Road Safety Market Size - By Component (Solutions [Enforcement, Automatic License Plate Recognition (ALPR/ANPR), Incident Detection, Backoffice, Intelligent Transport System, Traffic Management System], Services), Application & Global Forecast, 2023 - 2032

Road Safety Market Size

Road Safety Market size was valued at USD 27.0 billion in 2022 and is anticipated to register a CAGR of over 7% between 2023 and 2032, due to the rising traffic congestion. Rapid urbanization and the expanding population are intensifying traffic congestion in many regions. Congested roadways are prone to accidents, thereby augmenting the importance of traffic management & safety solutions. To alleviate the risks associated with congestion-related accidents, governments and transportation authorities are investing in technologies such as intelligent traffic management systems and real-time traffic monitoring, creating a growing market for innovative road safety solutions.

Government regulations & initiatives play a pivotal role in driving the road safety market growth. Governments worldwide are implementing stringent safety standards & programs to curb accidents & fatalities on roadways. These regulations mandate the incorporation of advanced safety technologies into vehicles, which will foster the development & adoption of systems such as Advanced Driver-Assistance Systems (ADAS) and vehicle safety features. Government-funded infrastructure improvements, such as better signage, road barriers, and traffic management systems, are promoting road safety, thereby generating market demand in compliance with these mandates.

Limited funding is a major challenge hindering the road safety market size. Adequate resources are essential to efficiently implement safety measures and infrastructure improvements. However, road safety initiatives often compete with other government priorities for funding, and budget constraints can curtail investments in critical safety projects. The availability of funding directly impacts the pace at which safety technologies are adopted and infrastructure is upgraded, potentially delaying the overall progress in making roadways safer for all users.

COVID-19 Impact

The COVID-19 pandemic had negative impacts on the road safety market. Lockdowns and restrictions led to reduced traffic volumes, creating a false perception of improved safety. Paradoxically, some drivers took advantage of empty roads to engage in riskier behaviours, resulting in a surge in speeding incidents & accidents. Financial strains on governments also affected the road maintenance & safety initiatives, causing delays in infrastructure upgrades and reduced the funding for road safety programs, thereby hampering the overall safety efforts.

Road Safety Market Trends

The use of AI-based image processing software in license plate recognition is propelling the road safety industry growth by enhancing law enforcement capabilities. This technology automates the identification of vehicles, aiding in tracking stolen vehicles, monitoring traffic violations, and identifying unregistered or wanted vehicles.

For instance, in September 2022, Visionary.ai, a company specializing in image processing software, launched a real-time video denoiser to enhance video image quality. This innovation can extend the usability of the vast majority of the seven billion image sensors, produced annually, thereby improving sensor performance in multiple operating conditions. The AI-based image processing software improves surveillance but also reduces the need for manual interventions, thereby enhancing traffic management efficiency. This contributes to safer roadways by deterring offenders and promoting compliance with traffic laws.

Road Safety Market Analysis

The solution segment held major road safety market share in 2022. Unmanned traffic management systems are driving the market growth by revolutionizing traffic control & safety. These systems utilize advanced technologies, such as drones and autonomous cars, to efficiently manage traffic flow and monitor road conditions. For instance, in February 2023, Skye Air, a drone solutions provider based in Gurugram, launched a drone traffic management system. This software enables drone operators to strategize routes, create flight plans, and evaluate potential risks prior to conducting drone operations within the country.

The urban segment accounted for 45% of the road safety market share in 2022. Infrastructure development in urban areas is a significant factor propelling the urban segment growth in the market. As cities expand to accommodate the growing population, the need for well-maintained & upgraded road infrastructure becomes paramount. This includes the construction of wider roads, better signages, improved traffic management systems, and enhanced lighting systems. These infrastructure enhancements not only reduce the likelihood of accidents but also ensure smoother traffic flow in densely populated urban areas, thereby making them vital components in the urban road safety efforts.

Europe road safety market size dominated around USD 9.9 billion in 2022. The pressing need to reduce road accidents & fatalities is driving the market value in Europe. According to Eurostat, 19,917 road traffic fatalities took place in Europe in 2021. With a strong commitment to enhancing road safety, European governments & organizations are investing in advanced technologies, stringent regulations, and comprehensive safety measures. This collective effort will significantly lower accident rates, improve the overall traffic safety, and save lives on European roadways, making it a pivotal factor boosting the industry size.

Road Safety Market Share

Major companies operating in the road safety market are:

• 3M
• Honeywell
• Kapsch TrafficCom AG
• Siemens Mobility
• SmartDrive Systems
• TomTom
• Trimble

These companies are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovative products and garner the maximum market revenue. Moreover, Siemens Mobility is a well-known player in the transportation and mobility industry, but it's important to note that the market is a niche within the broader transportation sector.
 

Road Safety Industry News

• In July 2023, The Indian Government inaugurated the Centre for Advancement of Road Traffic Safety (CARTS), which utilizes technology-based solutions to identify & address high-risk accident locations. The primary objective of CARTS is to achieve a 50% reduction in road crash fatalities within five years across 100 high-priority districts and 100 highway corridors. CARTS will act as the central hub for planning, executing, and overseeing various road safety initiatives.
   

This road safety market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032 for the following segmentation:

Market, By Component

• Solution
• Enforcement
  • Red light enforcement
  • Speed enforcement
  • Bus lane enforcement
  • Section enforcement
• Automatic License plate recognition (ALPR/ANPR)
• Incident Detection
• Backoffice
• Intelligent transport system
• Traffic Management System
• Others 
• Services
• Consulting
• Support & Maintenance
• Integration
• Deployment

Market, By Application

• Urban
• Highway
• Rural
• Work zone safety

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Singapore
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Israel