Proving the Business Case for the Internet of Things

ITS public transport market in Europe to hit €1.5bn by 2019, says Berg

Steve Rogerson
August 4, 2015
The market value for intelligent transport systems (ITS) in public transport operations in Europe was €1.03bn in 2014 and, according to analyst Berg Insight, will grow at a compound annual rate of 7.2 per cent to reach €1.46bn by 2019.
The analyst believes the European market for ITS for public transport is in a growth phase which will continue throughout the forecasted period. The fluctuating economic climate has in most countries had limited effect on this market as the public investments which underpin a major part of the ITS initiatives have remained stable throughout the periods of crisis in most countries.
A group of international aftermarket providers have emerged as the leaders on the European market for public transport ITS. The dominant providers are Trapeze Group, Init and IVU, all having European headquarters in the German-speaking region and installed bases across a multitude of countries in Europe and beyond.
Examples of companies with major market shares on national markets in Europe include Ineo Systrans in France and Vix in the UK. Other significant players include the Spanish groups Indra, GMV and Grupo Etra, Swarco’s subsidiary Swarco Mizar in Italy, Atron in Germany, Italy-based PluService, the Norwegian provider Fara, and the Belgium-based company Prodata Mobility Systems. Volvo Group is a notable player from the vehicle OEM segment, offering the ITS4 mobility system in partnership with Consat Telematics in Europe.
“Similarly to adjacent telematics verticals, the European market for public transport ITS has in recent time seen a number of significant mergers and acquisitions,” said Rickard Andersson, senior analyst at Berg Insight.
He mentions as examples Prodata Mobility Systems acquired by Kapsch CarrierCom in July 2014 and Sabatier Geolocalisation’s acquisition of SPIE Sud-Est’s Silvie business in October in the same year. The leading ITS provider Trapeze Group has moreover acquired a large number of providers of complementing technology from 2012 to 2014. Berg Insight anticipates that this consolidation trend will continue in the upcoming years.
“Several players continue to have inorganic growth as a key strategy, so further M&As can be expected among telematics and ITS providers for public transport from 2015 to 2016,” said Andersson.
• According to a report from Markets & Markets, the Australian ITS market is forecast to grow at a CAGR of 14.4 per cent from 2015 to 2020 to reach $1.1bn.
A separate report from Market Research Reports sees the ITS market in North America growing at a CAGR of 6.5 per cent from 2014 to 2019.