Transportation and Security System Market Report 2026

The transportation and security system market size has grown strongly in recent years. It will grow from $20.15 billion in 2025 to $21.91 billion in 2026 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to increasing urbanization and transport infrastructure development, rising security concerns across transit systems, expansion of video surveillance networks, adoption of access control technologies, growth of public safety investments.

The transportation and security system market size is expected to see strong growth in the next few years. It will grow to $30.76 billion in 2030 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to increasing investments in smart city security, rising adoption of predictive analytics for transport safety, expansion of multimodal transport networks, growing demand for automated passenger screening, increasing focus on cyber-secure transportation systems. Major trends in the forecast period include increasing deployment of ai-based surveillance systems, rising adoption of integrated security platforms, growing use of biometric identification technologies, expansion of smart traffic management solutions, enhanced focus on real-time threat detection.

Rising demand for smart transportation is expected to drive the growth of the transportation and security system market going forward. Smart transportation involves integrating advanced technologies and management strategies into transport systems to improve efficiency, safety, and convenience. Transportation and security systems support these initiatives by providing the infrastructure, technologies, and services necessary to develop efficient, safe, and sustainable transportation networks. For instance, in October 2024, according to the U.S. Department of Transportation - ITS Joint Program Office, a U.S.-based federal agency, 76% of freeway management agencies had deployed at least one ITS safety-system technology, averaging 2.8 ITS safety technologies per agency, including queue-warning systems and wrong-way-driving detection. Therefore, growing demand for smart transportation is propelling the transportation and security system market.

Major companies in the transportation and security system market are introducing innovative solutions, such as passenger screening systems, to prevent prohibited items and threats from entering secure airport areas. For instance, in January 2023, Vanderlande Industries BV, a Netherlands-based automated material handling systems provider, launched PAX MX2, a new airport passenger checkpoint solution. This system provides the efficiency of two traditional lanes with fewer workers and equipment by allowing passengers to remove and retrieve their bags from two parallel lines before and after screening. The PAX MX2’s dual-lane approach enhances airport security while optimizing the checkpoint footprint and screening operations, speeding up procedures.

In November 2024, Alstom SA, a France-based rail transportation systems company, partnered with Saudi Railway Company to enhance the Kingdom’s east-west freight rail corridor through a five-year technical support and spare-parts agreement. This partnership aims to improve fleet reliability, enable predictive maintenance, and strengthen local railway expertise. Saudi Railway Company is a Saudi Arabia-based state-owned rail operator that provides freight and passenger services and manages national rail infrastructure.

Major companies operating in the transportation and security system market report include Bosch GmbH, Siemens AG, Raytheon Technologies Corporation, Lockheed Martin Corporation, Cisco Systems Inc., Honeywell International Inc., ABB Ltd., BAE Systems plc, NEC Corporation, Safran SA, Thales Group, Alstom SA, L3Harris Technologies Inc., Leidos Holdings Inc., Assa Abloy AB, Hangzhou Hikvision Digital Technology Co. Ltd., ADT Inc., Saab AB, Smiths Group plc, QinetiQ Group plc, Cubic Corporation, OSI Systems Inc., FLIR Systems Inc., Kapsch TrafficCom AG, Rapiscan Systems Inc., ORBCOMM Inc.

Asia-Pacific was the largest region in the transportation and security system market in 2025. The regions covered in the transportation and security system market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the transportation and security system market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The transportation and security system market consists of revenues earned by entities by providing services such as access control, speed limit enforcement, and video surveillance. The market value includes the value of related goods sold by the service provider or included within the service offering. The transportation and security system market also includes sales of surveillance cameras, access control systems, and perimeter security systems. 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.

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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