US Smart Transportation Boosted by Nationwide ITS Deployment and Transit Fare Tech Adoption

Published: Jan 2026

US smart transportation market was valued at $2.15 billion in 2025 and is projected to reach $4.8 billion by 2035, growing at a CAGR of 8.6% during the forecast period (2026–2035). The acceleration of smart transportation in the US is increasingly driven by the deployment of Intelligent Transportation Systems (ITS) technologies across roadways and transit networks. Official data from the 2023 ITS Deployment Tracking Survey shows that transportation agencies are expanding the use of digital and connected systems that directly impact traffic management, traveler information, and fare payment operations nationwide. This systematic expansion is enhancing operational capabilities, improving commuter experience and safety, and laying the groundwork for broader multimodal integration across rail, road, and transit services. The shift toward data?enabled infrastructure signifies a tangible move away from legacy operations and reinforces the importance of connected systems in modern transportation planning.

Browse the full report description of “US Smart Transportation Market Size, Share & Trends Analysis Report by Transportation Mode (Railways, Airways, Roadways, and Maritime) and by Application (Ticketing Management System, Parking Management System, Traffic Management System, and Others), Forecast Period (2026-2035)” at https://www.omrglobal.com/industry-reports/us-smart-transportation-market

Official deployment data reveal a growing presence of ITS technologies in both arterial and transit management contexts. Among State Department of Transportation districts managing arterial roadways, 23% operate more than 500 traffic signalized intersections, reflecting widespread ITS backbone for traffic control and traveler data collection. In transit systems, 195 agencies reported the adoption of electronic fare payment (EFP) systems, where 35% of agencies use both stored value/card?based and account?based systems, and 45% use closed payment architectures, indicating strong movement toward digital ticketing and integrated fare media in surface transport. These figures illustrate broad ITS deployment to support smart transportation functions that reduce friction for users while enhancing system performance.

AI and Smart Systems Drive US Transportation Modernisation

  • After proving its technology in Florida with more than 400 installations, GovComm expanded its wrong-way vehicle detection system across the US following its acquisition by Synapse ITS in June 2025. The GovComm solution, one of six systems approved by the Florida Department of Transportation, uses AI and bi-spectral cameras to reduce false alerts and confirm incidents in real time, with the expansion aimed at improving roadway safety and lowering wrong-way crash fatalities nationwide.
  • In August 2025, Rekor Systems presented its latest AI-driven roadway intelligence technologies at the ITS World Congress in Atlanta. These next-generation applications, including plans for statewide deployments, enhance how transport agencies collect, fuse, and use real-time data to optimise traffic management and infrastructure planning.
  • In September 2024, Cubic Transportation Systems introduced Umo ScanRide, a fare payment platform that enables account-based fare collection without the need for new onboard hardware, using smartphone and QR code technology to let riders scan and pay fares inside vehicles.

Market Coverage

  • The market number available for – 2025-2035
  • Base year- 2025
  • Forecast period- 2026-2035
  • Segment Covered-
    • Transportation Mode
    • Application
  • Competitive Landscape – Cisco Systems, Inc., Cubic Corp., ECONOLITE Group, Inc., Iteris, Inc., Siemens AG, among others.

Key questions addressed by the report.

  • What is the market growth rate?
  • Which segment and region dominate the market in the base year?
  • Which segment and region will project the fastest growth in the market?
  • Who is the leader in the market?
  • How are players addressing challenges to sustain growth?
  • Where is the investment opportunity?

US Smart Transportation Market Report Segment

By Transportation Mode

  • Railways
  • Airways
  • Roadways
  • Maritime

By Application

  • Ticketing Management System
  • Parking Management System
  • Traffic Management System
  • Others

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