Market Dynamics- Drivers
Enhancement in existing performance of transportation networks is expected to drive growth of the global intelligent transportation systems (ITS) market during the forecast period
Transport plays a major role in a country’s economic and social development. Inadequate working of traffic signals and traffic incidents are major causes of all traffic jams and increased carbon emissions in urban and interurban networks. According to various, ITS associations such as ITS Canada, ITS Turkey, etc. advanced traffic management systems (ATMS) reduce the waiting time at a signal by 20% to 30% and the travel time by 25%, which in turn helps in saving a huge chunk of notified congestion. These systems also reduce greenhouse gas emissions such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) etc. For every hour of delay time reduced in traffic, one lightweight vehicle can save 0.7 gallons of fuel and a truck can save 1.93 gallons. Therefore, these factors are expected to drive growth of the global intelligent transportation systems (ITS) market during the forecast period.
Growing need to improve road safety is expected to propel the global intelligent transportation systems (ITS) market growth over the forecast period
According to the Association for Safe International Road Travel (ASIRT), 2012, around 1.3 million people per year and an average of 3,287 people die per day in road accidents. Road traffic accounts for more than 2.2% of all deaths globally. According to the same sources, in 2012, road accident was the 9th leading cause of deaths and accounted for more than 2% of all global deaths. Road accidents alone cost around US$ 520 billion per day globally. Many countries are mitigating these challenges by implementing advanced traffic management systems in their road networks. Furthermore, increasing awareness about road safety among vehicle owners is expected to increase the demand for cooperative systems such as vehicle to vehicle (V2V) and vehicle to infrastructure (V2I) in the near future. Developed regions are fully committed and implementing stringent regulations and policies to reduce the number of road fatalities. Thus, these factors are expected to propel the global intelligent transportation systems (ITS) market growth over the forecast period.
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Market Dynamics- Restraint
Negative impact of economic slowdown on ITS funding is expected to restrain growth of the global intelligent transportation systems (ITS) market during the forecast period
Lower funding for ITS projects is a major challenge for transportation agencies, in order to deploy ITS technologies. State and national governments of several countries across the world including developed nations are giving priority to expansion and maintenance of transportation networks over deploying advanced ITS technologies. In the last few years, both developed and emerging economies are struggling with the economic slowdown. According to International Monetary Fund growth in the global economy is expected to be slow in 2013 which in turn will impact the market of ITS in the near future. Therefore, these factors expected to restrain growth of the global intelligent transportation systems (ITS) market during the forecast period.
Lack of interoperability between ITS and infrastructure is expected to hinder the global intelligent transportation (ITS) market growth over the forecast period
ITSs use information and communication technologies to share the transportation information between vehicle and road users, transportation authorities, and traffic control units. ITS system’s architectural deployment is facing interoperability challenges to share the information and to facilitate transportation in a more effective manner. Interoperability is the major issue for electronic toll collection systems (ETC) due to difference in toll collection concepts and different technologies used by highway toll collection operators. Hence, these factors are expected to hinder the global intelligent transportation (ITS) market growth over the forecast period.
Market Opportunities
Improving the standardization of wireless communication technologies can present lucrative growth opportunities in the global intelligent transportation systems (ITS) market
Wireless technologies used in ITS systems are developing constantly to improve the reliability and interoperability of transportation networks. Both short distance and long-distance wireless communication technologies are advancing rapidly to support current and future applications of ITS. These wireless communication technologies have a wide range of applications in ITS including electronic toll charging (ETC), vehicle navigation systems, and other advanced traveler information systems. Recently, 5.9 MHz DSRC was introduced to improve the performance of toll systems at highway tolls.  Europe has also approved this technology for ETC on highways. Continuous development and standardization of the DSRC technology is expected to increase its applications in the field of V2X communication systems to reduce accidents and improve road safety. Communication Air Interface Long and Medium (CALM) range also has a huge potential as it provides continuous wireless communication between roadside infrastructure and vehicles.
Contracts and agreements among market players can provide major business opportunities in the global intelligent transportation systems (ITS) market
Major companies in the market are involved in contracts and agreements, in order to gain a competitive edge in the market. For instance, in June 2013, Siemens received the contract to supply it's advanced ITS solutions for Poznan in Poland. Furthermore, in January 2012, Hitachi Ltd., Mitsubishi Corporation, and Mitsubishi Heavy Industries Ltd received the contract from Malaga Smartcity project (Spain).
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