Global Intelligent Transportation System Market Set to Reach USD 55.36 Billion by 2030, Driven by Smart Mobility Initiatives and Growing Public-Private Collaboration
The latest report, “Intelligent Transportation System Market by Roadways, Railways, Aviation, Maritime, Advanced Traffic Management Systems, Tolling & Parking Management Systems, Security & Surveillance Systems, Smart Ticketing Systems – Global Forecast to 2030”, published by ResearchAndMarkets.com, provides an in-depth analysis of the rapidly expanding global Intelligent Transportation System (ITS) market.
According to the study, the global ITS market—valued at USD 42.55 billion in 2025—is projected to reach USD 55.36 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.4%. This steady expansion is driven by surging urban traffic congestion, rising vehicle ownership, and the escalating demand for connected, efficient, and sustainable mobility systems.
Growing Urbanization and Smart City Development Drive ITS Adoption
The continuous expansion of urban centers across the globe has created a pressing need for smarter traffic management and improved mobility infrastructure. Governments are increasingly investing in smart city projects, integrating intelligent transportation technologies to enhance efficiency, safety, and environmental sustainability.
These initiatives often involve public-private partnerships (PPPs) that help fund and accelerate the deployment of advanced ITS technologies such as real-time traffic monitoring, adaptive signal control, and vehicle-to-infrastructure communication systems. In cities like Singapore, Amsterdam, and Los Angeles, ITS frameworks are being integrated into urban mobility strategies to reduce congestion and emissions while improving the commuter experience.
ITS solutions play a pivotal role in improving road safety, reducing travel times, optimizing fuel consumption, and minimizing the environmental footprint of transportation systems. They enable smoother coordination between public and private modes of transport, ensuring data-driven decision-making in real time.
Key Segments and Market Dynamics
The report categorizes the ITS market by transportation mode—roadways, railways, aviation, and maritime—and by various system applications including advanced traffic management, tolling and parking, security and surveillance, and smart ticketing.
1. Railways Segment Poised for Strong Growth
The railways segment is projected to hold the second-largest market share during the forecast period, supported by the modernization of rail infrastructure, the expansion of high-speed networks, and increased emphasis on operational efficiency and safety.
As governments and private operators modernize rail systems, the adoption of automated signaling, real-time tracking, predictive maintenance, and intelligent surveillance technologies is increasing significantly. These innovations help minimize delays, enhance reliability, and ensure passenger safety.
High-speed rail and metro projects across Asia-Pacific, Europe, and North America are incorporating smart ticketing systems, centralized traffic control, and dynamic passenger information systems. Such technologies facilitate real-time communication between trains and control centers, allowing better scheduling and seamless intermodal connectivity.
The rise of urban transit systems in rapidly developing economies, including India, China, and Brazil, is also driving large-scale ITS deployments to address congestion and improve passenger experience.
2. Ticketing Segment Expected to Record High Growth Rate
The smart ticketing and automated fare collection (AFC) segment is expected to post the second-highest CAGR during the forecast period. This growth is driven by the increasing shift toward contactless and digital payment systems, mobile ticketing apps, and QR-based ticket validation—all designed to enhance convenience, security, and efficiency for passengers.
The COVID-19 pandemic accelerated the transition toward touchless payment solutions, and this trend continues to strengthen as transit authorities invest in digitally integrated fare management platforms. These systems support real-time fare processing, minimize fraud, and reduce operational costs associated with manual ticketing.
For transport agencies, the move toward digital ticketing offers multiple benefits—improved revenue assurance, faster passenger boarding, and scalable implementation across multimodal networks such as buses, metros, and regional trains.
The integration of AFC systems with cloud-based mobility management platforms also allows cities to implement unified payment methods across different modes of transport, supporting seamless, multi-journey commutes.
Regional Analysis: North America to Register Significant Growth
North America is projected to witness the second-highest CAGR during the forecast period. The region’s strong technology infrastructure, increasing government funding for intelligent transport systems, and growing adoption of autonomous vehicles and electric mobility solutions are driving market expansion.
The United States and Canada are focusing on improving road safety, reducing congestion, and supporting sustainability goals through advanced traffic management systems (ATMS) and data-driven mobility solutions. Several U.S. metropolitan areas have already adopted smart traffic lights, real-time incident detection, and integrated corridor management systems.
Government initiatives such as the U.S. Department of Transportation’s (USDOT) Smart City Challenge and Infrastructure Investment and Jobs Act (IIJA) are further accelerating ITS implementation across highways, freight corridors, and urban transit networks.
Additionally, the integration of electric vehicles (EVs) and vehicle-to-everything (V2X) communication technologies is transforming the transportation ecosystem. As cities aim to reduce emissions, the role of ITS in managing EV charging networks, dynamic traffic control, and predictive analytics becomes increasingly vital.
Key Industry Players and Competitive Landscape
The global ITS market is consolidated, with major players driving innovation through strategic collaborations, R&D investments, and technology integration. Leading companies include:
- Siemens AG (Germany)
- Hitachi Ltd. (Japan)
- Mundys (Italy)
- Indra Sistemas S.A. (Spain)
- Verra Mobility (U.S.)
- Cubic Corporation (U.S.)
- Conduent, Inc. (U.S.)
- Kapsch TrafficCom AG (Austria)
- Thales Group (France)
- Teledyne Technologies (U.S.)
- Swarco (Austria)
- ST Engineering (Singapore)
- Iteris, Inc. (U.S.)
- Q-Free ASA (Norway)
- Serco Group PLC (U.K.)
These companies are focusing on developing AI-powered traffic management, predictive analytics, and IoT-enabled transportation systems. Partnerships between technology firms, infrastructure developers, and public agencies are creating scalable, interoperable systems that enhance mobility and sustainability.
Smart Mobility and AI Integration Redefine ITS
As the transportation ecosystem evolves, artificial intelligence (AI), machine learning (ML), and data analytics are expected to play a pivotal role in shaping the next generation of ITS solutions. Predictive algorithms will enhance route optimization, demand forecasting, and real-time incident management.
The integration of 5G connectivity will further boost the accuracy and speed of communication between vehicles, infrastructure, and control centers, enabling more efficient management of autonomous fleets and connected vehicles.
In addition, sustainability imperatives are influencing ITS development. Intelligent traffic systems that minimize idling times, reduce fuel consumption, and support low-emission zones are becoming essential to achieving net-zero carbon targets.
Emerging economies are also catching up, leveraging ITS to support rapid urbanization and reduce logistical inefficiencies. With global investment in smart mobility projected to accelerate, the ITS market is positioned for strong long-term growth.
The Intelligent Transportation System market is entering a transformative decade, characterized by technological convergence, policy support, and strategic investments aimed at making global mobility safer, smarter, and more sustainable. With continued innovation and collaboration among key stakeholders, the market is expected to surpass USD 55 billion by 2030, serving as a cornerstone of the next-generation smart city infrastructure.