Smart Highway Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Smart Highway Market Analysis
The Smart Highway Market is expected to grow by registering a CAGR of 20.71% over the forecast period (2022–2027). The growing investment in smart cities, along with benefits associated with smart technologies, such as traffic safety improvement, and data-driven traffic control to reduce infrastructure damage, drives the growth of the smart highway market.
- 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. For instance, according to the United States Environmental Protection Agency, Greenhouse gas (GHG) emissions from transportation account for about 27 percent of total U.S. greenhouse gas emissions.
- 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 market is driven by many factors, such as reducing the number of accidents occurring on highways, providing safe and efficient transportation systems, and reducing the transportation time on highways connecting the major cities of a country. All of these can be done through the implementation of smart technologies, which efficiently monitor traffic and help in the proper functioning of highways while providing real-time information to the authorities.
- Several governments in developed economies, such as the United States, Germany, and the United Kingdom, have proactively focused on deploying various smart highway projects to overcome the challenges faced by their populace and renovate their infrastructure to stay ahead of the adoption curve. For instance, in March 2022, it was announced that the Salerno-Reggio Calabria highway, the approximately 400-kilometer roadway between Salerno and Reggio Calabria, will be developed to make it the first smart motorway in Europe.
- 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.
- The outbreak of COVID-19 significantly impacted the construction process of highway projects, particularly after the initial outbreak, due to supply chain disruptions as a result of lockdown-induced transportation restrictions. Additionally, the consequent reduction in traffic also impacted the toll collection and other revenue streams from the highways. However, the pandemic also attracted attention to the benefits of smart technologies on highways, which is expected to support the growth of the studied market during the forecast period.
Smart Highway Industry Segments
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 Traffic Management Systems|
|Smart Transport Management Systems|
|Middle East and Africa|
Smart Highway Market Trends
This section covers the major market trends shaping the Smart Highway Market according to our research experts:
Smart Transportation Management System Offers Potential Opportunities
- The primary goal of the highways is to sustainably, safely, and cost-effectively facilitate the movement of people and goods. Countries around the world face some major challenges in the transportation system, such as climate change, congestion, major injuries and fatalities, unequal economic opportunity, and deteriorating facilities. According to the Inrix Global Transportation Scorecard report, the United States was among the leading countries in terms of time lost to traffic congestion. For instance, in 2021, drivers in Chicago (104 hours), New York (102 hours), and Philadelphia (90 hours) lost the most time to traffic congestion.
- 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.
- The benefits offered by such technologies have already been acknowledged, considering that in countries where ITSs were implemented (Europe, USA, and Japan) and as reported by the European Commission, their application results in significant travel time reduction, reduction in accidents, and an increase in roadway capacity and safety.
- Considering the benefits, governments, and vendors across the globe are increasing their investment in smart technologies to make the highway infrastructure modern and safe. For instance, in July 2021, Hitachi Transport System, Ltd. launched SSCV-Safety, a new service providing support for secure transportation management. The launched product is a part of the company's SSCV (Smart & Safety Connected Vehicle) digital platform for transportation.
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North America to Account for a Major Market Share
- North America is a global technological leader. Coupled with this strength, the increased spending on construction and road infrastructure will offer more opportunities for the region to expand. Also, the public construction spending on highway and street projects in the United States is very high. For instance, according to the U.S Census Bureau, in 2021, the value of federal construction spending on highway and street projects in the United States increased significantly to reach about USD 1.4 billion.
- The United States Department of Transportation implements various intelligent transportation systems to improve transportation safety and mobility and enhance American productivity by integrating advanced communication technologies into vehicles and infrastructure.
- Moreover, investments in connected highway technology in the region will also significantly contribute to the growth of the market in the future. For instance, the scope of the US 550—US 160 Connection South highway project, whose construction is expected to be complete in 2023, involves constructing a new, 1.1 mile, four-lane section of US 550 north of La Plata County Road 220 to connect the existing US 160 interchange with the major highway, and widening a 3.3-mile area of US 550 south of CR 220 to four lanes, tying into the CR 302 intersection.
- Furthermore, the increasing road accidents in North American countries, especially in the United States, is another major reason expected to drive investments into the smart highway concept. For instance, according to the National Highway Traffic Safety Administration, a division of the Department of Transportation, about 42,915 people died in motor vehicle traffic crashes in 2021, a 10.5% increase from the 38,824 fatalities in 2020.
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Smart Highway Market Competitor Analysis
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.
- October 2021 - T.net, a startup under EIT Digital's portfolio, unveiled Smart Road 4.0, an innovative system capable of significantly improving mobility and road safety in a smart road, an area in which connected vehicles send and receive information via a network of intelligent sensors.
- February 2021 - India inaugurated its INR 427-crore Smart Road project, where roads spanning 37 km fall under the Area-Based Development (ABD) area of the Thiruvananthapuram Corporation upgraded to smart roads by making all overhead utilities underground.
- January 2021 - Central Logic, an orchestration and healthcare access company, acquired Acuity Link, a transportation communications and logistics management software provider. Acuity Link's technology will power Central Logic's new intelligent transport capability.
Smart Highway Market Top Players
Cisco Systems Inc.
Schneider Electric SE
Alcatel-Lucent Enterprise (Nokia Corporation)
*Disclaimer: Major Players sorted in no particular order
Smart Highway Market Recent Developments
- May 2022 - As part of the English government's effort to simultaneously fill all lanes of the country's technology-enhanced roads with traffic, England's smart highways were given new radar technology to detect broken-down vehicles.
- April 2022 - Lexana, a city in Kansas, approved a 10-year pilot program to deploy smart pavement technology at five intersections in a public-private partnership. The P3 project marks a step forward in deploying the technology, which entails precast concrete road sections embedded with fiber optic connectivity and digital technology for traffic data collection through Wi-Fi, in-roads sensors, 5G, and more through antennas in the expansion ports, edge services, and cloud access and wireless electric vehicle charging.
Smart Highway Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Stakeholder Analysis
4.4 Assessment of the Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Highway and Infrastructure Projects
5.1.2 Rising Need for Safe and Efficient Transportation
5.2 Market Challenges
5.2.1 Capital-intensive Projects
5.2.2 Lack of Infrastructural Support in Developing Countries
5.3 Market Opportunities
5.4 Key Recent Case Studies
5.5 Evolution of Smart Highway Technology
6. MARKET SEGMENTATION
6.1 By Product Technology
6.1.1 Smart Traffic Management Systems
6.1.2 Smart Transport Management Systems
6.1.3 Monitoring Systems
6.2 By Geography
6.2.1 North America
6.2.3 Asia Pacific
6.2.4 Latin America
6.2.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Alcatel-Lucent Enterprise (Nokia Corporation)
7.1.2 Cisco Systems Inc.
7.1.3 IBM Corporation
7.1.4 Indra Sistemas SA
7.1.5 Infineon Technologies AG
7.1.6 Huawei Technlogies Co. Ltd.
7.1.7 Kapsch AG
7.1.8 LG CNS Co. Ltd (LG Electronics Inc.)
7.1.9 Schneider Electric SE
7.1.10 Siemens AG
7.1.11 Xerox Corporation
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Smart Highway Market Research FAQs
What is the study period of this market?
The Smart Highway Market is studied from 2018 - 2028.
What is the growth rate of Smart Highway Market?
The Smart Highway Market is growing at a CAGR of 20.71% over the next 5 years.
Which region has highest growth rate in Smart Highway Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Smart Highway Market?
North America holds highest share in 2021.
Who are the key players in Smart Highway Market?
Cisco Systems Inc., Siemens AG, Schneider Electric SE, Xerox Corporation, Alcatel-Lucent Enterprise (Nokia Corporation) are the major companies operating in Smart Highway Market.
Smart Highway Industry Reports
In-depth industry statistics and market share insights of the Smart Highway sector for 2020, 2021, and 2022. The Smart Highway research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Smart Highway report PDF.