Assessment: The U.S. Intelligent Transportation Systems Market
Revenues of Service, Opportunities and Challenges, January 2013
The ideas and data in the report offer unique insight into the ITS industry, surveying ITS individuals with domain expertise in the primary ITS key focus areas. It also provides an acute analysis of the technical trends, opportunities for growth and challenges the industry is facing.
Following up on the results from the previous study in 2011, ITS America’s, “Sizing the U.S. and North American Intelligent Transportation System Market: Market Data Study of ITS Revenues and Employment.” This new report offers a detailed breakdown of the granular market data that has been desired by the ITS professional community.
In order to view or learn more about this report
USDOT Launches Geographical View of National ITS Deployment The USDOT is launching the first-ever ITS Asset Viewer at the Intelligent Transportation Society of America (ITS America) Annual Meeting and Exposition. The ITS Asset Viewer visually displays the location of ITS deployments nationwide, providing a geographic picture of the status of ITS deployment.
- Please click here to access the ITS Asset Viewer.
Report: The Market for Intelligent Transportation Systems in the U.S. and North America
The Intelligent Transportation Society of America (ITS America) has completed a two-phase study, commissioned by the U.S. Department of Transportation Research and Innovative Technology Administration (RITA), to develop accurate and comprehensive estimates of the breadth and size of the U.S. and North American Intelligent Transportation Systems (ITS) markets. Prior to this study, the ITS industry, and particularly the private sector portion, had never been extensively characterized.
The study concludes that, in addition to the $48 billion U.S. ITS end-use products and services market, the rest of North America (Canada and Mexico) contributes another $4 billion in ITS revenues, for a total North American ITS end-use product and services market of $52 billion.
The study further highlights the impact of ITS private sector employment on every state in the U.S. and small business’ significant role in the ITS industry, with 73 percent of U.S. ITS revenues attributable to companies with fewer than 500 employees.
The report offers the following observations about the U.S. and North American ITS industry size and outlook:
- The economic impact of the ITS industry is significant. Modelers estimate an end-use ITS market of $48 billion. The rest of North America contributes an additional $4 billion in revenue. U.S. ITS market revenues exceed those for electronic computers, motion picture and video products, direct mail advertising, or internet advertising.
- The outlook for the ITS industry is positive. The model anticipates continuing expansion and a projected CY 2015 total U.S. private sector ITS market of $67 billion and an additional $6 billion for the rest of North America. From CY 2009 through CY 2015, U.S. private sector revenues are expected to climb between $2.7 billion to $4.2 billion each year, with ITS revenue growth exceeding average growth for the U.S. and North America.
The report offers the following observations about the U.S. employment and small business impacts:
ITS employment impacts every state in the U.S.
For CY 2009, the econometric model estimates that 445,000 jobs in the U.S. are ITS-related.
The U.S. end-use market contributes almost 180,000 private sector jobs (40 percent) to this total and the rest of North America an additional 20,000.
The ITS end-use market contributes more jobs to the U.S. economy than the motion picture/video production or electronic computer markets.
ITS jobs pay well. Based on survey responses, average ITS salaries are well above the national average by more than $32,000. Even the lowest paid occupational category of ITS employees earns more than 8 percent above the national average wage. More than half of the U.S. ITS jobs categorized by occupation had associated salaries of $69,000 or more. Three occupations (software developer, hardware developer, and other engineering) account for 32 percent of the ITS jobs.
- The employment outlook for the U.S. and North American ITS industry is positive and better than for the economy overall.
- By CY 2015, North American end-use ITS employment is projected to Increase by 16 percent over CY 2009 levels and to contribute more than 231,000 jobs. During the same period, U.S. private sector end-use employment is projected to Increase 14 percent.
- For the U.S. end-use market, the model projects job gains of 0.7 percent in CY 2010 and 2 percent in CY 2011, with steadier growth of 3,600 to 6,400 jobs each year through CY 2015, when private sector end-use market ITS employment is projected to reach more than 205,000.
- ITS companies responding to the survey were more optimistic than model projections. These specific companies reported domestic ITS-related employment Increases of almost 15 percent from CY 2008 to CY 2009 and an expected, additional job Increase of more than 13 percent in CY 2010.
- By CY 2015, the ITS value chain (including enabling services and components as well as end-use products and services) is projected to contribute 500,000 U.S. jobs and an additional 64,000 in the rest of North America.
- Small businesses play a significant role in the ITS industry.
- According to the model, 73 percent of U.S. ITS revenues are attributable to companies with fewer than 500 employees.
- Ninety-seven percent of the companies responding to the survey that were predominantly focused on ITS and reported employment had fewer than 500 employees.
- The report offers the following observations about technology and innovation:
- There is tremendous variety in ITS products. The MDA survey and firmographics research confirm that at least 3,000 companies produce ITS products and services for the U.S. market; these companies in the ITS value chain span 86 NAICS industry sub-categories.
- Patent statistics and survey data point to continued ITS industry growth and innovation. Small and large companies alike apply for and are granted patents. From CY 2007 to CY 2008, when overall U.S. patent applications were static, ITS-related patents grew 17 percent.
Report download and other related readings:
- Press Release–Report Indicates ITS Has Grown to $48 Billion in Spite of Economy, Projected to Expand Through 2015
Contact for ITS America's Market Research
For other ITS America Research projects, see the Technology Scan and Assessment 2009-2014.