Traffic Signs Market Trend, Share, Growth, Size and Forecast 2030

Traffic Signs Industry Prospective:

The global traffic signs market size was worth around USD 26.42 billion in 2022 and is predicted to grow to around USD 47.56 billion by 2030 with a compound annual growth rate (CAGR) of roughly 7.58% between 2023 and 2030.

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Traffic Signs Market: Overview

Traffic signs are non-verbal communicative tools generally erected on the sides of roads including highways and pedestrian roads. They are essential for providing driving-related information to commuters on the road. The earliest form of traffic signs were stone or wooden milestones. However, as traffic density increased with rapid globalization and industrialization, the need for more efficient and informative traffic signs was evident leading up to modern-day road and traffic signs. These information-promoting boards play an important role in ensuring safety on the road and regulating traffic. They provide drivers with crucial information such as speed limits, sharp turns, school or environmental zones, and other aspects of the road so that drivers can make informed decisions.

Currently, several types of traffic signs are used across the globe. For instance, warning signs provide information about potential hazards such as pedestrian crossings or intersections. Guide signs are helpful in showing information related to directions such as the next available U-turn or highway exits. While some attributes of traffic signs such as color and symbols remain consistent throughout the world, other aspects including language or overall color combination of traffic signs may vary between countries. The industry for traffic signs is growing at a steady rate.

Key Insights:

• As per the analysis shared by our research analyst, the global traffic signs market is estimated to grow annually at a CAGR of around 7.58% over the forecast period (2023-2030)
• In terms of revenue, the global traffic signs market size was valued at around USD 26.42 billion in 2022 and is projected to reach USD 47.56 billion, by 2030.
• The traffic signs market is projected to grow at a significant rate due to the increasing traffic congestion globally
• Based on application segmentation, regulatory signs was predicted to show maximum market share in the year 2022
• Based on end-user segmentation, government was the leading segment in 2022
• On the basis of region, Europe was the leading revenue generator in 2022

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Traffic Signs Market: Growth Drivers

Increasing traffic congestion globally to drive market growth

The global traffic signs market is projected to grow due to an increasing rate of traffic congestion worldwide. Vehicle ownership in modern times has reached new heights. This is especially evident in the increasing sale of 2-wheeler and 4-wheeler private vehicles fueled by a growing market for electric vehicles (EVs). Apart from privately owned automobiles, the increasing investments in public road transport infrastructure have fueled the number of vehicles running on roads. In 2021, Europe recorded around 880,000 registered buses, increasing by 2% since 2020. As per a September 2023 report, around 2500 electric buses were already registered in the first half of 2023 in Europe and the e-bus regional market is growing at a rate of 45.1%. These factors along with other reasons such as urbanization, growing demand for used vehicles, and more people opting for roadways for transportation purposes have led to increased traffic congestion. For instance, India’s Bangalore city is the world’s second most congested region as citizens take an average of 29 minutes to cover 10 kilometers. Traffic signs are essential for managing traffic and avoiding road accidents. As the need for efficient traffic management is on the rise, the demand for instructive traffic signs will continue to grow.

Rising domestic and international tourism to generate high market revenue

One of the critical promoters of the traffic signs industry is the increasing tourism at domestic and international levels. Traffic signs allow visitors to gain a better perspective of the regional road routes, especially in difficult terrains. Apart from the role traffic signs play in providing important information to everyday commuters, they are essential for tourist safety and guiding drivers to reach their destinations. In 2022, more than 4 million domestic tourists visited Bali, Indonesia.

Traffic Signs Market: Restraints

Environmental impact of traffic signs to restrict market growth

The global traffic signs market growth is likely to be restricted due to the environmental impact of traffic signs. These information tools are mostly made of materials such as aluminum and steel. The production and extraction of these materials are resource-intensive. Furthermore, most traffic signs are coated with chemicals and paints that help to improve sign visibility during nighttime. For instance, radium was one of the most commonly used materials for the production of glow-in-the-dark signs. However, radium is known as a radioactive hazard. In addition to this, in some cases, installing new traffic signs may lead to disruption in the overall regional landscape. Signs that are placed on roads may pose a physical safety hazard for animals especially if the signs are not visible during low-light conditions.

Traffic Signs Market: Opportunities

Rising government regulation for improving road safety will be an excellent growth opportunity

The global traffic signs industry is projected to further gain benefit from the increasing efforts by regional governments to improve road safety in their respective countries and regions. This includes the installation of innovative yet effective traffic signs at essential road corners and areas. For instance, in August 2023, the Abu Dhabi City Municipality announced the launch of a comprehensive set of projects that are expected to improve road safety near school zones during the academic year 2023-2024. The initiatives include enhancing pedestrian crossings, maintaining traffic signs, clearing obstructions, and other such complementary processes. In May 2023, The governing civic body of Mumbai, India Brihanmumbai Municipal Corporation (BMC) installed around 569 new cantilever traffic signal poles equipped with light-emitting diode (LED) light modules across eastern and western parts of the metropolitan city. This move is expected to help motorists in the city gain better visibility of the road and traffic signs will be extended over a section of the road. BMC has spent more than INR 22 crore on the project. Such investments can be observed on a global scale leading to higher expansion opportunities for companies providing traffic signs.

Traffic Signs Market: Challenges

Limited impact of traffic signs and difficulty in interpreting the signs act as potential growth barriers

The traffic signs industry growth is expected to be challenged by the limited impact that traffic signs have on individuals. For instance, the signs can only promote road safety and provide necessary instructions. However, it is the responsibility of the driver to obey the rules. In addition to this, if road users are not educated on the correct interpretation of traffic signs, they may be unable to make correct deductions, especially to signs they have not been previously exposed to.

Traffic Signs Market: Segmentation

The global traffic signs market is segmented based on application, type, end-user, reflectivity, and region.

Based on application, the global market segments are regulatory signs, guide & direction signs, construction & work zone signs, information signs, and others. In 2022, the highest growth was observed in the regulatory signs along with the guide & direction signs segment. These two types of traffic signs are the most common forms as they provide information on critical driving and road parameters. In most cases, these signs are controlled by government entities and placed on a large scale for improved commuter visibility. As per official data, the US currently has more than 500 federally approved traffic signs as of 2023.

Based on type, the traffic signs industry divisions are below 1 sqm, between 1-2 sqm, and above 2 sqm.

Based on the end-user, the global traffic signs market is divided into private and government. In 2022, the largest part of the total revenue was generated by the government segment. The development and implementation of road safety programs are a part of the core responsibilities of the regional government. Additionally, the rising tourism rate has further caused the regional heads to deploy measures promoting safe and informed driving. In 2022, China was reported to spend 1.2 trillion yuan on transportation infrastructure.

Based on reflectivity, the traffic signs industry is fragmented into engineering grade and high intensity.

Traffic Signs Market: Report Scope

Traffic Signs Market: Regional Analysis

Europe to lead the way during the forecast period

The global traffic signs market is expected to witness the highest growth in Europe. The region is home to one of the world’s most efficient and well-developed transport infrastructure that has been influential in developing road architecture in several other regions as well. The increasing traffic rate, growing use of privately owned vehicles, increased investments in public transport facilities, and higher emphasis on road safety are pivotal regional market drivers. As per official rankings, Sweden has the lowest rate of road fatalities whereas Italy is popular for multiple traffic signs on every road. The growing investments in road infrastructure and the rising rate of international tourists will further promote growth in Europe. In February 2023, SRL Traffic Systems Limited, the UK's largest fleet provider of portable and temporary traffic signals and other systems, announced the launch of solar-powered, portable traffic signals thus continuing to align with the region’s stance over sustainable growth.

North America will grow at a steady rate. The US is expected to emerge as the leading growth contributor. The growing traffic congestion rate and surging number of road accidents could be growth drivers.

Traffic Signs Market: Competitive Analysis

The global traffic signs market is led by players like:

• Brady Corporation
• 3M Company
• RoadSafe Traffic Systems Inc.
• Avery Dennison
• Vulcan Signs
• Traffic Signs and Safety Inc.
• PathMaster
• U.S. Signs & Safety
• RAI Products
• Lyle Signs
• Impact Recovery Systems
• Plasticade
• Pexco
• Safetran Systems Corporation
• Safe Roads

The global traffic signs market is segmented as follows:

By Application

• Regulatory Signs
• Guide & Direction Signs
• Construction & Work Zone Signs
• Information Signs
• Others

By Type

• Below 1 Sqm
• Between 1-2 Sqm
• Above 2 Sqm

By End-User

• Private
• Government

By Reflectivity

• Engineering Grade
• High Intensity

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