Need to Build Sustainable Transportation Infrastructure Drives the Intelligent Transportation Systems Market, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Intelligent Transportation Systems markets. Global Intelligent Transportation Systems market is projected to reach US$22.7 billion by the year 2018, driven primarily by the need to enhance road safety by efficiently managing traffic, enforcing speed limits and easing traffic congestion. Rising demand from developing nations to incorporate ITS solutions also bodes well for the future of the market.

Intelligent Transportation Systems: A Global Strategic Business Report

Follow us on LinkedIn – The future of modern transport lies squarely in integrated and efficient management of transport infrastructure. Intelligent transportation systems (ITS) market in this regard is posed for a heady future. The ability to effectively move people and goods across the available transport system will always remain vital to the economic competitiveness of any country. Against the backdrop of lingering budget cuts in the developed economies, intelligent mobility has the potential to reduce the need for massive investments in infrastructure, since efficient utilization of existing infrastructure through optimum management and running of transport systems requires relatively lesser expansion of infrastructure. Sustainable transportation systems are the future of modern cities and the focus on efficient and environmentally friendly mobility will only gather additional focus in the upcoming years since quality of life of modern citizens depends on it. With Governments worldwide forced to improve their innovative capabilities to resolve the transportation challenges, the ITS market, with its ability to better balance scarce energy resources, individual and public transportation needs, and reduce pollutant emissions, is poised to benefit.

Growth in the ITS market in the upcoming years will be driven by developing countries as mirrored in the rising number of international bid invitations for public transport projects. Players in the ITS market are betting big on intelligent transport system in the CIVETS region. The next decade is forecast to belong to the CIVETS, a new group of tiger economies comprising Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa and popularly called the next BRICs. These countries are characterized by rapidly growing domestic consumption, rising middle class, cheap labor (cheaper than China & India), favorable demographics such as large base of young, affluent and employed population, unlike the aging, retiring baby boomers in the developed countries. As economic advancement and development spreads to this second tier of lucrative markets, the subtle shift in geopolitical power and standard of living from west to east will continue into the future. As Western economies are forced to slowdown with their heavy debts, and as BRICs which dominated the international arena over the last decade and half with their economic might now finally slowing down, the CIVETS are now rising over the horizon to replace BRICs.

A key reason fingered for the slowdown of BRIC economies is that over time these countries have become more interconnected by trade to the developed economies and now are slowing down in sync with the economic problems of the developed countries including the current European debt crisis. The scenario is paving the way for CIVETS to emerge into the new business mantra for every business expansion strategy. With vigorous ferreting of opportunities in BRICs rapidly diminishing the potential for manufacturers to achieve first mover advantages, virgin opportunities in CIVETS will provide a perfect haven for manufacturers seeking international expansion in the long-term. In these countries, rising incomes, waxing urbanization and telltale transport challenges of a developing economy are pushing ITS market into the top slot among political agendas.

Against the backdrop of tumultuous economic and political climate and large scale implementation of austerity measures, developed economies are sandwiched between the paradoxical need to reduce spending to curb rising public debts and also increase federal spending and reduce taxes to stimulate economic growth, and increase demand for goods and services. Economic opinions stand divided about the effectiveness of infrastructure spending in reviving economic growth, with popular opinion weighing heavily in favor of the fact that infrastructure spends which are typically long-term activities with longer ROI periods can be ineffective stimulus tools for triggering growth in the short-term, which requires swift injection of money into the economy. A key resulting factor of the world economic recession is the undeniable decline in Government spending on infrastructure projects in developed economies like the United States and Europe. The financial trials of the developed economies mark the end of the era of massive infrastructure investments in these countries.

Market prospects for Advanced Traffic Management Systems (ATMS), Public Vehicle Transportation Management Systems (PVTMS), Commercial Vehicle Operations (CVO) Systems and Advanced Vehicle Information Systems, in Europe are especially forecast to feel the heat of the potential infrastructure implications caused by the debt crisis. Austerity measures are continuing to exert pressure on credit availability in both the commercial and public sectors. In addition to the banking and fiscal crisis in the euro area, problems related to the lack of competitiveness especially in the peripheral economies is also weighing down market sentiments, all of which require to be resolved to positively aid in the region’s recovery. Land transport activity in the European Union declined largely as a result of negative sentiment in the capital markets, business case challenges and budget constraints, all of which are compromising growth prospects in few of the ITS product markets. Growth in these market segments has and will continue to decelerate into the year 2013 until Europe finds middle ground between the need for fiscal consolidation and the need for stimulating smart growth, and stability.

A key segment of the ITS industry, which is however poised to gain against the backdrop of the rising need to reduce public debt, and spending and yet build the infrastructure to bolster flagging economies is the electronic toll collection (ETC) systems market. This is primarily because Governments are leveraging newer funding mechanisms and are bringing about reforms and changes in fiscal governance. Strategies for Government funding are changing rapidly with Governments seeking to generate revenues for funding critical projects through increased taxes and public-private partnerships, among other strategies. Transportation infrastructure in any country is critical as it represents the productive capacity of the nation’s economy and poised to benefit from the Governments’ new financing strategies. Implementation of the Road User Charging (RUC) concept and installation of ETC for toll collection, and higher fuel taxes will help Governments’ significantly reduce subsidies on road construction thus easing their debt loads. Under this scenario, demand for ETC systems is poised to gain momentum despite the prevailing economic climate.

As stated by the new market research report on the Intelligent Transportation Systems, the US continues to remain the largest regional market, accounting for a lion’s share of the market pie. The Asia-Pacific region emerges as the fastest growing regional market with China emerging as the primary revenue generator in the region over the analysis period. Advanced Traffic Management Systems represent the largest product segment. Electronic Toll Collection Systems market is the fastest growing product segment displaying a CAGR of about 11.7% over the analysis period.

Major market participants include ADDCO LLC, ARINC Incorporated, Image Sensing Systems Inc., INIT Innovation In Traffic Transportation Systems AG, Kapsch TrafficCom AG, LeddarTech Inc., MiTAC International Corp., NAVTEQ Maps, Siemens Traffic Solutions, Sirit Inc., TransCore Inc., Citilog SA, C-S Communication & Systems SA, ItraMAS Corporation Sdn Bhd, Q-Free ASA, Swarco AG, SpeedInfo, Inc., Tacel Ltd., Transdyn Inc., XRS Corporation and Xerox Corporation.

The research report titled “Intelligent Transportation Systems: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of trends, product developments, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for the United States, Europe, Japan and Rest of World markets over the period 2010-2018. Product segments analyzed include Advanced Traffic Management Systems (ATMS), Electronic Toll Collection (ETC) Systems, Public Vehicle Transportation Management Systems (PVTMS), Commercial Vehicle Operations (CVO) Systems, and Others.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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