The global traffic management system market is projected to reach USD 26.72 billion by 2023. The market is anticipated to expand at a CAGR of around 12% during the forecast period, surpassing USD 74.09 billion by 2033.
The Sales of Traffic Management Systems are Likely to be driven by:
The traffic management system market accounts for nearly 84% of the global intelligent transport system market.
| Attributes | Details |
|---|---|
| Traffic Management System Market Estimated Value (2023) | USD 26.72 billion |
| Projected Market Valuation (2033) | USD 74.09 billion |
| Value-based CAGR% (2023 to 2033) | 12% |
| Top 5 Vendor Market Share | Around 20% |
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With the number of accident-related deaths reaching alarming levels, governments in various countries have imposed legislation and issued fines to improve road safety. However, this has done little to reduce the number of people killed in car accidents. As a result, countries are moving toward the adoption of traffic management systems to prevent road accidents.
According to the Ministry of Road Transport & Highway Transport Research Wing of New Delhi, India, in 2019, there was a total of 4,49,002 accidents reported by States and Union Territories (UTs). Out of that, nearly 33% (1,51,113) persons were killed, and more than 4,51,361 people were injured. Such incidents are creating pressure on authorities to adopt advanced traffic management systems, hence driving the market.
Cities are becoming smart, and smart mobility is a key component in achieving this goal. It is one of the most important ways through which smart cities can improve the daily commute for citizens while enhancing sustainability. However, in most cities, a lack of good and safe transit, road safety problems, an overloaded road network, bad traffic management, parking issues, thefts, and poor road conditions are still key concerns.
For addressing these key concerns,, authorities are investing in smart traffic management solutions like electronic toll management systems, Adaptive Traffic Control Systems (ATCS), video-based Automatic Traffic Counter and Classifier (ATCC), Red light violation Detection (RLVD), and Integrated Command and Control Center (ICCC). Such investments are fueling the growth in the traffic management system market.
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Future Market Insights predict a comparison and review analysis of the dynamics of the traffic management systems market. Traffic management systems have become an important solution for numerous cities due to the factors such as
| Market Statistics | Details |
|---|---|
| H1,2021 (A) | 9.5% |
| H1, 2022 Projected (P) | 10.3% |
| H1, 2022 Outlook (O) | 11.8% |
| BPS Change: H1,2022 (O)-H1,2022(P) | (+) 150 ↑ |
| BPS Change: H1,2022 (O)-H1,2021(A) | (+) 230 ↑ |
As per FMI analysis, H1, 2022(O)-H1, 2022(P) has witnessed a growth of 150 BPS units. The expansion of cities and development in infrastructure made it important for the authorities, to manage the traffic better.
The analysis for H1,2022(O)-H1,2021(A) has witnessed a growth of 230 BPS units. One of the primary reasons for this growth is that many cities want to implement data analytics and similar solutions for handling their traffic better.
Numerous projects in the United States and Latin America require the implementation of traffic systems. Several small cities and towns have started seeing an increase in vehicular traffic since the pandemic. This has further incentivized the city authorities to implement a traffic management system.
The traffic management system demand is expected to record a 12% CAGR between 2023 and 2033, in comparison with a 9.2% CAGR registered from 2018 to 2022.
Traffic management systems ensure the smooth mobility of individuals during their transportation by making use of various devices and software integrated into roads and traffic control centers.
Traffic management systems collect data from various sources, such as sensors, and CCTV cameras and further transmit the collected real-time data to control centers. These control centers further control the operation of traffic signals, variable message signs, and other elements on roads which directly control the traffic, ensuring smooth mobility.
The United States is expected to account for a notable market share of 25% by 2033. Countries such as the United States and Canada are reducing traffic congestion by modifying their transportation infrastructure. In addition to this, telematics service providers in the region are focusing on the development of new solutions. Solutions like wireless safety communications and integrated hands-free cell phones are developed for vehicles in traffic management systems to improve safety and security.
India is expected to account for nearly 41.5% of South Asia Pacific market share through 2033. Traffic congestion is one of the biggest problems in the country as there is an increase in the number of vehicles on roads and road accidents.
Cities in India are becoming increasingly congested. With the tremendous growth in the population, the amount of traffic on the roads is growing. This can now be regulated using a variety of ways and current traffic management technologies.
A technology player in India, Vehant Technologies offers a solution that detects:
Hence, the traffic management system market in India is likely to witness significant growth over the forecast period.
The traffic management system demand in Japan is projected to expand at a CAGR of 16% over the forecast period. Japan is the most advanced country in terms of the adoption of Intelligent Transportation System (ITS) infrastructure and road traffic control systems.
As Japan is a relatively small country geographically with a dense network of highways, where reducing traffic congestion and preventing road accidents are key concerns. With picture pedestrian detection systems, the country is trying to:
On the back of these factors, Japan is likely to be the second prominently growing country in East Asia traffic management system market during the forecast period.
Sales in Russia’s traffic management system market are estimated to capture a 12% CAGR over the assessment period. The country is adopting an advanced transport management system to curb congestion and reduce accidents.
Russia is focusing on digitalization as it is one of the most important factors for the formation of modern transport infrastructure. The deployment of transport services with powerful tools for traffic analysis is reducing accidents. For instance,
In September 2019, Scientists at South Ural State University used Artificial Intelligence (AI) technology and launched a traffic monitoring system for monitoring the traffic flow. The system is designed in such a way that it does not require any recording equipment and works on any kind of camera. Such developments in the country are expected to augment the growth in the market over the assessment period.
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The Automatic Number Plate Recognition (ANPR) system segment is expected to thrive at 9.4% over the forecast period. It is a highly accurate system that automatically scans the vehicle number plate without any human intervention.
Speeding is a serious traffic issue in cities across the globe. However, identifying cars exceeding the speed limit usually necessitate a collaborative effort between several equipments such as a traffic camera, a radar, and a supplementary light.
ANPR systems run night and day, in any weather condition, with a portable traffic-monitoring camera that detects the speed and identifies license plates. The adoption of such systems is expected to create opportunities for the traffic management system market in the forthcoming years.
The urban traffic management and control application segment is projected to experience a growth of 14.2% during the forecast period. There are various modes of transport such as cycling, public transport, and walking, promoted by modern traffic management. Prioritizing public transportation at intersections and implementing a green wave for cyclists are just two examples of ways to make various modes of transportation appealing.
To solve traffic congestion problems in urban areas, key players in the market are coming up with new technologies such as traffic light assistance systems to provide information on the status of traffic lights. Such factors are contributing to the growth in the traffic management system market.
As per the analysis, the software segment is expected to account for 32% market share through 2033. The advancement in the Internet of Things (IoT) and connected devices technology is encouraging the use of traffic management software with real-time data.
The traffic management software provides real-time visibility into the network and also helps in detecting and preventing faults and outages. Outages or traffic surges in the network are caused by a variety of factors, including human error and security threats.
Real-time visibility into network traffic flow is critical for proactively monitoring and identifying any issues that may impact network performance. Such innovations in traffic management software are likely to augment sales in the forthcoming years.
Players in the traffic management system industry are highly competitive. This dynamic industry presents both opportunities and challenges for key players and new entrants. To stay ahead in the market, key players are adopting strategies such as the development of advanced traffic management solutions using AI, IoT, and cloud computing technologies.
Key players are also investing in the acquisition of small companies to expand their product portfolio and increase their market share. These manufacturers are also developing innovative solutions to meet the growing demand for efficient and sustainable transportation systems.
The traffic management system industry presents significant investment opportunities for new entrants who can develop cost-effective and efficient traffic management solutions. Moreover, with the growing need for smart transportation systems in urban areas, there is a huge potential for companies to expand their operations in emerging markets. Apart from this, players are focusing on acquisition and partnerships with other companies to develop innovative traffic management system software. For instance:
Manufacturers in the traffic management system market should consider the following 10 pointers for scaling their businesses:
| Attribute | Details |
|---|---|
| Market value in 2021 | USD 19.3 billion |
| Value-based CAGR | 12% |
| Share of top 5 players | Around 20% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Billion for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; and the Middle East & Africa |
| Key Countries Covered | The United States, Canada, Germany, the United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Australia & New Zealand, GCC Countries, Türkiye, Northern Africa, and South Africa |
| Key Segments Covered | System, Component, Application, and Region |
| Key Companies Profiled | IBM Corporation; Metro Infrasys Pvt.Ltd; Cisco Systems, Inc.; Kapsch TrafficCom; Blue Star Limited; Cubic Corporation; Siemens; Omnitec Group; Swarco; MAV Systems Limited; Atkins; PTV Group; Efftronics Systems Pvt. Ltd; Aesys S.p.A; Jenoptik Group; All Traffic Solutions; FLIR Systems; BioEnable; Iteris, Inc. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market is valued at USD 26.72 billion in 2023.
The growth potential of the traffic management system market is 12% CAGR through 2033.
Constant advancements and introduction of MaaS are driving sales of traffic management system.
Increasing adoption of smart traffic management solutions is expected to set the pace for future demand.
IBM Corporation, Metro Infrasys Pvt. Ltd, and Cisco Systems, Inc. are key market players.
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Traffic Management System Market
