European investment in Intelligent Transport System (ITS) is set to grow at a CAGR of 15 per cent helped by passenger-centric smartphone apps, according to new market research from Berg Insight.
Berg reported that the market value for ITS deployed in public transport operations in Europe was €760 million in 2011, and expects this to reach €1.5 billion by 2016. Of note, Berg Insight said that the economic upheaval in Europe will have little impact on this growth with ITS investment remaining unaffected by the financial crisis.
Rickard Andersson, a telecom analyst with Berg Insight, said that smartphone integration into public transport ITS was becoming noteworthy, given the ability for them to provide travellers with timely updates, real-time tracking information and also enabling business performance overviews for transport operators.
Berg Insight reported that ITS systems, if implemented correctly, can put public transport on a par with private transportation modes in terms of travelling times and flexibility.
"The public transport ITS market in Europe is favoured by several concurrent developments, including the International Association of Public Transport's sought-after doubling of the public transport ridership, the European Bus System of the Future EU project, and generally higher expectations among travellers," Anderson said in a statement, adding, "Travellers increasingly expect real-time information also from smaller operators with low propensity to invest in ITS."
For more:
- see this Berg Insight release
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