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The intelligent traffic management market is estimated to grow by USD 13.77 billion at a CAGR of 11.23% between 2022 and 2027. The increasing demand for AI-based smart traffic solutions, driven by the need to reduce road congestion, improve road safety, and enhance overall transportation efficiency, is driving market growth. The increasing investment in smart cities by governments, aimed at improving urban infrastructure and services, is also boosting market expansion by creating opportunities for the implementation of smart traffic solutions. Additionally, the focus on increasing the efficiency of traffic flow management, through the use of real-time data analytics and predictive modeling, is driving demand. Overall, these factors are driving the growth of the market and driving innovations in transportation technology.
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This report extensively covers market segmentation by application (traffic monitoring, traffic control, and information provision), service (surveillance cameras, display boards, sensors, interface boards, and radars), 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.
The market share growth by the traffic monitoring segment will be significant during the forecast period. The monitoring is an integral application in the global market. The emergence of advanced data collection and analysis techniques, such as machine learning, has increased traffic monitoring utilization
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The traffic monitoring segment was valued at USD 5.29 billion in 2017. They help monitor the movement of vehicles and authorities maintain the flow and prevent congestion on roads. The need for advanced traffic monitoring arises due to the lack of proper road infrastructure across countries globally and the high costs involved in the development of new road infrastructure. For instance, in the US, the development cost of a high occupancy vehicle lane averages around USD 7,50,000. Thus, monitoring and managing the movement of vehicles on existing road infrastructure is easier than developing new networks or infrastructure. They use automatic camera sensors, speed sensors, and other types of sensors to collect data on the movement of vehicles and implement traffic rules. Hence, the growing adoption of the monitoring applications will boost the demand for such solutions in the global market during the forecast period.
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North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is the largest region in the global market. The US is the biggest contributor to the market in the region. The major driving factors for the growth of the market in North America are the increasing number of vehicles on roads in the region, the high cost of developing new road infrastructure, and the need to improve overall road safety in the region.
On average, traffic jams in the US lead to annual losses of USD 300 billion, which includes indirect costs such as fuel prices, delays in the delivery of products, and others. Thus, the implementation may minimize road congestion and reduce the costs incurred by motorists across the country. In April 2021, the US Department of Transportation Federal Highway Administration granted USD 9.96 million to the University of Michigan, US, to develop 20 smart intersections, which can collect and relay information in real-time to authorities. Such initiatives will boost the demand in the region.
They help improve road safety by alerting both vehicles and authorities about natural calamities such as landslides or bottlenecks such as roadblocks or other related issues. The use also reduces the number of police personnel patrolling the roads for the movement of vehicles and their violations. Thus, these factors will lead to an increased demand in the region during the forecast period.
The market is experiencing growth due to the increasing number of vehicles and insufficient infrastructure to support them. Major manufacturers are investing in ITMS installation to improve the movement of vehicles and reduce congestion, leading to economic benefits. However, project delays and supply chain issues have impacted installations. Post-pandemic, there is a focus on reducing carbon dioxide emissions and airborne pollutants through smarter management. Telematics services play a crucial role in enhancing security, safety, and monitoring driver behavior, contributing to cost reduction and improved infrastructure. The market is evolving towards smart mobility solutions and Mobility as a Service (MaaS) to address urban infrastructure challenges. 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.
The increasing demand for AI-based smart traffic solutions is notably driving market growth. AI-based smart solutions, such as vehicle detection and identification of vehicle number plates, have enabled traffic authorities to detect traffic rule violators and issue penalty receipts through the mail. These solutions also contribute to intelligent traffic management systems, traffic congestion reduction, improved security and safety, better understanding of driver behavior, and cost reduction through efficient telematics services and tracking systems. This has reduced both the paperwork and cost associated with managing the movement of vehicles.
Another AI application is the collection and analysis of traffic data on specific roads, which helps authorities formulate policies and assess the need for new road infrastructure. This contributes to urban infrastructure development and the implementation of smart mobility solutions, including Mobility as a Service (MaaS), to improve overall management. AI-based unmanned railway crossings can prevent accidents; for example, nearly 8,700 people died in unmanned railway crossing accidents in India in 2020. AI-based railway crossing monitoring can help prevent such incidents. As a result, the demand for these solutions is expected to increase due to the growing adoption of AI-based smart solutions in the forecast period.
Rapid urbanization is an emerging trend in the market. Heavy congestion in roads is a result of an increase in the number of vehicles on the road brought on by rapid industrialization and the expanding urban population. As a result, urban planners' concerns about safety and high CO2 emissions are anticipated to significantly impact the development of the market.
The European Joint Research Centre (JRC) estimates that the cost of traffic congestion in Europe is equivalent to 1% of the GDP of the continent. Hence, mitigation has been given top priority by the majority of regional organizations responsible for developing and managing urban infrastructure. Additionally, the system also makes smart mobility solutions possible, which can be very helpful in finding solutions to all of these problems. Therefore, these factors will fuel the expansion of the market during the forecast period.
The high cost of maintenance is a major challenge impeding the market growth. Costs associated with maintenance include those associated with installing new systems as well as those associated with repairing, replacing, and upgrading current systems. Without regular upkeep, these systems will not be able to perform to their full potential, which will cause road congestion and other issues.
Countries may also be unable to make the necessary investments in cutting-edge technology due to the high cost of maintenance. Cities might, for instance, be unable to cover the cost of setting up new, sophisticated sensors, cameras, and software, all of which are necessary for providing real-time updates. If these updates aren't made, road congestion might get worse and cause other issues like poorer air quality and more noise from the road. Therefore, the high maintenance costs are anticipated to have a negative effect on the market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering 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 Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
INRIX Inc. - The company provides location-based data and software-as-a-service analytics, such as real-time and historical traffic conditions, road safety, and parking availability. The key offerings of the company include intelligent traffic management software.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing significant growth, driven by the increasing demand for real-time traffic information and the need for efficient transportation solutions. Transportation authorities and municipalities are investing in smart traffic signal control systems and telematics tracking systems to optimize traffic flow and reduce congestion.
In the post-pandemic era, there is a renewed focus on public transportation and eco-driving initiatives to improve transport capacity effectiveness and reduce vehicular congestion. The market is witnessing technological advancements in communication technologies and data storage facilities, enabling smart city applications and adaptive intelligent traffic controls. As smart transportation becomes more prevalent, the market is expected to see continued growth in sales and supply of components for intelligent traffic management systems.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.23% |
Market growth 2023-2027 |
USD 13.77 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.62 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 32% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Chevron Corp., Cisco Systems Inc., Cubic Corp., Huawei Technologies Co. Ltd., INRIX Inc., International Business Machines Corp., Kapsch TrafficCom AG, Light Crossing Technology Corp., PTV Planung Transport Verkehr AG, Q Free ASA, Rekor Systems Inc., Siemens AG, SNC Lavalin Group Inc., SWARCO AG, TagMaster AB, Teledyne Technologies Inc., Telegra d.o.o., Thales, TomTom International BV, and Roper Technologies Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data you are looking for, you can reach out to our analysts and get customized segments. |
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 Application
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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