Intelligent Transportation System Global Market Forecast Report 2025-2030: Rapid Development Of Smart Cities And Increasing Demand For Mobility Services To Fuel Expansion

(MENAFN- GlobeNewsWire - Nasdaq) The global Intelligent Transportation System (ITS) market, valued at USD 42.55 billion in 2025, is set to reach USD 55.36 billion by 2030, growing at a CAGR of 5.4%. Key drivers include urban traffic congestion, vehicle ownership surge, and demand for smart mobility. Government initiatives for smart cities further boost ITS deployment, optimizing traffic, reducing travel time, and enhancing safety. Railways are expected to claim the second-largest market share due to rail infrastructure upgrades. The ticketing segment anticipates high growth due to digital payment trends. North America will see the second-highest regional growth, driven by investment in smart mobility.

Dublin, Oct. 01, 2025 (GLOBE NEWSWIRE) -- The "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" report has been added to ResearchAndMarkets's offering.
The global intelligent transportation system market was valued at USD 42.55 billion in 2025 and is projected to reach USD 55.36 billion by 2030, at a CAGR of 5.4%

The market is experiencing robust growth across regions, driven by increasing urban traffic congestion, a surge in vehicle ownership, and the rising demand for smart and sustainable mobility solutions. Government initiatives aimed at developing smart cities and improving public transport infrastructure further accelerate ITS technology deployment.

ITS solutions play a crucial role in enhancing road safety, reducing travel time, optimizing traffic flow, and minimizing environmental impact. Applications such as advanced traffic management systems, smart parking, electronic toll collection, and real-time traveler information systems are being widely adopted across roadways and public transit networks.

The intelligent transportation system market is dominated by a few globally established players, such as Siemens (Germany), Hitachi Ltd. (Japan), Mundys (Italy), Indra Sistemas S.A. (Spain), Verra Mobility (US), Cubic Corporation (US), Conduent, Inc. (US), Kapsch Trafficcom AG (Austria), Thales (France), Teledyne Technologies Incorporated (US), Swarco (Austria), ST Engineering (Singapore), Iteris, Inc (US), Q-Free (Norway), SERCO GROUP PLC (UK).
Based on mode, the railways segment is expected to account for the second-largest market share during the forecast period.
The railways segment is expected to hold the second-largest market size in the intelligent transportation system market during the forecast period due to the modernization of rail infrastructure, increasing investments in high-speed rail and urban transit systems, and rising demand for enhanced safety and operational efficiency. Modernization of rail infrastructure drives the adoption of advanced ITS technologies such as automated signaling, real-time monitoring, and predictive maintenance, which help enhance operational efficiency and reduce service downtime.
Additionally, increasing investments in high-speed rail and urban transit projects across both developed and developing economies are leading to the large-scale deployment of ITS solutions like smart ticketing systems, centralized traffic control centers, and dynamic passenger information displays. These systems ensure seamless integration, optimized scheduling, and improved commuter experiences. Moreover, the rising demand for improved safety and system reliability is accelerating the implementation of technologies such as obstacle detection, intelligent surveillance, and automated braking, all of which contribute to safer and more efficient rail operations.
Based on application, the ticketing segment is projected to register the second-highest CAGR during the forecast period.
The ticketing segment is projected to register the second-highest CAGR in the intelligent transportation system market during the forecast period due to the growing demand for contactless and digital payment solutions, increasing deployment of automated fare collection (AFC) systems, and rising focus on improving passenger convenience and reducing operational costs.
Growing demand for contactless and digital payment solutions is driving the adoption of smart cards, mobile ticketing apps, and QR-code-based systems, offering faster, more secure, and hygienic payment options that enhance the commuter experience while reducing the need for physical interactions. The increasing deployment of AFC systems across buses, trains, and metro services enables efficient, error-free, and real-time fare processing. This not only improves revenue assurance for transit operators but also supports the scalability of these systems across large, multimodal transport networks. Additionally, the rising focus on enhancing passenger convenience and reducing operational costs encourages transport agencies to transition from manual to digital ticketing solutions, which streamline boarding processes, cut down on labor expenses, and improve overall service reliability, fueling the segment's robust growth.
North America to register second-highest CAGR during forecast period
North America is projected to register the second-highest CAGR in the intelligent transportation system market during the forecast period due to the strong presence of advanced transport infrastructure, growing investments in smart mobility and autonomous vehicle technologies, and increasing government support for sustainable and efficient transportation systems.
The region's well-established transportation network provides a strong foundation for the integration of advanced ITS solutions, such as intelligent traffic management, real-time incident detection, and adaptive signal control. Additionally, government initiatives supporting eco-friendly and efficient urban transportation, including congestion pricing, electric vehicle (EV) integration, and data-driven traffic optimization, further drive the adoption of ITS. These factors combined are fostering an environment conducive to the rapid implementation and expansion of intelligent transportation systems, positioning North America as a key growth region in the global market.

Key Attributes:

Report Attribute	Details
No. of Pages	266
Forecast Period	2025 - 2030
Estimated Market Value in 2025	42.55 Billion
Forecasted Market Value by 2030	55.36 Billion
Compound Annual Growth Rate	5.4%
Regions Covered	Global

Market Dynamics

Drivers

• Increasing Migration from Rural to Urban Areas
• Government-Led Initiatives to Increase Road Safety
• Rapid Development of Smart Cities
• Increasing Demand for Mobility Services

Challenges

• Complexities Associated with Data Management and Privacy

Opportunities

• Growing Public-Private Partnerships
• Pressing Need for Smart Mobility Solutions

Case Studies

• Public Transportation in Dehradun Adopt Real-Time Monitoring and Digital Ticketing to Optimize Travel Patterns
• Shenzhen Transportation Hubs Enhance Surveillance with Analog and Digital Systems
• Merida Deploys Smart City Solutions to Reduce Delay and Improve Mobility with Cubic's Intelligent Traffic Platform
• Egypt Implements Intelligent Transport System to Improve Safety, Enhance Mobility, and Reduce Congestion

Company Profiles

• Siemens
• Hitachi, Ltd.
• Cubic Corporation
• Conduent Incorporated
• Kapsch Trafficcom AG
• Thales
• Teledyne Technologies Incorporated
• Indra Sistemas, SA
• Mundys
• Verra Mobility
• Tomtom International Bv
• Swarco
• St Engineering
• Iteris, Inc.
• Q-Free
• Serco Group PLC
• Efkon GmbH
• Lanner Electronics
• Sensys Gatso Group Ab
• Tagmaster
• Ricardo
• Transmax Pty Ltd.
• Daktronics, Inc.
• Geotoll
• Cellint
• Alstom SA
• Clever Devices Ltd.
• Eta Transit
• Furuno Electric Co. Ltd.
• Transcore
• Adaptive Recognition Inc.
• Econolite
• Miovision Technologies Incorporated
• Elovate

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• Intelligent Transportation System Market

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