Current transportation systems face great challenges due to the increasing mobility. Traffic accidents, congestion, air pollution, etc., are all calling for new methods to improve the transportation system. With the US legislation in progress over vehicle communications and EU’s finalization of the basic set of standards over cooperative intelligent transportation systems (C-ITS), vehicular ad hoc network (VANET) based applications are expected to address those challenges and provide solutions for a safer, more efficient and sustainable future intelligent transportation systems (ITS). In this chapter, transportation challenges are firstly summarized in respect of safety, efficiency, environmental threat, etc. A brief introduction of the VANET is discussed along with state of the art of VANET-based applications. Based on the current progress and the development trend of VANET, a number of new features of future VANET are identified, together with a set of potential future ITS applications. The on-going research and field operational test projects, which are the major enabling efforts for the future VANET-based C-ITS, are presented. The chapter is of great interest to readers working within ITS for current development status and future trend within the C-ITS area. It is also of interest to general public for an overview of the VANET enabled future transportation system. © Springer International Publishing Switzerland 2015.