Traffic Management Systems Market size worth $25 Bn by 2026
Published Date: August 5, 2020 Authors: Preeti Wadhwani, Saloni Gankar
Traffic Management Systems Market size is estimated to reach USD 25 billion by 2026, according to a new research report by Global Market Insights, Inc.
The rise in demand for smart solutions to reduce traffic congestion and optimize travel time is driving the industry growth. Traffic congestion has led to rise in fuel consumption and carbon footprint, adversely impacting the environment. Smart intersections created by adaptive traffic lights help manage traffic in response to the patterns that they observe in traffic flow. Multiple adaptive intersections can work together to create a system in which, traffic lights change according to the traffic patterns rather than on a fixed schedule. This results in reduced wait-times and a smooth flow of traffic even at peak hours.
The ongoing coronavirus (COVID-19) pandemic has resulted in stringent lockdowns globally and restricted the movement of citizens. In the U.S., cities, such as New York and San Francisco, have witnessed decline in transportation and economic activities from March-May 2020. Transportation activities are anticipated to recover slowly but not to pre-COVID-19 levels. Several transportation projects have been halted and are anticipated to resume by the end of 2020. The market players are expected to witness a decline in revenue during the 2020-2021 financial year.
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Investment in smart mobility is driving Middle East traffic management market growth
Government administration in the Middle East is investing in new transportation projects to adopt smart mobility. For instance, in October 2019, the UAE invested USD 106 billion in transport projects to build driverless mobility in Dubai by 2030. Various smart transport solutions are being introduced by governments across the region to improve transportation network and pave a way for the implementation of smarter infrastructure to meet future mobility needs. This includes smart ticketing solutions that are flexible, convenient to use, and provide faster travel means for public transport users.
Hardware segment to witness high market share owing to rising concern for road safety & public security solutions
Hardware-based traffic management systems market accounted for around 55% share in 2019 which include sensors, surveillance cameras, and display boards. Various automakers are developing in-vehicle sensors to be used for various applications such as traffic management, roadside assistance, and infotainment.
Browse key industry insights spread across 300 pages with 443 market data tables and 29 figures & charts from the report, “Traffic Management System Market Size By Component (Hardware [Sensors, Surveillance Camera, Display Boards], Software [Route Guidance, Smart Signaling, Traffic Analytics, Video Analytics Software, Video Management Software], Service [Integration, Maintenance & Support, Consulting]), By Deployment Model (On-Premise, Cloud), By Application (Adaptive Traffic Control System, Dynamic Traffic Management System, Incident Detection & Location System, Journey Time Measurement System, Predictive Time Modelling System, Urban Traffic Management & Control System), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Growing demand for urban traffic management solutions in Europe for route guidance & optimization
The rise in population of urban areas has increased traffic time for the commuters. Smart buses are being deployed to address traffic congestion and meet the demand for streamlined public transportation services. These buses offer commuters an efficient means of travelling and enable bus operators to integrate fleet management and improve safety operations. The rapid market adoption of smart ticketing solutions in public transport is supported by numerous sustainable transport policies and governments.
Hefty government investments in the Asia Pacific transportation industry
Asia Pacific traffic management systems market will register a growth rate of over 7% during 2020 to 2026. Several government authorities in the region are investing in implementation of traffic management systems for establishment of smart mobility infrastructure. These authorities are focusing on enhancing the transportation infrastructure to reduce traffic congestion and road crashes. In Japan, owing to aggravated traffic congestion and surge in number of road crashes, authorities are deploying smart solutions.
Strategic alliances between leading market players
Industry players operating in the traffic management systems market are focused to develop intelligent traffic management solutions which will offer reliability and flexibility to the government and municipal authorities. The innovative solutions will help in creating cost-efficient transportation network. Also, these market players are focusing on large-scale advanced traffic management system deployments in collaboration with government and municipal authorities to improve roadside safety.
In February 2020, Kapsch TrafficCom AG signed a cooperative agreement with Austria traffic management authority to deploy real-time traffic optimizer and dynamic signaling system in the city of Malaga. The strategic alliance will improve urban mobility in the city.
Key market players operating in traffic management market include Siemens AG, IBM Corporation, Jenoptik AG, Accenture PLC, Iteris Inc., Cubic Corporation, Global Traffic Technologies, LLC, Accenture PLC, Citilog S.A. (Axis AB), Kapsch TrafficCom AG, Cisco Systems, Inc., Lanner Inc., and Dahua Technology