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The light-emitting diode (LED) traffic signs and signals market is estimated to grow at a CAGR of 9.1% between 2022 and 2027. The size of the market is forecasted to increase by USD 521.78 million. The growth of the market depends on several factors, including increased investments in road infrastructure development, increasing road traffic accidents, and the growing adoption of LED traffic lights.
This report extensively covers market segmentation by product (LED traffic signals and LED traffic signs), end-user (urban traffic, railway, airport, and others), and geography (North America, Europe, APAC, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global light-emitting diode (LED) traffic signs and signals market as a part of the global electrical components and equipment market. The parent market, the global electrical components and equipment market, covers companies engaged in the manufacturing of electric cables and wires, electrical components, and electrical equipment. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Increased investments in road infrastructure development are notably driving the market growth, although factors such as improper installation and malfunctioning of traffic signs and signals may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Light-Emitting Diode (LED) Traffic Signs and Signals Market Driver
Increased investments in road infrastructure development are notably driving the light-emitting diode (LED) traffic signs and signals market growth. Many developing countries such as India and China are increasing the efficiency of the road transportation sector by widening roads, improving connectivity, and improving traffic regulations. Developed countries also need to upgrade and improve their road transport infrastructure. The improvement in transport infrastructure has a direct positive influence on the global LED traffic signs and signals market.
The poor quality of road networks and increasing passenger traffic results in congestion and an increasing number of road accidents. Hence, improvements in the operational performance of road transport, including traffic management, vehicle tracking, and expanded road networks, will have a positive impact on the growth of the global LED traffic signs and signals market during the forecast period.
Key Light-Emitting Diode (LED) Traffic Signs and Signals Market Trend
Technological improvements in traffic management are a key trend influencing the light-emitting diode (LED) traffic signs and signals market growth. The emphasis on technological improvements over the past few years has created a substantial opportunity for transportation professionals to address traffic management issues effectively. For instance, Carnegie Mellon University has developed intelligent traffic lights, which use existing technology along with artificial intelligence. The Australian Road and Maritime Services introduced the world's first e-paper traffic signs. Software solutions such as ASTRID and INGRID have been developed to detect and analyze real-time traffic conditions.
Driver information systems in the form of comprehensive automobile traffic control systems, internet-based route systems, and driver information and early warning systems have been developed to provide updates about real-time traffic conditions to drivers and assist them in deciding the best transit route. For instance, variable message signs are designed to keep drivers updated about the current traffic conditions. Such technological improvements in traffic management will boost the growth of the global LED traffic signs and signals market during the forecast period.
Key Light-Emitting Diode (LED) Traffic Signs and Signals Market Challenge
Improper installation and malfunctioning of traffic signs and signals may impede the light-emitting diode (LED) traffic signs and signals market growth. These issues can increase the severity of accidents. The installation of traffic signals, especially at intersections, should be considered, and a thorough study should be conducted to determine if the location has minimum signalization permits. Traffic signals should only be installed if necessary.
The installation of traffic signals at places where there is no necessity may lead to traffic congestion and increase the travel time for commuters, which can lead to rash driving and accidents. Any malfunctioning of traffic signals due to negligence by transportation authorities can expose commuters to a risk of road accidents. Thus, the improper installation and malfunctioning of traffic signs and signals might hinder the growth of the global LED traffic signs and signals market during the forecast period.
Key Light-Emitting Diode (LED) Traffic Signs and Signals Market Customer Landscape
The report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Light-Emitting Diode (LED) Traffic Signs and Signals Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product launches, to enhance their presence in the light-emitting diode traffic signs and signals market.
aldridge.com.au - The company offers LED traffic signs and signals such as solar and backlit led signage.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
A qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the LED traffic signals segment will be significant during the forecast period. Traffic signals are generally set up at road intersections, highways, car parking areas, and toll booths. The gradual replacement of incandescent traffic lights with LED lights across the globe, especially in major developed countries, has contributed to the growth of the LED traffic signals market. In the US, several state and local jurisdictions are promoting LED traffic signals, which is effectively contributing to the growth of the segment. Transportation departments across various states in the US, such as Florida, New York, New Jersey, and Texas, have developed specifications with respect to LED traffic signals and are buying them based on these specifications.
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The LED traffic signals segment showed a gradual increase in market share with USD 416.86 million in 2017 and will continue to grow by 2021. Factors such as the growing number of accidents and injuries on the road, coupled with increasing investments in road infrastructure across various countries, are driving the growth of the LED traffic signals segment.
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North America is projected to contribute 31% of the market's growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is an established market for LED traffic signs and signals. There are potential opportunities for innovations in traffic lights, such as the introduction of smart traffic lights to reduce traffic congestion and increase safety on roads for vehicle owners, pedestrians, and cyclists. To reduce the number of road accidents, various safety programs have been initiated by government agencies and other independent road safety organizations. Such programs focus on creating awareness about the importance of safety enhancement products in work zones. The development of infrastructure, such as roadways, is also expected to drive the growth of the market in focus during the forecast period. Several investments are being made in the improvement of the ageing road networks in the region. Such initiatives are anticipated to propel the demand for LED traffic signs and signals during the forecast period.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. In 2021, the initiation of large-scale vaccination drives and the lifting of travel and lockdown restrictions led to the resumption of LED traffic signs and signals manufacturing operations, which increased the demand for LED traffic signs and signals. The installation of new traffic lights and retrofitting activities related to pedestrian facilities, cycling lanes, and extra-street lighting in countryside areas are driving the growth of the LED traffic signs and signals market. Moreover, the enforcement of regulations regarding traffic rules is another factor fueling the growth of the market in the region. Hence, the light-emitting diode (LED) traffic signs and signals market in North America is expected to grow during the forecast period.
The report forecasts light-emitting diode traffic signs and signals market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, end-user, and region.
Light-Emitting Diode (LED) Traffic Signs and Signals Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.1% |
Market growth 2023-2027 |
USD 521.78 million |
Market structure |
Fragmented |
YoY growth (%) |
7.23 |
Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
Performing market contribution |
North America at 31% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aldridge Electrical Industries Pty Ltd., Alphatronics NV, ARCUS USA Inc., D G Controls Ltd., Econolite Control Products Inc., Envoys Electronics Pvt. Ltd., European Safety Systems Ltd., Federal Signal Corp., General Electric Co., Horizon Signal Technologies Inc., LITE-ON Technology Corp., North America Traffic, Pfannenberg Group Holding GmbH, Sinowatcher Technology Co. Ltd., Traffic Safety Corp., Trafitronics India Pvt. Ltd., Trastar Inc., Ver Mac, WERMA Signaltechnik GmbH Co. KG, and SWARCO AG. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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