Smart Roads Market Report 2024

This Smart Roads market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The smart roads market size has grown exponentially in recent years. It will grow from $13.03 billion in 2023 to $16.35 billion in 2024 at a compound annual growth rate (CAGR) of 25.5%. The growth during the historical period can be attributed to several factors, including a heightened focus on road safety and accident prevention, an increase in traffic-related injuries, a rising demand for smart motorways, a growing need for efficient transportation solutions, and an expanding population.

The smart roads market size is expected to see exponential growth in the next few years. It will grow to $40.8 billion in 2028 at a compound annual growth rate (CAGR) of 25.7%. The anticipated growth in the forecast period can be attributed to several factors, including a growing interest in corporate travel, an increase in highway accidents, heightened investment in transportation and construction infrastructure, rising demand for improved safety and comfort for road users, and the increasing adoption of connected and autonomous vehicles. Key trends expected to emerge during this period include the integration of Internet of Things (IoT) technologies, the development of infrastructure for autonomous vehicles, a stronger emphasis on sustainability and eco-friendly materials, advancements in road safety through sophisticated sensor technologies, and the rising utilization of big data analytics for predicting traffic patterns.

The increasing incidence of highway accidents is anticipated to drive growth in the smart road market in the coming years. Highway accidents are unplanned and unintended events involving one or more vehicles on highways or expressways, resulting in damage to property, injuries, or fatalities. Factors contributing to the rise in highway accidents include adverse weather conditions, vehicle maintenance problems, high traffic volumes, impaired driving, and substandard road conditions. Smart roads play a crucial role in reducing highway accidents by enhancing traffic management and safety through real-time monitoring, vehicle-to-infrastructure communication, and automated incident detection, which collectively improve overall road safety. For example, in May 2023, a report from the Bureau of Infrastructure and Transport Research Economics (BITRE), an Australian government agency focused on infrastructure and transport analysis, indicated that road crash fatalities rose to 1,194 in 2022, representing a 5.8% increase from 2021. Thus, the rising frequency of highway accidents is propelling the expansion of the smart road market.

Key players in the smart roads market are concentrating on creating advanced solutions, such as turnkey solutions, to improve traffic management and enhance road safety. A turnkey solution refers to a fully developed product or service that is ready for immediate use by clients with minimal customization or effort required. For instance, in July 2024, Intelligent Security Systems (ISS), a US-based provider of video intelligence and data awareness solutions, introduced Intellisection, a new turnkey solution for automated intersection monitoring. This advanced system excels in detecting, counting, and classifying all types of road users, including vehicles, pedestrians, bicyclists, and mobility devices. It enhances safety through features such as near-miss analysis, red-light violation monitoring, and crash detection. The system sends real-time alerts via email, text, and browser notifications, facilitating quick responses to incidents. Capable of handling multiple vehicles across various lanes simultaneously, it is particularly suited for complex intersections. Additionally, it meets NEMA TS-2 standards, ensuring high reliability and durability under different conditions.

In April 2023, Miovision, a Canadian developer of traffic management platforms, acquired Global Traffic Technologies (GTT) for an undisclosed amount. This acquisition enables Miovision to fully integrate Opticom, GTT's priority control solution, into its platform, enhancing its capabilities in providing green light priority for emergency responders and public transit. Global Traffic Technologies (GTT) is a US-based provider of intelligent transportation system solutions and technologies.

Major companies operating in the smart roads market are Huawei Technologies Co. Ltd., Hitachi Ltd., Siemens AG, Intel Corporation, Panasonic Holdings Corporation, International Business Machines Corporation, Cisco Systems Inc., Nokia Corporation, Thales Group, Infineon Technologies AG, WSP Global Inc., Indra Sistemas SA, Cubic Corporation, Alcatel-Lucent Enterprise, SWARCO INDUSTRIES Inc., TransCor, Sierra Wireless Inc., Genetec Inc., Iteris Inc., Econolite Group Inc., Intelligent Security Systems, Kapsch TrafficCom AG.

North America was the largest region in the smart roads market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart roads market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the smart roads market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Smart roads are highways or streets equipped with advanced technologies, sensors, and communication systems designed to improve transportation efficiency, safety, and sustainability. These technologies enable roads to interact with vehicles, traffic management systems, and infrastructure, allowing for real-time monitoring of traffic flow, road conditions, and vehicle behavior. The primary goal of smart roads is to minimize accidents, optimize traffic flow, and facilitate connected and autonomous vehicle technologies.

The main types of smart roads include transportation and communication systems, traffic management systems, and additional components. The transportation and communication systems integrate technologies such as vehicle-to-infrastructure (V2I) communication, intelligent traffic signals, dynamic message signs, and connected vehicle technology to enhance vehicle movement, information exchange, and overall safety. The components encompass hardware, software, and services, which can be deployed in various modes, including on-premise and cloud-based solutions. These systems utilize multiple technologies, such as intelligent transportation management systems and monitoring systems, for diverse applications including urban traffic management, highway traffic management, and parking management.

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

The smart roads market consists of revenues earned by entities by providing services such as incident detection and management, automated toll collection, and public transportation integration. The market value includes the value of related goods sold by the service provider or included within the service offering. The smart roads market includes sales of smart traffic signals, road cameras, and smart road maintenance tools. 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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