Intelligent Traffic Management Market Expected to Grow Strongly Through 2030
The global intelligent traffic management system (ITMS) market is projected to reach USD 27.92 billion by 2030, growing at a compound annual growth rate (CAGR) of 15.2% from 2025 to 2030, according to a new report by Grand View Research.
Factors such as the rising urban population, increased mobility, improved road transport efficiency, and the need to upgrade transport networks due to rapid industrialization are anticipated to drive significant market growth during the forecast period.
ITMS solutions help reduce delays, alleviate traffic congestion, and provide real-time, accurate information to commuters and transportation planners. The growing government initiatives worldwide to implement smart cities with modernized road networks and transportation systems are expected to positively influence the expansion of the intelligent traffic management market.
Challenges with infrastructure upgrades
ITMS require vast, scalable, and advanced data infrastructure for real-time data processing. However, the required infrastructure to support these systems has not expanded quickly enough, and replacing outdated equipment is still costly. To address this, governments across the globe continue to invest heavily in road infrastructure upgrades in an effort to reduce congestion.
For example, in April 2021, SNC-Lavalin Group, an engineering and construction services provider, was awarded a three-year contract worth USD 15 million by the California Department of Transportation (Caltrans) to implement a Transportation Asset Management System (TAMS). Under this agreement, the company’s Data Transfer Solutions (DTS) unit will offer services such as software licensing, system implementation, and post-implementation support, which are expected to drive demand for ITMS solutions further during the forecast period.
Addressing standardization and road safety concerns
Despite the growth prospects, challenges such as the lack of standardized solutions and safety concerns related to traffic management systems could hinder the expansion of the intelligent traffic management market. To address road safety, the United Nations Economic Commission for Europe (UNECE) is involved in implementing legal instruments aimed at improving road safety, including traffic management and road infrastructure regulations that are binding for member states. ITMS has the potential to significantly reduce traffic accidents and improve safety.
Regional insights
Countries such as the U.S. and China are making significant investments in ITMS solutions, which is expected to benefit the market in the coming years. According to analysts at Grand View Research, North America is expected to dominate the market, accounting for 38.7% of the share in 2024. The U.S. Department of Transportation (DOT) is making substantial investments in research, development, and the nationwide deployment of intelligent traffic management systems.
Regarding product segments, the traffic monitoring system segment is expected to hold the largest share of 21.4% in 2024. Poorly managed traffic signals are a major contributor to road congestion, and addressing these issues is expected to reduce travel times considerably. Furthermore, the traffic signal control segment is projected to grow significantly during the forecast period.
Key market players
Companies actively involved in the ITMS sector include Cubic Corporation, SNC-Lavalin Group, Thales Group, IBM, General Electric, Siemens, Kapsch Trafficcom, TomTom, Q-Free ASA, and Transcore. These companies are expected to play a pivotal role in advancing ITMS technologies and capitalizing on the growing demand for smart traffic management solutions.
