For Immediate Release
August 10, 2011
Report Indicates Intelligent Transportation Industry Has Grown to $48 Billion in Spite of Economy, Projected to Expand Through 2015
Washington, D.C. -- The Intelligent Transportation Society of America (ITS America) today released the most comprehensive study to date on the scope of the intelligent transportation systems (ITS) industry in the United States and North America. Researchers found intelligent transportation to be a fast growing sector valued at approximately $48 billion, slightly larger than the direct mail industry. Results indicate that cities and states with drastically reduced budgets are turning to technology solutions to maximize existing highway capacity.
The federally commissioned report developed by ITS America and IHS Global Insight, suggests the ITS technology sector will outpace other industries in job creation and revenue growth through at least 2015. It further indicates that jobs within this sector pay approximately 75 percent more than the national average wage.
“In the current economic environment, we can’t afford to build our way out of the traffic congestion crisis,” said Scott Belcher, President and CEO of ITS America. “This report validates what we have known for some time – that the transportation technology industry is healthy, growing, and supports high-paying jobs across the country, even in tough economic times. This is a sector where the U.S. is poised to lead the way in innovation.”
Intelligent transportation includes information and communications technologies that lower driving costs, reduce traffic congestion, improve road and vehicle safety, or are otherwise applied to transportation to improve safety, mobility and the environment. A few examples include advanced traffic and incident management systems, electronic tolling and payment systems, vehicle crash avoidance technologies, smart traffic signals, and real-time traffic, transit, and parking information.
Researchers discovered almost 3,000 companies in more than 40,000 locations actively participating in some aspect of the intelligent transportation industry, from small start-ups that promote car-sharing to large corporations that supply state-of-the-art traffic management services to local governments.
Among the key findings in the report:
• The economic impact of the ITS industry is very significant. Researchers estimate an end-use ITS market of $48 billion. U.S. ITS market revenues exceed those for electronic computers, motion picture and video products, direct mail advertising, or internet advertising.
• The ITS industry is growing. The report model anticipates continuing expansion. From 2009 through 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.
• ITS employment impacts every state in the U.S. The report estimates the industry to have 180,000 U.S. end-use private sector jobs, with 445,000 total jobs in the value chain in 2009, corresponding to 0.3 percent of the 138 million jobs in the U.S.
• The employment outlook is positive and better than for the economy overall. The U.S. ITS end-use market will add between 3,600 to 6,400 jobs each year through 2015, when private sector end-use market ITS employment is projected to reach more than 205,000.
• ITS jobs pay well. Based on survey responses, average ITS salaries are well above the national average by more than 75%, with the lowest paid earning more than 8% above the national average wage. Three occupations (software developer, hardware developer, and other engineering) account for 32 percent of the ITS jobs.
The report also includes a state-by-state breakdown of employment totals. The report is available on the ITS America website.
About the Intelligent Transportation Society of America
ITS America was established in 1991 as a not-for-profit organization to foster the use of advanced technologies across America’s surface transportation system. As the leading advocate for transportation technology development and deployment in the United States, ITS America has several hundred member organizations including private companies and industry leaders, government agencies at all levels, universities and research laboratories. For more information, visit www.itsa.org .
About IHS Global Insight
IHS Global Insight (www.ihsglobalinsight.com), an IHS company, provides the most comprehensive economic and financial information available on countries, regions and industries, using a unique combination of expertise, models, data and software within a common analytical framework to support planning and decision-making. IHS (NYSE: IHS) is the leading source of information and insight in critical areas that shape today’s business landscape, including energy and power; design and supply chain; defense, risk and security; environmental, health and safety (EHS) and sustainability; country and industry forecasting; and commodities, pricing and cost. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,100 people in more than 30 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2011 IHS Inc. All rights reserved.