ERTICO – ITS Europe, in collaboration with EY, is launching the Intelligent Transport Systems (ITS) Market Radar report, a groundbreaking analysis that delves into the key market insights, technological trends, challenges, employment dynamics, and future trajectories within the ITS industry. This inaugural market radar spotlights two sectors within the ERTICO Partnership – the Service Providers and the Traffic and Transport Industry. ERTICO brings together stakeholders from across the ITS community to help make mobility safer, more efficient and sustainable and consists of eight sectors – Suppliers, Service providers, Traffic and Transport Industry, Public Authorities, Research, Connectivity and Users sectors.

Throughout 2023, the ERTICO Partners from the two sectors actively participated in surveys and interviews, contributing to the valuable data for this comprehensive study. The active involvement of the ERTICO Partners from the sectors showcases a commitment to ongoing industry scrutiny and adaptation. This initiative also marks the inception of a series of annual market radar reports introduced by ERTICO, focusing on the evolving trends within its diverse sectors.

The report, beyond its quantitative analysis, goes on to articulate the strategic recommendations that came from the collaborative efforts. These recommendations not only guide the trajectory of the industry but also lay the groundwork for sustained innovation and growth within ITS. This comprehensive overview provides a roadmap for industry stakeholders, policymakers, and innovators, fostering a collective vision for the continued evolution of ITS.

“Embarking on a transformative journey with the ITS Market Radar report is not just a milestone for ERTICO. It is another proof of our commitment to shaping the future of intelligent transportation,” comments Mr Joost Vantomme, CEO of ERTICO. “This report also goes beyond just being a simple market study – it contains the challenges and opportunities, but also barriers and enablers towards large-scale deployment. Gratitude and congratulations to all our Partners who participated in the study, especially, EY, for their invaluable contributions. Let this be the first step in an annual journey of decoding the dynamic trends within ERTICO’s diverse sectors. Together, we drive the wheels of change in the world of Intelligent Transportation Systems.”

Industry Overview and Regulatory Framework

The high-level overview of ITS provided in the report focuses on four key areas: Connected, Cooperative & Automated Mobility (CCAM), Clean & Eco-Mobility, Urban Mobility & Mobility as a Service (MaaS), and Transport & Logistics. Each area plays an important role in optimising transportation, reducing congestion, and enhancing mobility in the European Union.

The report also delves into the historical context and evolution of the Intelligent Transport Systems, showcasing key milestones from the 1960s to the present. It highlights how significant achievements such as the introduction of Connected and Automated Vehicles (CAVs), Mobility as a Service (MaaS), electrification, clean mobility, Big Data, predictive analytics, and the advent of 5G connectivity have shaped the industry.

The study also sheds some light on the regulatory framework influencing the ITS industry’s advancements. It highlights the EU’s ITS initiatives that align with its mission for climate-neutral cities by 2030, foster innovation hubs for climate-neutral cities by 2050, and emphasise zero-emission vehicles, sustainable alternatives, digitalisation, connectivity, and comprehensive data spaces. The EU is proven to be actively engaged with various stakeholders to build a resilient and sustainable transport system across the region. The radar report also highlights the importance of a single European data space and strengthened coordination mechanisms for the ITS Directive review.

Key Technological Trends

Identifying key technological trends shaping the ITS sector, the market study showcases trends such as automated vehicles, clean and eco-mobility, artificial intelligence (AI), machine learning, quantum computing, 5G, wireless communication technologies, blockchain, and decentralised systems. The market radar has shown that these trends are propelling the industry towards a future characterised by intelligent, connected, and sustainable mobility solutions. Most of the ERTICO Partners who participated in the study, emphasised the transformative role of AI and machine learning, acknowledging quantum computing’s potential for revolutionising data processing in ITS.

Future Outlook and Revenue Trends

The market study has shown that the outlook for the ITS sector is marked by transformative technologies. The results focus on the revolutionary impact of wireless communication technologies like 5G and 6G, the central role of AI and machine learning, the influence of augmented reality (AR) and virtual reality (VR), the integration of automated vehicles and self-driving technology, and enhanced data security and transparency through blockchain and decentralised systems.

It has also been discovered that in the Traffic & Transport Industry market, different revenue brackets highlight the diverse ecosystem, with smaller and mid-sized organisations fostering innovation and established players representing a significant market share. On the other hand, the Service Providers sector anticipates revenue growth, with a focus on interoperability, legal obligations, public interest, and education about ITS among the general population.

Employment Trends and Workforce Engagement

The report explores anticipated trends in the ITS workforce over the next 3-5 years, emphasising minimal job displacement due to automation, increased demand for specific expertise, and the optimisation of service personnel. The study has shown that the current strategies for workforce engagement include mentorship programs, a focus on green and sustainable practices, and workforce upskilling through enhanced training services.

The results of the report indicate that the Traffic & Transport Industry is actively hiring for business expansion and upgrading workforce skills. Retention strategies include higher salaries, promoting sustainability, inclusion, and diversity, and emphasizing the impact of ITS on saving lives and enhancing transportation efficiency.

Interestingly, the Service Providers sector faces challenges in filling open positions due to inflation vs. salary expectations and the perception of the transport sector as less glamorous within the ITS industry. It aims to retain employees by engaging them in impactful projects, promoting a flexible culture, and prioritising employee well-being.

Key Challenges and Strategic Recommendations

The radar report identifies the key challenges the Traffic & Transport Industry and Service Providers sectors face. Conflicting objectives and policies, lack of stakeholder cooperation, and ambiguity in sustainable business models are identified as the biggest challenges. Navigating technical complexities, privacy concerns, and regulatory hurdles is crucial in effective ITS implementation.

Strategic recommendations include prioritising funding for deployment over research and development projects, collaboration with original equipment manufacturers (OEMs), and the establishment of standards for better alignment across the industry.

Access and read a full Intelligent Transport Systems (ITS) Market Radar report here.

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