Smart Highway Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Technology (Smart Transport Management, Smart Traffic Management, Communication, Monitoring), Service (Consultancy, Maintenance and Operation, Managed), and Geography.

Market Snapshot

smart highway market
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 18.33 %

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Market Overview

The smart highway market is expected to register a CAGR of 18.33% over the forecast period of 2021–2026.

  • Owing to rapid urbanization, there is an increase in greenhouse gas (GHG) emissions contributing to an expanding carbon footprint and forcing the need for the adoption of clean and sustainable technology for intelligent transportation. This is aiding the smart highway market. The growing trend toward the adoption of smart cities is also expected to drive the growth prospects for the smart highway market.
  • The smart transport management systems use digital sensors which can acquire and record data in a landslide, poor weather conditions, and traffic congestions and can display forecasts and alerts on LED screens across the states and national highways.
  • The increasing need to manage the cities’ assets, such as traffic, energy, roads, and water led to the advent of smart city concept that includes multiple information of communication technology (ICT) and the Internet of things (IoT).The governments in the developed countries, such as the United States, Germany, and the United Kingdom are also supporting the highway technology vendors and supplier companies through investments to help them in developing new technologies and products.
  • However, the cost of installing all the technologies and components that make up the intelligent highway network is quite high, which, in turn, might challenge the market growth.

Scope of the Report

Smart highways include sensors, smart computing technologies, and smart monitoring systems all connected into a single monitoring unit. Therefore, solutions, such as traffic management, communication, and transport management are gaining traction. In order to reduce the increasing traffic, traffic technology vendors are introducing advanced changes where highways are one of the attractive segments.


By Product Technology
Smart Transport Management System
Smart Traffic Management System
Communication System
Monitoring System
Other Product Technologies
By Services
Consultancy Services
Maintenance and Operation Services
Managed Services
North America
Latin America
Middle East & Africa

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Key Market Trends

Smart Transportation Management System Offers Potential Opportunities

  • The smart transportation management systems include advanced traffic management and congestion monitoring and management systems, with the integration of traffic control centers, access control and route guidance systems that offer a range of benefits.
  • According to the ITS (Intelligent Transportation Systems), the development strategy of the Department of Transport in the Republic of Korea contributes to the decreasing fuel consumption and greenhouse gas emissions by reducing traffic congestion and preventing motor vehicles from idling.
  • Owing to similar concerns, the US Department of Energy and Transportation initiated a collaboration to accelerate the R&D of innovative smart transportation solutions and alternative fuel technologies.
  • Moreover, in India, with the emergence of electronic toll control, smart transport systems are expected to gain traction in the forecast period. The country has an investment worth INR 50 trillion (USD 777.73 billion) in the infrastructure sector related to smart cities, the smart highway that would have sustainable development in the country.
smart highway market

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North America to Account for a Major Share

  • North America is a global technological leader. Coupled with this strength, the increased spending on construction and road infrastructure will offer more opportunities to the region to expand. Also, the public construction spending on the highway and street projects in the United States is very high, with USD 92.5 billion in 2018, according to the US Department of Transportation.
  • Moreover, investments in connected highway technology in the region will also significantly contribute to the growth of the market in the future. The Ray, which is an 18 mile stretch of interstate in the state of Georgia is a connected highway that offers an interesting model for transport planners and policymakers across the United States.
  • The road has photovoltaic panels rising above a rest stop, part of a sustainable electric vehicle charging station. The addition of solar panels, sustainable landscaping, and Internet of Things (IoT) will make this a smart and sustainable technology in the future. Combining all these aspects, North America is expected to hold a significant share in the market.
smart highway market

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Competitive Landscape

The smart highway market is concentrated due to the high cost of installing all the technologies and components that make up the intelligent highway network, which, in turn, is hindering the smart highway market. Some of the key players in the market include Siemens AG, Xerox Corporation, Cisco Systems, Infineon Technologies, and IBM Corporation. Some recent development in the market includes:

  • November 2018 - Siemens and Aruba, a Hewlett Packard Enterprise company, announced a strategic partnership focused on bridging the Operational Technology (OT) and Information Technology (IT) worlds. Based on the complementary portfolios, Siemens and Aruba are expected to support customers with highly reliable, secure, and insightful data networks enabling high plant and network availability.
  • March 2017 - Siemens released the latest hosted application module for Stratos, the company’s cloud-based strategic traffic management solution.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Increasing Highway and Infrastructure Projects

      2. 4.3.2 Rising Need for Safe and Efficient Transportation

    4. 4.4 Market Restraints

      1. 4.4.1 High Investments Cost Challenge the Market Growth

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Bargaining Power of Suppliers

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry


    1. 5.1 By Product Technology

      1. 5.1.1 Smart Transport Management System

      2. 5.1.2 Smart Traffic Management System

      3. 5.1.3 Communication System

      4. 5.1.4 Monitoring System

      5. 5.1.5 Other Product Technologies

    2. 5.2 By Services

      1. 5.2.1 Consultancy Services

      2. 5.2.2 Maintenance and Operation Services

      3. 5.2.3 Managed Services

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle East & Africa


    1. 6.1 Company Profiles

      1. 6.1.1 Alcatel-Lucent S.A

      2. 6.1.2 Cisco Systems Inc.

      3. 6.1.3 IBM Corporation

      4. 6.1.4 Indra Sistemas SA

      5. 6.1.5 Infineon Technologies AG

      6. 6.1.6 Intelligent Highway Solutions Inc.

      7. 6.1.7 Kapsch AG

      8. 6.1.8 LG CNS Co. Ltd

      9. 6.1.9 Schneider Electric SE

      10. 6.1.10 Siemens AG

      11. 6.1.11 Xerox Corporation

    2. *List Not Exhaustive


**Subject to Availability

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Frequently Asked Questions

The Smart Highway Market market is studied from 2018 - 2026.

The Smart Highway Market is growing at a CAGR of 18.33% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Cisco Systems Inc., Siemens AG, IBM Corporation, Schneider Electric SE, Xerox Corporation are the major companies operating in Smart Highway Market.

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