The market value for Intelligent Transport Systems (ITS) deployed in public transport operations in Europe was € 1,56-billion in 2018, according to new research from Berg Insight.
Growing at a compound annual growth rate (CAGR) of 6,8%, this number is expected to reach €2,16-billion by 2023. The North American market for public transport ITS is similarly forecasted to grow at a CAGR of 7,3% from € 1,07-billion in 2018 to reach € 1,52-billion in 2023.
Berg Insight is of the opinion that the market for ITS in public transport is in a growth phase which will continue throughout the forecast period.
A growing awareness among public transport providers of the various benefits of ITS along with increasing demands from travellers for convenience and accessible real-time information contribute to a positive market situation.
A group of international aftermarket solution providers have emerged as leaders on the market for public transport ITS.
“The penetration rate of on-board computers featuring GPS location functionality and wireless communications is now at very high levels in both North America and Western Europe,” says Adam Bjorkman, IoT analyst at Berg Insight.
The Mediterranean countries and Eastern Europe are, however, still lagging.
“ITS providers in Eastern Europe have had impressive growth in the last year, and as long as countries in the region continue to experience economic growth the demand for ITS solutions will further increase,” adds Bjorkman.
He says that in the mature markets with a high penetration rate, a clear trend is the increased demand for ITxPT labelled ITS solutions compatible with third-party systems.
“The trend is especially evident in the Nordics where the general IT maturity is high and public transport providers often have experience from existing solutions,” Bjorkman says.