Market Trends of Road Safety Industry
This section covers the major market trends shaping the Road Safety Market according to our research experts:
The surge in the Number of Road Accidents and Fatalities Gain Momentum in the Market.
- The global increase in accidents drives the growth of the road safety market. For instance, according to the WHO Global Status Report on Road Safety 2022, there were 1.3 million deaths in road traffic in 2021, and 20 to 50 million people were injured or impacted due to road incidents. More than 93% of road traffic accidents happen in low- and middle-income countries. Pedestrians, motorcyclists, and cyclists are among the most vulnerable road users.
- Several innovations in road safety products occurred in recent years. Red light and speed monitoring systems were traditionally put separately along roads and intersections to maintain traffic discipline and reduce accidents. Now companies focus on offering systems that combine speed and red light monitoring capabilities in a single unit.
- Jenoptik introduced TraffiStar systems, which use high-resolution cameras to provide combined red light and speed monitoring and capture traffic infractions over four lanes. Similarly, Vitronik offers the Poliscan Red+Speed system, explicitly built for intersections, to monitor the speed and red light violation of vehicles driving in different directions. With othe introduction of such systems, the market is likely to grow significantly over the forecast period.
- Road traffic incidents in Nigeria were generally rated as severe as of the fourth quarter of 2021. Around 2,200 such cases were reported till then in the year. Furthermore, the country's fatal and minor road traffic crashes totaled 888 and 320, respectively. According to the Federal Road Safety Corps (Nigeria), most incidents occurred in Kaduna State. These instances fueled the demand for road safety solutions. It also prompted governments to consider a revision of their regulatory policies.
- The US government is introducing rules and regulations to improve road safety to reduce traffic accidents, thus driving the road safety market. For instance, the National Safety Council, part of the US federal government, created the Road to the Zero project to eradicate highway fatalities by 2050.
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North America is Expected to Hold a Significant Market Share
- North America is expected to dominate the road safety market due to technological developments, the availability of developed infrastructure, and major road safety and security solution investments. According to the NHTSA, job growth and low gasoline prices are two elements actively contributing to the growing number of drivers in the United States.
- According to the US Department of Transportation, 95% of all transportation deaths in the United States occur on America's streets, roads, and highways, and the number is increasing. In 2020, an estimated 38,680 people perished in car accidents. An estimated 20,160 people died in the first half of 2021, an 18.4% increase over the first six months of 2020. This increase in death cases prompted the government to reconsider its regulatory policies, fueling the demand for the road safety market.
- Governments are investing in highway and road safety programs to reduce road incidents in that region. For instance, in February 2022, Federal guidance issued funds to pay for improvements such as bridge and roadway reinforcement, with federal subsidies for speed and red-light cameras only permitted in school zones. However, Biden's infrastructure package enables states to spend up to 10% of their USD 15.6 billion highway safety money over five years on "non-infrastructure activities," including automated traffic enforcement and public awareness campaigns.
- More than 150 communities in the United States have automated speed safety systems (known as speed safety cameras). Such systems can reduce road violence and establish a more equal traffic policing framework. Many installations of automated speed safety cameras require maintenance and replacements, which drive market growth.
- According to the US Department of Transportation, traffic deaths in the following categories increased significantly in 2021 compared to 2020: Fatalities in multi-vehicle crashes by 16%, fatalities on urban roads by 14%, fatalities among drivers 65 and older by 14%, pedestrian fatalities by 13%, motorcyclist fatalities by 9%, and deaths in speeding-related crashes by 5%. This demonstrates that the region demands additional road safety measures, thus boosting market expansion.
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