Traffic Signal Recognition Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,China,Japan,UK,Germany - Size and Forecast 2023-2027

Traffic Signal Recognition Market Forecast 2023-2027

The traffic signal recognition market size is forecast to increase by USD 1.07 billion at a CAGR of 3.74% between 2022 and 2027. Rapid urbanization is increasing the demand for efficient transportation systems and real-time information to manage traffic flow and ensure road safety. The increasing emphasis on road safety norms is driving the adoption of technologies that can help improve road safety, such as intelligent transportation systems. The growing need for real-time information systems is also fueling market growth, as businesses and governments seek to improve the efficiency and safety of transportation networks. Additionally, government initiatives to modify transport infrastructure are driving investment in the market, leading to the development of new transportation solutions and systems. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Traffic Signal Recognition Market During the Forecast Period?

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In 2017, in terms of market size, North America dominated the market with a share of USD 1.65 billion. Additionally, China was the largest contributor of market share USD 804.40 million. The market segment passenger vehicle recorded the largest contribution in market share of USD 3.25 billion and continues to grow.

Market Segmentation

This report extensively covers market segmentation by vehicle type (passenger vehicle and commercial vehicle), type (color-based detection, shape-based detection, and feature-based detection), 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.

By Vehicle Type

The market share growth by the passenger vehicle segment will be significant during the forecast period. In 2022, the passenger vehicle segment has been the largest and fastest-growing segment of the global TSR market. A passenger car is a multi-track vehicle that is used to commute passengers. The growth of the global TSR market in the passenger vehicle segment is anticipated to be fueled by factors such as the rising demand for luxury automobiles in the passenger vehicle segment along with the rising consumer disposable income during the forecast period. 

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These high-end passenger vehicles are equipped with advanced driver assistance system (ADAS) technology, which is primarily focused on collision avoidance technologies (such as lane departure warnings and blind-spot applications). Thus, OEMs are offering ADASs with tailback sign recognition systems in the economic passenger vehicles during the forecast period to avoid traffic signal norm-related disputes. Furthermore, manufacturers of passenger vehicles are collaborating with tech companies to develop solutions that will assist their vehicles in intelligently interpreting traffic signs. This method also helps firms in the global TSR market retain market dominance. All such factors are expected to leverage the growth of the passenger vehicle segment of the market during the forecast period.

By Region

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North America is estimated to contribute 39% 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. 

In 2022, North America has captured the largest share of the global TSR market. This is attributed to the highest urbanized landscapes of the region in the world. In the US and Canada, approximately 80% of the population is in urban areas. These volumes of urbanization create challenges for the government to manage traffic. Thus, this is increasing the adoption of advanced technologies, such as tailback management systems, to manage traffic, which is anticipated to drive the growth of the TSR market in North America during the forecast period.

Market Dynamics and Customer Landscape

The market is witnessing rapid growth due to advancements in traffic-sign recognition (TSR) systems. These systems utilize electronics and digital sensors to detect and interpret signs, enhancing automotive safety. Integrated into Advanced Driver Assistance Systems (ADAS), TSR technology reads speed limits, lane changes, and stop-go signs, improving vehicle speed and lane departure warnings. With Internet of Things (IoT) connectivity, TSR systems are becoming standard in modern vehicles, particularly in luxury cars. As automobile giants and OEMs continue to invest in these technologies, the Market is expected to expand further. 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 Market Driver

Rapid urbanization and emphasis on road safety standards are the major drivers for the growth of the global market. The share of the urban population is increasing significantly every day, leading to tailbacks, especially in Tier I cities worldwide. This surge in urbanization presents major challenges for private and professional mobility in urban areas. As urban populations grow, traffic congestion increases, making commuting difficult for the general population. The rise in urban population also translates to an increase in trade volume with business partners within and outside cities.

The development of such systems is crucial, especially as traffic signs become more complex and diverse. The integration of electronics and advanced driver assistance systems (ADAS) is essential for efficient traffic sign recognition technology. Internet of Things (IoT) and digital sensors play a crucial role in these technological systems by enabling real-time data collection and processing. Data banks and collaboration with automobile giants and OEMs are vital for the development of robust automotive safety systems. Technological advances in ADAS equipment are leading to innovations such as adaptive headlights, lane departure warnings, active braking, and blind-spot detection. These systems, coupled with traffic sign detection and AI software, help in recognizing and responding to speed limits, vehicle speed, lane changes, and stop-go signs. Such systems are not only crucial for passenger vehicles but also for luxury cars where safety and comfort are paramount.

Major Market Trend

Improving the regulation of traffic flows is a major growth trend in the global market. Since roads are still the most important means of transport in the world, it is thought to improve the tailback flow from the point of view of the economic development of the country. Pedestrian and vehicle safety and efficient traffic are the main factors influencing the growth of countries. Various road safety measures and solutions are being explored to improve traffic flow, and connecting traffic lights is one such solution to avoid tailback.

For instance, in 2019, the Department of Transportation in Kardinya, Australia, completed flow improvements by upgrading pedestrian facilities, extra street lighting, signal modifications, and signage marking improvements at the intersection of South Street and North Lake Road. This was done to reduce the number and severity of crashes at this intersection and improve safety for road users, as around 30,000 vehicles pass across this intersection each weekday. Thus, upgrades and improvements in flow and road safety have driven the global TSR market during the forecast period.

Significant Market Challenge

High costs of installation and maintenance are a major challenge to the global market. ADAS solutions are equipped with advanced software and require advanced maintenance. In addition to software, installing an intelligent tailback management system requires several hardware components, such as sensors, communication devices, and control systems. Therefore, the increase in the overall cost of these systems will limit the installation of these systems, thereby hindering the TSR market.

Furthermore, the installation and maintenance of nonintrusive sensors, such as image sensors, microwave sensors, and acoustic sensors, do not have a major impact on road traffic, and the cost of nonintrusive sensors is high compared with leading in road technologies such as inductive loops that provide detailed traffic flow data measurements. High costs impede widespread distribution and limit the application of nonintrusive sensors in gathering traffic information reducing the demand for installing sensors in cars, which is expected to hinder further the market during the forecast period.

Key Market Customer Landscape

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 expansion strategies.

Market Customer Landscape

Who are the Major Traffic Signal Recognition Market Players?

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.

Continental AG - The company offers solutions for traffic signal recognition that ensure that the current speed limit and other road signs are displayed to the driver on an ongoing basis.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Aldridge Traffic Controllers Pty Ltd.
• D G Controls Ltd.
• Delphi Technologies Plc
• Denso Corp.
• dSPACE GmbH
• Elektrobit Automotive GmbH
• Envoys Electronic Pvt. Ltd.
• European Safety Systems Ltd.
• Ford Motor Co.
• Gentex Corp.
• HELLA Aglaia Mobile Vision GmbH
• Magna International Inc.
• Mercedes Benz Group AG
• Mobileye Technologies Ltd.
• Robert Bosch GmbH

Qualitative and quantitative market growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key traffic sign recognition system 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.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest market trends and growth opportunities from 2017 to 2027. 

• Vehicle Type Outlook 
  • Passenger vehicle
  • Commercial vehicle

• Type Outlook 
  • Color-based detection
  • Shape-based detection
  • Feature-based detection

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing rapid growth driven by advancements in Artificial Intelligence (AI) and Image sensing cameras. These technologies enable Traffic Sign Assist systems and Traffic recognition systems (TSR) to accurately identify and interpret road signs. The market is also fueled by the increasing demand for Autonomous Vehicles and Intelligent transport systems (ITS), aiming to reduce accident rates and improve road safety. As IoT technologies and Smart systems evolve, the market is expected to expand further, offering new applications and services for enhancing driver's safety and passenger's safety.

The market is evolving with advancements in Multifunction camera technology and Pedestrian detection systems. These innovations enhance automation and safety, reducing on-road accidents, deaths, and casualties. Regulatory programs like the New Car Assessment Program (NCAP) and Euro NCAP drive the adoption of Traffic sign recognition systems in vehicles, promoting road safety. The market growth is supported by Intelligent and connected devices, Software platforms, and the rise of Fully autonomous vehicles. As Urban autopilot systems develop, the market is poised for further expansion, creating investment pockets and improving traffic conditions.

The market is driven by advancements in Human-machine interfaces and Processors, improving instrument clusters and reducing overtaking restrictions. Semi-autonomous vehicles and safety programs like the American New Car Assessment Program (NCAP) and the European New Car Assessment Program (Euro NCAP) prioritize reducing fatalities and improving road assistance. Economic growth and streamlined supply chains bolster vehicle manufacturing and business activities, ensuring compliance with traffic regulations and enhancing traffic signals. The market caters to diverse scenarios, offering solutions to reduce defaulters and high-end charges, promoting safer roads, and saving lives.

Traffic Signal Recognition Market Scope
Report Coverage	Details
Page number	160
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.74%
Market growth 2023-2027	USD 1.07 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.36
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 39%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Aldridge Traffic Controllers Pty Ltd., Continental AG, D G Controls Ltd., Delphi Technologies Plc, Denso Corp., dSPACE GmbH, Elektrobit Automotive GmbH, Envoys Electronic Pvt. Ltd., European Safety Systems Ltd., Ford Motor Co., Gentex Corp., HELLA Aglaia Mobile Vision GmbH, Magna International Inc., Mercedes Benz Group AG, Mobileye Technologies Ltd., Robert Bosch GmbH, SKODA AUTO AS, SWARCO AG, Volkswagen AG, and ZF Friedrichshafen AG
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 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.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market research report analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of traffic light recognition market companies

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