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The traffic lights market size is estimated to grow at a CAGR of 6.05% between 2022 and 2027, and the size of the market is forecasted to increase by USD 601.64 million. The growth of the market depends on several factors, including the improving traffic flow regulations, increasing road traffic accidents, and the growth of road transport infrastructure investment.
This report extensively covers market segmentation by application (road, railway, and construction), product (incandescent and LED), and geography (North America, Europe, APAC, South America, and 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 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 Traffic Lights Market Customer Landscape
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 growth of road transport infrastructure investment is driving market growth. Risings investments in road transport infrastructure lead to the expansion and development of new roads and highways. This increases the higher demand for traffic management systems such as traffic lights to regulate and control the flow of vehicles, ensure safety, and manage traffic congestion. Rapid urbanization and population growth in many regions have increased vehicular traffic. Governments and transportation authorities invest in traffic control systems, such as traffic lights, to optimize traffic flow and enhance road safety.
Investments in road transport infrastructure lead to the adoption of advanced technologies. Intelligent traffic light systems are equipped with sensors, and data analytics capabilities can be deployed to optimize traffic management. These lights can adjust signal timings based on real-time traffic conditions. They prioritize emergency vehicles and improve overall traffic efficiency. Therefore, the growth of road transport infrastructure investments will drive the global traffic lights market during the forecast period.
The accelerated adoption of LED traffic lights is a key trend in the market. Conventional traffic lights use incandescent lights, which are cost-efficient but are not energy efficient and require regular maintenance. Therefore, manufacturers are introducing LED-based lights that are energy- and cost-efficient and more durable when compared to incandescent lights. Switching to energy-efficient traffic lights minimizes government budgets and lowers energy use.
Visibility and true colors offered by LED lights are other advantages. An LED does not function using a filament that uses heat. LED traffic lights are made up of a cluster of small LED bulbs that produce high brightness and true desired colors. Moreover, the equal distribution of small LED bulbs on the entire surface gives a brighter appearance than incandescent lights. Therefore, the increasing use of LED technology and LED traffic lights will have a positive influence on the market during the forecast period.
Issues with the coordination of signal timings are challenging market growth. Traffic lights at intersections may not be synchronized effectively, leading to traffic congestion and delays. As a result, vehicles may have to stop at each intersection, causing inefficient traffic flow and increased travel times. Traffic patterns can vary throughout the day, with high traffic volumes during peak hours. Coordinating signal timings to accommodate these fluctuations can be a challenging task, as failure to adapt to changing traffic patterns can lead to inefficient traffic management and high congestion.
Mostly many traffic light systems rely on outdated infrastructure and limited connectivity. Traditional systems operate on fixed timers or basic sensors, which may not respond sufficiently to real-time traffic conditions. Upgrading these systems to utilize advanced technologies and interconnected networks can improve coordination. However, this may require significant investments. Therefore, adjusting signal timings manually can be time-consuming and prone to human errors. These factors will hinder the growth of the market during the forecast period.
Vendors 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.
D G Controls Ltd. - The company offers traffic lights such as MI xC B15D series, MI xC LED series, and MIH uX LED series. It also offers a wide range of visual and audible warning signals.
Econolite Control Products Inc. - The company offers a traffic signal controller that uses intelligent technology and communication components of a signalized intersection. It also offers an extensive range of traffic management systems, traffic cabinets, controllers, sensor products, and services, including planning and design of turnkey, multi-modal transportation systems, software engineering, traffic network implementation, integration, operations, and maintenance.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.
The road segment will account for a significant share of market growth during the forecast period. This segment involves the installation and use of traffic signal systems to manage vehicular and pedestrian movement at intersections and road junctions. Traffic lights play a key role in maintaining order, improving safety, and optimizing traffic flow on roads.
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The road segment was valued at USD 1,194.69 million in 2017 and continued to grow until 2021. Traffic signal systems are generally used in various road settings, such as urban roads. The use of traffic lights on roads is important for promoting efficient traffic management, reducing accidents, and enhancing overall transportation safety and convenience. These factors will drive the growth of the road segment during the forecast period.
The incandescent segment will account for a significant share of market growth during the forecast period. Incandescent traffic lights generally have bulbs that produce light through the heating of a filament inside the bulb. Some of the benefits of incandescent traffic lights include cost-effectiveness, simplicity, and immediate visibility. They are generally less expensive than LED lights, making them a more affordable option. They are simple to design, which makes them easier to manufacture and maintain. They also provide instant illumination when powered on, which ensures immediate visibility to motorists. Therefore, the advantages of incandescent traffic lights will drive the growth of this segment during the forecast period.
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North America is estimated to contribute 45% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
Factors such as the potential opportunities for innovations in traffic lights, including the introduction of smart traffic lights to reduce traffic congestion and increase safety on roads for vehicle owners, pedestrians, and cyclists, are driving market growth in North America. The development of infrastructure such as roadways is also expected to fuel market growth. Governments of countries in the region are focusing on road construction to enhance connectivity. In the US, highway and road construction is expected to grow by around USD 103 billion in the coming years. Traffic lights help avoid road accidents and traffic congestion, thereby ensuring the safety of drivers and pedestrians. These factors are expected to drive the growth of the market in the region during the forecast period.
The spread of COVID-19 in 2020 led to a slowdown in the growth of the global traffic lights market. However, in 2021, the market started to recover, as several countries started vaccination programs to contain the spread of the disease. In addition, various industries restarted their operations and activities with appropriate social distancing norms. Such factors are anticipated to propel the growth of the global traffic lights market during the forecast period.
The traffic lights market report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Traffic Lights Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.05% |
Market growth 2023-2027 |
USD 601.64 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.23 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 45% |
Key countries |
US, China, Australia, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphatronics NV, ARCUS USA Inc., D G Controls Ltd., Econolite Control Products Inc., Envoys Electronic Pvt. Ltd., Federal Signal Corp., GE CURRENT, LITE ON Technology Corp., Mobotrex Inc., North America Traffic, Oriux, SRL Traffic Systems Ltd., SWARCO AG, Traffic Technologies Ltd., and Trastar Inc. |
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, 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 market research 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 Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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