Smart Highway Market Size, Global Industry Analysis Report, Regional Outlook, Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI4934
Smart Highway Market size is projected to witness a high growth from 2021 to 2027 owing to the rapid increase in the global population. According to the data published by World Bank, the world population increased from 7.59 billion in 2018 to 7.67 billion in 2019. Rising population has led to a rapid increase in the number of vehicles on road, creating robust market growth opportunities. The growing population across the globe will encourage the government authorities to install technologically advanced systems on highways.
The proliferation of smart cities globally is fueling the demand for smart highways. According to the 2018 Revision of World Urbanization Prospects report published by the UN Department of Economic and Social Affairs (UN DESA), the present urban population of 55.0% is anticipated to increase to 68.0% by 2050. The demand for sustainable infrastructure due to growing urbanization and population has become a key driver for the industry growth. Governments are focusing on catering to problems that arise propelled by the growing urbanization and population growth through technological innovations. Smart cities encourage innovations and development of new technologies to enhance the living conditions of their residents in terms of utility services and convenient transport facilities.
The major factor hampering the smart highway market growth is the lack of road connectivity and infrastructure in various underdeveloped regions around the world. The Global Connectivity Index (GCI) ranks the countries based on ICT investment, ICT maturity, and digital economic performance. The ranking is done on the basis of factors such as 4g & 5g connections, ICT investments, AI investments, and security software investments. Countries, such as Kenya, Algeria, and Uganda, that have been ranked low on this index lack the implementation of smart highway technologies due to unavailability of favorable infrastructure. However, steady improvements in road connectivity supported by increasing government investments in infrastructure will contribute to the smart highway market expansion.
Government regulations toward road safety are anticipated to generate new opportunities for the market. The stringent government regulations have been implemented in several countries to regulate and manage heavy traffic on roads. For instance, the U.S. National Highway Traffic Safety Administration (NHTSA) issues Federal Motor Vehicle Safety Standards (FMVSS). FMVSS provides regulations to prevent and reduce vehicle crashes on roads and highways. Increasing road and highway accidents are encouraging governments to invest more in road safety, improving the smart highway market statistics. According to a report published by World Health Organization (WHO), in December 2018, nearly 1.35 million deaths occurred due to roadway accidents worldwide.
The smart highway market experienced a slowdown impelled by the COVID-19 health crisis during the first two quarters of 2020. The pandemic has severely impacted the economy, social wellbeing, and public health of people. The smart highway industry has been impacted by the pandemic. The unprecedented times have resulted in employee and workforce layoffs impelled by cash crunch and financial instability of smart highway solution providers. Mass quarantine restrictions have impacted the availability of skilled workforce, hindering the business growth of market players. The market is pro to grow steadily with gradual economic revival and containment of the virus.
The intelligent traffic management system segment is likely to showcase significant growth during 2021 to 2027 driven by increasing demand for smart transportation solutions to improve pedestrian and vehicle safety and reduce commute time. Increasing demand for refining the road infrastructure coupled with the growing adoption of self-driven cars is anticipated to propel the market growth.
The digital signage segment is witnessing a high market demand through 2027 impelled by rapid advancements in technology. The introduction of new display technologies coupled with the evolution of LED, OLED, LCD, Super AMOLED, and UHD is further strengthening the growth. These technologies have significantly improved the quality of advertisement content, creating a favorable impact on the target audience. The adoption of such advanced technologies in display systems on highways is anticipated to boost the market statistics.
The Asia Pacific smart highway market will observe significant growth during 2021 to 2027 owing to the rapid increase in the development of smart cities and highways. Government initiatives and investments are fueling the demand for smart highways. For instance, in May 2018, the Government of India inaugurated the country’s first green and smart highway, Kundli-Ghaziabad-Palwal (KGP) Expressway, which is also recognized as Eastern Peripheral Expressway. The project is 135 km long and has estimated investments of USD 1.60 billion. Toll plazas are equipped with Electronic Toll Collection (ETC) systems for faster toll collection.
Similarly, in 2014, the Government of Singapore announced its Smart Nation 2030 vision through which the governing bodies of Asian countries undertook the implementation of numerous smart city initiatives. The initiatives are undertaken as a response to rising urban challenges including energy sustainability and vehicular traffic, emissions, and urban density. The country implemented a system that is designed to streamline the traffic flow and keep road traffic running safely.
The major players in the smart highway market are Alcatel Lucent, Siemens AG, Xerox Corporation, Indra, LG CNS, Infineon Technologies, Kapsch AG, Cisco Systems, and IBM Corporation. Companies are focusing on partnerships and collaboration strategies to enhance their market share and to gain a competitive edge over the rivals. For instance, in November 2018, Siemens and Aruba, announced a strategic partnership focusing majorly on bridging the Information Technology (IT) and Operational Technology (OT) domains. Based on their portfolios, Aruba and Siemens are expected to support consumers with secure, highly reliable, and insightful technology solutions for several applications in utility and transportation segments.
The smart highway market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:
Market, By Type
- Intelligent transportation management system
- Intelligent traffic management system
- Communication system
- Monitoring system
Market, By Display
- Variable message signs
- Digital signage
The above information is provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
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