Market Trends of Traffic Signal Controller Industry
Adaptive Controller Segment Expected to Lead the Market
- The adaptive controller segment of the market is anticipated to register the highest CAGR during the forecast period, attributed to its increasing popularity globally in improving urban mobility solutions and preventing road fatalities. The adaptive controller solution assists in adapting to traffic light controls based on information collected from sensors, edge devices, and video systems.
- Interval and Phase controllers are extensively in use in emerging nations such as India, which provide a continuous phase for red/yellow/green for every signal. These systems lack the capability of garnering real-time data to effectively help in managing traffic congestion. Therefore, at various intersections, traffic personnel are deployed to manage the growing traffic congestion, which adds to the financial burden of the government. Hence, municipalities across the world are strategizing to adapt to adaptive controller systems to enhance citizens' mobility experience.
- In August 2022, the state government of Hessen (Germany), through the Starke Heimat Hessen (Strong Homeland Hessen) program, announced funding of 2.28 million euros (USD 2.50 Million) for a smart project that aims to use a host of traffic data that is updated in real-time about the traffic concentration in the city. The data would then help first responders navigate the hectic urban environment to get to emergencies within a 10-minute time frame.
- Further, various companies are engaging in developing novel technology to address the issue of traffic congestion all over the world by innovating smart traffic controller solutions. For instance, in April 2023, Derq, a company based out of Canada, announced the development of an AI-based smart road technology that integrates with traffic lights and intersection infrastructure to help avoid collisions between vehicles and pedestrians. The platform helps collect information from existing infrastructure and uses cameras and radar to track the movement of vehicles through an intersection.
- With the increasing demand for sustainable mobility solutions, governments across the globe will invest hefty sums in implementing advanced traffic signal controller systems, which, in turn, would lead to the growth of the adaptive controller segment in the coming years.
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Asia-Pacific to Witness Significant Growth
- The Asia-Pacific region is expected to witness surging growth during the forecast period attributed to the rampant urbanization and increase in on-road vehicular fleets in recent years.
- The degree of urbanization in China stood at 65.2% in 2022, compared to 58.84% in 2016. With rapid urbanization in emerging economies in the Asia-Pacific region, there exists a greater demand for availing private transportation mediums, thereby leading to increased traffic congestion. TomTom Traffic Index Ranking 2022 placed Bengaluru (India) as the second-most congested city in the world, wherein drivers take an average of 29 minutes and 10 seconds to traverse 10km in the city.
- Excessive traffic congestion in these regions is leading to the government's framing policies and encouraging the adoption of advanced traffic signal controllers to ensure the smooth operation of urban mobility for its citizens. In March 2022, the Karnataka Road Corporation Limited in India floated a tender for the AI-based upgradation of 165 traffic signals. As per the tender floated, the bidder is responsible for providing the commissioning and synchronization of the new adaptive traffic control system at 29 locations.
- Further, in February 2023, Patna Smart City Limited introduced its state-of-the-art adaptive traffic control systems to facilitate the effective management of traffic and ensure increasing consumer safety.
- Coupled with the higher adoption of adaptive traffic control systems across the Asia-Pacific region, the increasing focus on smart city projects and investments in road infrastructure projects further propel the growth of the traffic signal controller market. For instance, in May 2023, South Korea and Saudi Arabia announced the launch of a high-profile bilateral program, 'Saudi-Korean tour' - to showcase bilateral investment opportunities in transport and logistics services.
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