Press Release

Intelligent Transportation Association Announces Study on Intelligent Transportation Systems Market

02/14/97

Intelligent Transportation Society of America, Electronic Industries
Association Say Market for Intelligent Transportation Systems Expands


ARLINGTON, Va., Feb. 11 -- The market for intelligent
transportation systems is expanding rapidly according to a study
released today by the Intelligent Transportation Society of America
(ITS America) and the Electronic Industries Association (EIA).
Estimates indicate that by 2015, the market will be about $75 billion
in the public sector and $350 billion in the private sector.

The assessment was presented at a two-day conference here which
included transportation officials, industry analysts, business
executives and congressional representatives.

The study focused on government, consumer and commercial market size,
trends, drivers, technologies and opportunities for all surface
transportation modes.

ITS technologies include electronic and communication systems aimed at
easing traffic congestion, reducing driving hazards and expediting the
movement of freight.  In opening the conference, ITS America President
James Costantino said that "ITS represents the best means for solving
many of our more pressing transportation needs and making travel safer
and easier for all Americans."

Government Market

The government market forecast included traffic management systems,
travel information systems, transit management systems, emergency and
incident systems, and fare electronic payment systems. The study said
the process of transferring payments from the federal government to
the state and local level was of critical importance to all government
investment. However, the actual amount of dollars that should be
deferred to state and local authority has not been determined.

Government investment in ITS, the study said, will continue as the
long-term problems associated with the national transportation
infrastructure become more critical. Assessments of these areas and
issues will be directed through the Federal Highway Administration
(FHWA) and other interested agencies.

Legislation directing federal ITS funding, the Intermodal Surface
Transportation Efficiency Act (ISTEA) is scheduled to be reauthorized
this year.

Commercial Market

In the commercial area, the study found that there is a large market
for ITS related products as there are real competitive advantages to
reducing transportation costs.  The market for freight mobility and
fleet management is about $50 billion over the next 20 years and
investment in infrastructure is about $1 billion. Rapid deployment for
this market is envisioned because of the cost savings associated with
these investments.

The commercial market assessment covered Commercial Vehicle Electronic
Clearance, Commercial Vehicle Administrative Processes and Freight
Mobility, among others. The ability to improve processes, streamline
activities and make enforcement more efficient using electronics and
automation will change surface transportation commerce, the study
said.

The largest current project is the FHWA's Commercial Vehicle
Information Systems and Networks (CVISN), an information network
facilitating the sharing of information among fleet operators, modal
transfer points, regulators and drivers. This network minimizes
paperwork, the number of time vehicles must stop and the length of
those stops when they occur. While several prototype programs are in
place across the country, individual states are looking to implement
programs now and are weighing the need to assess test results against
moving forward and realizing actual improvements and savings.

Actual costs savings can be attributed to improving the commercial
transportation infrastructure and will translate into long-term public
gains as savings are reinvested or passed on to the consumer.

Consumer Market

An entirely new market for ITS products and services has been created
as the consumer focuses on the benefits associated with in-vehicle
systems. The consumer market assessment addressed the probability of
spending on ITS and focused on the consumer's decision making process.
The team found that the rapid changes in ITS technology make for a
smaller, more powerful and faster market.  Consumer awareness of these
products and the benefits to their daily life impact demand.

Consumers focus on safety as their number one concern.  The consumer
is beginning to perceive the benefits of ITS in reducing accidents and
insurance costs, for convenience, and for security. Traveler
information, safety and security products (such as night vision), and
convenience through in-vehicle navigation systems represents the
potential for a lot of consumer spending.  In reality, however, the
rapid technology changes and the transition from technology to product
application demonstrates that full consumer buy-in to ITS will be an
ongoing process.

The potential market in this area encompasses the 140 million
registered vehicles. Current products, such as pagers and car phones,
are bridging the technology gap between consumer interest and full ITS
integration, transitioning expenditures into a larger future market.

Summary

The market for ITS represents a confluence of factors driven by
consumer wants and the need to address congestion and safety concerns
for surface transportation nationally. Federal, state and local
governments, the transportation industry as well as the end consumer
recognize the need to work together to solve these problems. "There is
a growing awareness that public-private partnerships are essential to
developing and applying advanced technologies to surface
transportation needs," said Matt Hardison, vice president of Apogee
Research which provided some of the forecast information on market
size. While there is a select subset of large cities and large
corporations with leading-edge ITS programs, much of this is being
translated to other applications. All areas are benefiting from the
lessons learned.

For more information on the market forecast or to obtain a copy of the
results, contact Margo Anderson of EIA at 703-907-7570.

ITS America represents more than 1,000 public and private sector
organizations and is a federal advisory committee to the
U.S. Department of Transportation. The Electronic Industries
Association is the national trade organization representing more than
1,300 U.S. electronics manufacturers. SOURCE Intelligent
Transportation Society of America

/CONTACT: Kelly Curtis of the Electronic Industries Association,
703-907-7572; or Bridget Serchak of the Intelligent Transportation
Society of America, 202-484-2909/ CO: Intelligent Transportation
Society of America; Electronic Industries Association ST: Virginia