Smart Highway Market Will Grow at Highest Pace Owing to Increasing Demand for Improved Road Safety
Smart Highway Market Will Grow at Highest Pace Owing to Increasing Demand for Improved Road Safety
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The smart highway market involves fully or semi-automated intelligent transportation systems installed on highways to provide drivers real-time traffic, road, and weather conditions. Some key advantages of smart highways include reduced traffic congestion, improved road safety, and efficient traffic management. With increasing urbanization and rising vehicular traffic volumes globally, smart infrastructure helps optimize traffic flow and reduces vehicle idle time spent in traffic. The growing need to reduce road accidents is also driving investments in smart highway technologies.
The smart highway market is estimated to be valued at US$ 58.43 Bn in 2024 and is expected to reach US$ 152.03 Bn by 2031, growing at a compound annual growth rate (CAGR) of 14.6% from 2024 to 2031.
Key Takeaways
Key players operating in the smart highway market are Appian Corporation, Betty Blocks, Creatio, LANSA, Mendix Technology BV, Microsoft Corporation, Oracle Corporation, OutSystems Inc., Pegasystems Inc., Quickbase, Salesforce, Inc., ServiceNow Inc., Zoho Corporation Pvt. Ltd., and AgilePoint Inc.. These players are focusing on developing advanced smart highway solutions to assist transportation authorities.
The Smart Highway Market Growth for improved road safety and reduced traffic congestion are major drivers for the market. According to the World Health Organization, around 1.35 million people die each year as a result of road traffic crashes. This is propelling investments in smart technologies such as variable message signs, automatic number plate recognition systems, weather information systems.
Technological advancements such as 5G networks, IoT, AI and predictive analytics are enabling smarter road infrastructure management. For instance, IoT sensors can monitor road conditions in real-time and warn drivers about accidents or collisions ahead. 5G will further enhance connectivity and power applications such as connected vehicles.
Market Trends
Electric vehicle adoption is picking up rapidly which is driving the demand for EV charging stations and renewable energy integrated smart highways. Governments across regions are investing in solar-powered smart highways that can charge EVs wirelessly while vehicles are in motion.
Connected and autonomous vehicles rely on advanced technologies such as vehicular ad-hoc networks, edge computing and 5G to communicate with infrastructure and each other for navigation. Several pilot projects on self-driving trucks and shuttle services are being tested on smart highway corridors.
Market Opportunities
Asia Pacific region presents lucrative opportunities for smart highway vendors driven by the massive ongoing infrastructure projects and adoption of smart city initiatives in countries such as China, India and Japan. Large investments are planned for developing smart expressways integrated with IoT, AI and renewable energy.
Governments globally are allocating increased budgets for upgrading existing road networks and constructing new smart motorways owing to economic and environmental benefits. Emerging opportunities lie in providing integrated mobility as a service platforms and advanced applications for freight management, incident detection and first responder services on intelligent roads.
Impact of COVID-19 on Smart Highway Market Growth
The COVID-19 pandemic has negatively impacted the smart highway market growth. Various factors such as nationwide lockdowns, travel restrictions, supply chain disruptions and construction delays affected the market growth. During the early phases of the pandemic, construction activities were halted which impacted the deployment plans of smart highways. There was decline in demand for smart transportation services and smart infrastructure solutions as people avoided unnecessary travel. The revenue growth slowed down significantly during 2020 and 2021. However, the market is expected to recover post pandemic as construction activities resume with COVID protocols. Various governments are now focusing on fast tracking smart highways projects to boost economic recovery. They aim to enhance connectivity through intelligent transportation systems for seamless movement of goods and people in the future. Advance traffic management systems and smart toll collection technologies will be deployed on a larger scale going forward. The long term growth prospects of the market remain positive with increased investments in digital infrastructure development.
Geographical regions with highest smart highway market concentration in terms of value:
North America region currently accounts for the largest share of global smart highway market in terms of value. The US and copyright have witnessed high adoption of intelligent transportation systems owing to supportive government policies. Growing investments towards upgrading existing road infrastructure with smart technologies have propelled the market growth. Asia Pacific is projected to be the fastest growing region during the forecast period. Rapid urbanization and increasing road connectivity demands in emerging economies like India, China are influencing the deployment of smart highways in the region. Middle East & Africa region is also expected to provide lucrative opportunities with many infrastructure development projects integrating smart mobility solutions.
Fastest growing region for the smart highway market:
Asia Pacific region is poised to be the fastest growing market for smart highways globally during the forecast period. Rapid economic development across countries like India, China, Singapore, South Korea, Indonesia is driving the demand for innovative transportation solutions. Massive government initiatives to build smart cities and digitalize transportation infrastructure will propel the regional market growth. Large population base and rising disposable income will further boost the adoption of intelligent mobility services on smart connected highways. Emerging technologies such as 5G networks, IoT, AI are also being leveraged to enable next generation transportation infrastructure projects. Hence APAC represents the biggest growth opportunity for smart highway solution providers in the coming years.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191) Report this page