Smart Traffic Signal Communication Module Market Size - By Component, By Technology, By Application Growth Forecast, 2025 - 2034

Smart Traffic Signal Communication Module Market Size

The global smart traffic signal communication module market was estimated at USD 1.11 billion in 2024. The market is expected to grow from USD 1.20 billion in 2025 to USD 2.71 billion in 2034, at a CAGR of 9.5% according to latest report published by Global Market Insights Inc.

The smart traffic signal communication modules market is growing rapidly as intelligent transportation systems and urban traffic modernizations are implemented. Governments are investing in connected infrastructure for the purpose of reducing congestion, improving road safety, and optimizing signal timing in real-time in smart cities.
 

In the US market, this is buoyed, in part, by the large amounts of federal infrastructure funding, through the Infrastructure Investment and Jobs Act, with a total of $550 billion for modernization of transportation systems. For example, the Highway Safety Improvement Program provides $3 billion annually to improve intersections and install connected signal modules.
 

Moreover, federal deployment goals give additional momentum to the market. ITS America suggests that the National V2X Plan has the goal of equipping 100,000 intersections within five years of its launch, and 250,000 intersections within a decade, which would represent 75% of all signalized intersections within the U.S. An estimated total investment would exceed $6.5 billion.
 

The phased V2X Deployment Plan released by the USDOT encourages these efforts, aiming for 25% of the major metropolitan intersections to be capable of V2X by 2028, and 85% of the U.S. by 2036. The eventual nationwide scope of implementation confirms the long-term growth visibility of the market, and therefore it develops into an attractive investment thesis.
 

Globally, the Advanced Transportation Technologies and Innovation (ATTAIN) Program issued $96.5 million as a part of the fiscal year 2024 budget to 20 projects in 16 U.S states, while Europe has a 30% market share spurred on by EU TEN-T funding for cooperative-ITS and cross-border smart mobility projects.
 

Smart Traffic Signal Communication Module Market Trends

The smart traffic signal communication module sector is evolving rapidly from traditional fixed-timing systems to adaptive, AI-enhanced control architectures. These systems are able to leverage real-time analytics and machine learning to facilitate better traffic flow, which enables reductions in travel time and better utilization of intersections.
 

The integration of edge computing will accelerate predictive traffic management by allowing localized data processing for immediate signal modifications. This state of operation reduces reliance upon the cloud and increases system responsiveness. There are also federal funding programs that have entered the marketplace, including the FHWA’s $96.5 million investment in 2024, catering to AI-based signal modernization projects.
 

The integration of intelligent transportation systems with IoT and cloud-based platforms is another pivotal trend. Cloud-based traffic management provides centralized management functions across the entire city network, accommodates smart mobility platforms that combine the ability for municipalities to be able to monitor, analyze, and coordinate signals in an efficient way.
 

The use of open V2X communication standards, and in particular the movement from DSRC to C-V2X, is increasing interoperability across all manufacturers. Standardizing will alleviate dependency on various vendors, support scalable deployment, and ultimately serve to align the marketplace with development initiatives surrounding global connected vehicle infrastructure.
 

Signaling solutions with sustainability objectives, such as EV-priority, or green-wave coordination, are on the rise. This will enable fuel savings, reduced emission, reliability of transit, among other benefits, and is aligning with decarbonization objectives and the global expansion of electric vehicles.
 

Smart Traffic Signal Communication Module Market Analysis

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Based on component, the market is divided into hardware, software, and services. The hardware segment accounted for around 57% market share in 2024.
 

• The hardware segment leads the market because it serves as the foundation of signal communication systems. Hardware includes transceivers, processors, sensors, and roadside units that provide real-time data to and from intersections and central systems.
   
• The hardware growth is supported by broad infrastructure initiatives, the most significant being the U.S. Infrastructure Investment and Jobs Act, which allocates substantial funding for opportunity to modernize traffic systems, including visible physical module deployments across urban corridors and important transportation routes.
   
• The software area is the fastest-growing market sector, due to organizations' needs for AI-based traffic optimization, predictive analytics, and system interoperability. These solutions enable adaptive signal control and continuous performance improvements with machine learning technologies and cloud-based management systems.
   
• The service areas, such as installation, integration, and maintenance, have grown as cities pursue turnkey solutions. Managed service models and extended-duration maintenance contracts will be utilized for upgrade transitions, cybersecurity assurance, and to maintain the agency's performance through the entire deployment cycle.

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Based on technology, the smart traffic signal communication module market is segmented into wireless, wired, and V2X-specific communication systems. The wireless segment dominated the market in 2024 and is expected to grow at a CAGR of 9.8% from 2025 to 2034.
 

• Wireless technology is leading the market due to its flexibility, scalability, and cost savings. It significantly reduces the amount of wiring and provides reliable coordination between intersections and vehicles to control centers through cellular, Wi-Fi and DSRC technologies.
   
• The quick deployment of 5G networks and IoT infrastructure is speeding up the integration of wireless modules, offering ultra-low latency and high bandwidth connectivity needed for real-time signal optimization and adaptive traffic management networks in dense urban environments.
   
• Wired systems are still relevant and used in critical corridors and major intersections, where reliability and security are of utmost importance, and often exist within a conductor infrastructure to support reliable, interference-free data transmission for day-to-day operations.
   
• V2X-specific technologies are coming to light as the growth driver of the future; the development of vehicle-to-infrastructure (V2I) - and vehicle-to-vehicle (V2V) - capabilities will allow direct communication between vehicles, signals, and infrastructure. The improvements from DSRC to C-V2X technology will allow for more interoperability, proper scaling, and integration with the larger connected vehicle ecosystem, which will support the next generation of autonomous and cooperative traffic.
   

Based on application, the smart traffic signal communication module market is segmented into urban traffic management, interurban/highway management, connected vehicles & safety, and others. The urban traffic management segment dominated around 61% of the market share in 2024.
 

• Urban traffic management is the largest segment of the market, which is fueled primarily by rapid urbanization and congestion. Applications include adaptive signal timing, intersection coordination, and integration with smart city applications. Recent federal initiatives around connected-vehicle technology and V2X (Vehicle 2 Anything) applications envision that 25 percent of all intersections in the top metro areas of the country (potentially all Metro areas) will be V2X enabled by 2028.
   
• Interurban and highway management is another rapidly growing area of growth addressing ramp metering, incident detection, and traffic flow. Driving this growth is a range of federal initiatives, including ATTAIN, which funds advanced transportation technology, of which $96.5 million was allocated in fiscal year 2024.
   
• Finally, connected vehicle and safety applications are expanding rapidly as they utilize V2X communication to increase driver awareness and reduce accidents, while also increasing coordination between first responders and the assets they deploy to assist. They allow for knowledge-sharing and situational awareness between vehicles, traffic geometrics, and moving vehicles to share information in real times enhancing safety on roadways and improving traffic throughput along roadways.
   
• Other applications include but not limited to transit signal priority, pedestrian safety systems (V2I), and logistics coordination (i.e., V2I & V2V), which can all be connected within the smart mobility ecosystem. As the smart mobility ecosystem, which will need to support multilevel multimodal transportation networks with connected-vehicle applications, obtains a level of trust, safety and utilization, it stands to play an increasingly vital role addressing national safety, sustainability, quality of life, trip reliability, existing deficiencies, as well as enhancing our existing infrastructure.

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The U.S. dominates the North America smart traffic signal communication module market, generating USD 397.1 million revenue in 2024.
 

• The US is one of the most developed markets for smart traffic signal communication modules, supported by significant federal investment and comprehensive infrastructure modernization initiatives. The funding of billions of dollars for intelligent transportation and connected corridors allowed under the Infrastructure Investment and Jobs Act is one foundational piece of support.
   
• The Highway Safety Improvement Program provides an additional boost by supplying approximately $3.2 billion annually to improve roadway safety through advanced traffic control devices and signal modernization. This federal funding supports a large number of communication modules to be placed at V2X-enabled intersections nationwide.
   
• The SMART Grant Program, which provides $100 million annually, accelerates demonstration projects in communities that provide useful information about the effectiveness of adaptive and connected traffic systems. These pilot projects provide important testing of next-generation congestion signal communication technologies prior to deployment.
   
• More than 25 states have active V2X infrastructure projects moving forward, indicating strong momentum throughout the country. States like California, Florida, Michigan, and Texas are leading V2X deployments in urban corridors and highway systems while demonstrating interoperability and real-time data-sharing capabilities.
   

The Germany smart traffic signal communication module market is expected to register 8% CAGR from 2025 to 2034. This growth is driven by expanding smart city initiatives and increasing adoption of V2X-enabled traffic systems across major urban and interurban corridors.
 

• Germany is recognized as a major contributor to the market for communication modules for smart traffic signals, due to the country’s strong transportation infrastructure and various funded government programs. The country is currently engaged in the modernization of intersections and connected traffic technology as part of its national smart mobility programs.
   
• The Federal Ministry for Digital and Transport (BMDV) funds cooperative-ITS and connected vehicle initiatives to advance the safety and efficiency of traffic operations. These efforts closely align with the European Union's C-ITS strategy, which is designed to implement standardized communications among vehicles and roadside systems.
   
• Cities including Berlin, Munich, and Hamburg are rolling out adaptive signal control and real-time traffic data systems. The objective of these initiatives is to relieve congestion, mitigate emissions, and enable a smooth convergence of vehicles and pedestrians in highly populated urban areas.
   
• The continued investment through EU programs, including TEN-T and Horizon Europe, indicate that Germany will continue to grow its connected signal infrastructures and strengthen its position within the intelligent transportation technology market in Europe.
   

The China smart traffic signal communication module market is set to register at a 14% CAGR from 2025 to 2034, supported by large-scale government investments in smart city infrastructure and extensive rollout of V2X-enabled traffic management systems across urban and highway networks.
 

• China is a major market for smart traffic signal communication modules because of rapid urbanization, an increasing density of vehicles, and government-led investments in transportation infrastructure modernization across the country. The Chinese government is strongly focused on the implementation of connected traffic systems or smart traffic networks to increase mobility and relieve congestion in large cities.
   
• The Ministry of Transport and local municipalities are investing heavily in intelligent transportation systems. As a part of their national programs, the Chinese government is promoting the deployment of vehicle-to-everything, or V2X, capable intersections, adaptive signal control, and centralized traffic management systems covering urban and suburban mesh networks.
   
• This seems to be happening in major cities, like Beijing, Shanghai, and Guangzhou, where they have initiated pilot programs that leverage artificial intelligence-driven signal optimization and real-time traffic monitoring in the flows of traffic. These initiatives aim to enhance the flow of traffic, reduce delay, and enhance the safety of vehicles and pedestrians alike.
   
• Chinese technology firms and systems integrators also offer both hardware and software solutions that include roadside units, communication modules, and cloud-based traffic management platforms. Working with the government can facilitate large-scale deployments and standardization across the region.
   

The Market in the UAE is anticipated to register consistent growth from 2025 to 2034, supported by government investments in smart city projects, adoption of V2X-enabled traffic systems, and deployment of advanced adaptive signal control technologies across urban and highway networks.
 

• The UAE smart traffic signal communication module market is experiencing incremental growth led by national smart city strategies and digital transformation initiatives within the transportation sector. Investment is concentrated on upgrading intersections and optimizing traffic efficiency across cities, such as Dubai and Abu Dhabi.
   
• The UAE Smart City Program, which is supported by the government, advocates for interconnectedness within the traffic infrastructure systems. This is intended to provide connected traffic infrastructure that includes sensors, module for communication, and a real time monitoring system to enhance urban mobility and support the autonomous vehicle ecosystem.
   
• Major emirates are focusing on interconnected projects involving adaptive signal control, and corridor management, which will ensure uninterrupted traffic flow during peak periods, and minimize congestion in densely populated commercial and residential areas.
   
• Local technology businesses and global system integrators continue to work in conjunction to provide hardware, software, and integration services to ensure connected vehicles and interoperability through a scalable and extendable connected vehicle system across the UAE road networks.
   
• Overall, continued urban expansion and infrastructure projects stimulated by Expo are anticipated to increase demand for smart solutions. Growth opportunities will also be driven by investments in V2X deployment, artificial intelligence-based traffic optimization, and integration of public transport or emergency service vehicles.
   

The Brazil smart traffic signal communication module market is anticipated to grow at a robust CAGR of 10.6% from 2025 to 2034, supported by government initiatives for urban traffic modernization, increased adoption of adaptive signal systems, and rising investment in connected and intelligent transportation infrastructure.
 

• Brazil is becoming an emerging market for Smart Traffic Signal Communication Modules thanks to urbanization and its impact on traffic congestion in large urban areas like São Paulo, Rio de Janeiro, and Brasília. As a result, municipalities are focused on traffic infrastructure improvements to mitigate traffic congestion.
   
• Both federal and local government programs are now actively involved in smart traffic management initiatives, including deploying adaptive signal control systems and connected intersections to help improve travel efficiency and safety on the road. Funding is focused on urban corridors as well as critical contingencies to improve highway networks.
   
• Pilot projects in Brazilian cities are operating through the integration of real-time monitoring, traffic analytics, and sensor-based communication modules to improve signal timing. The projects plan to improve the reduction of person trip travel time, improve public transport reliability, and reduce emissions in urban congestion.
   
• Brazilian technology providers and international technology partners are helping provide hardware, software platforms, and integration services through a modular approach. These modular hardware and software services allow for a scalability and interoperability approach that enables municipalities to take phased approaches to deploying and expansion.
   
• Brazil continues to progress with developing smart mobility, by modernizing urban transport, in addition to increasing interest in V2X technologies to effectively develop markets for smart traffic signal communication modules until 2034.
   

Smart Traffic Signal Communication Module Market Share

• The top 7 companies in the smart traffic signal communication module industry are Siemens, SWARCO, Verra Mobility, Econolite, Iteris, Kapsch TrafficCom, and Q-Free, contributing around 61% of the market in 2024.
   
• Siemens is a worldwide leader in smart communications solutions for traffic signals that provides integrated hardware and software for adaptive signal control, V2X-enabled intersections, and overall traffic management. Siemens is focused on scaling municipal and interurban corridor deployments around the world.
   
• SWARCO delivers sophisticated traffic signal control and management solutions. SWARCO specializes in deploying intelligent hardware, sensors, and adaptive systems into municipal and highway networks with a specific focus on safety, efficiency, and interoperability through multiple intersections and throughout transportation corridors.
   
• Verra Mobility provides connected traffic solutions including enforcement and V2X-enabled traffic signal modules, as well as telematics services to government and municipal projects. Verra Mobility combines compliance, safety, and traffic efficiency to foster connected infrastructure deployment and urban mobility.
   
• Econolite develops intelligent traffic controllers, signal modules, and adaptive traffic systems connected to municipal and highway networks. Econolite emphasizes developments in real-time data integration and analytics, leveraging scalable infrastructure and technologies, while supporting the emerging connected vehicle technology to optimize traffic flow and reduce congestion.
   
• Iteris provides traffic management hardware, software analytics, and V2X-enabled solutions. Iteris’ focus is on data-driven decision making, adaptive traffic management, and corridor optimization to assist highway authorities with real time traffic monitoring and predict infrastructure planning.
   
• Kapsch TrafficCom offers critical ITS hardware and software systems including traffic signal systems including V2X capabilities, tolling integration and corridor management. The company focuses on reliability, scalability and interoperability for large scale deployments in urban and interurban developed transportation networks.
   
• Q-Free specializes in intelligent transport systems providing adaptive signal control, V2X communication and traffic monitoring. The company promotes smart city initiatives with modular and interoperable hardware and software, providing enhancements for real-time optimization and better traffic safety across urban developed corridors.
   

Smart Traffic Signal Communication Module Market Companies

Major players operating in the smart traffic signal communication module industry are:
 

• Bosch
• Cubic
• Econolite
• Iteris
• Kapsch TrafficCom
• Q-Free
• Siemens
• SWARCO
• Thales
• Verra Mobility
   
• The smart traffic signal communication module industry is experiencing high growth driven by the adoption of intelligent transportation systems, urbanization, and government initiatives to upgrade traffic infrastructure. Increasing vehicle density and congestion in metropolitan areas has compelled municipalities to deploy adaptive signal control and intersections with V2X capabilities to improve traffic flow, reduce travel times, and improve road safety. Investment in connected infrastructure, AI-based traffic optimization, and edge computing technologies is also supporting the transition away from traditional fixed-timing signal systems towards adaptive and data-driven signal systems.
   
• Major regions such as North America, Europe, and Asia-Pacific are leading the way with support from local governments that are making significant investment in smart mobility capital projects. For example, in the U.S. a number of programs funded under the Infrastructure Investment and Jobs Act and the Highway Safety Improvement Program are facilitating the large-scale deployment of smart technologies.
   
• Europe is also benefiting from EU funded cooperative-ITS initiatives, and China's urban development programs and smart city investment policies are advancing the deployment of smart technologies. The market is also very competitive, with organizations such as Siemens, SWARCO, Verra Mobility, Econolite, Iteris, Kapsch TrafficCom, Q-Free, Cubic, Thales, and Bosch offering integrated hardware, software, and service solutions to drive innovation and large-scale deployment of smart traffic signal technologies across the globe.
   

Smart Traffic Signal Communication Module Market News

• In October 2024, under the Advanced Transportation Technologies and Innovation (ATTAIN) Program, the Federal Highway Administration awarded 20 projects totaling $96.5 million across 16 states, including several projects involving smart traffic signal communication and V2X deployment, such as adaptive signal control and integrated traffic management platforms.
   
• In September 2024, ITS America published an updated National V2X Deployment Plan that sets an expectation for 100,000 intersections to be equipped with V2X communication over the next five years (within the next 10 years raise that to 250,000 intersections) and an estimated $6.5 billion investment to implement this deployment. The report emphasized interoperability and cybersecurity standards.
   
• In August 2024, the U.S. Department of Transportation published guidance and timelines for deploying V2X, which sets a target for deploying V2X in 25% of signalized intersections in the Top 75 metro areas by 2028 and expanding to 85% by 2036. Additionally, the guidance and timelines set forth technical specifications that will inform decisions made by the industry as they begin to deploy V2X communication modules.
   
• In July 2024, industry analysts concluded that the global connected vehicle roadside unit market (which includes traffic signal communication modules) is projected to grow from $839.42 million in 2024 to $18.66 billion in 2033, for a compound annual growth rate of 40.8%, with traffic monitoring applications leading this growth and enhanced growth projected as the 5G/IoT becomes widely available.
   
• In June 2024, the European Union unveiled a €2.4 billion funding initiative for TEN-T urban nodes to cover through 2027 for cooperative-ITS and smart traffic system investments. This funding demonstrates the European Union's emphasis on cross-border interoperability, the use of standardized V2X communication protocols, and project-level and corridor-level optimization projects requiring advanced traffic signal V2X communication hardware.
   
• In May 2024, China revealed a 5G-integrated traffic management platform initiative across the 50 major cities by 2026. The initiative requires traffic signal V2X communication modules to support 5G wireless connected to edge computing and integrated into autonomous vehicle systems, providing a potential opportunity for ASPAC.
   
• In April 2024, the NHTSA published a V2X safety impact analysis finding that connected traffic systems would prevent 439,000-615,000 crashes each year, with a range of 978-1,366 lives saved and a total economic impact of $55-74 billion facilitating ongoing federal investment in rural V2X informed intersections.
   

The smart traffic signal communication module market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and volume (Units) from 2021 to 2034, for the following segments:

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Market, By Component

• Hardware
  • RSUs (Roadside Units)
  • Sensors
  • GPS units
  • Transceivers
  • Antennas 
• Software
  • ATMS (Advanced Traffic Management Systems)
  • Cloud-based analytics
  • Signal control optimization platforms
  • Interoperability/communication protocol software
• Services
  • Professional Services
  • Managed Services

Market, By Technology

• Wireless
  • DSRC / ITS-G5 (5.9 GHz)
  • Cellular (5G / LTE)
  • Wi-Fi (IEEE 802.11)
  • Spread spectrum radio 
• Wired
  • Fiber optics
  • Twisted-pair
  • Coaxial cables
• V2X-Specific communication systems
  • Vehicle-to-Vehicle (V2V)
  • Vehicle-to-Infrastructure (V2I)
  • Infrastructure-to-Infrastructure (I2I)

Market, By Application

• Urban Traffic Management
• Interurban / Highway Management
• Connected Vehicles & Safety
• Others

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

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