Market Dynamics
Drivers: Innovation In Transportation Technology Driving the Market
Traffic bottlenecks and carbon emissions in urban and interurban networks are usually caused by inadequate traffic signal operations and traffic incidents. According to several ITS groups such as ITS Canada, ITS Turkey, and others, Advanced traffic management systems (ATMS) reduce signal waiting time by 20% to 30% and travel time by 25%, helping in saving a significant amount of recognized congestion. One lightweight car can save around 0.7 gallons of fuel for every hour of traffic wait time cut, and a truck can save 1.93 gallons. As a result, these factors are expected to affect the global vehicle counting system market positively. The rising number of vehicles on the road increases the amount of greenhouse gas emissions and traffic bottlenecks. This number of incoming vehicles is accelerating the demand for vehicle counting systems and ATMS.
Vehicle counting system deployment provides real-time traffic information, which can aid in the resolution of escalating traffic congestion difficulties. Sensors that can measure the vehicle speed, traffic signals, pre-emption alarms, and other traffic-related data are sent into intelligent signal controls. Data from numerous sensors is processed by using several sophisticated algorithms before sending it back to the controllers since collecting real-time traffic statistics aids in traffic signal control. A vehicle counting system assists drivers in identifying quicker and traffic-free routes to increase mobility.
Drivers: Necessity of Improved Road Safety Propelling the Global Market
According to the Association for Safe International Road Travel (ASIRT), around 1.3 million people die in road accidents each year, with an average of 3,287 people dying per day. Road traffic deaths account for more than 2.2 percent of all deaths all over the world. According to the same sources, road accidents were the ninth largest cause of mortality in 2012, accounting for more than 2% of all world deaths. According to OECD, the majority of traffic fatalities occurred on rural roads in most countries due to the lack of awareness of road safety. Many countries are solving these problems by integrating advanced traffic management technologies into their road networks.
Furthermore, awareness of road safety among car owners is inclined to boost the demand for cooperative systems such as vehicle to vehicle (V2V) and vehicle to infrastructure (V2I) in the future. Developed regions are entirely devoted to reducing the number of road deaths by imposing stringent legislation and policies. As a result, these factors are anticipated to drive the growth of the global vehicle counting system market during the forecast period. Also, the rapid adoption of IoT to transform the transportation industry by automating roadway, airway, waterway, and railway transportation systems and providing a better user experience is bolstering the market’s growth.
The adoption of IoT solutions, especially in smart cities and transport, provides real-time visibility and reliable data, enabling companies to improve their productivity while creating smarter cities. According to the NHSTA Report, there were about 52,190 vehicles involved in fatal crashes in the United States in 2016, of which 40,908 were passenger automobiles. Various ITS technologies, such as the GPS, are used to provide real-time information about traffic information, helping drivers in choosing alternative routes, avoiding traffic jams, and reducing the risk of collision.
Restraint: Economic Slowdown and Lack of Interoperability Hampering the Market
Low financing and investment for vehicle counting system projects is a significant barrier for transportation agencies seeking to deploy ITS systems. In various countries across the world, even industrialized ones, state and national administrations are prioritizing transportation network growth and maintenance over the deployment of modern vehicle counting systems. In recent years, both developed and developing economies have experienced economic slowdowns.
According to the International Monetary Fund, global economic growth will be reticent in 2013, influencing the ITS market in the near future. As a result, these issues are anticipated to limit the worldwide vehicle counting system market growth throughout the forecast period. In addition to this, to deal with real-time traffic data and help minimize traffic congestion, vehicle counting systems require a sophisticated centralized traffic management center (TMC) to be co-located with transportation managers, system operators, dispatchers, and response agencies. CCTV cameras, microwave detectors, and other sensors and hardware components are used in the installation of ITS. All of this leads to substantial expenditure, which further stifles market growth.
Vehicle counting systems use information and communication technology to share transportation data among vehicle and road users, transportation authorities, and traffic control units. The architectural operation of a vehicle counting system is facing various interoperability problems to communicate the information and assist in transportation effectively. Interoperability is a major concern for electronic toll collection systems (ETC), because of differences in toll collection concepts and technologies used by highway toll collection operators. Therefore, these issues are predicted to impede the growth of the worldwide intelligent transportation (ITS) market during the forecast period.
In addition, the establishment of a vehicle counting system infrastructure involves the integration of many heterogeneous devices that are expected to create compatibility issues quite often. The synchronization of these heterogeneous devices requires some standardization in implementing various vehicle counting systems. However, the lack of a standard vehicle counting system infrastructure is an issue. The implementation and significant use of information technology is a process of many interrelated steps. During the implementation, any error in any of the stages reduces the efficiency.
Opportunities: Smart Vehicles and Wireless Communication Technology to Boost Market
The global transportation business is anticipated to be altered by the implementation of cooperative, connected, and automated mobility (CCAM) projects. It will enable road users and traffic administrators to communicate and coordinate traffic-related information. This cooperative element might also aid in the establishment of connections between vehicles (V2V) as well as between vehicles and transportation infrastructure (V2I). C-ITS technologies and applications enable wireless data interchange within the transportation system between V2V and V2I. The full adoption of a C-ITS program is forecasted to considerably improve road safety, traffic efficiency, and driving comfort by assisting the driver in making the proper judgments and adapting to the traffic conditions.
Moreover, government support and financing for intelligent transportation system planning, design, and implementation are predicted to fuel the vehicle counting systems market growth. Many governing bodies are partnering with corporate partners and investing in vehicle counting systems for the development of transportation structures to reduce traffic congestion. Intelligent transportation service companies are also assisting the government by giving knowledge on the adoption of vehicle counting systems in transportation infrastructure.
Wireless technologies utilized in vehicle counting systems are constantly evolving to increase transportation network stability and interoperability. Wireless communication technologies, both short-distance and long-distance are evolving rapidly to serve present and future vehicle counting systems applications. These wireless communication technologies are used in various kinds of vehicle counting systems applications, including electronic toll charging (ETC), car navigation systems, and other advanced traveler information systems. 5.9 MHz DSRC has recently been adopted to improve the performance of toll systems at highway tolls.
This system has also been certified for ETC on highways throughout Europe. The further development and standardization of DSRC technology are expected to expand its uses in the realm of V2X communication systems to reduce accidents and improve road safety. Communication Air Interface Long and Medium (CALM) range has a lot of potentials as well as it allows for continuous wireless communication between roadside equipment and automobiles.
Regional Analysis
Asia-Pacific to be the Largest Revenue Holder in Global Market
Based on region, the vehicle counting system market is segmented into North America, Europe, Asia-Pacific, Central and South America, and Middle-East & Africa. Asia-Pacific is anticipated to hold the largest market share of USD 672 million by 2030 at a CAGR of 12% during the forecast period. Traffic flow detection facilities, monitoring cameras, meteorological monitoring facilities, bridge health monitoring facilities, and cutting slope and road embankment settlement facilities are being operated due to increased transport safety, seamlessness, and convenience while reducing their environmental impact. These factors are driving the market growth. The market in Asia-Pacific was valued at USD 240 million in 2021. China is the largest contributor to the market compared to other countries, valued at USD 92 million in 2021. India and South Korea were growing their market gradually with market revenue of USD 58 million and USD 26 million respectively, in 2021.
North America is the second contributor to the vehicle counting system market, with revenue of USD 121 million, in 2021. The deployment of sophisticated safety systems, such as vehicle-to-infrastructure and vehicle-to-vehicle communication, technologies associated with collision avoidance, and autonomous vehicles, including systems utilizing cellular technology, is expected to boost the market. The US has more market revenue compared to Canada and Mexico. The market in the US was valued at USD 108 million in 2021.
The vehicle counting system market in Europe is expected to witness gradual growth with a value of USD 114 million in 2021. France has the major market in this region, with a revenue of USD 35 million in 2021. Usage of next generation of ITS solutions i.e Co-operative ITS is under consideration for usage. C-ITS systems allow effective data exchange through wireless technologies so that vehicles can connect with the road infrastructure and with other road users. These initiatives are creating favorable circumstances for the market’s growth in this region over the forecast period.
Central, South America & The Caribbean, and Middle-East & Africa had the lowest market share of USD 22 million and USD 28 million, respectively, in 2021. Brazil is the major contributor in Central, South America, and The Caribbean region, with USD 9 million in 2021. GCC Arabia holds a maximum market share of USD 11 million in 2021 in the region of Middle East and Africa.
Segmental Analysis
The global vehicle counting system market share is categorized by type, power supply, technology, and applications.
The global market by type is categorized into web-based and on-premise. The on-premise vehicle counting system is the major shareholder in the global vehicle counting system market. The segment revenue was valued at USD 359 million in 2021. The on-premise vehicle counting system is the traditional and the most efficient way to still use it. The key advantage of these types of systems is that they are customized as per the client’s requirement and s its security. The data gathered cannot be hacked in this system as this system is not connected to any external system. The on-premise systems segment is projected to generate USD 948 million in 2030 and grow at a CAGR of 11% by 2030.
By power supply, the market is segmented into battery-operated, solar-powered, and mains-based systems. A mains-based vehicle counting system has the largest market revenue, which is valued at USD 409 million in 2021, compared to other power supplies. These systems are budget-friendly and easy to install. This system can support the hybrid of sensor and computer vision-based vehicle counting systems. This segment is anticipated to generate USD 1071 million in 2030 and grow at a CAGR of 11% during the forecast period.
Technology-wise, image and video processing is the highest market shareholder and was valued at USD 289 million in 2021. The key factors driving the market are traffic response systems, traffic signal controllers, vehicle counting systems, lane departure warning systems, automatic vehicle accident detection, and automatic traffic density estimation. The image and video processing technology segment is projected to generate USD 771 million in 2030 and grow at a CAGR of 12% by 2030.
Impact of covid-19
The impact of a novel coronavirus outbreak on the transport sector and the corresponding policy measures are being investigated. The Economist Intelligence Unit (2020) predicts that the global economy will contract by 2.5%. Owing to the shutdown of all non-essential services, demand for commercial cars is projected to plunge. Moreover, changes in consumer purchasing behavior as a result of the pandemic's uncertainty may have major ramifications for the industry's near-future growth. Meanwhile, fleet operators' sales have already been hit by a cash constraint, which is projected to worsen in the coming months.
The manufacturing units are highly disrupted due to worldwide lockdown and limited labor and raw material availability. This has delayed the ongoing projects to a greater extent. Governments may reconsider their recently announced transport project plans to curb traffic congestion. During this pandemic, the pressure on organizations has changed from moving citizens to keeping a central transportation system that will be operational with a skeleton workforce to ensure the shipment and essential workers can continue to move with no difficulty. Another effect of this shift is the abrupt change in sources of revenue for transportation operators, with many facing an unforeseen deficit in their finances.
Traffic volumes and travel times have dropped dramatically. A reduction in crashes, as well as a temporary mode shift to bicycling, was noticed. An increase in non-shared modes of travel such as bike/scooter and a decrease in shared modes, such as public transportation and ride-sharing, increased. Home-to-work trips were decreasing owing to increased adoption of working from home.
