What Is The Current and Historic Market Size Analysis Of The Smart Roads Market?
The smart roads market has seen considerable growth due to a variety of factors.
• The market size of smart roads has witnessed remarkable growth in the past few years. The market, which is predicted to be valued at $16.35 billion in 2024, is expected to balloon to $20.59 billion in 2025 with a compound annual growth rate (CAGR) of 26.0%.
The escalating growth during the historical period can be credited to the intensified emphasis on road safety and accident prevention, an increase in traffic-related injuries, the surging demand for smart highways, an expanding need for efficient transportation, and a growing population.
What are the Market Size and Expected Growth Rates for the Smart Roads Market?
The smart roads market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, it is anticipated that the smart roads market will experience significant expansion. It is projected to swell to $51.19 billion by 2029 with a compound annual growth rate (CAGR) of 25.6%.
The market growth during the forecast period can be linked to a growing interest in corporate travel, an upswing in highway accidents, a surge in investments in transportation and construction infrastructure, an increased request for better safety and convenience for road users, and a growing application of connected and autonomous vehicles. Key trends for the forecast period include incorporating Internet of Things (IoT) technologies, progressing autonomous vehicle infrastructure, increasing emphasis on sustainability and environmentally friendly materials, advancing road safety through progressive sensor technologies, and the escalating use of big data analytics for anticipating traffic patterns.
Which Key Drivers Are Propelling The Smart Roads Market's Growth?
The increase in highway accidents is predicted to spur the expansion of the smart road market. A highway accident, which is a sudden and unplanned event involving one or more vehicles on a highway resulting in property damage, injuries or fatalities, is on the rise due to weather conditions, car maintenance problems, heavy traffic, drunk driving, and bad road conditions. Smart roads are designed to reduce these accidents by enhancing traffic control and safety through real-time surveillance, communication between vehicle and infrastructure, and automated incident recognition, thereby improving overall road safety. For example, in May 2023, the Bureau of Infrastructure and Transport Research Economics (BITRE), a government agency in Australia that offers economic analysis and statistics in relation to infrastructure and transport, reported that in 2022, the number of fatalities from road crashes surged to 1,194, a 5.8% rise compared to 2021. Thus, the escalating number of highway accidents is fueling the growth of the smart road market.
What Are The Key Segments Within The Global Smart Roads Market?
The smart roadsmarket covered in this report is segmented –
1) By Type: Transportation And Communication System, Traffic Management System, Other Types
2) By Component: Hardware, Software, Service
3) By Deployment Mode: On-Premise, Cloud
4) By Technology: Intelligent Transportation Management System, Intelligent Management System, Communication System, Monitoring System, Other Technologies
5) By Application: Urban Traffic Management, Highway Traffic Management, Parking Management, Other Applications
Subsegments:
1) By Transportation And Communication System: Vehicle-To-Vehicle (V2V) Communication, Vehicle-To-Infrastructure (V2I) Communication, Intelligent Transportation Systems (ITS), Smart Traffic Signals
2) By Traffic Management System: Traffic Monitoring Systems, Traffic Control Systems, Incident Management Systems, Traffic Flow Optimization Systems
3) By Other Types: Smart Parking Solutions, Road Weather Information Systems (RWIS), Automated Toll Collection Systems
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How Are New Trends Impacting The Size Of The Smart Roads Market?
Key players in the smart roads market are concentrating their efforts on the development of innovative solutions, such as turnkey services, with a view to improve traffic control and safety on roads. The term 'turnkey solutions' is used for products or services that are designed, developed, and established by one provider to be ready for immediate use by the client with little to no necessity for any adjustments. An example can be seen in July 2024 when Intelligent Security Systems (ISS), which is a US-based video intelligence and data insight solutions provider, unveiled a new automated intersection monitoring system, Intellisection. This sophisticated system supremely detects, counts, and categorizes all road users, including cars, pedestrians, cyclists, and mobility aids. In addition to safety enhancement through near-miss analysis, red-light transgression monitoring, and accident detection, it provides instant alerts via email, text, and web notifications, ensuring a quick response to incidents. Capable of managing multiple vehicles in distinct lanes at once, it is particularly suitable for multifaceted intersections. Complying with NEMA TS-2 standards, the system promises high reliability and longevity in a variety of situations.
Who Are the Key Players In The Smart Roads Market?
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
What Are The Regional Insights Into The Smart Roads Market?
North America was the largest region in the smart roads market in 2024. 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.
