Global Road Safety Market Grows at a Staggering CAGR of 8.57%

Introduction

Car accidents routinely result in death and injury, with far-reaching consequences for victims, their loved ones, their communities, and even entire nations. Road accidents have enormous financial and societal costs, burden healthcare systems, deplete resources, and reduce productivity. Nearly 3,400 people per day, or 1.24 million people annually, are killed in traffic accidents, reports the World Health Organization. Vehicle collisions are the leading cause of death worldwide for people aged 15 to 29. Intoxicated drivers, speeding vehicles, pedestrians, and drivers who don't use safety devices like seatbelts, motorcycle helmets, and child safety seats contribute significantly to traffic accidents. The human body's frailty should be considered in road safety systems rather than just the possibility of human error.

Market Dynamics

Heavy Investment of Companies in the Development of Advanced Technologies Drives the Global Market

Corporations invest heavily in studying and perfecting new technologies that utilize cameras, sensors, and AI to identify traffic issues before they become major. For instance, the products sold by Tran soft Solutions (ITS) Inc. facilitate collecting, monitoring, and analyzing traffic data for municipal authorities. This information is helpful for municipal planners looking to better plan for transportation infrastructure. Video analysis can be performed by the Brisk LUMINA system using the preexisting road camera network. Potential risk factors for accidents are determined by analyzing this data.

Increase in Government Initiatives towards Road Safety Creates Tremendous Opportunities

For decades, governments worldwide have worked to reduce the number of people killed and injured in automobile accidents by implementing various programs and initiatives. As a result of the distressingly high number of deaths that can occur in traffic accidents, governments worldwide focus on enforcing traffic laws and ensuring the safety of commuters. Increased funding for road maintenance is a direct result of authorities' need to appease growing public safety concerns. For instance, the Singaporean government and the Intelligent Transport Society Singapore (ITSS) have unveiled the Smart Mobility 2030 strategy plan (LTA). This project aims to implement intelligent transportation technology to provide commuters with sustainable, cutting-edge mobility options.

Regional Analysis

North America is the most significant shareholder in the global road safety market and is expected to grow during the forecast period. Over the forecast period, growth in the region is expected to be bolstered by large-scale investment infrastructure projects and initiatives to promote safety in mobility services. The United States Department of Transportation, one of the executive branches of the United States government, introduced a brand-new National Roadway Safety Strategy in the first month of 2022. It's a strategy to cut down on traffic fatalities across the country. Innovations in incident detection and response solutions are expected to have a sizable impact on the market in the foreseeable future.

Asia-Pacific is expected to grow during the forecast period. The road safety market is anticipated to expand fastest in the Asia Pacific during the forecast period because of the region's rapid economic growth and various government initiatives supporting road safety measures. Countries like India, China, and Australia have also implemented multiple solutions and strategies to increase road safety. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) estimate that 2.7 billion Asians will call urban centers home by 2030. The need for road safety systems is expected to rise as urbanization continues in the Asia-Pacific region. It will lead to an increase in both public transportation use and private car ownership.

Vehicle safety is a sector that is expected to see significant growth in Europe. The EU has adopted Vision Zero's Safe System approach to eliminate all deaths and serious injuries caused by traffic accidents across Europe by 2050. Further, the European Union is investing 200 million Euros in initiatives to increase road safety, such as training and education, using technology to modernize infrastructure, and creating safer roads. Regarding road safety, the future is still in the air in many parts of the world. In Europe, they have a system to ensure the safety of both practical and proactive drivers. Even though Europe has a lower road fatality rate than the rest of the world, there is a significant variation between individual countries. That's why some nations are trying to implement road safety policies to cut down on needless fatalities. Efforts and laws enacted to improve road safety in the European Union should maintain a steady demand for road safety equipment.

The LAMEA road safety market is expected to grow healthy in the coming years due to the region's booming economy and increasing urbanization. The widespread adverse effects of unsafe roads have compelled countries to implement road safety solutions and services. The region's concentration of established players and a large pool of potential buyers ensure it will remain a significant force in driving demand worldwide. The expanding road safety market is caused by the rising two-wheeler and four-wheeler population and the rising number of traffic accidents.

Key Highlights

• The global road safety market was valued at USD 3354.56 million in 2022. It is projected to reach USD 7031.11 million by 2031, growing at a CAGR of 8.57% during the forecast period (2023–2031).
• Based on service, the global road safety market is bifurcated into consulting & training, support & maintenance, and managed. The support & maintenance segment is the highest contributor to the market and is expected to grow during the forecast period.
• Based on the solution, the global road safety market is bifurcated into bus lane & section enforcement, red light, ALPR/ANPR, speed, and incident detection & response. The ALPR/ANPR segment is the highest contributor to the market and is expected to grow during the forecast period.
• North America is the most significant shareholder in the global road safety market and is expected to grow during the forecast period.

Competitive Players

Competitive Players

The global road safety market’s major key players are Thales, Jenoptik, American Traffic Solutions, Siemens, Traffic Management Technologies, Motorola, Flir Systems, Cubic Corporation, Conduent, and Alcatel-Lucen.

Recent Developments

Market News

• In October 2022, Siemens and Hilscher joined forces to supply their clientele with flexible communication options.

• In June 2022, The MXM7000, an innovative in-vehicle solution developed by Motorola Solutions, integrates TETRA and 4G LTE voice and data communications in a secure and reliable framework, allowing public safety and military organizations to remain in constant contact.

Segmentation

Global Road Safety Market: Segmentation

By Service

• Consulting & Training
• Support & Maintenance
• Managed

By Solution

• Bus Lane & Section Enforcement
• Red Light
• ALPR/ANPR
• Speed
• Incident Detection & Response

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA