Intelligent Transportation System Market To Reach $128.17 Billion By 2033

Intelligent Transportation System Market Growth & Trends

The global intelligent transportation system market size is estimated to reach USD 128.17 billion by 2033, registering a CAGR of 10.8% from 2026 to 2033, according to a new report by Grand View Research, Inc. The continuous advancements in transportation network technologies have accelerated the demand for efficient transportation systems. The latest technologies, such as electronic toll collection, Next-Generation Air/Ground Communication (NEXCOM), drone traffic management, and blind-spot detection, resulted in heightened expectations for efficient traffic and transportation networks. The growing need to present real-time traffic information equipped with Artificial Intelligence (AI) and Virtual Reality (VR) for enhanced safety & security is boosting the growth of the intelligent transportation system (ITS) market.

The growing adoption of telecommunications technologies and evolution of IT systems are anticipated to assist in reducing traffic congestion and air pollution. Further, the implementation of an Advanced Traffic Management System (ATMS) that emphasizes real-time data utilization and simultaneously addresses the impact criteria is creating a positive ITS market outlook. The integration of energy distribution technologies such as Energy Storage Systems (ESS), smart grids, and charging technologies in ITS helps distribution agencies utilize real-time data to plan and implement capacity expansion strategies for the future, supporting the intelligent transportation system market growth. According to the reports drafted by the Department of Transport of the Republic of Korea on the ITS Development Strategy, ITS can help reduce fuel consumption, traffic congestion, and greenhouse emissions and prevent automobile idling.

The concept of smart cities has been gaining increased traction in recent years, with several governments across Asia Pacific devising favorable regulations to promote smart cities initiatives. Intelligent transportation systems are one of the integral components of smart cities initiatives. An ITS employs multiple next-generation technologies and solutions, such as traffic surveillance cameras, parking guidance systems, Collaborative Decision-Making (CDM), weather information & forecasting, and satellite communication in smart cities infrastructure, that enriches the operational efficiency of the transportation networks in the smart cities projects, creating a favorable environment for ITS market.

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Intelligent Transportation System Market Report Highlights

• Based on mode of transportation, the roadway segment dominated the market in 2025 and accounted for the largest share of 39.0%.

• The maritime segment is anticipated to register considerable growth with a substantial CAGR over the forecast period, attributed to the high adoption of Internet-of-Things (IoT) & digital technologies to enhance communication and connectivity between ports, logistics networks, and ships.

• Based on roadway system type, the Advanced Traffic Management System (ATMS) segment accounted for the largest revenue share in 2025.

• Based on roadway application, the traffic management segment accounted for the largest revenue share in 2025. The integration of advanced technologies, including sensors, cameras, and other monitoring devices, is enhancing the safety and sustainability of transportation networks.

• Based on railway offerings, the hardware segment accounted for the largest revenue share in 2025, attributed to the growing concern related to railway collision, which has propelled the adoption of digital signaling & control systems and Positive Train Control (PTC) & Automatic Train Control (ATC) systems.

• Based on railway system type, the ATMS segment accounted for the largest revenue share in 2025, driven by increasing road networks across the globe creating a need for robust ATMS.

• Based on railway application, the rail-running operation and collision avoidance segment accounted for the largest revenue share in 2025. Rising concerns over the increasing rail accidents and strict regulations for rail safety & security have played a key role

• North America dominated the intelligent transportation system industry and accounted for a share of 34.9% in 2025.

Intelligent Transportation System Market Segmentation

Grand View Research has segmented the global intelligent transportation system market based on mode of transportation, roadway offering, roadway system type, roadway application, railway offering, railway system type, railway application, airway offering, airway system type, airway application, maritime offering, maritime system type, maritime application, and region:

Intelligent Transportation System Mode of Transportation Outlook (Revenue, USD Billion, 2021 - 2033)

• Roadway

• Railway

• Airway

• Maritime

Intelligent Transportation System Roadway Offering Outlook (Revenue, USD Billion, 2021 - 2033)

• Hardware

  • Interface Boards

  • Sensors

  • Surveillance Cameras

  • Telecommunication Networks

  • Monitoring and Detection Systems

  • Others

• Software

  • Visualization Software

  • Video Detection Management Software

  • Transit Management Software

  • Others

• Services

  • Cloud services

  • Business services

  • Professional services

Intelligent Transportation System Roadway System Type Outlook (Revenue, USD Billion, 2021 - 2033)

• Advanced Traveler Information System (ATIS)

• Advanced Traffic Management System (ATMS)

• Advanced Transportation Pricing System (ATPS)

• Advanced Public Transportation System (APTS)

• Emergency Medical System (EMS)

Intelligent Transportation System Roadway Application Outlook (Revenue, USD Billion, 2021 - 2033)

• Traffic Management

• Road Safety and Security

• Freight Management

• Public Transport

• Environment Protection

• Automotive Telematics

• Parking Management

• Road Tolling Systems

• Others

Intelligent Transportation System Railway Offering Outlook (Revenue, USD Billion, 2021 - 2033)

• Hardware

  • Interface Boards

  • Sensors

  • Surveillance Cameras

  • Telecommunication Networks

  • Monitoring and Detection Systems

  • Others

• Software

  • Visualization Software

  • Video Detection Management Software

  • Transit Management Software

  • Others

• Services

  • Cloud services

  • Business services

  • Professional services

Intelligent Transportation System Railway System Type Outlook (Revenue, USD Billion, 2021 - 2033)

• Advanced Traveler Information System (ATIS)

• Advanced Traffic Management System (ATMS)

• Advanced Transportation Pricing System (ATPS)

• Advanced Public Transportation System (APTS)

• Emergency Medical System (EMS)

Intelligent Transportation System Railway Application Outlook (Revenue, USD Billion, 2021 - 2033)

• Rail-running Operation and Collision Avoidance

• Passenger Information Management

• Smart Ticketing

• Security Surveillance

• Emergency Notification

• Others

Intelligent Transportation System Airway Offering Outlook (Revenue, USD Billion, 2021 - 2033)

• Hardware

  • Interface Boards

  • Sensors

  • Surveillance Cameras

  • Telecommunication Networks

  • Monitoring and Detection Systems

  • Others

• Software

  • Visualization Software

  • Video Detection Management Software

  • Transit Management Software

  • Others

• Services

  • Cloud services

  • Business services

  • Professional services

Intelligent Transportation System Airway System Type Outlook (Revenue, USD Billion, 2021 - 2033)

• Advanced Traveler Information System (ATIS)

• Advanced Traffic Management System (ATMS)

• Advanced Transportation Pricing System (ATPS)

• Advanced Public Transportation System (APTS)

• Emergency Medical System (EMS)

Intelligent Transportation System Airway Application Outlook (Revenue, USD Billion, 2021 - 2033)

• Security Surveillance

• Shuttle Bus Tracking

• Traveler Information Management

• Aircraft Traffic Management

• Smart Ticketing

• Emergency Notification

• Others

Intelligent Transportation System Maritime Offering Outlook (Revenue, USD Billion, 2021 - 2033)

• Hardware

  • Interface Boards

  • Sensors

  • Surveillance Cameras

  • Telecommunication Networks

  • Monitoring and Detection Systems

  • Others

• Software

  • Visualization Software

  • Video Detection Management Software

  • Transit Management Software

  • Others

• Services

  • Cloud services

  • Business services

  • Professional services

Intelligent Transportation System Maritime System Type Outlook (Revenue, USD Billion, 2021 - 2033)

• Advanced Traveler Information System (ATIS)

• Advanced Traffic Management System (ATMS)

• Advanced Transportation Pricing System (ATPS)

• Advanced Public Transportation System (APTS)

• Emergency Medical System (EMS)

Intelligent Transportation System Maritime Application Outlook (Revenue, USD Billion, 2021 - 2033)

• Freight Arrival & Transit

• Real-time Weather Information Tracking

• Container Movement Scheduling

• Emergency Notification

• Others

Intelligent Transportation System Market Regional Outlook (Revenue, USD Billion, 2021 - 2033)

• North America

  • U.S.

  • Canada

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • South Korea

• Latin America

  • Brazil

  • Mexico

  • Argentina

• MEA

  • UAE

  • Saudi Arabia

  • South Africa

List of Key Players in the Intelligent Transportation System Market

• L3Harris Technologies, Inc.

• KONGSBERG

• NEC Corporation

• Teledyne Technologies Incorporated

• Thales Group

• Siemens AG

• Advantech Co., Ltd.

• Aireon

• Indra Sistemas, S.A.

• Hitachi, Ltd.