Global Intelligent Transportation Market: Drivers, Constraints and Opportunities

The Intelligent Transportation growing at a CAGR of 12.05% is currently valued at $ 20.53 Billion and is expected to double by the end of 2020 with a value of $ 36 Billion. The scope of the technology has gone beyond road transport: to rail, water, air etc. The purpose of the technology is essentially to reduce congestions, pollution, road accidents and improve the efficiency of the public and private transportation network and safety of vehicle owners, commuters and pedestrians. Such a smart system will also add mobility by reducing the fuel consumption and in turn reduce the carbon emissions in the environment. A control on the fuel consumption improves the quality of life. The market has many drivers. Apart from the key drivers of advancement of science and technology (IT) and the availability of technical knowledge and skills, the market is being driven by factors of increased migration, traffic congestions and the pollution caused by it. The rise in the number of vehicles on the roads has also increased the incidents of accidents world over. The Government of many countries are supporting the adoption of the technology and have realized the importance of investing in the sector rather than investing on transportation network expansion. The technology also has a high overall Benefit to Cost ratio. Another crucial driving factor of the market is the good supply chain management in the making it necessary for the transportation to be safe and time saving. The environmental impacts of the technology are also an essential consideration. Such a framework not only helps in conserving the efficiency of fuel, but also helps preserve the environment from pollution and harmful emissions. Meanwhile the market faces the issue of high installation costs and the lack of interoperability and standards. The system has to show the compatibility between all the components of the system. It is also essential for the users to cooperate with the government and the technology and use it effectively for their benefit. This is the biggest obstacles to developing economies like India, Indonesia and Philippines, where the acceptance of such an arrangement is absent (apart from the lack of monetary resources and infrastructural facilities).The absence of Interoperability between users and the roads is one of the primary restraints of the market. The Market can go a long way with an effective public private partnership coupled with opportunities for more smart vehicles on the roads. This ‘Smart’ and ‘Intelligent’ arrangement will be most successful with investments for smart cars as well as smart roads constructed keeping in mind the norms to be followed in the country. The next few years will see a rise for Vehicle to Vehicle (V2V) and Vehicle to Infrastructure (V2I) communication. Opportunities in the industry also leave scope for addressing data privacy and security issues, system openness and updates with implementation plans. Additionally, Research and Developmental (R&D) activities with regulatory policies are expected to influence the market positively and benefit it in the long run. The market also leaves room for the development of new products (such as Electronic Toll Collection AndTraffic Telematics Solution) and Mergers & Acquisitions. Other products such as Video Management System, Event Tracking System, Toll way Traffic Management System and Traffic Signal Management System are some of the products that need to be created and customized as per the context of use.