Smart Highway Market Statistics: 2026
The global smart highway market size was valued at $23.67 billion in 2018, and is projected to reach $92.38 billion by 2026, growing at a CAGR of 18.7% from 2019 to 2026. Smart road is referred to as a different way in which technologies are incorporated into roads for improving the connection between two or more autonomous vehicles running on the same track and to monitor the road more closely. Numerous benefits of smart roads include improving mass transit systems, reducing driving time, reducing accidents on the roads, and improving traveler safety and the desire for travel. The main purpose of smart roads is to reduce the travelers’ time and lower pollution level on the highways.
Increase in the number of vehicles on the road and surge in road traffic injuries drive the growth of the market. In addition, increase in international trade among the emerging countries across the globe fuels the smart highway market growth. However, high initial and maintenance cost and lack of appropriate technical knowledge among the end users hamper the growth of the market. Furthermore, rise in advance technologies in the transportation sector and emergence of smart vehicles are expected to provide lucrative opportunities for the growth of the global market.
The intelligent transportation system segment is expected to garner significant share during the forecast period. Numerous benefits such as improving the traffic safety, reducing the infrastructure damage, controlling the traffic and gathering traffic data, provided by this system drive the growth of the smart highway market in this segment. However, the monitoring system sector is expected to grow at a highest rate during the forecast period, owing to rapid adoption of this system by various government across the globe for reducing the accidents on roads and helps in prevention of vehicle theft. Thus, driving the growth of the market in this segment.
Hadware is projected as one of the most lucrative segments.
The report focuses on the growth prospects, restraints, and trends of the smart highway market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the smart highway market.
By Deployment Mode
On-premise is projected as one of the most lucrative segments.
The global smart highway market is segmented on the basis of component, deployment model, technology, and region. In terms of component, it is bifurcated into hardware, software and services. By deployment model, the software market is segmented into on-premise and cloud. As per technology, it is segmented into intelligent transportation management system, intelligent management system, communication system, monitoring system, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the smart highway market analysis are ABB Ltd, ALE International, AT&T Inc., Cisco System Inc., IBM Corporation, Huawei Technologies Co. Ltd., LG CSN, Honeywell International Inc., Schneider Electric SE and Siemens AG. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Intelligent Transportation System is projected as one of the most lucrative segments.
Top impacting factors
Rise in the number of vehicles among emerging countries
There is an increase in the number of vehicles being sold every year. The unsatisfactory infrastructure for transportation in many countries is the primary factor for the rise in vehicle sales. Also, there is an increase in disposable income of the people with globalization and urbanization. According to International Organization of Motor Vehicle Manufacturers, about 95 million of vehicles were sold in 2018 as that of 75 million were sold in 2010. However, this increase in the number of vehicles is causing heavy traffic, especially in urban areas. Consequently, there is a rise in demand for smart highways and roads that monitor traffic congestion on every road and diverts the traffic accordingly to have a faster and smoother travel.
Increase in road traffic injuries
According World Health Organization (WHO), 1.35 million people approximately die each year from road traffic crashes. And about 20 – 50 million people suffer non-fatal injuries, with many incurring a disability. As a result, there is an urgency to reduce the number of road traffic injuries and smart highways is considered as one of the best solutions to this problem. The various components of smart highways such as traffic management systems, smart lighting systems, and speed monitoring systems are developed to reduce road traffic injuries. Hence, increase in road traffic injuries fuels the growth of the smart highway market. The 2030 Agenda for Sustainable Development set by the United Nations has an ambitious target of halving the global number of road traffic injuries by 2020.
Asia-Pacific would exhibit the highest CAGR of 21.30% during 2019-2026.
Key Benefits for Stakeholders:
- The study provides an in-depth analysis of the global smart highway market forecast along with the current & future trends to elucidate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the global smart highway market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the market industry for the period 2018–2026 is provided to determine the market potential.
Smart Highway Market Report Highlights
By Deployment Mode
Key Market Players
AT&T INC., ALE INTERNATIONAL, ABB LTD., SCHNEIDER ELECTRIC SE, HONEYWELL INTERNATIONAL INC., LG CNS, SIEMENS AG, INTERNATIONAL BUSINESS MACHINES CORPORATION, HUAWEI TECHNOLOGIES CO., LTD., CISCO SYSTEMS, INC.
There is an increase in the adoption of smart highway to provide more reliable, safe, and efficient travelling experience to the travelers. In addition, the main aim of smart road is to create roads where traffic can be optimized to increase vehicle efficiency and reduce congestion. Furthermore, many emerging countries across the globe have adopted smart roads for improving their traffic management and energy efficiencies.
According to CXOs of the leading companies, increase in economic strength of developing nations such as China, India, Indonesia, Thailand, and others is expected to provide lucrative opportunities for the market growth. Asia-Pacific is expected to dominate the market during the forecast period. Moreover, the emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities during the forecast period. The global players are focusing toward product development and increasing their geographical presence, owing to rise in competition among local vendors in terms of features, quality, and price. In addition, these players are adopting various business strategies to enhance their product offerings and strengthen their foothold in the market. For instance, in Nov 2018, Siemens and Aruba, a Hewlett Packard Enterprise company, announced a strategic partnership focused on bridging the Operational Technology (OT) and Information Technology (IT) worlds. On the basis of complementary portfolios, Siemens and Aruba are expected to support customers with highly reliable, secure, and insightful data networks enabling high plant and network availability.