Internet of Things (IoT) is poised to disrupt almost every sector and transportation is one of them. By generating an intelligent transportation system (ITS), it can help optimize logistics and fleet management, tracking and monitoring of goods and services, traffic management, driver assistance, etc. In fact, it can automate an entire vehicle. All such advantages are causing a stir in the transportation industry thereby spelling a bright future for the IoT in intelligent transportation system market, worldwide.
Congestion on urban roads and rising accidents which need smart transport management solutions leveraging sensing, communications, and data processing technologies are already serving to drive the IoT in intelligent transportation market. Not just that, IoT is used for smart parking solutions, traffic management solutions, passenger entertainment, fleet management and telematics solutions, and security solutions.
Being a sunrise sector and on account of so many advantages, the global IoT in intelligent transportation system market is predicted to make gigantic strides in the near future. Transparency Market Research forecasts the market to clock a phenomenal 19.8% CAGR between 2017 and 2025 to become worth US$249.84 bn by 2025 from US$41.57 bn in 2015.
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Sensors Drive up Revenue in Hardware Segment
The global IoT in intelligent transportation system market can be segmented based on different parameters. Based on component, for example, it can be divided into software, hardware, and services. At present, the hardware segment dominates vis-à-vis revenue. This is mainly on account of the sensors which are a type of hardware that form an integral part of IoT solutions. Besides, networking hardware such as RFID are also seeing significant uptake in road vehicles.
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In terms of growth rate, however, the segment of software is slated to outpace all others in the IoT in intelligent transportation system market. Logistics and fleet management solutions are providing maximum fillip to the software segment currently. In addition, in the services segment, the installation and integration services is expected gross substantial revenue in the overall market. Support service and maintenance and management service will also likely contribute to revenue significantly.
Presence of Key Players Makes North America Dominant Region
From a geographical standpoint, North America currently leads the global market for IoT in intelligent transportation system with maximum share. This is because of the presence of a considerable number of key players in the region. The report by TMR predicts the market in North America to retain its dominant share by rising at a 19.2% CAGR in the forecast period. At this rate, it forecasts the market to become worth US$85.87 bn by 2025.
Prominent participants in the global IoT in intelligent transportation system market are Cisco Systems, Intel Corporation, Cubic Transportation Systems, Siemens AG, Thales Group, TomTom NV, TransCore Holdings, Inc., Verizon Telematics, Microsoft Corporation, Garmin Ltd, NEC Corporation, Watson Internet of Things (IBM), Huawei Technologies Co., Ltd., Hitachi Transport System Ltd. and Iteris Inc.