Israel Intelligent Transport System Market (2025-2031) | Strategy, Consumer Insights, Analysis, Investment Trends, Opportunities, Growth, Size, Share, Industry, Revenue, Segments, Value, Segmentation, Supply, Forecast, Restraints, Outlook, Competition, Drivers, Trends, Demand, Pricing Analysis, Competitive, Strategic Insights, Companies, Challenges

Topics Covered in Israel Intelligent Transport System Market Report

The Israel Intelligent Transport System Market Report thoroughly covers the market by type, application, and offerings. The Israel Intelligent Transport System Market Outlook report provides an unbiased and detailed analysis of the ongoing Israel Intelligent Transport System Market trends, opportunities/high growth areas, and market drivers. This would help stakeholders devise and align their market strategies according to the current and future market dynamics.

Israel Intelligent Transport System Market Synopsis

The Israel intelligent transport system (ITS) Market witnessed growth between 2021 and 2024, supported by strong infrastructure spending and a thriving high-tech sector. Israel Railways secured investment in 2025 for doubling tracks and full electrification, ensuring uninterrupted progress despite fiscal cuts. The 2024 Coastal Railway, spanning in its first phase, was launched, capable of supporting trains at high speed, with completion expected by 2029. Alongside this, Israel maintained an active PPP pipeline with projects operational, some under construction, and under evaluation in 2024.

These projects cover highways, interchanges, and multimodal transport upgrades, reinforcing ITS adoption in traffic control, asset management, and safety-critical monitoring. Additionally, in 2017, Israel approved a five-year National Plan for Smart Transportation to support innovative mobility solutions alongside the Fuel Alternatives Plan. By 2021, it had announced a National Cyber Infrastructure Centre for Intelligent Transport Systems, and by 2022-23, the country hosted mobility start-ups with professionals in the smart mobility sector. On the technology side, Israel’s startup-driven ecosystem attracted funding in 2024 and record M&A activity, a YoY increase. Together, infrastructure projects and digital innovation cemented ITS as a key growth driver for Israel’s smart mobility agenda.

According to 6Wresearch, Israel intelligent transport system market is projected to grow at a CAGR of 9.9% in revenues during 2025–31F, fueled by mega-projects and digital integration. The Tel Aviv Metro, potential new airports, and expansion of electrified track by 2040 would underpin long-term demand. Passenger trips are forecast to triple from 2030 to 2040, requiring advanced ATMS, ATIS, and APTS solutions.

Policy initiatives such as the National AI Program (2024–2027), and the launch of the AVATAR Consortium (2019–2020), which focused on developing advanced autonomous vehicle technologies such as sensor fusion, perception, and real-time decision-making, would accelerate the integration of AI, predictive analytics, and cybersecurity into ITS platforms. Beyond 2025, rising R&D investment and Israel’s ranking for AI talent concentration would continue to support ITS innovation. Together, infrastructure expansion, technology leadership, and supportive policies would sustain ITS growth, strengthening Israel’s position as a regional hub for smart mobility and autonomous transport solutions.

Market Segmentation By Type

ATMS would have the maximum revenue size in 2031 as it forms the essential, large-scale hardware and software backbone for managing all other transport systems, integrating everything from traffic signals to autonomous vehicle corridors. Major national infrastructure projects prioritize these foundational network-wide control systems, making it the largest market segment.

However, APTS would have the fastest CAGR from 2025-2031 due to the direct and urgent need to optimize the massive new investments in rail and bus infrastructure, such as the Tel Aviv Metro and expanded light rail. The focus shifts from building hardware to maximizing its efficiency, passenger capacity, and operational intelligence through software-driven scheduling, real-time management, and Mobility-as-a-Service (MaaS) platforms, creating a surge in demand for these solutions.

Market Segmentation By Application

Roadways would hold the maximum revenue share in 2031 due to the extensive and ongoing deployment of IoT-enabled traffic management systems, smart corridor projects, V2X infrastructure, and the integration of autonomous vehicle technologies across Israel’s entire road network—serving both urban and intercity mobility needs.

Railways would experience the fastest CAGR from 2025 to 2031 owing to the massive injection of capital into rail electrification, doubling of track capacity, and the rollout of digitally integrated signaling and control systems under the railway expansion plan. This concentrated investment - including the Coastal Railway and Tel Aviv Metro would accelerate adoption of advanced monitoring, predictive maintenance, and passenger management solutions, driving rapid market expansion from a growing baseline.

Market Segmentation By Offering

Hardware would hold the maximum revenue share in 2031 because the scaling of autonomous vehicle (AV) corridors and the nationwide integration of ecosystems will necessitate a massive, dense deployment of next-generation LiDAR, edge computing devices, and dedicated short-range communication (DSRC) hardware. This builds upon and far exceeds the foundational 2024 infrastructure.

Software would experience the fastest CAGR from 2025 to 2031 as the value would shift from standalone systems to the AI-powered central nervous system that integrates and optimizes all transport modes. Growth would be fueled by the critical need for predictive traffic management, cybersecurity platforms for connected vehicles, and fleet orchestration software to maximize ROI on the massive new hardware and infrastructure investments, making software the key multiplier of efficiency.

Key Attractiveness of the Report

• 10 Years Market Numbers.
• Historical Data: Starting from 2021 to 2024
• Base Year: 2024
• Forecast Data until 2031
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• Israel Intelligent Transport System Market Overview
• Israel Intelligent Transport System Market Outlook
• Israel Intelligent Transport System Market Forecast
• Historical Data and Forecast of Israel Intelligent Transport System Market Revenues for the Period 2021-2031F
• Historical Data and Forecast of Israel Intelligent Transport System Market Revenues, By Type, for the Period 2021-2031F
• Historical Data and Forecast of Israel Intelligent Transport System Market Revenues, By Application, for the Period 2021-2031F
• Historical Data and Forecast of Israel Intelligent Transport System Market Revenues, By Offering, for the Period 2021-2031F
• Israel Intelligent Transport System Market Drivers and Restraints
• Industry Life Cycle
• Porter’s Five Force Analysis
• Israel Intelligent Transport System Market Trends & Evolution
• Market Opportunity Assessment
• Israel Intelligent Transport System Market Revenue Ranking, By Top 3 Companies
• Competitive Benchmarking
• Company Profiles
• Key Strategic Recommendations

Market Scope and Segmentation

The report provides a detailed analysis of the following market segments:

By Type

• Advanced Traffic Management Systems (ATMS)
• Advanced Traveler Information Systems (ATIS)
• Advanced Transportation Pricing Systems (APTS)
• Advanced Public Transportation Systems (APTS)
• Others

By Application

• Roadways (Includes Intelligent Traffic Control, Fleet Management, Parking Management, others)
• Railways (Includes Rail-Running Operation and Collision Avoidance, Passenger Information Management, others)
• Aviation (Includes Security & Surveillance, Shuttle Bus Tracking, Traveler Information Management, others)
• Maritime (Includes Freight Arrival & Transit, Real-Time Weather Information Tracking, others)

By Offering

• Hardware
• Software
• Services