Smart Roads Market Trends

Global Smart Roads Market Overview:

Smart Roads Market size was valued at USD 13.5 Billion in 2022. The Smart Roads market industry is projected to grow from USD 17.1 Billion in 2023 to USD 112.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 26.60% during the forecast period (2024 - 2032). Government programmes and significant investments by major businesses are promoting the development of high-quality infrastructure, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Smart Roads Market Trends

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  Better roads and highways requirements is driving the market growth

  
  

The need for better highways and roads is what is propelling the growth. The expansion of the global smart highway market is dependent on the need for safer and more secure highways. The demand for safer and more secure highways is another important element driving the growth of the global smart highway market. The global worldwide Smart Highway Market is also being driven by government initiatives, astounding technological advancements, increasing interest in corporate travel, recreational travel, and workforce need. One of the key factors driving the growth of the global industry is the expansion of the interstate motorways market.

Additionally, the expansion of interstate innovation, agreements, and acceptance is propelling the growth of the global smart highway market. The expansion of the global market is also being fueled by the development of new innovations at a reasonable cost for safe, reliable, and efficient transportation. Businesses give smart roads a lot of thought since they need reliable, uncontaminated, unblocked, safe, and less used roads. The highway authority will deal with any issues on the interstate highway that affect drivers. The lockdown had varying effects on different sectors because it was strictly enforced in different districts and countries. The market development for smart highways is being accelerated by rising mechanical work and growing interest in new work exercises.

A few market problems have arisen globally as a result of the pandemic. Businesses are fighting to revive the business sectors on a global scale. It has been observed that the pandemic has largely touched every commercial sector. Due to the lockdown, many enterprises closed their doors and lost their identity, while others found new ways to make more money than they did before, such those involved in national highway and road development. The main factors impeding the development of the smart highway market are a lack of precise driver data and an unsightly traffic flow caused by inadequate highway communication. The development of the smart highway market can be attributed to rising population levels and the demand for intelligent roadways with effective management. The development of smart highways will be accelerated by technology like electronic toll collection, automatic number plate recognition, and a leaving signal alarm. The area has a large amount of availability, which enables it to provide more exact data that can assist in resolving traffic problems.

One of the main factors fueling the market's expansion is the growing demand for safe, sustainable roadways and transportation networks around the world. Additionally, the market growth is being boosted by the widespread deployment of smart transport management systems (STMS). The STMS can show forecasts and alarms on light-emitting diode (LED) panels along the roadways and employs digital sensors to capture data about landslides, weather, and traffic jams. Governments in both wealthy and developing nations are making significant efforts to increase road safety and prevent accidents. Other growth-promoting elements include a number of technological developments, including the incorporation of lane departure warning, automatic number plate recognition, and electronic vehicle charging systems on roads. These developments improve traveller convenience by cutting down on overall trip time. It is projected that further factors, such as the expansion of smart cities and significant infrastructure improvements, will propel the industry towards expansion. Thus, driving the Smart Roads market revenue.

Smart Roads Market Segment Insights:

Smart Roads Component Insights

The Smart Roads Market segmentation, based on Component, includes Hardware, Software, and Service. Hardware segment dominated the global market in 2022. This can be linked to the rising global demand for intelligent roadways.

Smart Roads Deployment Mode Insights

The Smart Roads Market segmentation, based on Deployment Mode, includes On-Premise and Cloud. Cloud segment dominated the global market in 2022. This is because it can process the enormous amounts of data generated by mobile devices and sensors. Big data and cloud technology are becoming more and more important in transportation systems as a result of technological advancements.

Figure 1: Smart Roads Market, by Deployment Mode, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Smart Roads Technology Insights

The Smart Roads Market segmentation, based on Technology, includes Intelligent Transportation Management System, Intelligent Management System, Communication System, Monitoring System, and Others. Intelligent transportation management system segment dominated the Smart Roads Market in 2022. Government initiatives, the development of new technology by private businesses, and the interconnection of cities and towns are the main drivers of growth. RFIDs and sensors are widely employed to promote safer and enjoyable travel.

Smart Roads Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Smart Roads Market dominated this market in 2022 (45.80%). The technical leader in the world is North America. Along with this strength, the increased investment in transportation and construction infrastructure will provide additional chances for the area to grow. Additionally, the United States spends a significant amount of money on highway and street projects. The value of federal construction spending on highway and street projects in the United States, for instance, climbed dramatically to reach nearly USD 1.4 billion in 2021, according to the U.S. Census Bureau. Further, the U.S. Smart Roads market held the largest market share, and the Canada Smart Roads market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Smart Roads Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Smart Roads market accounted for the healthy market share in 2022. Due to a growing emphasis on improving the transportation infrastructure by regional governments and the region's increasingly congested roadways, poor air quality, and rising number of highway accidents and fatalities, the region is the greatest adopter of smart transportation solutions. Further, the German Smart Roads market held the largest market share, and the U.K Smart Roads market was the fastest growing market in the European region.

The Asia Pacific Smart Roads market is expected to register significant growth from 2023 to 2032. This is because technology is being adopted quickly and traffic in big cities is getting worse. The demand for efficient transportation is expected to rise globally, which is expected to exacerbate parking difficulties and speed up the expansion of the intelligent transportation industry. The rapidly developing and significant technological breakthroughs in semi-autonomous and autonomous cars are anticipated to benefit the market for smart transportation. Moreover, China’s Smart Roads market held the largest market share and the Indian Smart Roads market was the fastest growing market in the Asia-Pacific region.

Smart Roads Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Smart Roads market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Smart Roads industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Smart Roads industry to benefit clients and increase the market sector. In recent years, the Smart Roads industry has offered some of the most significant advantages to medicine. Major players in the Smart Roads market, including Alcatel Lucent, Kapsch AG, Indra Sistemas S.A., LG CNS, Siemens AG, Cisco, Kapsch TrafficCom, Xerox Corporation, and Huawei, are attempting to increase market demand by investing in research and development Technologys.

Energy management and automation business Schneider Electric SE (Schneider Electric), originally known as Schneider Electric SA, creates associated technologies and solutions for power distribution. Its key offerings include essential power, cooling, and racking, low voltage products and systems, solar and energy storage, medium voltage distribution, and grid automation. The business also provides field and automation, cloud, consulting, and training services, as well as services related to energy and sustainability. The business offers services to a number of sectors, including banking and finance, food and beverage, healthcare, life sciences, marine, metals, minerals and cement, mining, oil and gas, retail, and automotive and mobility, among others. Africa, Europe, Asia-Pacific, the Middle East, South America, and North America are all regions where the company operates. The headquarters of Schneider Electric are at Rueil-Malmaison, France. In May 2021, Schneider Electric and Roco Group, the market leader in bathroom design, production, and commercialization, came to an agreement to develop a roadmap for decarbonization.

Koninklijke Philips NV (Philips) is a diversified technology firm that creates and produces consumer electronics and medical solutions. Diagnostic imaging, enterprise diagnostic informatics, image-guided therapy, ultrasound, monitoring and analytics, sleep and respiratory care, population health management, linked care informatics, and therapeutic care are all sectors in which the business provides products and solutions. Philips increased its position as a leader in hospital inpatient care management solutions in January 2021 by purchasing Capsule technology Inc., the industry's top supplier of medical equipment and data technology to hospitals and healthcare organisations.

Key Companies in the Smart Roads market include

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  Alcatel Lucent

  
  


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  Kapsch AG

  
  


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  Indra Sistemas S.A.

  
  


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  LG CNS

  
  


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  Siemens AG

  
  


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  Cisco

  
  


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  Kapsch TrafficCom

  
  


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  Xerox Corporation

  
  


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  Huawei

  
  

Smart Roads Industry Developments

June 2021: By developing the SmartWorldOS software platform, Cityzenith became a member of the Digital Twin Consortium. This platform generates virtual representations of buildings, cities, and infrastructure for tracking, monitoring, and optimising carbon emissions and minimising environmental harm.

Smart Roads Market Segmentation:

Smart Roads Component Outlook

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  Hardware

  
  


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  Software

  
  


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  Service

  
  

Smart Roads Deployment Mode Outlook

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  On-Premise

  
  


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  Cloud

  
  

Smart Roads Technology Outlook

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  Intelligent Transportation Management System

  
  


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  Intelligent Management System

  
  


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  Communication System

  
  


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  Monitoring System

  
  


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  Others

  
  

Smart Roads Regional Outlook

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  North America

  
  
  
  
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    U.S.

    
    
  
  
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    Canada

    
    
  
  
  
  


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  Europe

  
  
  
  
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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  


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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America