Report on the Global Intelligent Transportation Systems (ITS) Market and its Contribution to Sustainable Development Goals

Executive Summary

The Intelligent Transportation Systems (ITS) market is undergoing a significant transformation, driven by global urbanization and digitalization. The deployment of ITS is critical for achieving several United Nations Sustainable Development Goals (SDGs), particularly those related to urban development, infrastructure, and safety. By integrating technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and big data, ITS offers solutions to traffic congestion, enhances public safety, and promotes environmental sustainability. This report analyzes the market dynamics, growth drivers, and strategic initiatives within the ITS sector, highlighting their alignment with SDG 9 (Industry, Innovation and Infrastructure), SDG 11 (Sustainable Cities and Communities), and SDG 3 (Good Health and Well-being). The global ITS market is projected to grow from USD 48.5 billion in 2025 to USD 52.6 billion by 2032, demonstrating steady growth fueled by investments in smart city infrastructure.

Market Analysis and Performance Indicators

Supply-Side Dynamics and Infrastructure Development

The supply side of the ITS market demonstrates a clear commitment to building resilient infrastructure, a core tenet of SDG 9. In 2024, production capacity for ITS hardware components increased by 8.3%, enabling the wider availability of advanced sensors and communication devices necessary for modern, sustainable transportation networks.

Demand-Side Indicators and Sustainable Urbanization

Demand is primarily driven by government-led infrastructure modernization projects, reflecting a global push towards SDG 11. Government imports of ITS technologies increased by 12.5% in 2024, with a focus on enhancing public transit and freight logistics. This investment aims to create safe, accessible, and sustainable transport systems for all (SDG 11.2).

Market Micro-Indicators and Accessibility

Pricing stabilization is making ITS solutions more accessible, supporting broader adoption in mid-tier cities and contributing to more inclusive urbanization. The average unit price for adaptive traffic control systems is expected to decrease by 4% in 2025, facilitating the deployment of technologies that reduce urban environmental impact (SDG 11.6).

Technology Adoption and Operational Efficiency

The integration of AI-based predictive analytics is a key driver of market growth and sustainability outcomes. In 2024, the use of these applications grew by over 15%, significantly improving operational efficiency in metropolitan areas. This advancement directly contributes to enhanced road safety (SDG 3.6) and the development of sustainable infrastructure (SDG 9).

Market Segmentation and Regional Scope

Taxonomy

• By System Type: Traffic Management Systems, Passenger Information Systems, Public Transportation Management, Commercial Vehicle Operations, and Others.
• By Component: Hardware, Software, Services, and Others.
• By Application: Road Safety, Traffic Monitoring, Toll Collection, Incident Management, and Others.

Regional Analysis

• North America: U.S. and Canada
• Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
• Europe: Germany, U.K., Spain, France, Italy, Benelux, Denmark, Norway, Sweden, Russia, and Rest of Europe
• Asia Pacific: China, Taiwan, India, Japan, South Korea, Indonesia, Malaysia, Philippines, Singapore, Australia, and Rest of Asia Pacific
• Middle East & Africa: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, Israel, South Africa, North Africa, Central Africa, and Rest of MEA.

Competitive Landscape and Strategic Contributions to SDGs

Leading companies in the ITS market are actively contributing to the SDGs through strategic partnerships and innovation (SDG 17). Their initiatives are pivotal in advancing sustainable transportation solutions globally.

Leading Companies

• Siemens AG
• Ricardo
• Thales SA
• Indra Sistemas, S.A.
• Kapsch TrafficCom AG
• Teledyne FLIR LLC
• Garmin Ltd.
• Cubic Corporation
• Q-Free ASA
• Iteris, Inc.
• TransCore
• Swarco AG
• Panasonic Corporation
• Robert Bosch GmbH
• Mitsubishi Electric Corporation
• Huawei Technologies Co., Ltd.
• NEC Corporation
• Econolite Group, Inc.
• Sensys Gatso Group
• VidSys, Inc.

Strategic Initiatives

1. Siemens AG partnered with European governments to deploy AI-powered traffic control, reducing urban congestion by 10% in pilot cities and directly addressing SDG 11.6 by lowering the environmental impact of cities.
2. Kapsch TrafficCom AG expanded its North American presence through strategic acquisitions, increasing its capacity to deliver ITS solutions that support sustainable infrastructure goals (SDG 9).
3. Garmin Ltd. focused on innovating vehicle-to-everything (V2X) communication devices, which are crucial for improving road safety and preventing traffic-related fatalities, in line with SDG 3.6.

Key Growth Drivers and Emerging Trends

Growth Drivers Aligned with Global Goals

The ITS market’s expansion is fueled by factors directly linked to global sustainability targets. The urgent need to mitigate urban traffic congestion and develop sustainable transport solutions is a primary driver, supporting SDG 11. Advancements in 5G technology provide the robust communication infrastructure (SDG 9) required for real-time data exchange. Furthermore, government investments in smart city projects, exceeding USD 12 billion in 2024, underscore a global commitment to building sustainable communities.

Emerging Trends Reshaping Sustainable Mobility

The market is shifting towards AI-driven predictive analytics and cloud-based platforms, which enhance the scalability and flexibility of ITS deployments. The increased adoption of edge computing (up 18% in 2024) reduces latency, which is critical for safety applications like incident management (SDG 3.6). The integration of autonomous vehicles with ITS frameworks is accelerating, promising further improvements in traffic efficiency and safety, thereby advancing progress towards SDG 11 and SDG 3.

High-Impact Market Opportunities for Sustainable Development

Segment Opportunities

• Traffic Management Systems: Deploying adaptive signaling solutions in rapidly urbanizing areas presents a significant opportunity to reduce congestion and commute times, contributing to more efficient and sustainable cities (SDG 11).
• Public Transportation Management: Real-time passenger information systems can enhance ridership satisfaction and promote the use of public transport, a key component of sustainable transportation systems (SDG 11.2).

Regional Opportunities

The Asia Pacific region offers high-impact opportunities due to large-scale investments in smart city initiatives. China’s infrastructure spending, which reached USD 4.5 billion in 2024, is driving the expansion of ITS solutions that support the development of quality, reliable, and sustainable infrastructure (SDG 9).

Conclusion and Strategic Outlook

The Intelligent Transportation Systems market is integral to the global effort to build smarter, safer, and more sustainable urban environments. The industry’s growth is intrinsically linked to the achievement of key Sustainable Development Goals, including SDG 3, SDG 9, and SDG 11. Market trends indicate a continued shift towards integrated, data-driven solutions powered by AI and advanced communication technologies. While challenges such as high deployment costs and the need for standardized protocols remain, strategic public-private partnerships (SDG 17) and continued investment in R&D will be crucial for overcoming these hurdles and realizing the full potential of ITS to create a sustainable future.

SDGs Addressed in the Article

SDG 9: Industry, Innovation and Infrastructure

• The article focuses on “Intelligent Transportation Systems,” which represent a significant innovation in infrastructure. It highlights the “integration of IoT, AI, and big data analytics into transportation networks” and “rapid advancements in communication technologies such as 5G” as key drivers. This directly relates to fostering innovation and building resilient infrastructure.
• It mentions “infrastructure modernization initiatives” and “investments exceeding USD 12 billion in 2024 alone” for smart city development, which aligns with the goal of developing quality, reliable, and sustainable infrastructure.

SDG 11: Sustainable Cities and Communities

• The core theme of the article is addressing urban challenges. It states that governments and private entities prioritize smart infrastructure to “address traffic congestion, safety, and environmental sustainability,” which is central to making cities sustainable.
• The text emphasizes the need for “sustainable transportation solutions” and improving “public transit” and “passenger information systems,” which are key components of sustainable urban mobility.
• The article discusses “future urban planning” and “smart city development” as major contexts for the growth of the ITS market, directly connecting to the goal of creating sustainable human settlements.

SDG 3: Good Health and Well-being

• The article explicitly mentions “road safety” as a key application and driver for ITS. It notes that one of the system’s applications is “Road Safety” and that companies like Garmin are seeing revenue growth from “transportation safety systems.” This connects to the goal of reducing traffic-related injuries and deaths.

Specific SDG Targets Identified

Target 11.2: Provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety.

• The article directly supports this target by discussing solutions to “improve road safety” and enhance “public transportation management.” It mentions “passenger information systems” and the goal of creating “sustainable transportation solutions.”

Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure.

• The entire article is about developing “intelligent transportation systems,” which are a form of advanced, resilient infrastructure. It highlights “government imports of ITS technologies surged by 12.5% in 2024, driven primarily by infrastructure modernization initiatives.”

Target 11.3: Enhance inclusive and sustainable urbanization and capacity for sustainable human settlement planning.

• The article links ITS directly to “urbanization” and “future urban planning.” It notes that the market is fueled by “increasing urban traffic congestion” and “government initiatives promoting smart city development,” which are central to managing sustainable urbanization.

Target 3.6: Halve the number of global deaths and injuries from road traffic accidents.

• This target is implied through the focus on “road safety” as a primary application of ITS. The development and adoption of “transportation safety systems” and “vehicle-to-everything (V2X) communication devices” are aimed at preventing accidents.

Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.

• The article discusses the shift toward sustainability through technology. It mentions the “integration of AI-based predictive analytics in ITS applications increased by over 15% in 2024, notably improving operational efficiency” and the goal of achieving “environmental sustainability.”

Indicators Mentioned or Implied

Indicators for Traffic Congestion and Efficiency

• The article provides specific metrics for measuring progress in reducing congestion: “a 10% reduction in urban congestion in pilot cities during 2024” and the potential to “improve commute times by up to 20%.”

Indicators for Technology Adoption

• Progress towards technological upgrading is measured by specific adoption rates: “integration of AI-based predictive analytics in ITS applications increased by over 15% in 2024” and “adoption of edge computing within ITS infrastructure increased by 18%.”

Indicators for Infrastructure Investment

• The article quantifies investment in smart infrastructure: “investments exceeding USD 12 billion in 2024 alone” in smart city development and “China leading infrastructure spending that reached USD 4.5 billion in 2024.”

Indicators for Public Transportation Improvement

• The impact on public transport is measured through user satisfaction: “real-time passenger information systems, which have enhanced ridership satisfaction by 15% in European metropolitan areas.”

Summary of SDGs, Targets, and Indicators

Source: openpr.com