Advanced Traffic Management System (ATMS) Market Size - By Component, By Deployment Mode, By Application, By End Use, Growth Forecast, 2025 – 2034

Advanced Traffic Management System Market Size

The global advanced traffic management system market was valued at USD 6.2 billion in 2024 and is estimated to register a CAGR of 9.3% between 2025 and 2034. The growing requirement for traffic management systems effective enough to get the job done together with the increase in urbanization as well as the establishment of government smart cities is the generator for the market.
 

The market has been rapidly evolving, as key market players collaborating to provide even greater offerings in integrated and scalable solutions. For instance, the merger of Umovity and Derq in April 2024, where these two companies introduced a joint solution that applies AI to augment Derq’s Insight application with Econolite’s Centracs Mobility and Econolite’s Centrac. This addresses the advancements of the need for AI-based ATMS to improve urban transport and protect all road users.

Moreover, to meet the policies and operations of many smart cities, both cloud-based and on-premises ATMS are being adopted worldwide. Extra efficiency in traffic flow management, as well as real-time incident management, recovery, and protection, all contribute to an enhancement in urban transportation systems and assist in protecting all users. Because Cloud ATMS solutions helps in scalability and seamless integration into the broader smart city environment, they also allow agencies to store and process large amounts of traffic data.
 

On the other hand, they also allow organizations to operate in a secure environment devoid of hacking. According to GMI, it is anticipated that the market for Intelligent Transportation Solutions (ITS) will expand and earn approximately USD 95 billion in revenue by 2032.
 

Advanced Traffic Management System Market Trends

The integration of next-gen technologies such as IoT, AI, and cloud computing lays the foundation of the ATMS industry which, in recent times, has been evolving at a staggering pace. The integration of these technologies opens up possibilities such as predictive traffic analytics, shared data in real-time, and streamlined system functions which together enhance the safety and efficiency of transportation.
 

The growing trend in this advanced traffic management system market is the increased use of ATMS solutions that are cloud-based owing to the scalability, enhanced integration of data, and decreased costs of infrastructure they provide. An example being that in October 2023, a company known as Kimley-Horn created an advanced cloud-based tool which prioritized traffic signals and automatically controlled them, in the simplest terms. By employing existing systems attached to buses, trucks, emergency cars, and others with global positioning systems, this new software could enhance the operations of traffic signals.
 

Finally, the combination of connected vehicle technologies alongside V2X communication proves to be a significant growth factor in realizing further goals in Vehicle-to-Everything integration. These technologies help with traffic management even during times when it is fully autonomous, thus ensuring the roads are safer and more efficient while also supporting goals that global smart city initiatives strive to achieve.
 

However, issues such as the high cost of implementation and integration of old infrastructure are still some of the larger obstacles for the ATMS market. The other concern is the market size of these technologies, given that public agencies and private firms often refrain from deploying these solutions on a large scale due to the large system acquisition costs and the repercussions of continued operational and maintenance expenditure. Also, the fusion of new generational ATMS with older networks of transportation systems presents some barriers such as difficulty in data exchange and long delays in the set time to roll out the systems, which impedes the growth of the market.
 

Advanced Traffic Management System Market Analysis

Based on component, the advanced traffic management system market is divided into hardware, software, and service. In 2024, the hardware segment was valued at over USD 2.5 billion.
 

• The growing deployment of components such as traffic control, surveillance cameras, sensors, and variable message signs are driving the growth of the segment.
   
• The wider geographical areas of operations witnessing the inclusion of such devices are a clear indicator of the sudden need to adopt new strategies for traffic management. The latest technological innovations, such as the Internet of Things (IoT) and AI-powered devices, are also expected to improve the performance of the hardware solutions.

Based on deployment mode, the advanced traffic management system market is categorized as on-premises and cloud-based. The on-premises segment is anticipated to register a CAGR of over 8% from 2025 to 2034.
 

• Its growth can be attributed to its widespread use within institutions that need higher levels of data protection and control over the systems. These systems enable autonomous and granular control over operations for the municipalities and transport authorities to reduce reliance on telecommunication networks for the management of their activities.
   
• With the continuous growth of traffic within metropolitan areas, on-premises systems will continue to remain relevant and be widely used in government-based traffic control systems.

North America dominated the global advanced traffic management system market with a major share of over 30% in 2024.
 

• The rising deployment of AI and IoT-enabled ATMS systems on roads across the U.S. to control traffic congestion, reduce delays, and improve safety is expected to drive the growth of the market in the country.
   
• Companies, including Econolite, continue to build their portfolios through acquisitions. For instance, in August 2023, Econolite disclosed the acquisition of its distribution partner, Western Pacific Signal, LLC (WPS). This combination enabled Econolite to strengthen its extensive One-Stop-Shop of Intelligent Transportation System (ITS) solutions as well as tap into WPS’s professional technical sales and field support teams in the Western U.S.
   
• Furthermore, climate regulations and policies in Europe are expected to assist in the development of their emission-cut strategies, hence aiding in the growth of the ATMS sector.
   
• Germany, the UK, and France are at the forefront of the utilization of the ATMS technologies and AI integration solutions to enhance urban traffic management systems. There is also a growing urge to optimize public transport as well as more connected vehicle technologies.
   
• In the Asia-Pacific region, environmental management and control has witnessed encouraging growth because of rapid urbanization, increasing vehicle density, and smart city programs initiated by various governments.
   
• Nations such as China, India, and Japan are pouring in large amounts of investment in low-emission traffic management systems to reduce congestion and improve safety outcomes of the systems. The cloud systems have been rapidly deployed due to rising public and private investment in co-innovating traffic solutions.
   
• Growth is likely to be pushed even further with the use of IoT and AI, where governments and private sectors will build smarter networks for cleaner transportation.
   

Advanced Traffic Management System Market Share

Siemens Mobility, Swarco, and Hitachi hold a significant market share of over 18% in the advanced traffic management system industry in 2024.
 

• Such companies have opted to increase their research and development budget to remain relevant in the dynamic marketplace. This essentially entails their merging of the latest technologies that include AI, IoT, and predictive analytics into their product offerings.
   
• Their stronghold in the market is, moreover, complemented by numerous long-term contracts with local governmental authorities and transportation agencies, alongside an established wide range of solutions that address various urban mobility needs. This allows them to top the industry in what the market demands while still being competitive in their prices.
   
• Moreover, players including TomTom and Hitachi have begun forming strategic partnerships with technology providers and injecting into public-private initiatives to increase their presence in the market. These partnerships allow for a more expansive deployment of operational ATMS platforms that are compatible with smart city systems.
   

Advanced Traffic Management System Market Companies

Major players operating in the advanced traffic management system industry include:

• Cubic
• Econolite
• Hitachi
• Indra Sistemas
• Kapsch TrafficCom
• Q-Free ASA
• Siemens Mobility
• Swarco
• TomTom
• TransCore
   

Advanced Traffic Management System (ATMS) competitor key goal is to outdo each other by providing a better alternative and ATMS technologies. The entrepreneurial growth of ATMS is facilitated by the need to deal with various emerging goals such as traffic congestion, managing urban and interurban road traffic, increasing mobility, and many safety-related aspects.
 

The construction of transportation infrastructure for integrated systems is unattractive, so companies seek to build advanced systems with current tools – systems with real-time traffic monitoring sensors, computerized adaptive traffic signal control, incident detection and management systems, and integrated communication networks tailored to assist transportation agencies or integrate into smart cities.
 

The transition to autonomous and connected vehicles is also impacting on the advanced traffic management system market. To address this, companies are working on systems for Vehicle-to-Everything (V2X) communication that will allow blending with smart cars to facilitate the exchange of information for collision prevention, better traffic signal timing, and enhanced safety of road users.
 

Advanced Traffic Management System Industry News

• In view of the government’s vision regarding smart expressways, the Bundelkhand Expressway is to be improved with an Advanced Traffic Management System (ATMS) in June 2024 as was announced by the Uttar Pradesh government in India. The process of this project has been initiated by the Uttar Pradesh Expressway Industrial Development Authority (UPEIDA) together with the issuance of Requests for Qualification (RFQ) and Requests for Proposal (RFP).
   
• In April 2024, an integrated predictive traffic monitoring and alerting solution based on an Advanced Transportation Management System (ATMS) was launched by Umovity’s PTV Group and Econolite alongside traffic management software provider and Econolite’s Centracs Mobility’s advancement.
   

The advanced traffic management system (ATMS) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Component

• Hardware
  • Sensors
  • Display boards
  • Surveillance cameras
  • Communication devices
  • Others 
• Software
  • Predictive analytics software
  • Data management & analysis software
  • Simulation & optimization software
  • Video analytics software
  • Others
• Services
  • Consulting
  • Deployment & integration
  • Support & maintenance

Market, By Deployment Mode

• On-Premises
• Cloud-based

Market, By Application

• Urban traffic management
• Highway traffic management
• Public transportation management
• Parking management
• Freight management
• Incident detection & management
• Others

Market, By End Use

• Government agencies
• Highway operators
• Municipalities
• Toll authorities

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia