Traffic Equipment Market Size - By Product, By Technology, By Application, By End Use, Growth Forecast, 2026 - 2035

Based on product, the traffic equipment market is divided into traffic lights, traffic safety signs, traffic barriers, traffic cones, traffic entry gates, and others. The traffic lights segment dominated the market, accounting for around 27.81% in 2025 and is expected to grow at a CAGR of more than 4.6% through 2035.
 

• The traffic lights segment is the most controlling force in the traffic equipment industry because traffic lights are the most significant item in traffic control and safety on road systems worldwide. High urbanization, the growing volume of vehicles and their congestion in cities has led to the development of a steady need of traffic lights in controlling intersections, pedestrian crossings, and entry and exit points of highways.
  
  The contemporary traffic lights are being enriched with LED, energy saving systems and adaptive signs, which enhance visibility, energy saving and encourage urban mobility with sustainability.
   
• Moreover, the development of intelligent traffic management and smart city projects has further strengthened the traffic lights segment. Adaptive signals with AI links traffic lights to IoT sensors, and real-time monitoring, predictive maintenance, and optimizing traffic flows can be achieved by centralized control platforms. The innovations can enable municipalities to lessen the volume of traffic, boost security, and adhere to regulatory criteria, making traffic lights the best in the traffic equipment market segment
   
• For example, Siemens Mobility has deployed advanced traffic signal systems in cities such as Coventry, integrating intelligent priority controls and resilient infrastructure that supports busy intersections and urban traffic flows.
   
• The traffic signs segment will experience a CAGR of more than 8.6% as governments and municipalities worldwide continue to invest in road safety, highway expansion, and urban infrastructure development. Growing vehicle density, urbanization, and industrial corridor development are increasing the demand for clear, durable, and compliant road signage. Modern traffic signs are increasingly integrated with reflective materials, LED illumination, and energy-efficient designs, improving visibility in low-light conditions and enhancing safety for drivers, pedestrians, and cyclists.
   

Based on technology, the traffic equipment market is segmented into conventional equipment, and smart/connected equipment. The conventional equipment segment dominates the market accounting for around 56% share in 2025, and the segment is expected to grow at a CAGR of over 5.6% from 2026 to 2035.
 

• The traffic equipment market is dominated by the conventional equipment segment since traditional traffic devices such as standard traffic signals, fixed road signage, barriers, cones, and pedestrian crossings remain the backbone of road safety and traffic management worldwide. These systems are widely deployed across urban, suburban, and highway networks due to their low cost, reliability, ease of installation, and compliance with regulatory standards. Municipalities and highway authorities continue to rely on conventional equipment to maintain basic traffic control and safety, especially in regions with growing traffic but limited smart infrastructure adoption.
   
• Additionally, conventional traffic equipment serves as the foundation for gradual digital upgrades and integration with intelligent transport systems (ITS). Many cities initially deploy standard signage and fixed signals, which can later be upgraded with LED technology, IoT sensors, and adaptive signal controllers. This combination of affordability, accessibility, and upgrade potential has sustained the dominance of conventional traffic equipment in the global market.
   
• For example, in November 2025, the Municipal Corporation of Ludhiana installed new conventional traffic lights at the busy Bharat Nagar Chowk intersection to ease congestion and improve safety. This initiative reflects continued reliance on basic signal infrastructure even where smart systems are being considered.
   
• The smart/connected equipment segment will experience a faster growth of more than 7.3% owing to the rapid adoption of intelligent transport systems (ITS), AI-powered traffic management solutions, and smart city initiatives worldwide. Cities are increasingly deploying adaptive traffic signals, connected cameras, variable message signs, and IoT-enabled road sensors to optimize traffic flow, reduce congestion, and enhance road safety. Growing urbanization, rising vehicle density, and demand for real-time traffic monitoring are accelerating the need for connected, digitally managed traffic equipment.
   

Based on application, the traffic equipment market is segmented into urban traffic management, highway management, parking management, work zone safety, and others. In 2025, Urban Traffic Management segment dominated with around 30.89% share due to its superior load-carrying capacity, stability, and suitability for medium to long-haul transportation.
 

• The urban traffic management segment is the largest market segment in the traffic equipment market due to rapid urbanization, rising vehicle density, and increasing traffic congestion in major cities worldwide. Municipal authorities are investing heavily in traffic control infrastructure such as adaptive traffic signals, connected cameras, pedestrian crossings, and smart intersections to improve traffic flow, reduce accidents, and enhance commuter safety. The need for real-time traffic monitoring and incident management in busy urban centers has made urban traffic management solutions the largest application segment within the traffic equipment market.
   
• Additionally, integration with intelligent transport systems (ITS) and smart city initiatives has further boosted adoption. Cities are deploying AI-enabled traffic management platforms, IoT sensors, and centralized control systems to optimize signal timing, manage congestion, and reduce emissions. The focus on pedestrian safety, sustainable mobility, and digital monitoring has reinforced urban traffic management as the key driver of growth in the traffic equipment market.
   
• For instance, in January 2026, DPIFS Solutions launched its AI powered smart traffic infrastructure designed to transform urban mobility and reduce congestion in growing cities.
   
• The highway management segment is expected to grow with a CAGR of more than 8.0% due to increasing investments in highway construction, expansion, and modernization projects worldwide. Governments and transportation authorities are deploying traffic equipment such as roadside barriers, dynamic message signs, toll management systems, and highway signals to enhance traffic flow, improve safety, and reduce congestion on expressways and intercity roads. Rising vehicle ownership, freight traffic, and long-distance commuting are creating higher demand for robust highway traffic management solutions.
   

Based on end use, the traffic equipment market is divided into government/municipal authorities, private contractors, and transportation agencies. The government/municipal authorities segment dominated the market.
 

• The government and municipal authorities segment dominate the traffic equipment market due to their primary responsibility for planning, funding, and managing public road infrastructure. Urbanization, rising vehicle ownership, and increasing congestion compel public agencies to invest continuously in traffic control devices, signaling systems, and road safety equipment to ensure smooth mobility and public safety.
   
• For instance, in December 2025, Nota AI deployed smart intersections integrating connected traffic lights, sensors, and AI-based control across urban areas in the US, UAE, and South Korea, exemplifying how integrated solution offerings improve efficiency and dominate the market.
   
• Regulatory mandates further strengthen government dominance in this market. Policies related to road safety, pedestrian protection, work-zone management, and environmental sustainability require compliant and certified traffic equipment. Initiatives such as Vision Zero, smart city programs, and intelligent transport systems (ITS) are largely government-driven, resulting in consistent and large-scale procurement of advanced traffic technologies.
   
• Additionally, governments favor long-term, program-based investments over one-time purchases. Municipal authorities increasingly adopt integrated traffic management systems, maintenance contracts, and data-driven monitoring solutions to optimize traffic flow and reduce lifecycle costs. Stable public budgets, access to funding, and centralized decision-making enable governments to remain the largest and most influential buyers in the market.
   

US dominated the traffic equipment market in North America with around 85.17% share and generated USD 4.10 billion in revenue in 2025.
 

• The U.S. market is experiencing robust growth due to sustained federal and state investments in transportation infrastructure, driven by programs such as the Infrastructure Investment and Jobs Act (IIJA). Large-scale funding for highway upgrades, urban road modernization, and work-zone safety is accelerating demand for traffic signals, signage, barriers, and temporary traffic management equipment across cities and interstate networks.
   
• For instance, in October 2025, Verra Mobility will install automated red light cameras at an additional 450 intersections under a new agreement with NYC officials, enhancing automated enforcement and centralized traffic oversight.
   
• Additionally, growing emphasis on road safety, congestion reduction, and smart mobility is pushing rapid adoption of intelligent traffic systems (ITS). U.S. municipalities are deploying adaptive traffic signals, connected cameras, pedestrian safety systems, and centralized traffic management platforms. Strict safety regulations, Vision Zero initiatives, and rising urban vehicle density are further encouraging replacement of legacy traffic equipment with advanced, energy-efficient, and digitally integrated solutions.
   
• Canada is projected to grow at a significant CAGR 6.5% for the Traffic equipment market due to increasing government investments in transportation infrastructure, road modernization projects, and urban mobility programs. Federal and provincial initiatives, including road safety enhancement schemes and smart city projects, are accelerating the adoption of traffic signals, signage, barriers, and work-zone management equipment across urban and rural areas.
   

The traffic equipment market in Germany is expected to experience significant and promising growth of 4.8% from 2026 to 2035.
 

• Europe accounts for over 28.45% of the Traffic equipment market in 2025 and is expected to grow at a CAGR of around 5.4% due to stringent road safety regulations, government-led infrastructure modernization programs, and rising adoption of intelligent transport systems (ITS). Countries such as Germany, the UK, France, and the Netherlands are investing heavily in upgrading traffic signals, road signage, pedestrian and cyclist safety equipment, and highway management solutions, which is supporting consistent market growth.
   
• Germany is a strong traffic equipment market leader due to its advanced road infrastructure, high urbanization, and strong regulatory framework for road safety. The country has one of the most developed highway networks in Europe and enforces strict standards for traffic control devices, signage, and intelligent traffic systems. Federal and state governments regularly invest in road modernization, pedestrian safety, and highway management projects, driving consistent demand for traffic equipment across urban, regional, and rural road networks.
   
• Additionally, Germany is at the forefront of smart mobility and intelligent transport system (ITS) adoption. Municipalities and federal agencies are increasingly deploying AI-enabled adaptive traffic signals, connected cameras, and centralized traffic control platforms. Sustainability initiatives, energy-efficient traffic solutions, and integration with smart city projects further reinforce Germany’s leadership in the traffic equipment market.
   
• For instance, in March 2022, INRIX has introduced its Signal Analytics platform in Germany, giving authorities insight into traffic signal performance at over 10,000 intersections, helping optimize control timing and reduce emissions nationwide.
   
• The UK is emerging as a strong growth market for traffic equipment due to government investments in road infrastructure modernization, urban traffic management, and smart city initiatives.
  Nationwide programs, such as the Road Investment Strategy and Local Authority Transport Plans, are driving upgrades of traffic signals, signage, barriers, and temporary traffic management systems across highways, urban areas, and construction zones. Rising urbanization and vehicle density are also creating pressure to improve traffic flow, reduce congestion, and enhance road safety.
   

The Traffic equipment market in China is expected to experience significant and promising growth from 2026-2035.
 

• Asia Pacific accounts for over 28.05% of the Traffic equipment market in 2025 and is expected to grow at a CAGR of around 8.5% between 2026 and 2035 owing to rapid urbanization, infrastructure expansion, and rising vehicle ownership across major economies such as China, India, Japan, and South Korea. Governments are investing heavily in road construction, urban mobility programs, and highway modernization projects, which is driving demand for traffic signals, signage, barriers, and work-zone management systems.
   
• China is the market leader in the traffic equipment segment due to its extensive investments in urban infrastructure, road network expansion, and modernization of highways and municipal roads. The country has one of the largest and fastest-growing transportation networks globally, with significant government initiatives aimed at enhancing road safety, reducing congestion, and supporting efficient urban mobility. Large-scale deployment of traffic signals, road signage, barriers, and work-zone management equipment across cities and regional highways ensures consistent market demand.
   
• Furthermore, China is a front-runner in intelligent transport system (ITS) adoption. Municipalities and smart city programs are increasingly deploying AI-enabled adaptive traffic signals, connected cameras, and centralized traffic control platforms. Government support for energy-efficient, sustainable, and technologically advanced traffic equipment, combined with high vehicle density and urbanization, reinforces China’s leadership in the global traffic equipment market.
   
• For instance, July 2025, in Shanghai, the municipal traffic authority rolled out an AI powered traffic management system across more than 33,000 intersections, using big data and automated signal optimization to improve average vehicle speed and reduce stops demonstrating advanced deployment of intelligent traffic equipment.
   
• India is becoming one of the fastest-growing markets in the traffic equipment sector due to rapid urbanization, expanding road networks, and government-led infrastructure development initiatives. Programs such as the National Highways Development Project (NHDP), Smart Cities Mission, and urban mobility projects are driving significant investments in traffic signals, road signage, barriers, and temporary traffic management equipment across cities, highways, and industrial corridors. Rising vehicle ownership and urban congestion are also increasing the demand for modern traffic equipment to manage traffic flow and improve road safety.
   

The traffic equipment market in Brazil is expected to experience significant and promising growth from 2026 to 2035.
 

• Latin America holds around 4.87% of the traffic equipment market in 2025 and is growing steadily at a CAGR of around 7.6% between 2026 and 2035 due to increasing government investments in road infrastructure, highway modernization, and urban mobility projects across countries like Brazil, Mexico, and Chile. Governments are prioritizing road safety, congestion reduction, and work-zone management, driving demand for traffic signals, signage, barriers, and temporary traffic control equipment.
   
• Brazil dominates the traffic equipment market in Latin America due to extensive government investments in urban road infrastructure, highway modernization, and traffic safety programs. Initiatives like the National Department of Transport Infrastructure (DNIT) and major urban mobility projects are driving large-scale deployment of traffic signals, road signage, barriers, and temporary traffic management systems across cities, highways, and construction zones. Rapid urbanization and growing vehicle ownership are further increasing the need for effective traffic control solutions to reduce congestion and improve road safety.
   
• Additionally, Brazil is increasingly adopting intelligent transport systems (ITS) and smart traffic management technologies. Municipalities are deploying AI-enabled adaptive traffic signals, connected cameras, and centralized traffic control platforms. Sustainability-focused initiatives and compliance with road safety regulations are encouraging the use of energy-efficient, technologically advanced traffic equipment, positioning Brazil as the regional leader in Latin America’s market.
   
• The traffic equipment market in Mexico is experiencing high growth due to government-led investments in urban infrastructure, highway expansion, and smart city initiatives. Federal and municipal authorities are upgrading traffic signals, road signage, barriers, and temporary traffic management systems to manage rising urban congestion and improve road safety. Programs such as the National Infrastructure Program (PNI 2020-2024) and regional mobility projects are driving consistent demand for modern traffic equipment across major cities like Mexico City, Monterrey, and Guadalajara.
   

The traffic equipment market in UAE is expected to experience significant and promising growth from 2026-2035.
 

• MEA holds around 3.22% of the Traffic equipment market in 2025 and is growing steadily at a CAGR of around 7.1% between 2026 and 2035 due to rapid urbanization, expansion of road networks, and large-scale infrastructure development projects in countries such as the UAE, Saudi Arabia, South Africa, and Egypt. Governments are investing heavily in highways, urban mobility, and smart city initiatives, driving demand for traffic signals, road signage, barriers, and temporary traffic management equipment.
   
• The UAE dominates the MEA traffic equipment market due to extensive government investments in smart city development, advanced road infrastructure, and urban mobility projects. Cities such as Dubai and Abu Dhabi are implementing state-of-the-art traffic management systems, upgrading traffic signals, signage, barriers, and work-zone management solutions to enhance safety and reduce congestion. Initiatives like Dubai’s Smart City Program and nationwide road modernization projects are driving consistent demand for modern traffic equipment across highways, urban areas, and construction zones.
   
• Additionally, the UAE is at the forefront of intelligent transport systems (ITS) adoption in the region. AI-enabled adaptive traffic signals, connected cameras, and centralized traffic control platforms are being deployed to optimize traffic flow and monitor incidents in real time. Emphasis on energy-efficient, sustainable, and technologically advanced traffic solutions, coupled with regulatory support for road safety, reinforces the UAE’s leadership in the MEA market.
   
• Saudi Arabia is expected to grow at the fastest CAGR in the MEA traffic equipment market due to massive government-led infrastructure and urban development initiatives, including the Vision 2030 program, which prioritizes smart cities, road modernization, and enhanced transportation networks. Investments in highways, expressways, and urban traffic management systems are driving high demand for traffic signals, road signage, barriers, and temporary traffic management equipment across major cities such as Riyadh, Jeddah, and Dammam.
   

Traffic equipment Market Share

• The top 7 companies in the traffic equipment industry are 3M, Siemens, Tennants, Lindsay, Honeywell, JSP Safety, and TrafFix Devices contributed around 40.7% of the market in 2025.
   
• 3M focuses on innovative traffic safety solutions, including reflective signage, road markings, and work-zone management systems. Their strategy emphasizes durability, visibility, and compliance with global traffic safety standards, while expanding adoption in smart city projects. 3M also leverages sustainability initiatives, offering long-lasting, energy-efficient materials, and partnerships with municipalities to provide integrated traffic management solutions.
   
• Siemens Mobility drives growth through intelligent transport systems (ITS), adaptive traffic control, and connected infrastructure solutions. Their strategy emphasizes AI-enabled traffic signals, centralized traffic management platforms, and integration with smart city initiatives. Siemens focuses on long-term contracts with municipalities, leveraging digitalization, analytics, and performance-based solutions to optimize urban traffic flow and improve safety across global markets.
   
• Tennants specialize in road maintenance, traffic management, and temporary safety equipment. Their strategy focuses on providing integrated solutions for highways and construction zones, emphasizing high-quality, durable products and efficient project delivery. Tennants leverages partnerships with contractors and local authorities, aiming to expand in smart and sustainable traffic solutions, including reflective signage and energy-efficient temporary traffic systems.
   
• Lindsay  emphasizes automated traffic management and intelligent transport systems. Their strategy involves deploying AI-based traffic signals, central control systems, and smart infrastructure solutions to optimize urban mobility. Lindsay also focuses on long-term municipal partnerships and offers service contracts, supporting traffic flow optimization, safety compliance, and integration with sustainable road infrastructure projects.
   
• Honeywell targets the traffic equipment market through IoT-enabled traffic control, connected safety solutions, and smart city integration. Their strategy prioritizes real-time traffic monitoring, predictive analytics, and energy-efficient infrastructure. Honeywell focuses on leveraging its global technology ecosystem to provide end-to-end urban traffic solutions, combining hardware, software, and services to improve efficiency, safety, and regulatory compliance.
   
• JSP Safety focuses on traffic safety products such as high-visibility barriers, signage, and personal protective equipment for road workers. Their strategy emphasizes durable, compliant, and ergonomically designed solutions, targeting municipalities, construction zones, and highway projects. JSP is expanding adoption through innovation in reflective materials, modular systems, and work-zone safety solutions, supporting regulatory compliance and workforce protection.
   
• TrafFix Devices specializes in temporary and permanent traffic control products, including barriers, delineators, and crash attenuators. Their strategy emphasizes modular, durable, and quick-deploy solutions for highways, construction zones, and municipal projects. They focus on safety compliance, product innovation, and nationwide distribution, partnering with contractors and transportation authorities to expand their footprint in both urban and highway traffic equipment industries.
   

Traffic Equipment Market Companies

Major players operating in the traffic equipment industry are:

• 3M
• Cortina Safety
• Dicke Safety
• Eagle Manufacturing
• Honeywell
• JSP Safety
• Lindsay
• Siemens
• Tennants
• TrafFix Devices
   
• Manufacturers and municipal authorities in the traffic equipment market are increasingly leveraging digital design, IoT-enabled traffic sensors, and cloud-based traffic management platforms to improve operational efficiency, road safety, and infrastructure monitoring. Integration of AI-powered analytics, real-time monitoring, and predictive maintenance systems allows detection of equipment failures, optimization of traffic signal timing, and proactive maintenance of road assets. These technologies enable data-driven decision-making for urban planning, congestion management, and regulatory compliance, while reducing maintenance costs and enhancing the overall lifespan of traffic equipment.
   
• Collaborations between traffic equipment, OEMs, smart mobility solution providers, software developers, and municipal authorities are accelerating innovation in the traffic management ecosystem. These partnerships enable interoperable, connected traffic systems, predictive traffic flow analytics, and integration with smart city initiatives. By combining advanced hardware and software solutions, cities benefit from improved traffic efficiency, enhanced pedestrian and cyclist safety, lower energy consumption, and compliance with environmental and safety regulations, driving the global shift toward intelligent, connected, and data-driven traffic infrastructure systems.
   

Traffic Equipment Industry News

• In December 2024, Siemens deployed an adaptive traffic control system across 850 Los Angeles intersections, using real-time sensor and camera data to optimize signal timing. Early results show a 12% reduction in travel times and 16% fewer vehicle stops, marking one of North America’s largest intelligent traffic management implementations.
   
• In November 2024, 3M launched a next generation connected work zone platform integrating impact detection, worker proximity alerts, and real-time traffic monitoring. Connected cones and barriers detect vehicle intrusions, alerting workers and motorists, improving construction zone safety, and addressing work zone crashes that cause hundreds of annual fatalities.
   
• In August 2024, Lindsay launched an advanced movable barrier system for highways, automating lane reconfigurations and reducing setup time from 45 to 15 minutes. The system addresses dynamic traffic management needs on congested urban highways with variable traffic patterns throughout the day.
   
• In June 2024, Honeywell introduced an AI-powered traffic incident detection system that analyzes video feeds to detect crashes, disabled vehicles, and hazards within seconds. The system enables rapid response from traffic management centers, reducing secondary crashes and congestion caused by delayed incident clearance.