United States Intelligent Traffic Management System Market Size, Share, By Components (Hardware, Software, and Services), By Application (Urban Traffic Management, Highway Traffic Management, Public Transport Management, and Emergency Vehicle Management), United States Intelligent Traffic Management System Market Insights, Industry Trend, Forecasts to 2035

United States Intelligent Traffic Management System Market Size Insights Forecasts to 2035

• United States Intelligent Traffic Management System Market Size 2024: USD 3.52 Bn
• United States Intelligent Traffic Management System Market Size 2035:  USD 16.85 Bn
• United States Intelligent Traffic Management System Market CAGR 2024: 15.3%
• United States Intelligent Traffic Management System Market Segments: Components and Application

The United States Intelligent Traffic Management System Market Size (ITMS) is an innovative system that utilizes Internet of Things (IoT) sensors, artificial intelligence (AI), data analytics, and connected devices to monitor, command, and manage the traffic flow over the urban and highway networks of the United States, thereby decreasing accidents, eliminating gridlocks, and making transport much more efficient.

The United States Department of Transportation’s SMART (Strengthening Mobility and Revolutionizing Transportation) Grants Program provides approximately USD 100 million annually under the Infrastructure Investment and Jobs Act (IIJA) to support advanced traffic technologies, including intelligent transportation systems. These funds are directed toward scalable implementations that enhance mobility, safety, and efficiency while strengthening traffic data and analytics capabilities nationwide.

The federal government, through DOT´s Federal Highway Administration (FHWA), has been running the Intelligent Transportation Systems (ITS) Program as part of the Fixing America’s Surface Transportation (FAST) Act (HART Program). This national program funds research, development, and operational testing of these technologies to reduce traffic congestion, improve safety, enhance transit efficiency, and control environmental impacts in the U.S. surface transportation network.

The future of the United States Intelligent Traffic Management System Market Size lies within the realms of AI-powered traffic optimization, connected vehicles, smart cities, predictive congestion management, and green mobility solutions, which will inevitably lead to an increase in safety, efficiency, and environmental gains.

Market Dynamics of the United States Intelligent Traffic Management System Market:

The United States Intelligent Traffic Management System Market Size is driven by the combination of more people moving to cities, thus creating more traffic jams, the necessity of up-to-date smart city infrastructure, and the developments in the fields of IoT, AI, and vehicle connectivity. Moreover, government regulations implementing intelligent transportation systems through initiatives such as the FAST Act and SMART Grants are also a contributing factor.

The United States Intelligent Traffic Management System Market Size is restrained by the very high costs of setup and maintenance, difficulty in integrating it with the pre-existing infrastructure, and people's concerns about their data being misused.

The future of the United States Intelligent Traffic Management System Market Size is bright and promising, with the uptake of AI-powered traffic solutions, the integration of connected vehicles, the expansion of smart cities, and the use of predictive analytics, all factors that enable urban mobility to be safer, more efficient, and sustainable.

Market Segmentation

The United States Intelligent Traffic Management System Market share is classified into components and applications.

By Components:

The United States Intelligent Traffic Management System Market Size is divided by components into hardware, software, and services. Among these, the hardware segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The hardware segment is leading the market because real-time monitoring and control require physical devices such as sensors, cameras, and traffic signals, which are not only very costly but also need to be deployed extensively in cities and highways.

By Applications:

The United States Intelligent Traffic Management System Market Size is divided by applications into urban traffic management, highway traffic management, public transport management, and emergency vehicle management. Among these, the urban traffic management segment accounted for the largest market share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The urban traffic management segment is mainly dominating as the continuous and large demand in the market is coming from the cities due to factors like dense city traffic, rising congestion, and smart city projects requiring advanced monitoring, adaptive signals, and real-time optimization ahead of other applications.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the United States Intelligent Traffic Management System Market Size, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

Top Key Companies in United States Intelligent Traffic Management System Market:

• Cubic Corporation
• TransCore
• Iteris, Inc.
• Econolite Group, Inc.
• Cisco Systems, Inc.
• IBM Corporation
• Conduent Incorporated
• Parsons Corporation
• Teledyne Technologies Inc.
• Others

Recent Developments in United States Intelligent Traffic Management System Market:

• In November 2025, the partnership between Aeva and D2 Traffic Technologies aimed at the creation of LiDAR-based full-stack ITS solutions for intersections and urban corridors, which would improve the traffic sensing, perception and analytics for roads that are safer and more efficient.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United States Intelligent Traffic Management System Market Size based on the below-mentioned segments:

United States Intelligent Traffic Management System Market, By Components

• Hardware
• Software
• Services

United States Intelligent Traffic Management System Market, By Application

• Urban Traffic Management
• Highway Traffic Management
• Public Transport Management
• Emergency Vehicle Management