Traffic Signals Market Report 2025

The traffic signals market size has grown strongly in recent years. It will grow from $27.35 billion in 2024 to $29.05 billion in 2025 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to strong economic growth in emerging markets, installation of new traffic signals for increased traffic and safety and increased investments in road infrastructure development.

The traffic signals market size is expected to see strong growth in the next few years. It will grow to $36.54 billion in 2029 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to rising urbanization, increasing road traffic accidents and increased flight traffic. Major trends in the forecast period include focusing on led technologies for brighter lighting, lower power consumption, and longer lifespan, leveraging artificial intelligence to monitor traffic congestion and assist in traffic management and developing virtual traffic lights to eliminate the need for waiting at stop lights.

The installation of new traffic signals to enhance traffic speed and reduce accidents is a significant driver of growth in the traffic signals market. These signaling systems are strategically placed at road crossings and pedestrian walkways to regulate and monitor traffic flows. For instance, in May 2023, the Nevada Department of Transportation, a government agency based in the United States, initiated a project to install a traffic light and upgrade U.S. 50, aimed at improving safety and mobility on a corridor used by approximately 19,000 vehicles daily. The implementation of new traffic signals has led to an increased demand, thereby contributing to the growth of the traffic signals market.

The rising trend of road accidents is anticipated to drive the growth of the traffic signal market in the future. A road accident, commonly referred to as a traffic accident or car crash, occurs when a vehicle collides with another vehicle, a pedestrian, an animal, an object, or veers off the road. Well-designed and strategically placed traffic signals play a crucial role in preventing accidents by managing the flow of vehicles and pedestrians, thereby reducing the chances of collisions at intersections. For instance, in April 2024, The National Highway Traffic Safety Administration, a U.S.-based government agency, reported that distracted driving led to 3,308 fatalities and around 289,310 injuries in the U.S. in 2022. Furthermore, 621 vulnerable road users, including pedestrians and cyclists, lost their lives in crashes involving distracted drivers. Consequently, the increasing demand for road safety is expected to fuel the growth of the traffic signal market.

Artificial intelligence (AI) is emerging as a significant trend in the traffic signals market, with the potential to alleviate traffic congestion. AI involves the simulation of human intelligence in machines, enabling them to perform tasks that typically require human capabilities, such as visual perception, speech recognition, decision-making, and language translation. An example of this is the deployment of Adaptive Traffic Signal Control (ATSC) systems by the Greater Hyderabad Municipal Corporation (GHMC) in June 2022. These systems dynamically adjust the color of traffic signals based on real-time traffic information, optimizing traffic flow along the city's main corridors. The Composite Signal Control Strategy (CoSiCoSt), developed by the Centre for Development of Advanced Computing (C-DAC), is an adaptive control technique that modifies cycle time, green splits, and offsets in real-time to handle area-wide traffic efficiently.

Leading companies in the traffic signal market are introducing innovative technologies such as AI-powered traffic management systems. These systems leverage AI to enhance the control and monitoring of traffic flow in urban and transportation environments. Utilizing AI algorithms and technologies, they collect, process, and analyze data from diverse sources, including traffic cameras, sensors, and connected vehicles, in real-time. For instance, a new AI-powered traffic management system deployed in Goa uses AI to recognize emergency vehicles such as ambulances and fire trucks, clearing the road for them. This system contributes to traffic monitoring, enhances security, and assists traffic police in their duties.

In June 2022, Rekor Systems Inc., a U.S.-based technology company specializing in artificial intelligence (AI) for roadway intelligence systems, acquired Southern Traffic Services (STS) in a deal valued at $14.5 million. This acquisition enhances STS's 30 years of expertise in traffic engineering by integrating Rekor's AI and machine learning technologies, thereby accelerating Rekor's growth. The newly formed entity aims to become a leader in AI-driven solutions for traffic management, urban mobility, and public safety. Southern Traffic Services (STS) is a U.S.-based company that offers services related to traffic signals, including installation, maintenance, and repair.

Major companies operating in the traffic signals market include LITE-ON Technology Corp, Econolite Group, Oriux, Swarco AG, Traffic Technologies Ltd, North America Traffic, Ver-Mac, ARCUS USA Inc, D G Controls Ltd, Alphatronics NV, Kyosan Electric Mfg. Co. Ltd., Envoys Electronic Pvt. Ltd, Sumitomo Electric Industries, Ltd., Trafitek Solutions Pvt Ltd, Efkon India Pvt., ITS Planners and Engineers, Microtrans Infratech Pvt. Ltd, Onnyx Electronisys Pvt. Ltd, Pfannenberg Group Holding, BELFOX Torautomatik GmbH, Dialight, SRL, E2S Warning Signals, Johnson Controls, ELINTEL, La Semaforica srl, CROSS Zlín, a.s, SEA Company, Federal Signal, McCain Traffic Systems, K2 Traffic Engineering, Inc, Horizon Signal Technologies, General Electric, Leotek Electronics USA LLC, Peek Traffic, WERMA, Traffic Safety Corp, Pat-Traffic / IRD Argentina, BBE Led, SMB Safety Equipment Manufacturing LLC, Mtp Traffic Sign LLC, Automotor Traffic Signal Co, Zama Traffic Signals, TSA International, Syntell (Pty) Ltd.

Asia-Pacific was the largest region in the traffic signals market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global traffic signals market report during the forecast period. The regions covered in the traffic signals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the traffic signals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Traffic signals refer to devices positioned alongside, beside, or above roadways to guide, caution, and control the movement of traffic, encompassing motor vehicles, motorcycles, bicycles, pedestrians, and other road users.

The primary product categories for traffic signals include portable and stationary types. Portable Traffic Signals (PTS) serve as temporary traffic management solutions on single carriageways, offering an alternative to human flaggers while establishing a safer work zone. The various power sources for these signals include electric power and solar energy. Traffic signals find applications in diverse settings such as railways, airports, urban traffic, and other contexts.

The traffic signals market research report is one of a series of new reports that provides traffic signals market statistics, including traffic signals market industry global market size, regional shares, competitors with a traffic signals market share, detailed traffic signals market segments, market trends and opportunities, and any further data you may need to thrive in the traffic signals market industry. This traffic signals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The traffic signals market consists of sales of equipment that are used to safeguard pedestrians and automobiles at busy intersections and prevent excessive traffic delays. Traffic signals, also known as traffic lights, are signaling devices located at intersections between roads, pedestrian crossings and other locations to ensure safety in the orderly flow of traffic. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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