Home Technology Global Smart Highway Market Size, Forecast Analysis, 2031

Smart Highway Market

Smart Highway Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Service), By Deployment Mode (On-Premise, Cloud), By Technology (Intelligent Transportation Management System, Intelligent Management System, Communication System, Monitoring System, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRTE55430DR
Study Period 2019-2031 CAGR 10.2%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 41.9 Billion
Forecast Year 2031 Forecast Year Market Size USD 100.43 Billion
Largest Market North America Fastest Growing Market Europe
The sample report only takes 30 secs to download, no need to wait longer.

Market Overview

The global smart highway market size was valued at USD 41.9 billion in 2022. It is estimated to reach USD 100.43 billion by 2031, growing at a CAGR of 10.2% during the forecast period (2023–2031). The rise in the number of vehicles among emerging countries and the rise in smart city initiatives stimulate market growth.

A "Smart Highway" is a modernized, networked road infrastructure system that combines cutting-edge technology to enhance transportation security, efficiency, and sustainability. It combines sensors, communication networks, and intelligent technology to create a responsive and informed road environment. A Smart Highway's core consists of numerous sensor technologies implanted in the road network, such as cameras, radar, and lidar. These sensors collect real-time data on weather, road hazards, and traffic movement, making it possible to identify and mitigate any concerns quickly. These data are sent to a central control center, where they are analyzed and used to enhance traffic management strategies. The communication networks employed in smart highways allow for seamless interaction between vehicles, infrastructure, and traffic management systems. This makes possible effective route suggestions, real-time traffic updates, and collision avoidance systems.

Additionally, it permits communication between vehicles and between vehicles and infrastructure (V2I). Drivers can receive tailored information and support through in-car displays or mobile applications, making transportation safer and more efficient. By incorporating lighting systems that consume less energy and respond to the presence of moving cars, Smart Highways also promote sustainability. Additionally, businesses can use environmentally friendly energy sources like solar panels to power infrastructure parts and reduce their environmental impact.

Market Dynamics

Global Smart Highway Market Drivers

Rise in the Number of Vehicles Among Emerging Countries

A continuing pattern of expansion is seen each year in the total of new autos purchased by individual consumers. The substandard quality of the transportation infrastructure in many nations is the single most important factor contributing to the rise in the total number of automobiles being purchased globally. In addition, as a direct result of urbanization and globalization, individuals now have access to greater sums of money they can spend on their initiative. Particularly in metropolitan regions, traffic is getting more difficult to navigate due to the expansion in the number of cars on the road. As a result, there has been an increase in the need for intelligent highways and roads, which can monitor the congestion on each road and reroute the traffic flow accordingly to make traveling more productive and enjoyable.

Rise in Smart City Initiatives

Through rules and programs concentrated on deploying smart services as a significant component of their infrastructure, governments worldwide have been playing a significant part in the smart cities industry. Due to the region's emphasis on energy and climate goals, the European smart city market is anticipated to expand significantly over the next years. As a result, the government in this region is concentrating its efforts on energy distribution using effective models and techniques to move closer to a future with lower carbon emissions. In addition, the governments of countries with developing economies, such as China, South Korea, Dubai, India, Singapore, and Japan, are working to sustain their economies. In addition, China has declared that it will launch pilot projects in 500 smart cities, which represents yet another massive investment by the government in the region.

Global Smart Highway Market Restraint

Lack of Technical Expertise

The development of intelligent highways calls for the application of various technologies, such as those used for traffic management, communication systems, and other monitoring systems. As a direct consequence, the development of intelligent highways calls for the participation of competent personnel. In addition, there is a prerequisite for training to operate the software and any other apparatus installed on the highway. Inadequate levels of technical skill concerning smart roadways could result in the production of erroneous data, which would consequently contribute to collisions. This could slow down the growth of the smart highway sector.

Global Smart Highway Market Opportunities

Rise in Advance Technology in the Transportation Industry

Electrification, using renewable energy sources, and an improved user safety experience have contributed to the development of sophisticated technology. The transportation industry has worked together to produce a wide range of cutting-edge technologies, such as wind-powered streetlights, solar-powered roads, and interactive lighting, all contributing to creating streets that are both more intelligent and safer.

For instance, HP Lubricants and Leo Burnett India worked together to develop a system with "roads that honk." This was the consequence of their successful collaboration. The 'roads that honk' method positions Smart Life poles in key spots before sharp turns. These poles can communicate and warn drivers when other vehicles are approaching. Other technologies, such as electric charging lanes developed by Electron, self-healing concrete roads, and solar-paved highways, would offer a considerable number of opportunities for the growth of the smart highway sector.

Regional Analysis

Based on region, the global smart highway market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant global smart highway market shareholder and is estimated to exhibit a CAGR of 21.3% over the forecast period. Numerous initiatives for smart roads in growing nations like China, Singapore, Korea, and others provide support for the market in the Asia-Pacific region. Increasing urban needs, technology maturity, and government support for smart highways have all contributed to the region's rise. Furthermore, governments in rising nations like China and India, which have the greatest second road network, are implementing smart motorways to give drivers a memorable driving experience. The market is also growing due to numerous government initiatives in various Asian nations to develop smart cities and highways. The market is also being driven by several government initiatives that have been initiated in developing nations like Japan and India to reduce air pollution and enhance safety on mountain routes with a high potential for disaster.

Asia-Pacific is anticipated to exhibit a CAGR of 14.7% over the forecast period. The U.S. and Canada's respective smart highway markets are examined. The rising demand for smart roads would create expansion prospects for market participants in several North American developed economies. Government support for linked and innovative transportation also contributes significantly to market expansion. Due to the presence of key market participants, technical know-how, and rising demand for smart highways for effective, safe, and time-saving transportation, North America is one of the industry's main regions.

Furthermore, the market is also growing due to several government attempts to strengthen roadside enforcement operations through improved screening and automation of vehicle compliance checks. For instance, the U.S. launched the smart roadside program, which offers improved traffic and road conditions data to help commercial vehicle route planning and enhance access to intermodal ports, urban pick-up points, and delivery locations. The market is expected to increase due to numerous investments made by various businesses in developing smart roads in the United States and Canada to enhance the safety, mobility, and effectiveness of vehicle movement and activities on the roadway.

Europe is expected to dominate the smart highway market due to its significant IoT industry, well-established countries, and high IT investment. The European government's initiatives aim to improve traffic distribution and highway efficiency and provide real-time information to road users. The UK's adoption of smart roads aims to reduce congestion, provide reliable journey times, and reduce environmental impact.

Additionally, the increasing need for connectivity between traffic and communication drives the market's growth. European governments are installing intelligent transportation systems to make roads safer and easier to use, providing real-time information about congestion and traffic. The UK and France have numerous ITSs, primarily in urban areas, to improve route planning and provide real-time information on road conditions and traffic volume. Initially launched in France and the UK, these projects are expected to provide significant opportunities for the smart highway sector.

LAMEA's smart highway market is expanding more slowly. However, it is anticipated that Latin America and the Middle East will grow significantly during the predicted period. The expansion of the market in the LAMEA region is driven by the need for better and more sustainable highways in the developing nations of Africa and the Middle East. Additionally, the UAE government's increased investment in infrastructure development and the placement of cutting-edge technologies along highways present a profitable opportunity for the sector. African nations have also started their march toward superior technologies.

For instance, Nairobi has implemented intelligent traffic management technologies to automate and digitize the city's existing infrastructure, giving residents access to dependable, efficient, and safe modes of transportation while also easing traffic congestion. The Brazilian government has also undertaken numerous steps to lower haphazard driving and enhance road quality, fuelling market expansion. As an illustration, the Brazilian government has entered into several partnerships with American businesses to implement intelligent transportation systems (ITS) to manage highway construction better and improve traffic management.

Report Scope

Report Metric Details
Segmentations
By Component
  1. Hardware
  2. Software
  3. Service
By Deployment Mode
  1. On-Premise
  2. Cloud
By Technology
  1. Intelligent Transportation Management System
  2. Intelligent Management System
  3. Communication System
  4. Monitoring System
  5. Others
Company Profiles ABB Ltd ALE International AT&T Inc. Cisco System Inc. IBM Corporation Huawei Technologies Co. Ltd. LG CSN Honeywell International Inc. Schneider Electric SE Siemens AG
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Segmental Analysis

The global smart highway market is bifurcated into components, deployment modes, and technology.

Based on the components, the global smart highway market is bifurcated into hardware, software, and service. 

The hardware segment dominates the global market and is projected to exhibit a CAGR of 16.5% over the forecast period. The hardware sector consists of various sensors, surveillance cameras, displays, and telecommunication network technologies for delivering roadside surveillance to improve traveler security and safety. Hardware technologies also play a crucial function in enhancing, bolstering, and smartening roadways. To produce roads that can convert solar energy into electrical and radioactive components, photovoltaic pavements are being used increasingly in developing nations worldwide. These roads are being built using smart road hardware that can be used to harness this power.

Hardware for smart highways is also used to improve lighting on the road and make the roadway more usable, which helps to conserve energy and money. This hardware is also employed in creating eco-friendly and safety precautionary systems, which fuels the expansion of the market for smart highway hardware. Additionally, the hardware for smart roads comprises many components, such as traffic congestion systems, various kinds of sensors, and security cameras and webcams. In dangerous and mountainous areas, this method effectively operates the highways.

Based on deployment mode, the global smart highway market is segmented into on-premise and cloud. 

The on-premise segment dominates the global market and is predicted to exhibit a CAGR of 19.0% during the forecast period. Software and hardware can be installed on-site, within an organization's physical boundaries. The company's internet technology (IT) team has physical access to the data and direct control over the setup, management, and security of the computer infrastructure and data by installing software on the hardware there. These solutions have more advanced security characteristics, encouraging huge transportation companies to utilize them. High levels of cost savings on the total cost of ownership and an increase in the demand for data backup and security by various user types, including small, medium, and large companies, are the main factors influencing the growth of the on-premise solutions market. To increase on-premise acceptance, smart roadways solution vendors have recently promoted embedded solutions throughout several continents, including North America, Europe, and Asia-Pacific.

Additionally, the on-premise deployment option enhances the organization's scalability, speed, dependability, and connectivity while giving transport solution providers complete control over security and other connectivity-related issues. Additionally, many businesses remain on-premise due to worries about information security and privacy in the cloud, which is advantageous for the sector as transportation corporations frequently deal with sensitive information.

Based on technology, the global smart highway market is segmented into intelligent transportation management systems, intelligent management systems, communication systems, monitoring systems, and others. 

The Intelligent Transportation Management System segment dominates the global market and is predicted to exhibit a CAGR of 16.6% during the forecast period. An intelligent transportation system applies communications technology for sensing, analysis, and control to ground transportation to increase efficiency, mobility, and safety. It contains many applications to process and communicate information to enhance traffic management, reduce road congestion, and reduce environmental impact. The development of intelligent transportation systems is also fuelled by a host of advantages offered by this system, such as raising traffic safety, lowering infrastructure damage, managing traffic, and gathering traffic data.

The expansion of intelligent transportation systems is driven by numerous government initiatives for smart transport infrastructure and an increase in the usage of smart transport systems to minimize traffic congestion issues. In addition, the market is growing quickly because of the rapid adoption of IoT, which is transforming the transportation sector by automating roadways and improving user experience. Additionally, the industry is presented with a profitable opportunity due to traffic authorities' increased real-time data used to address complicated traffic congestion challenges.

Market Size By Component

Market Size By Component
  • Hardware
  • Software
  • Service
  • Recent Developments

    • May 2022 - As part of the English government's effort to simultaneously fill all lanes of the country's technology-enhanced roads with traffic, England's smart highways were given new radar technology to detect broken-down vehicles.
    • April 2022 - Lexana, a city in Kansas, approved a 10-year pilot program to deploy smart pavement technology at five intersections in a public-private partnership. The P3 project marks a step forward in deploying the technology, which entails precast concrete road sections embedded with fiber optic connectivity and digital technology for traffic data collection through Wi-Fi, in-roads sensors, 5G, and more through antennas in the expansion ports, edge services, and cloud access and wireless electric vehicle charging.

    Top Key Players

    Smart Highway Market Share of Key Players

    Smart Highway Market Share of Key Players
    ABB Ltd ALE International AT&T Inc. Cisco System Inc. IBM Corporation Huawei Technologies Co. Ltd. LG CSN Honeywell International Inc. Schneider Electric SE Siemens AG Others

    Frequently Asked Questions (FAQs)

    How big is the smart highway market?
    The global smart highway market was valued at USD 41.9 billion in 2022. It is estimated to reach USD 100.43 billion by 2031, growing at a CAGR of 10.2% during the forecast period (2023–2031).
    North America region has the largest market share in the smart highway market.
    The key players in the global smart highway market include ABB Ltd, ALE International, AT&T Inc., Cisco System Inc., IBM Corporation
    Rise in advance technology in the transportation industry is opportunity in market.
    The global smart highway market is bifurcated into components, deployment modes, and technology.


    We are featured on :