The Global Traffic Management System Market was valued at USD 24.20 Billion in 2022 and is projected to reach USD 63.29 Billion by 2030, registering a CAGR of 12.77% for the forecast period 2023-2030.
The foundation of traffic monitoring is an active surveillance system that proactively follows potentially dangerous drivers, continuously monitor and enforces traffic laws, reconstruct offline traffic accident scenarios and prevent traffic collision. Both GPS coordinates and data can be collected by this method, they track traffic using various instruments, methods and approaches. Due to the significant rise is car ownership globally and growing awareness of the economic and social cost that traffic congestion cause in developing countries it is projected that demand for effective alternative to current methods of traffic management will rise at promising rate in coming years. The development of complex systems with more sophisticated capacity and increase efficiency will result from the integration of IT technology like IoT, AI, and machine learning into traffic management system, which will significantly furling the growth of traffic management market. The market is expanding due to large part to growing interest in creating intelligent technology solution for smart traffic management. Additionally, rise in smart city initiative and quick adoption of intelligent and smart transportation system.
- 2022: USD 24.20 Billion
- 2030: USD 63.29 Billion
- CAGR (2023-2030): 12.77%
Traffic Management System Market Dynamics
Drivers : Growing demand for real time traffic information to drivers and passengers fueling the market expansion
Road congestion is directly caused by an increase in road density brought on by the population increases, therefore in order for driver and passengers to know which road is fully occupied, real-time information is required, drawing an overall picture of network will also be made easier with the use of real time data. The growing urban population and rapid industrialization have increased the number of vehicles on the road, causing significant traffic congestion, the high CO2 emission and safety concern of urban planners are therefore expected to have a significant influence on the growth of the traffic management market. Using network of technologies real time traffic management system control traffic behavior in real time, these technologies include Bluetooth/WIFI, sensors, smart camera, and GPS. These technology advancement aid in the alleviation of the traffic problems and congestion. Alternate routes can be suggested using real time data. Additionally, decision makers in traffic control find real time data to be very helpful. Therefore, real-time information is necessary for passengers and drivers to know which road is completely congested. A comprehensive picture of the entire network can be created with the aid of real-time data. Thus, this factor is driving the market. Furthermore, 5G technology enhance connection among vehicles, people and traffic control authorities in traffic management sector. In addition, lower latency means that message arrive quickly, allowing traffic control authorities to deliver critical data insights right away, due to real time communication powered by 5G, traffic management authorities can improve overall traffic operations and assist with real time traffic congestion. These details can be used by traffic managers to choose better routes. Thus, it is anticipated that this aspect will accelerate traffic management market revenue globally.
For instance, in July 2022, Volvo Cars stated that, Real Time Traffic Information (RTTI) helps you to keep a check on the traffic situation so that you can better plan your route. You get important information in real time on traffic jams, road closures and other situations that may affect your travel time.
Increasing conscience about improving road safety and reducing congestion:
There will be more and more traffic congestion and different part of the world become to contain more urbanized. The migration from rural to urban areas has been encourage by rising urbanization, particularly in developing economy like India, as such a suburban population density is increasing, but infrastructural development is not keeping up with rate of urbanization. Urban mobility is expected to face considerable challenge in the 21st century because to the unrelenting increase in population, the massive growth of cities, unplanned agglomeration, and ensuring surge in car ownership. Transportation expenses would rise, traffic congestion and jams would be worsened and people everyday lives would be impacted by aging infrastructure, rising traffic congestion and the burden would place the available mobility solution and transportation infrastructure. Reducing traffic congestion and giving real time traffic data are two major benefits of an TMS. Improvement in microchips, beacon sensing technologies, information and communication technologies and radio frequency identification tool can often fortify technology capacities and propel traffic management system acceptance. In addition, several initiatives are being implemented to raise awareness about overall road safety and to implement advanced traffic management systems. It is anticipated that these initiatives will increase demand for V2V and V2I communication. Passenger and commercial vehicles must have Electronic Stability Control (ESC) systems and driver assistance systems in developed economies like Europe and North America. Such regulations are anticipated to increase demand for TMS solutions over the foreseeable future, overall this factor fueling the growth traffic management system market.
For instance, in April 2022, in partnership with the FIA Foundation, the Africa Transport Policy Program hosted a webinar to present concrete urban mobility, road safety, and traffic management guidance that will help city administrators, development practitioners, and their partners address the safety, accessibility, and mobility challenges faced by cities in Africa, this guidance complements recent SSATP publications on Road Safety Strategies for African cities.
May 2023, Indra is seeking to become the undisputed number one company in the air traffic management business and has taken a significant step to achieve its goal by launching Indra Air Traffic Inc., its new US subsidiary, at an introductory event held on May 1st in Overland Park, Kansas. This marks the launch of the activity of the new company integrated into its ATM business.
March 2022, One of Melbourne’s busiest roads will host a world-leading traffic management system using the latest technology to reduce traffic jams and improve road safety. The ‘Intelligent Corridor’ at Nicholson Street, Carlton will be launched by the University of Melbourne, Austrian technology firm Kapsch Traffic and the Victorian Department of Transport.
Restraint : Changing the Current Infrastructure to Implement Traffic Management System
Systems for traffic control and transportation are vital to any country socioeconomic growth. Road congestion is getting worse, which raises carbon emission and pollute the environment more than it should. But the expense associated with traffic congestion, such more gasoline used and longer travel time, can also pose serious problem for any country. On the other hand, modern cutting-edge real-time traffic control technology often requires reconfigure the existing infrastructure. It might necessary for transportation authority to improve current infrastructure in order to enable the best possible deployment and management of innovative technology. For example, to support the Connected Vehicle Pilot Deployment Program in New York City, the DOT deployed 310 signalized intersections for V2I technology, 353 Roadside Unit (RSU) units at Manhattan and Brooklyn Intersections FDR Drive, and other devices. Any large-scale implementation of advanced technologies, such as connected vehicles, is anticipated to necessitate an upgrade of the current infrastructure to ensure interoperability and efficient operations. Changing the current infrastructure can be expensive and time consuming and it may also impede traffic flow. There may be more delay and more traffic during the update procedure if traffic signals are turned off or detector aren’t working properly. Even if transportation agencies are aware of the possible advantage this may deter them from putting traffic management system into place. One further difficulty is that TMS system are frequently proprietary which mean that only one business develops and market them. Because of this integrating TMS system with current infrastructure and other transportation system may be challenging and costly, locating competent contractor to install and maintain TMS system may hinder the growth of traffic management system market.
Challenges : High cost related to the installation of equipment
Traffic management system is expensive to install, even though they eventually increase the traffic operator revenue. Setting up a traffic control system, which involve installing numerous hardware component, require significant upfront cost. These devices are expensive to buy and the environment has an impact on how accurate they are. The expenses associated with operation and maintenance also frequently raise the total cost. Skilled workers that fee for their knowledge perform the installation and upkeep. The total cost of all of the expenses adds up to be excessive, which is significant obstacle for the global traffic management market. The complicated hardware and software TMS system monitors and control traffic flow. They require a significant investment in thing like cameras, traffic signals, variable message sign and sensor. A large TMS for a metropolitan region can cost million of dollars. The high cost of installation can be barrier for local government and transportation agencies are considering implementing TMS.
Opportunities : Developing 5G to revolutionize the market for traffic management
5G technology open up new possibilities for the traffic management business by improving communication efficiency between car, people and traffic authority. Additionally low latency ensures that there is little time between transmission, enabling traffic control authorities to prompt reveal crucial data insights. Traffic management authorities can enhance overall traffic operation and alleviate traffic congestion in real time with the use of 5G powered real time communication. More data will be enabling traffic management authorities to make well informed in real time accelerating time to value. When data is synthesized and contextualized, it provides visibility, risk prediction analytics, forecasting and accessible reports for the traffic management ecosystem. Traffic operators can use this information to make better decisions about routes. Real time data and collection and transmission from cameras and traffic sensors is possible with 5G, after that this data can be utilized to track traffic pattern and spot possible issues. 5G can be utilized to enable vehicle to vehicle and vehicle to infrastructure connectivity which can enhance traffic efficiency and safety.
|Market Size in 2022
|USD 24.20 Billion
|Market Forecast in 2030
|USD 63.29 Billion
|Compound Annual Growth Rate (CAGR)
|Revenue (USD Million) and Volume (Kilo Tons)
|By Component, By Deployment Model, & By Region
|By Deployment Model
|2018 - 2022
|2023 - 2030
Segment Analysis of the Traffic Management System Market
The Traffic Management System Market is segmented by Component, Deployment Model and region.
The Solution segment held the largest market share in 2022:
By Component is sub segmented into solution, hardware, services, systems. The Solution segment accounted for highest market share in global traffic management system market for 2022. It is projected that the solution sector will continue to grow in size as provides of traffic management solution enable companies to ensure that every traffic control center is linked to other system including traffic light system and other detection device and can effectively integrate traffic control system. Route guidance and route optimization is the most popular solutions. With the help of route optimization, users can choose the most convenient and economical path for their trave. The system assesses a number of factors quantity and placement of necessary stops along the route. Number of turns or crossroads along the route, amount of traffic at the time of day, and best approach to a halt along route are other considerations.
On the other hand, the hardware segment has the significant market share over the forecast period, among other devices, traffic management multifunctional boards, analog cameras, vehicle detection cameras, and special sensors, all use different type of hardware. In order to increase on site data gathering and field data communication equipment, as well as to intelligent controlled control method of flash lamp duration to neighboring capture apparatus violating ruled by field data communication equipment.
By Deployment Model
The cloud segment was the leading segment in 2022:
By deployment Model, which is divided into on-premise, cloud. The cloud segment accounted for largest share 65% in global traffic management system market for 2022. The significant market share for the industry is explained by the expansion of cloud-based deployment opportunities, the enhanced flexibility and cloud-based deployment and the rising popularity of cloud-based traffic management system. Because cloud-based CMS system doesn’t need business to buy and maintain their own infrastructure and software, they are typically less expensive than on premises CMS system. Cloud provides handle all aspect of the system including, installation, configuration, and maintenance, cloud-based content management system are typically easier to use than their on-premises counterpart, cloud-based system are more scalable than on premises solution.
On the other hand, the on-premise segment is anticipated to expand over the forecast period, these systems are generally more secure than the cloud-based system, on-premises system can give organization complete control over their data and infrastructure.
North America occupied the largest market share in 2022
North America has the largest revenue market share 38% in 2022, the US department of transportation is making investment in creation, application, and uptake of traffic management system around the countries. Traffic management system adoption is being propelled by the region numerous government programs that place a high priority on enhancing the region transportation infrastructure. A revolution in the region transportation network is anticipated due to advancement in communication technology and the management vehicles congestion for enhanced transport capacity enhanced transport capacity effectiveness through real time interchange. The North American transportation industry has been able to incubate and implement TMS more effectively due to the widespread implementation of advanced technologies such as big data, machine learning, IoT, and cloud computing
On the other hand, Asia Pacific is anticipated for significant market share during forecast period, due to increasing investment in smart cities, digitization and swift economy growth and development the Asia Pacific expanding rapidly. Excessive economic expansion in developing countries like China, India has led to increase in number of smart transportation highway projects.
List of the prominent players in the Traffic Management System Market:
- EFKON AG
- Siemens AG
- Nuance Communications
- Hitachi Ltd
- Iteris, Inc.
- WS Atkins PLC
- Thales Group
- Telenav, Inc
- Garmin International Inc.
- Accenture PLC
- Atkins Group
- Affiliated Computer Services, Inc.
- Alstom SA
- Cisco Systems, Inc.
- Cubic Corporation
- GE Transportation
- LG CNS
- Schneider Electric
- TomTom NV
Segmentation Analysis of the Traffic Management System Market
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Traffic Management System Market:
The COVID 19 pandemic has resulted in notable decline in travel and population movement which has had a substantial effect on the automotive and component business as whole. One of the first action made by a number of governments to lessen the possibility of epidemic spending was to halt economy activity, which led to a decrease and subsequent reduction in consumer confidence. The use of these traffic system decreased as a result of restricted movement on the road. This has impeded progress for about a year, trade and travel are anticipated to pick up slightly as result of government rules being implemented which bodes well for traffic monitoring over period. The worldwide market is being impacted by implementation of lockdown and require social distancing practices aimed at stopping the corona virus. Lockdown is caused a decrease in overall outside traffic at this time, which hindered the market expansion. However, it is projected that in the future scenario the market demand for this management system was fostered by the progressive opening of lockdown as well as expanding desire for cutting edge and superior technology.