Report: Intelligent transportation spending to rise sharply

State and local government spending on emerging technologies associated with intelligent transportation systems will elevate the market opportunity substantially over the next five years, according to a report released today.

Input Inc., a Reston, Va., market research firm, reported that state and local spending on intelligent transportation system technologies would increase from $1.8 billion in 2004 to $2.5 billion in 2009.

The state and local transportation IT market will grow conservatively between fiscal 2005 and 2006 but then will accelerate sharply, growing at a compound annual growth rate of 8 percent through fiscal 2009, Input said.

Despite early market dominance by small, specialized companies, Input projects that large contractors with the resources to compete for large systems integration contracts and intelligent communications systems will be well positioned to capitalize on the growing market.

Spending will center on dedicated short-range communications, which support applications for so-called smart-highway initiatives such as real-time traffic and weather updates, comprehensive automobile tracking and universal electronic toll collection.

Used today primarily for automated toll collection, dedicated short-range communications is a combination of wireless and radio frequency identification technologies that support a wide range of roadside-to-vehicle and vehicle-to-vehicle public safety applications.

The market opportunity also will be driven by homeland security initiatives for logistical management and tracking and control.

Following relatively flat growth over the last couple of years, the market has rebounded with considerable growth in all categories, said James Krouse, manager of Input's state and local market analysis.

"A steady influx of federal funding, driven by the need to address our nation's crowded highways, will ensure that the market has a continual infusion of capital to help drive key initiatives across state and local jurisdictions," he said.

To download a summary of the report, go to http://statetransportation.input.com.

About the Author

William Welsh is a freelance writer covering IT and defense technology.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

I agree to this site's Privacy Policy.