New York, NY (PRWEB) April 08, 2014
In the five years to 2014, revenue for the Real-Time Traffic Information Providers industry is expected to strongly increase at an average annual rate, including significant growth in 2014. The industry has benefited from an increasing number of vehicles equipped with real-time traffic global-positioning systems (GPS) and a rising number of mobile internet connections. Operators use data from road sensors, GPS-enabled vehicles and mobile phones to gain insight into traffic conditions. The rising number of GPS-connected systems has increased data timeliness and reliability, further boosting demand for industry services.
The proliferation of smartphones has primarily driven industry growth during the past five years. In the five years to 2014, the number of mobile internet connections has significantly increased at an annualized rate. The ability to check traffic in real time, at all times, has caused more consumers to rely on industry services. To meet this demand, according to IBISWorld Industry Analyst Maksim Soshkin, “Industry operators have partnered with more companies to deliver the information, including auto manufactures, mobile-phone companies and mobile-device application developers.” In particular, “Industry operators have been able to use mobile devices as a traffic data source because the devices constantly send out location signals,” says Soshkin. Consequently, the source of real-time traffic data has greatly expanded and the cost of retrieving such data (which was previously only acquired via road sensors and cameras) has declined.
Industry market share concentration is low, as evidenced by the lack of market saturation and stagnant markets. In the five years to 2019, industry revenue is forecast to increase annually on average. Consumers will likely purchase more cars that are equipped with real-time traffic GPS navigation systems as the economy continues to recover from the recession and per capita disposable income rises. Furthermore, industry operators will benefit from an ever-increasing network of crowdsourced information (which involves sourcing data from multiple data points, like smartphones). This factor, coupled with a growing repertoire of value-added services, is expected to boost profit margins. By 2019, industry profit is forecast to continue increasing from its 2014 percentage. Operators will also increase their market by expanding into new coverage areas, including smaller cities and more surface streets.
For more information, visit IBISWorld’s Real-Time Traffic Information Providers in the US industry report page.
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IBISWorld industry Report Key Topics
The Real-Time Traffic Information Providers industry provides real-time traffic information for GPS systems and location-based service applications.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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