July 14, 2024

The Adoption Of Smart Technologies Is Anticipated To Open Up The New Avenue For Smart Highway Market.

The Smart Highway Market is estimated to be valued at US$ 52.5 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Smart highways involve the implementation of advanced technologies such as smart sensors, surveillance cameras, variable message signs, toll collection system and weather sensors to manage traffic, optimize transportation efficiencies and ensure safety on roads. It provides real-time traffic, accident and congestion information to drivers. It also facilitates digital payment of tolls and supports emergency vehicle management.

Market Dynamics:
The growth of the Smart Highway Market is driven by the rising focus on developments in Intelligent Transportation Systems (ITS) and implementation of smart infrastructure projects globally. ITS aims to provide innovative services relating to different modes of transport and traffic management and enable various users to be better informed and make safer, more coordinated, and ‘smarter’ use of transport networks. With technological advancements, smart technologies are being integrated into existing highway infrastructures to manage traffic flow, reduce congestion and inform drivers for safer and smoother commute. This facilitates resource Optimization and enhances driver experience. In addition, growing demand for traffic management solutions to minimize logistic costs and improve operational efficiency of transport networks also supports the market growth.

Segment Analysis
The smart highway market is dominanted by the smart transportation management system segment. This sub-segment accounted for around 35% of the overall market share in 2023. The growth of this sub-segment can be attributed to the increasing adoption of advanced traffic management solutions that help reduce traffic congestion and enhance road safety for commuters.

PEST Analysis
Political:
Governments across the globe are increasingly investing in the development of smart highway infrastructure to support economic growth. This provides a boost to market players.
Economic: Rising GDP and disposable incomes in developing countries is increasing motorization and traffic. This is propelling the demand for smart transportation solutions.
Social: Growing concerns regarding road safety and efficient transportation are raising social acceptance for smart highway technologies.
Technological: Emerging technologies like AI, IoT and cloud computing are enabling the development of advanced solutions for smart traffic management, toll collection, and autonomous driving support. This is fueling market growth.

Key Takeaways

The Global Smart Highway Market is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing governmental investments in smart infrastructure development. The Asia Pacific region accounted for around 35% of the global market share in 2023. China, India and Japan are witnessing rapid installation of smart devices and networks due to ongoing smart city projects.

Regional analysis shows that Asia Pacificregion is expected to witness the highest growth rate during the forecast period owing to ongoing infrastructure development projects. Countries like China, Japan and India are extensively focusing on developing smart road infrastructure to support economic growth.

Key players operating in the smart highway market include Xerox Corporation, Alcatel-Lucent Enterprise (Nokia Corporation), Siemens AG, Cisco Systems Inc., Schneider Electric SE, IBM Corporation, LG CNS Co. Ltd (LG Electronics Inc.), Indra Sistemas SA, Kapsch AG, Infineon Technologies AG, and Huawei Technologies Co. Ltd. Major players are focusing on partnerships, mergers and acquisitions to expand their product and service portfolio.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it