Traffic Management System market forecast to surpass $25 Billion by 2026
A Global Market Insights report foresees: “The Traffic Management System Market, which was valued US$20 billion in 2019, will surpass a US$25 billion by 2026, with an annual growth rate of 5% over 2020 to 2026.”
The global traffic management system market is projected to foresee tremendous business growth over the coming time period owing to the increasing adoption of advanced traffic management systems that are powered by innovative technologies like video analytics and IoT. Today, rapid population growth and urbanization across developing economies has led to significant rise in traffic flow on roadways. This trend has augmented the need for efficient and effective traffic management systems that can optimize the traffic flow and ensure a road transport system that is safe.
Driven by the aforementioned determinants, increasing adoption of traffic management systems across a plethora of emerging economies to efficiently manage traffic and ensure road safety would foster the industry outlook. In fact, in October 2019, the state cabinet of Maharashtra, India approved a new $119 million (Rs 891Cr) project to rollout an intelligent traffic management system to monitor and reduce the traffic woes of the state’s megacities.
With respect to the deployment model, the market is further bifurcated into on-premise and cloud models, with both bringing with them their owns sets of benefits. Among these, the on-premise deployment model segment is estimated to witness a tremendous growth rate as it offers benefits like greater security against data breaches as well as cyberattacks in comparison to the cloud-based models.
In fact, the greater security offered by this model makes it highly preferred among traffic authorities as it allows more secure storage and transfer of confidential data. However, the massive costs linked with managing and maintaining information on the on-premise deployment is expected to lead customers towards cloud-based solutions over a long-term period.
With regards to application, the adaptive traffic control segment is set to observe significant growth over the coming years due to the increasing prevalence of traffic congestions. These systems are specifically designed to operate according to real-time traffic conditions. The adaptive traffic control system focuses on solving traffic congestion by allowing real-time variation of the signal time. In fact, as per a study conducted by the FHWA (Federal Highway Administration), on average, adaptive traffic signals enhance the overall travel time by about 10%. The various benefits associated to these systems, including reducing traffic congestions, decreasing greenhouse gas emissions, and enhancing road safety would impel industry revenue growth over the coming years.
The North America traffic management system market is slated to witness a period of tremendous growth over the coming years owing to the relatively advanced technological infrastructure within the region. The regional growth is expected to be led by the U.S. as it has been an early adopter of advanced technologies in its infrastructure. In fact, between 2012 and 2016, an advanced traffic signal control system, Surtrac, developed by Rapid Flow Technology has been installed across 50 intersections in Pittsburgh, Pennsylvania.
The system proved to be extremely effective as it helped the city decrease traffic wait time at intersections by 41%, travel time by a significant 26%, and emissions by around 21%. Likewise, in January 2018, Telefonaktiebolaget LM Ericsson teamed up with the Dallas government to deploy enhanced traffic management systems across the county. This solution allowed the government to evaluate the real-time data from cameras and sensors to monitor traffic message signs and traffic lights.
Several companies in the industry are consistently launching new products with new features to gain a competitive edge and boost revenues. Taking March 2020 for instance, Lilin, a Taiwanese IP video-based system producer, reportedly launched its Aida traffic management system at the ISC West 2020 that took place in Las Vegas.
The competitive landscape of the traffic management system market is inclusive of players such as Global Traffic Technologies, Garmin Ltd., FLIR Systems, Dahua Technology, Cubic Corporation, Cisco Systems, Cellint, Advantech Co., Ltd., and Accenture PLC among others.