ITS in 2026 – From Pilots to Platforms

Intelligent Transportation Systems (ITS) encompass the use of information technology (IT) to enhance safety, mobility, and environmental sustainability across transportation and its infrastructure.

At the state and local level, ITS initiatives were almost exclusively explored through individual pilot projects for many years. Agencies tested new technologies, ran demonstrations, and evaluated what worked. That phase is mostly behind us.

ITS is no longer perceived as purely experimental. It is becoming part of the core infrastructure that state and city agencies use daily. Instead of testing standalone tools, transportation departments are developing long-term projects that support network-wide operations.

This shift has occurred over much of the last decade and became much more noticeable in the past 5 years. The question is no longer whether ITS solutions deliver value. It is how to deploy them in a way that holds up at scale.

You can see this clearly in recent procurements. While pilots continue to be used, agencies are thinking less about a single deployment and contract. Procurement buyers and industry leaders now have a more complete understanding of the way systems connect, how they are maintained over time, and how they support better decision-making. Integration, interoperability, and lifecycle support are a bigger focal point moving forward.

Why the Shift Happened

This transition was not driven by hype. It was driven by real-world experience.

Agencies ran into a myriad of challenges with early pilot programs. Many of those systems were not built to last. They lacked proper integration capabilities with other pre-existing technologies and needed more resources than expected. After initial funding ran out, continuing the initiative was often too costly or too complicated.

Over time, government reviews and internal evaluations kept pointing to the same issue. Isolated pilots created more problems than they solved if they could not be scaled or supported over time.

Eventually, agencies started to adjust. ITS investments have become more in tune with capital planning and day-to-day operations. Federal guidance also evolved, emphasizing decision support, predictive analytics, and integrated traffic management systems rather than standalone demonstrations.

Since the start of this decade, most large agencies have been operating with a platform mindset, looking for systems that can grow, adapt, and stay relevant beyond a single funding cycle.

Traffic Signal Systems and Adaptive Control

Adaptive signal control is becoming a standard tool for many leading transportation agencies. These agencies are combatting traffic incidents and improving road conditions by implementing these continually evolving technologies. Instead of relying on fixed signal timing, modern systems actively respond to real-time metrics that decrease delays and increase consistency in ways that static plans simply cannot match.

Today, some agencies are already using predictive features and AI-assisted optimization. These systems are rarely fully autonomous; a typical deployment enhances traditional algorithms with incremental machine learning. The emphasis is always on reliability first, while also ensuring sufficient flexibility to evolve as data and technology improve.

For decades, agencies relied on inductive loops or standard video cameras to detect cars. In 2026, Infrastructure-based LiDAR is improving these legacy systems. LiDAR provides high-resolution 3D "point clouds" that track every movement with precision, regardless of rain, snow, or total darkness.

Practical results are already emerging and traffic corridors with adaptive signals report smoother flow and improved travel times. Measured AI integration is demonstrating that right now, it can complement proven control strategies rather than replace them.

See Tracked Opportunity: Traffic Signals Central Management Software

Advanced Traffic Management Systems (ATMS)/Traffic Management Centers (TMC)

Traffic management centers (TMCs) have already transformed into more proactive, analytics-driven developments. Modern TMCs are designed as operational environments rather than fixed rooms.

Agencies are adding predictive tools (like AI signal systems and V2X technology) to anticipate issues instead of approaching problems reactively. This includes forecasting congestion, dynamic rerouting, and more effective coordination during major incidents.

As part of this change, many states and localities are attempting to adopt Digital Twin Technology. These “twins” are virtual replicas of a road network made by integrating real-time data from LiDAR and network vehicles.

Across the board, there is growing demand for tools that support decision-making, not just tools that display information.

See Tracked Opportunity: Advanced Traffic Management System (ATMS) Maintenance and Enhancements.

Vehicle-to-Everything (V2X) Communication

Vehicle-to-Everything (V2X) technologies are gaining real traction in the SLED government landscape.

These systems allow vehicles, infrastructure, and other road users to communicate in real-time. While adoption varies, agencies are moving forward with practical applications that provide proven and clear benefits today.

Common use cases include giving priority to transit and emergency vehicles, improving safety in work zones, and reducing risk at high incident intersections. Even without full vehicle adoption, the value on the infrastructure side has become easier to justify.

See Tracked Opportunity: Connected Vehicle Solutions and Technology

Data Platforms, Cloud, and Edge Computing

Agencies are buying much more than just field equipment. They are investing in the systems that process and manage all that data. Increasingly, that means architecture that combines cloud and edge computing.

Edge processing handles time-sensitive tasks like signal control, where low latency matters. Cloud environments support broader analytics, planning, and system-wide insights.

At this point, this kind of architecture is becoming a baseline expectation rather than an added feature.

See Tracked Opportunity: Road Data Collection and Business Intelligence Solutions

Sustainability and EV Integration

Sustainability is appearing more consistently in ITS and its related endeavors, particularly in our biggest cities and their transit systems.

Technology is improving by integrating EV charging infrastructure, supporting fleet electrification, and tracking vehicle emissions.

It may not be the primary funding driver behind a requirement, but agencies are increasingly using ITS data to support climate goals, justify spending, and boost performance.

See Tracked Opportunity: Statewide Electric Vehicle (EV) Charging Solutions

Why This Matters to GovWin Users

For GovWin users, this shift changes how ITS opportunities should be viewed.

What may look like a single procurement is often just the starting point for a much larger, multi-year effort. A signal upgrade or system refresh can indicate a broader modernization program ahead.

Agencies are also bundling technologies more than they used to. Instead of separate procurements, signal systems, vehicle communication components, analytics tools, and data platforms may be grouped together or released in close sequence.

Finally, written requirements now focus less on specific products and provide more emphasis on capabilities such as interoperability, scalability, and cybersecurity.

For anyone looking to work in this space, the takeaway is clear. The earlier these programs are identified through planning documents, RFIs, or pre-RFP activity, the better positioned you will be to compete not just for the initial contract, but for the work that follows.

GovWin resources help users identify these initiatives early and stay current throughout the procurement lifecycle through tracked opportunities, leads, bid alerts, and contract data.

Additional Resources:

https://ops.fhwa.dot.gov/publications/fhwahop18014/exsumm.htm

https://highways.dot.gov/sites/fhwa.dot.gov/files/FHWA-HRT-21-108.pdf

https://rosap.ntl.bts.gov/view/dot/74275

https://www.itskrs.its.dot.gov/v2x