Smart Highway Market Size, Share, Growth, Trends, and Forecast 2032

Smart Highway Market Size

According to Zion Market Research, the global Smart Highway Market was worth USD 52.86 Billion in 2023. The market is forecast to reach USD 220.89 Billion by 2032, growing at a compound annual growth rate (CAGR) of 17.22% during the forecast period 2024-2032.

The report offers a comprehensive analysis of the market, highlighting the factors that will determine growth, potential challenges, and opportunities that could emerge in the Smart Highway Market industry over the next decade.

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Smart Highway Market: Overview

Smart Transportation is an innovative approach to plan and redesign roadways, that are been designed in order to provide better and safe transport solutions as compared to conventional traditional system. At present, most of the countries across the globe are facing transportation system issues such as having ineffective traffic management systems, poor road conditions, parking issues and others. A smart transportation system is been adopted to minimize these issues and have a proper data collection system regarding the road conditions, traffic details and parking facility information. Smart transportation system involves the utilization and application of IT into the fields of transportation.

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COVID-19 Impact Analysis

The Covid-19 pandemic has affected almost every sector but the most negatively affected sector is the transportation sector. There has been a significant decrease in the transportation business and has been devasting the supply-chain. There has been a halt to the construction sector which has resulted in total disruption of the infrastructure activities. There has been a drop in the traveler numbers subsequently individuals have reduced spending on non-essential activities as the economic condition of individuals has been heavily affected. The activities that are generally used to support the markets revenue growth has seen a delay and hence the market has seen a downfall. However, with the upliftment of the lockdown restrictions the market is regaining its functional position.

Smart Highway Market: Growth Factors

Rising demand and the need for more safe, reliable and efficient transportation has been driving the growth of smart highways market. The growth of interstate highways market and the introduction of electronic toll collection are some of the powerful factors pertaining to the growth of the market. Many cities have been facing a lack of convenient, safe, pollution free and congestion free transportation system and hence the need of Improving and enhancing the transportation system to resolve such issues has been contributing to the growth of the global smart highways market. Many smart cities are even adopting smart city projects that are aiding the intelligent highway solutions and services.

Moreover, successful deployment of highway technology, solutions and their increasing adoption with stringent government implementation for having efficient transportation to have a safer, reliable and cost-effective system is driving the global market growth. Government and public agencies are also focusing on investment in field of operation, maintenance and new improvement of road infrastructure.

Smart Highway Market: Segmentation

Technology Segment Analysis Preview

Intelligent transportation management system segment held a share of around 11.87% in 2020. The segment consists of technology lane departure warning system, automatic number plate recognition system, incident detection system and radio frequency identification system. The Intelligent transportation management system segment is expected to show the highest growth rate and this is attributable to the benefits this segment offers such as improving traffic safety, controlling traffic and gathering traffic data, reducing the damage to the infrastructure. The monitoring segment under the technology segment is also expected to show growth in forecast period due to the adoption of this system by government in order to reduce accidents and improve road safety.

Application Segment Analysis Preview

On Cloud segment will grow at a CAGR of over 11.67% from 2021 to 2028. The application segment is bifurcated into on cloud and on promises and the on-cloud segment is expected to show highest growth in the forecast period. The benefits and advantages that are offered by smart transportation such as it offers real-time visibility and accurate data, allows concerned city transport authorities and organization to improve efficiency and enhance these benefits increase the demand for cloud segment. The application segment is bifurcated into on cloud and on promises and the on-cloud segment is expected to show highest growth in the forecast period.

Smart Highway Market: Report Scope

Smart Highway Market: Regional Analysis

The North America region held a share of more than 26.67% in 2020. This is attributable to the existence of advanced economies and large investments spending on construction and road infrastructure. The region is a global technological leader and is expected to witness the highest growth rate in the forecast period. The government authorities are investing in transportation infrastructure for a number of reasons such as enabling trade and reducing the cost trading goods, enhancing the volume of goods transported and enables expansion of retail trade which in turn promotes imports and exports. All these factors are driving the growth of smart highways market in this region.

The Asia Pacific region is projected to grow at a CAGR of more than 21.4% over the forecast period. This is attributable to the growing number of development activities for the improvement of infrastructure in the region. Various factors in this region are supporting the market growth such as development of smart highway projects specifically in countries such as India and China, development in the field of autonomous cars, advanced technologies penetration. Moreover, with rapid urbanization there is development of transportation routes and an increase in infrastructure development funding by the public authorities in order to minimize the traffic over highways which is fueling the market growth in this region. This region is expected to show exponential growth in the forecast period.

Smart Highway Market: Competitive Players

Some of key players in Smart Highway Market are:

• LG CNS
• Schneider Electric
• Siemens AG
• Kapsch AG
• Indra infrastructures
• IBM
• Cisco
• Huawei
• Alcatel-Lucent
• TrafficCom
• Xerox Corporation 
• Others

Key players in the market are focusing on reforming the conventional transportation system and are trying to indulge in collaborations and acquisitions. Some companies have announced strategic partnership to bridge the operational technology and information technology.

The Global Smart Highway Market is segmented as follows:

By Technology

• Intelligent Transportation Management System
  • Automatic Number Plate Recognition
  • Lane Departure Warning System
  • Radio Frequency Identification
  • Incident Detection System
  • Others
• Intelligent Traffic Management System
  • Global Navigation Satellite System
  • Electronic Toll Collection System
  • Real-Time Traffic Management
  • Global Positioning System
  • Others
• Communication System
  • Emergency Network
  • The Radio Network
  • Data Network
  • Others
• Monitoring System
  • Weather management
  • Traffic Measurement
  • Video surveillance
  • Others

By Display

• Variable Digital Signage
• Message Signs
• Others

By Service

• Maintenance and Operation Service
• Consultancy Service
• Managed Service
• Others

By Deployment

• On Cloud

• On Premises

By Region

• North America

  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa