Road Safety Market

Market Overview

The global road safety market size 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).

Death and injury are expected outcomes of car crashes, which have far-reaching effects on individuals, families, communities, and nations. Significant social and economic repercussions are associated with road accidents, including enormous costs, a strain on healthcare systems, a drain on resources, and a loss of productivity. According to the World Health Organization, nearly 3400 people per day, or 1.24 million people annually, are killed in traffic accidents. Across the world, people aged 15 to 29 die most frequently from car accidents. Other common contributors to traffic mishaps include intoxicated drivers, speeding vehicles, and people who don't wear safety equipment like seatbelts, motorcycle helmets, and child safety seats. Instead of solely focusing on human error, road safety systems would benefit from considering the vulnerability of the human body.

Market Dynamics

What are the Primary Factors driving the Market for Road Safety?

Heavy Investment of Companies in the Development of Advanced Technologies

Companies are spending a lot of money on research and developing new technologies that use cameras, sensors, and artificial intelligence to detect traffic problems. Example: Tran soft Solutions (ITS) Inc. offers products that help city planners gather, track, and analyze traffic data. Municipal planners can use this data to improve their approaches to transportation infrastructure planning. The Brisk LUMINA system can perform video analysis using the existing road camera network. This data is analyzed to identify conditions that may increase the likelihood of an accident. Advanced technological solutions are helpful for law enforcement and infrastructure planning, which can drastically reduce the possibility of traffic accidents.

Rising Demand for Connected Commercial Vehicles

The rising demand for commercial vehicles with Internet connectivity is helping road safety solution providers implement solutions that simultaneously gather vehicles and road infrastructure. Therefore, businesses that cater to drivers' concerns about road safety can benefit from investments in infrastructure that make it possible for connected and autonomous vehicles. IDEMIA's Mesta Control system, for instance, compiles information from various sources, including traffic management, law enforcement, and more, to produce an in-depth analysis report. Thus, fewer sensors can be mounted on roads. The advent of connected vehicles is anticipated to increase the road safety market potential for such solutions significantly.

What are the Main Factors that will slow down the Market for Road Safety?

Lack of Uniform Technologies

To be widely adopted, connected road safety technology must be standardized. Linked vehicle technologies and linked infrastructure make up the road safety system. Integrating connected technology in automobiles and roadway infrastructure faces challenges, including cost and connectivity. Regarding road safety, there needs to be more uniformity and consistency. Different companies' hardware and software products are integrated into a unified road safety system. Devices like cameras, radars, sensors, and tags have varying specifications from manufacturer to manufacturer and may only function properly on some operating systems. Solutions providers face additional challenges when expanding their operations internationally because many countries and regions use different communication, network, and protocol standards and protocols.

What are the Future Opportunities for Road Safety?

Increase in Government Initiatives towards Road Safety

Many nations have implemented various programs and initiatives to lower the number of fatalities and serious injuries caused by automobile accidents. Governments everywhere concentrate on maintaining traffic order and guaranteeing commuter safety to reduce alarmingly high traffic-related deaths. Authorities have been forced to spend more money on roads because of rising public safety fears. For instance, the Intelligent Transport Society Singapore (ITSS) and the Singapore Land Transport Authority have released their Smart Mobility 2030 strategy plan for the country of Singapore (LTA). Sustainable, innovative mobility options for commuters are at the heart of this initiative, which aims to implement intelligent transportation technology.

Regional Analysis

The global market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant shareholder in the global market and is expected to grow during the forecast period. Growth in the region is expected to be supported over the forecast period by large-scale investment infrastructure projects and initiatives to promote safety in mobility services. One of the executive branches of the United States government, the United States Department of Transportation, unveiled a brand-new National Roadway Safety Strategy in January 2022. It's a plan to reduce deaths on the nation's roadways. During the foreseen time, the industry is expected to benefit significantly from the new product developments in incident detection and response solutions.

Asia-Pacific is expected to grow during the forecast period. Due to the region's rapid economic growth and various government initiatives supporting road safety measures, Asia Pacific is expected to grow at the highest rate in the global road safety market during the forecast period. As a bonus, many nations have implemented various solutions and strategies to improve road safety, including India, China, and Australia. The Economic and Social Commission for Asia and the Pacific (ESCAP) of the United Nations predicts that by 2030, 2.7 billion people in Asia will reside in urban areas. Consistent urbanization in the Asia-Pacific region is forecasted to increase transportation activity and private vehicle ownership, driving the need for road safety systems.

The market for vehicular safety is anticipated to expand rapidly in Europe. Under Vision Zero, which seeks to end all traffic-related deaths and severe injuries in Europe by 2050, the EU has adopted the Safe System approach. Additionally, 200 million Euros are being allocated for capacity building, digitalization of roads, infrastructure improvement, and other road safety actions. In many parts of the world, road safety is not on par with one another, and its future is still being determined. There is a well-established, proactive system for road safety in European countries. While Europe has a lower road fatality rate than the rest of the world, there is a wide range within the continent. As a result, some countries are working on road safety policies to reduce preventable deaths. Demand for road safety equipment in the EU is expected to remain stable due to initiatives and regulations to enhance road safety.

Due to the region's burgeoning economy and increasing urbanization, the LAMEA road safety market is predicted to expand at a healthy clip in the coming years. Countries have been compelled to implement road safety solutions and services due to the widespread adverse effects of unsafe roads. With many potential buyers and a concentration of established players, this area will continue to drive global demand. The rising two-wheeler and four-wheeler population and the increasing number of traffic accidents are propelling the expansion of the global road safety market.

Segmental Analysis

The global market is segmented by service and solution.

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 road safety market and is expected to grow during the forecast period. The segment of support and maintenance services is expected to expand at the fastest rate because these services are crucial to the smooth running of businesses. Design, construction, and maintenance improvements to our road infrastructure can significantly improve road safety. Preserving existing assets and reducing future costs for citizens, road users, taxpayers, and road owners are just a few of the many potential outcomes of a renewed emphasis on road maintenance. If investments are made at the appropriate times, this will forestall the assets' value from declining.

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 road safety market and is expected to grow during the forecast period. End-use applications like parking lots, road intersections, schools, and private land, among others, contribute significantly to the ANPR/ALPR segment's revenue share. Solutions like these make it easier to get a car back if it's been stolen or used illegally. Another selling point is that the systems can monitor your property around the clock, regardless of the time of day or the weather. Market segments include not only ANPR/ALPR but also red light/speed enforcement and incident detection/investigation.

Recent Developments

• November 2022- Simatic Automation Xpansion, a product developed by Siemens, adds IT-centric processes to the TIA Portal ecosystem.
• September 2022- Motorola Solutions invests in Brazilian talent to create world-class public safety software.