Smart Traffic Camera Global Market Opportunities and Strategies to 2033

This report describes and explains the smart traffic camera market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global smart traffic camera market reached a value of nearly $11.9 billion in 2023, having grown at a compound annual growth rate (CAGR) of 14.2% since 2018. The market is expected to grow from $11.9 billion in 2023 to $24.4 billion in 2028 at a rate of 15.4%. The market is then expected to grow at a CAGR of 15.7% from 2028 and reach $50.5 billion in 2033.

Growth in the historic period resulted from the surge in the number of road accidents, increase in traffic crimes and strong economic growth. Factors that negatively affected growth in the historic period were high costs.

Going forward, the rise in the number of vehicles, increasing development of smart cities, rapid urbanization, increasing demand for electric vehicles (EVs) and increasing government initiatives for effective traffic management will drive the market. Factors that could hinder the growth of the smart traffic camera market in the future include data security risks.

The smart traffic camera market is segmented by component into hardware, software and service. The hardware market was the largest segment of the smart traffic camera market segmented by component, accounting for 64.8% or $7.73 billion of the total in 2023. Going forward, the software segment is expected to be the fastest growing segment in the smart traffic camera market segmented by component, at a CAGR of 19.1% during 2023-2028.

The smart traffic camera market is segmented by camera type into fixed cameras, mobile speed camera, red light camera, surveillance camera, traffic monitoring camera, automatic number plate recognition (ANPR) camera and other camera types. The fixed cameras market was the largest segment of the smart traffic camera market segmented by camera type, accounting for 35.1% or $4.2 billion of the total in 2023. Going forward, the ANPR camera segment is expected to be the fastest growing segment in the smart traffic camera market segmented by camera type, at a CAGR of 18.2% during 2023-2028.

The smart traffic camera market is segmented by deployment model into traffic monitoring and traffic enforcement. The traffic monitoring market was the largest segment of the smart traffic camera market segmented by deployment model, accounting for 73% or $8.7 billion of the total in 2023. Going forward, the traffic monitoring segment is expected to be the fastest growing segment in the smart traffic camera market segmented by deployment model, at a CAGR of 16.7% during 2023-2028.

The smart traffic camera market is segmented by application into surveillance and traffic management, toll management and other applications. The surveillance and traffic management market was the largest segment of the smart traffic camera market segmented by application, accounting for 70.6% or $8.4 billion of the total in 2023. Going forward, the toll management segment is expected to be the fastest growing segment in the smart traffic camera market segmented by application, at a CAGR of 17.9% during 2023-2028.

North America was the largest region in the smart traffic camera market, accounting for 35.5% or $4.2 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the smart traffic camera market will be Asia-Pacific and South America, where growth will be at CAGRs of 17.8% and 16.8% respectively. These will be followed by Western Europe and the Middle East, where the markets are expected to grow at CAGRs of 16.5% and 16% respectively.

The global smart traffic camera market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 24.1% of the total market in 2022. Hangzhou Hikvision Digital Technology Co., Ltd. was the largest competitor with a 6% share of the market, followed by Siemens AG with 3.7%, Motorola Solutions, Inc. with 2.8%, Sensys Gatso Group AB with 2.5%, Axis Communications with 2.3%, Teledyne Technologies, Inc. with 2.1%, IDEMIA SAS (Advent International, Inc.) with 2%, Canon, Inc. with 1.6%, Vitronic Gmbh with 0.6% and Jenoptik AG with 0.5%.

The top opportunities in the smart traffic camera market segmented by component will arise in the hardware segment, which will gain $7.6 billion of global annual sales by 2028. The top opportunities in the smart traffic camera market segmented by camera type will arise in the fixed cameras segment, which will gain $4.3 billion of global annual sales by 2028. The top opportunities in the smart traffic camera market segmented by deployment model will arise in the traffic monitoring segment, which will gain $10.2 billion of global annual sales by 2028. The top opportunities in the smart traffic camera market segmented by application will arise in the surveillance and traffic management segment, which will gain $8.5 billion of global annual sales by 2028. The smart traffic camera market size will gain the most in the USA at $2.8 billion.

Market-trend-based strategies for the smart traffic camera market include focus on integration of AI into smart traffic cameras for intelligent decision-making, focus on development of advanced speed monitoring cameras, focus on new product launches with intelligent features, focus on development of next-generation solutions with thermal sensors and focus on comprehensive traffic violation detection solutions to enhance monitoring.

Player-adopted strategies in the smart traffic camera market include focus on launching innovative solutions, focus on developing new product solutions through strategic partnerships and focus on expanding manufacturing capabilities through strategic acquisitions.

To take advantage of the opportunities, the analyst recommends smart traffic camera companies to focus on introducing AI-enabled cameras for smart city applications, focus on developing camera-based speed monitoring solutions, focus on developing intelligent traffic cameras, focus on integrating thermal sensors for enhanced traffic management, focus on advanced traffic violation detection solutions, focus on software market segment, focus on ANPR camera segment, focus on traffic monitoring segment, focus on expanding distribution channels, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, focus on digital marketing channels, participate in trade shows and events, continue to use B2B promotions, target surveillance and traffic management professionals, focus on surveillance and toll management applications and target governments.