Middle East Intelligent Transportation Systems (ITS) Market Analysis Report By Type, By Application And Segment Forecasts From 2018 To 2025

Industry Insights

The Middle East intelligent transportation systems (ITS) market size was worth USD 2.82 billion in the year 2017 and is expected to grow at a CAGR of 11.6% from 2018 to 2025. The need to provide timely traffic information alerts to passengers and drivers is amongst the major factors stimulating market growth.

Fluctuations in the prices of crude oil and petroleum had little effect on investment flow in the transportation and mobility sector in this region. Major countries in the region like the United Arab Emirates (U.A.E.) and the Kingdom of Saudi Arabia in transforming mobility have huge monetary reserves to support these projects.

The region is a hub for numerous big and metropolitan cities, where there is significant growth in population. In this situation, there can be foreseeable issues relating to mobility in the offing. Constant government efforts for better infrastructure and public transport to fulfill the urban transportation issues are boosting the market.

Intelligent transportation systems are an important solutions to safety and traffic challenges. These are the integration of information and communication technology equipped into transportation infrastructure to provide better passenger safety and efficiency. Innovations in communication and information technology are expected to positively affect the Middle EastITSmarket growth.

The forthcoming events in the region like the FIFA World Cup in Qatar and Expo 2020 in Dubai are anticipated to drive the demand for efficient transportation mechanisms, thus, stimulating the market. The pioneering project ‘Vision 2030’ introduced by the Kingdom of Saudi Arabia has defined arrangements for better mobility in the nation, focusing on intelligent transportation systems in executed and planned projects. The country has further planned an outline of connecting intercity railways with buses and metros with the support of intelligent transportation solutions.

Application Insights

Automotive telematics was worth USD 301.2 million in 2017 and is expected to register a CAGR of 13.8% from 2018 to 2025. The growing stringent regulations regarding the security and safety of passengers and vehicles along with pedestrians are positively impacting the segment growth. Constant growth in connectivity between vehicle to everything (V2X) and vehicle to vehicle (V2V) is driving the efficient deployment of ITS.

Traffic management systems are expected to grow as a lucrative segment throughout the projected period. There is a rapid growth in the population in the region due to enticing opportunities in nations like Kuwait, Saudi Arabia, United Arab Emirates, and Oman. The increased population has led to a growth in passenger cars on roads, even with better public transportation. This is stimulating situations like traffic congestion, finally leading to higher pollution and the demand for efficient traffic management systems.

System Type Insights

APTS is expected to register a CAGR of 13.8% over the forecast duration. It offers better visibility into the time schedule of trains and buses. The increasing number of passengers taking public transports and growing investments in timely information systems are expected to support the segment growth.

ATMs offers traffic management solutions that ensure better road safety, enhanced mobility, and traffic flow. These solutions enable real-time data to respond to emergencies quickly. Countries, in this region, are altering their traffic management infrastructure to lower traffic congestion.

Regional Insights

The Kingdom of Saudi Arabia is likely to grow at the highest CAGR of 12.2% from 2018 to 2025. The country has planned large-scale innovative projects across its driver cities coupled with religious cities like Medina and Mecca. The ‘Vision 2030’ has allowed the realization of several infrastructure outlines including railways, airways, and roadways development. Saudi Arabia has invested billions of dollars in these projects and has planned to combine intercity local transport services, which is expected to drive ITS in the Middle East.

The U.A.E. has been focusing to provide better transportation systems since 2007 with a front-runner project of AutomaticTolling Systems (ATS) inroads in Dubai. Apart from this, the city has also deployed other intelligent systems like traffic management systems and is preparing to augment the number of projects to provide better transportation. Abu Dhabi, the capital city, has further installed several ITS to monitor traffic efficiently.

Middle East Intelligent Transportation Systems Market Share Insights

The key players include Hitachi Ltd., Siemens AG, and KapschTrafficCom. The market is competitive in nature due to the diversified consumer base and an expanded range of upgraded technology products deployed in transportation management. Some other popular players in the industry include Efkon Ag, Lanner Electronics, Garmin International, and Denso Corporation.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the Middle East intelligent transportation system market report on the basis of type, application, and region:

• Type Outlook (Revenue, USD Million, 2015 - 2025)
    • ATIS
    • ATMS
    • ATPS
    • APTS
    • EMS

• Application Outlook (Revenue, USD Million, 2015 - 2025)
    • Traffic Management
    • Road Safety and Security
    • Freight Management (Commercial)
    • Public Transport
    • Environment Protection
    • Automotive Telematics
    • Parking Management
    • Road Tolling Systems

• Regional Outlook (Revenue, USD Million; 2015 - 2025)
    • United Arab Emirates (UAE)
    • Saudi Arabia
    • Rest of Middle East