Global IoT in Intelligent Transportation System Market to Reach US$543.4 Billion by 2030

The global market for IoT in Intelligent Transportation System estimated at US$181.7 Billion in the year 2024, is expected to reach US$543.4 Billion by 2030, growing at a CAGR of 20.0% over the analysis period 2024-2030. Hardware, one of the segments analyzed in the report, is expected to record a 21.7% CAGR and reach US$282.3 Billion by the end of the analysis period. Growth in the Software segment is estimated at 19.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$51.4 Billion While China is Forecast to Grow at 18.7% CAGR

The IoT in Intelligent Transportation System market in the U.S. is estimated at US$51.4 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$79.8 Billion by the year 2030 trailing a CAGR of 18.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 17.9% and 16.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.3% CAGR.

Global IoT in Intelligent Transportation System Market - Key Trends & Drivers Summarized

How Is IoT Enhancing Intelligent Transportation Systems?

IoT technology is central to the evolution of intelligent transportation systems (ITS), enabling connectivity across vehicles, infrastructure, and central traffic management centers. Through IoT sensors and connected devices, ITS can monitor traffic flows, predict congestion, and improve safety on the roads. This connectivity allows for real-time data exchange, facilitating more efficient routing, traffic signal control, and incident response. As cities seek to improve urban mobility and reduce traffic congestion, IoT-enabled intelligent transportation systems are becoming an integral part of urban planning and infrastructure.

What Role Does Government Support Play in IoT-Driven Transportation?

Government support and funding are critical in driving the adoption of IoT in transportation, as national and local governments invest in smart city infrastructure to improve mobility. Many governments are actively funding projects that integrate IoT into transportation, focusing on reducing congestion, lowering emissions, and improving public safety. Initiatives like smart traffic lights, digital toll systems, and real-time public transportation updates are examples of government-backed projects that benefit from IoT. This support is creating opportunities for private companies to collaborate with public agencies, accelerating the implementation of IoT in transportation systems.

How Are Advancements in Connectivity Impacting ITS?

Advancements in connectivity, particularly with the rollout of 5G, are enhancing the capabilities of IoT in intelligent transportation systems. With faster and more reliable connections, ITS can process and respond to traffic data in real time, enabling more efficient and adaptive traffic management solutions. Improved connectivity also supports Vehicle-to-Everything (V2X) communication, allowing vehicles to communicate with each other and with infrastructure for safer, more efficient travel. These advancements in connectivity are transforming how ITS operates, leading to smoother traffic flows, reduced accidents, and enhanced urban mobility.

The Growth in the IoT in Intelligent Transportation System Market Is Driven by Several Factors

The growth in the IoT in intelligent transportation system market is driven by several factors, including government investment in smart infrastructure, advancements in connectivity, and the need for urban mobility solutions. Government-backed initiatives focused on reducing traffic congestion and emissions are supporting IoT adoption in transportation. The rise of 5G and V2X communication technologies is also enhancing the real-time responsiveness of ITS, enabling more adaptive traffic management. As cities aim to improve road safety and traffic efficiency, IoT-based intelligent transportation systems are becoming essential, creating a robust growth trajectory for this market.