Smart Highway Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 55.80 Billion |
| Market Size (2029) | USD 137.98 Billion |
| CAGR (2024 - 2029) | 19.85 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Smart Highway Market Analysis
The Smart Highway Market size is estimated at USD 55.80 billion in 2024, and is expected to reach USD 137.98 billion by 2029, growing at a CAGR of 19.85% during the forecast period (2024-2029).
The growing investment in smart cities, along with the benefits associated with smart technologies, such as improved traffic safety and data-driven traffic control to reduce infrastructure damage, drives the growth of the smart highway market.
- With rapid urbanization, an increase in greenhouse gas (GHG) emissions contributes to an expanding carbon footprint and forcing the adoption of clean and sustainable technology for intelligent transportation. For instance, according to the United States Environmental Protection Agency, greenhouse gas (GHG) emissions from transportation account for about 28% of the total greenhouse gas emissions in the United States.
- Smart transport management systems use digital sensors that can acquire and record data during landslides, poor weather conditions, and traffic congestion. They can also display forecasts and alerts on LED screens on state and national highways.
- The market is driven by many factors, such as reducing the number of accidents occurring on highways, providing safe and efficient transportation systems, and reducing the transportation time on highways connecting the major cities of a country. All of these can be done by implementing smart technologies, which efficiently monitor traffic and help properly functioning highways while providing real-time information to the authorities.
- The lack of infrastructural support in developing countries can significantly restrain the smart highway market. Implementing smart highways necessitates substantial investment in technology, sensors, communication networks, and a skilled workforce. Developing countries often face budget constraints, and governments may prioritize other essential sectors over advanced transportation infrastructure.
Smart Highway Market Trends
Smart Transport Management Systems Product Technology is Expected to Hold Significant Market Share
- Smart transport management systems (STMS) play a vital role in the smart highway market, as they are a key technology that enables the integration of advanced transportation solutions to improve efficiency, safety, and sustainability. SMTS encompasses a range of products and technologies that facilitate real-time monitoring, control, and management of various elements within the transportation system.
- ITMS includes a network of sensors, cameras, and a traffic control system that monitors real-time traffic conditions. These systems collect traffic flow, density, and congestion data, enabling traffic operators to optimize traffic signal timing, manage lane control, and respond to incidents efficiently.
- ETC systems are an essential part of smart highways. They use various technologies like RFID, ANPR, DSRC, or GNSS to automate toll collection, reducing congestion and improving traffic flow at toll plazas. For instance, in April 2024, the Delhi transport department planned to set up 5,000 CCTV cameras at various junctions in the national capital as part of the ITSMS integration project. Under the new tender document, the chosen agency will be required to set up CCTV cameras with an ANPR system for 16 road traffic violations, along with the ICCC infrastructure, within three years. The selected agency will also be required to arrange for a storage capacity to store all the CCTV footage and data for five years.
- Traffic information and navigation systems (TINS) provide real-time traffic information to drive through variable message signs, mobile apps, or navigation devices. This helps drivers make informed decisions, avoid congested routes, and improve traffic distribution.
- Environmental monitoring systems monitor air quality and other environmental parameters along highways to assess pollution levels and make data-driven decisions to reduce emissions and improve air quality.
North America is Expected to Hold Significant Market Share
- The North American smart highway market experienced steady growth and advancements in intelligent transportation systems (ITS) and smart infrastructure. Government agencies in North America have been actively promoting the adoption of smart transportation solutions to address traffic congestion, reduce accidents, and enhance overall transportation efficiency.
- The region's strong technological infrastructure and high smartphone penetration have facilitated the implementation of ITS technologies, such as electronic toll collection systems, traffic management systems, and real-time traffic information.
- There has been a significant emphasis on deploying smart highway technologies to enhance road safety through incident detection, management systems, and vehicle-to-infrastructure communication.
- The region has seen increasing interest in autonomous and connected vehicle technologies. These technologies have the potential to revolutionize the transportation landscape and require smart highway infrastructure to support their deployment.
- North America is a global technological leader. The increased spending on construction and road infrastructure is expected to offer more opportunities for the region to expand. Moreover, the public construction spending on highway and street projects in the United States is very high. For instance, in March 2024, NoTraffic, the developer of the leading AI Mobility Platform, announced that it received approval from the Florida Department of Transportation (FDOT) to operate in the state, accompanied by substantial successful implementations of NoTraffic's systems in various locations including Collier County, Pasco County, Orlando, and more. This significant milestone underscores NoTraffic's unwavering commitment to the highest safety and future-ready standards.
Smart Highway Industry Overview
The smart highway market is highly fragmented, with the presence of major players like Alcatel-Lucent Enterprise (Nokia Corporation), Cisco Systems Inc., IBM Corporation, Indra Sistemas SA, and Infineon Technologies AG. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- May 2024: Applied Information Inc. and Curruix Vision LLC announced a strategic partnership to provide new, enhanced traffic insights and proactive safety solutions to increasingly complex traffic management environments. The strategic partnership will combine their technical strengths by integrating Curruix Vision’s smart city ITS intersection AI technology into Applied Information’s intelligent city supervisory platform, Applied Information Glance.
- February 2024: Actelis Networks Inc., a cyber-secure, fast-deployment networking solution for Internet of Things (IoT) applications, deployed a hybrid fiber-to-the-premises (H2P) connectivity solution at several of Napa’s busiest traffic junctions. Actelis' local partner, Econolite, ordered and installed the solution. Econolite and Actelis completed an ATMS upgrade project at the city’s busiest intersections.
Smart Highway Market Leaders
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Alcatel-Lucent Enterprise (Nokia Corporation)
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Cisco Systems Inc.
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IBM Corporation
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Indra Sistemas SA
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Infineon Technologies AG
*Disclaimer: Major Players sorted in no particular order
Smart Highway Market News
- May 2024: MSRDC installed Maharashtra's first ITSMS system on the Mumbai-Pune Expressway. With an average weekday traffic of about 40,000 vehicles and an average weekend traffic of around 60,000 vehicles, the aim of this system is to modernize traffic management and enhance road safety.
- April 2024: Centracs Mobility and PTV Group partnered to bring the industry’s only integrated predictive ATMS-based traffic monitoring and alerting solution to the market as part of PTV Group's Umovity program. PTV Flows is a cloud-based solution for monitoring and alerting traffic. The company partnered with the industry leader in ATMS, Centracs Mobility, to bring this solution to the market.
- March 2024: US Transportation Secretary Pete Buttleidge announced over USD 50 million in grants for 34 technology demonstration projects nationwide through the President's Investing in America Grants Program (SMART). SMART is a competitive grant program launched under the landmark Bipartisan Infrastructure Act. The SMART grants program provides USD 500 million over five years to state, local, and tribal governments to use technological advances to develop safer, more efficient, and innovative transportation systems. The projects announced span 22 states, plus the District of Columbia and Puerto Rico.
Smart Highway Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Threat of New Entrants
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Bargaining Power of Suppliers
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Stakeholder Analysis
- 4.4 Assessment of the Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Highway and Infrastructure Projects
- 5.1.2 Rising Need for Safe and Efficient Transportation
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5.2 Market Challenges
- 5.2.1 Capital-intensive Projects
- 5.2.2 Lack of Infrastructural Support in Developing Countries
- 5.3 Market Opportunities
- 5.4 Key Recent Case Studies
- 5.5 Evolution of Smart Highway Technology
6. MARKET SEGMENTATION
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6.1 By Product Technology
- 6.1.1 Smart Traffic Management Systems
- 6.1.2 Smart Transport Management Systems
- 6.1.3 Monitoring Systems
- 6.1.4 Services
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6.2 By Geography***
- 6.2.1 North America
- 6.2.2 Europe
- 6.2.3 Asia
- 6.2.4 Latin America
- 6.2.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Alcatel-Lucent Enterprise (Nokia Corporation)
- 7.1.2 Cisco Systems Inc.
- 7.1.3 IBM Corporation
- 7.1.4 Indra Sistemas SA
- 7.1.5 Infineon Technologies AG
- 7.1.6 Huawei Technlogies Co. Ltd
- 7.1.7 Kapsch AG
- 7.1.8 LG CNS Co. Ltd (LG Electronics Inc.)
- 7.1.9 Schneider Electric SE
- 7.1.10 Siemens AG
- 7.1.11 Xerox Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Smart Highway Industry Segmentation
Smart highways include sensors, smart computing technologies, and smart monitoring systems, all connected to a single monitoring unit. Therefore, solutions such as traffic management, communication, and transport management are gaining traction. In order to reduce the increasing traffic, traffic technology vendors are introducing advanced changes, and highways are one of the attractive segments.
The smart highway market is segmented by product technology (smart transport management, smart traffic management, communication, monitoring systems, and services) and geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa). The report offers the market size and forecasts in value (USD) for all the above segments.
| By Product Technology | Smart Traffic Management Systems |
| Smart Transport Management Systems | |
| Monitoring Systems | |
| Services | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Latin America | |
| Middle East and Africa |
Smart Highway Market Research FAQs
How big is the Smart Highway Market?
The Smart Highway Market size is expected to reach USD 55.80 billion in 2024 and grow at a CAGR of 19.85% to reach USD 137.98 billion by 2029.
What is the current Smart Highway Market size?
In 2024, the Smart Highway Market size is expected to reach USD 55.80 billion.
Who are the key players in Smart Highway Market?
Alcatel-Lucent Enterprise (Nokia Corporation), Cisco Systems Inc., IBM Corporation, Indra Sistemas SA and Infineon Technologies AG are the major companies operating in the Smart Highway Market.
Which is the fastest growing region in Smart Highway Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Smart Highway Market?
In 2024, the North America accounts for the largest market share in Smart Highway Market.
What years does this Smart Highway Market cover, and what was the market size in 2023?
In 2023, the Smart Highway Market size was estimated at USD 44.72 billion. The report covers the Smart Highway Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Smart Highway Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Smart Highway Industry Report
Statistics for the 2023 Smart Highway market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Smart Highway analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
