMR), the global IoT in intelligent transport system market is anticipated to exhibit a CAGR of 7.9% from 2022 to 2032. It showcased considerable growth at a CAGR of 11.3% during the historical period.

The railway network has grown significantly as a result of increasing need for metropolitan connections around the world. It is indeed good news for the sector.

IoT is commonly utilized in the railway industry to manage schedules, maximize capacity, and perform preventative maintenance. As a result, the sector is able to increase operating efficiency and safety while reducing delays.

Significant product use in highway vehicles would also have a positive effect on the market. It is due to the rising demand for networked sustainable mobility that would save commute times.

It can further improve efficiency by optimizing performance while consuming very few resources. By incorporating IoT into freight planning, it is possible to achieve this difficult goal. One tactic for reducing resources in the transportation and logistics sectors is to increase multimodal visibility.

Top IoT in Intelligent Transport System Market Trends Listed by Persistence Market Research (PMR)

• Adoption of IoT in smart transportation systems is a result of the growing demand for reliable and secure transportation.
• Development of smart transportation systems that are more effective, dependable, and safe has been made possible by the integration of IoT in intelligent transportation systems.
• To increase the effectiveness and safety of transportation networks, governments around the world are investing heavily in smart transportation systems.
• As a result, IoT-based intelligent transportation systems have been created to optimize traffic flow, lessen congestion, and improve safety.
• Development of intelligent transportation systems that can gather and analyze real-time data to optimize traffic flow, reduce congestion, and improve safety has been made possible by growing use of connected vehicles.
• These vehicles are equipped with sensors and communication tools.
• There were around 1.45 billion cars in the world in 2022.
• It is projected that the number of cars in the world would increase to around 2 billion by 2033.
• With increasing number of cars on the road, traffic congestion across the world is projected to get worse with rising commute times.
• With the adoption of intelligent transport systems and implementation of IoT, traffic congestion can be reduced by optimizing the traffic flow.

Which Region is Projected to Create a Significant Opportunity for IoT in Intelligent Transport System Providers?

North America IoT in intelligent transport system market size was US$ 62.0 billion in 2021. It reached a valuation of US$ 68.9 billion in 2022.

North America is projected to cross a valuation of US$ 147.7 billion in 2032. The region is predicted to showcase a CAGR of 39.2% from 2022 to 2032.

North America has a significant number of cars on the road with a predominant car ownership rate in the world. In the United States of America, New York surpassed Los Angeles as the most congested city in 2021.

A typical United States of America worker can spend around 24 to 30 minutes commuting, which can be higher depending on the region. In Mexico City, travel times are 38% longer than the region’s average, thereby making it the most traffic jam-prone large city in North America.

To reduce commute times and optimize the flow of traffic, IoT can be implemented in intelligent transport systems. It can optimize traffic flow based on the data collected from various points, thereby reducing commute times for people.

Country-wise Insights:

Why is the United States of America Exhibiting High Demand for IoT in Transportation and Logistics?

The United States of America IoT in intelligent transport system market is expected to be worth US$ 115.3 billion by 2032. It is likely to create an absolute dollar growth of US$ 55.4 billion till 2032.

The United States of America market witnessed growth at a CAGR of 9.8% from 2017 to 2021. It is expected to broaden at a CAGR of 6.8% from 2022 to 2032.

The United States of America has a significant car ownership rate with around 91% of households owning a car. The country had around 279 million cars registered, which increased to around 289 million in 2021.

With increasing number of cars on the road, traffic congestion has also bolstered the country. In 2022, a United States of America-based driver lost around 51 hours on average due to traffic. Drivers in cities such as Boston and Chicago lost around 134 hours and 155 hours, respectively, on average in 2022.

Hence, there is a serious need for optimizing the traffic flow for smooth commuting and lowering the amount of time lost due to traffic. With the implementation of IoT in intelligent transport systems, it is projected that commute times can decrease significantly by optimizing the traffic flow across cities.

Would the United Kingdom Showcase Rising Need for Smart Transportation IoT?

The United Kingdom IoT in intelligent transport system market is anticipated to be valued at US$ 18.9 billion by 2032. It is predicted to create an absolute dollar opportunity of US$ 9.4 billion in the next ten years.

The United Kingdom showcased decent growth at a CAGR of 10.1% from 2017 to 2021. It is expected to elevate at a CAGR of 7.1% from 2022 to 2032.

The United Kingdom has one of the prominent car ownership rates with around 77% of households owning cars and around 81% of the population having access to a car. With a high rate of car ownership, traffic on the road has also increased significantly in the country, thereby causing congestion in various cities.

On average, 69 hours were lost by a driver in London in 2020, making it a significantly congested city in the country. This loss in time during commute can cause heavy economic losses to the country. With the implementation of IoT in intelligent transport systems in the country, traffic congestion is projected to decrease by optimizing traffic flow.

Is China a Prominent Hub for Internet Transportation Solution Providers?

China IoT in intelligent transport system market is estimated to be worth US$ 32.3 billion by 2032. It is anticipated to create an incremental opportunity of US$ 18.5 billion in the assessment period.

The China market exhibited growth at a CAGR of 12.9% from 2017 to 2021. It is expected to flourish at a CAGR of 8.9% from 2022 to 2032.

China is a significant market for automobiles in the world with around 21.8 million passenger cars and about 4.9 million commercial vehicles sold in 2021. With rising number of cars on the road, traffic congestion is projected to increase.

It would further increase commute times, and hence implementation of IoT in intelligent transport systems would help to lower the traffic flow across the country.

Category-wise Insights

Which Component of IoT in Traffic Management is Projected to Witness Significant Growth?

The hardware segment by component is projected to witness significant growth by 2032. It showcased growth at a CAGR of 11.1% from 2017 to 2021. It is expected to boost at a CAGR of 7.8% from 2022 to 2032.

Hardware is a crucial component of intelligent transport systems as they help in achieving specific applications of the system. For example, sensors are used to detect and measure various parameters such as vehicle speed, traffic density, temperature, and weather conditions.

These sensors can be placed on the road, in vehicles, or on infrastructure to collect data that can be used to optimize traffic flow and improve safety. Another set of hardware that is commonly used is cameras. These are used to capture visual data that can be utilized for traffic monitoring, vehicle identification, and surveillance.

Cameras can be installed on roads, at intersections, or on vehicles. GPS receivers are also being used to track the location of vehicles in real-time, providing data on traffic patterns, congestion, and route optimization.

Which Vertical is Set to Use IoT-based Intelligent Transportation System the Most?

The roadways segment in terms of vertical is projected to witness significant growth by 2032. It witnessed growth at a CAGR of 10.9% from 2017 to 2021. It is estimated to expand at a CAGR of 7.7% from 2022 to 2032.

The internet of things can play a significant role in the development of intelligent transport systems (ITS) used in roadways. By using IoT devices and technologies, ITS can become more efficient, safer, and cost-effective, as compared to other technologies.

IoT can also enable communication between vehicles and infrastructure such as traffic lights, road signs, and other roadside devices. This can provide real-time information to drivers about traffic conditions, road closures, and detours.

It allows them to make more informed decisions and avoid accidents. Hence, with increasing implementation of IoT in intelligent transport systems, the segment is projected to expand during the assessment period.

Competitive Landscape

Key IoT in intelligent transport system market participants are striving to expand their client base across the globe. They are mainly aiming to engage in joint ventures, acquisitions, collaborations, and mergers. A few other companies are investing in research and development projects to come up with new products.

A few recent developments in the IoT in intelligent transport system market are:

• In August 2021, Bridgestone America announced that it has completed the acquisition of AZUGA. This acquisition will help expand the company’s offering of fleet management systems and accelerate its mobility solutions business.
• In January 2019, Bosch launched its IoT Shuttle Cockpit concept. It is an intelligent transport system designed for public transportation operators. It can provide real-time information on vehicle status, passenger behavior, and traffic conditions. It would enable operators to optimize routes and improve overall efficiency.

Scope of the Report

IoT in Intelligent Transport System Market Outlook by Category:

By Component:

• Hardware
• Software
• Services

By Vertical:

• Roadways
• Railways
• Airways
• Maritime

By Application:

• Telematics
• Infotainment
• Advanced Driver Assistance System (ADAS)

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa

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