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Smart Highway Market

Smart Highway Market

Smart Highway Market - Global Industry Assessment & Forecast

Number Of Pages # Pages:


Base Year:



Aug - 2023



Report Code:


Segments Covered
  • By Technology By Technology Intelligent Transportation Management System, Intelligent Traffic Management System, Communication System, Monitoring System
  • By Displays By Displays Variable Message Sign, Digital Signage, Other Displays
  • By Service By Service Consultancy Service, Maintenance & Operation Service, Managed Service
  • By Deployment By Deployment On-Premise, On-Cloud
  • By Region By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Base YearBase Year: 2022
Forecast YearsForecast Years: 2023 - 2030
Historical YearsHistorical Years: 2017 - 2021
Revenue 2022Revenue 2022: USD 25.2 Billion
Revenue 2030Revenue 2030: USD 84.6 Billion
Revenue CAGRRevenue CAGR (2023 - 2030): 18.9%
Fastest Growing Region Fastest Growing Region (2023 - 2030) Asia Pacific
Largest Region Largest Region (2022): North America
Customization Offered
  • Cross-segment Market Size and Analysis for Mentioned Segments Cross-segment Market Size and Analysis for Mentioned Segments
  • Additional Company Profiles (Upto 5 With No Cost) Additional Company Profiles (Upto 5 With No Cost)
  • Additional Countries (Apart From Mentioned Countries) Additional Countries (Apart From Mentioned Countries)
  • Country/Region-specific Report Country/Region-specific Report
  • Go To Market Strategy Go To Market Strategy
  • Region Specific Market Dynamics Region Specific Market Dynamics
  • Region Level Market Share Region Level Market Share
  • Import Export Analysis Import Export Analysis
  • Production Analysis Production Analysis
  • Other Others Request Customization Speak To Analyst
Smart Highway Market Share

The global Smart Highway Market is valued at USD 25.2 Billion in 2022 and is projected to reach a value of USD 84.6 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 18.9% between 2023 and 2030.

Premium Insights

According to the World Health Organization (WHO), 1.35 million people die in car accidents yearly. Additionally, between 20 and 50 million people suffer non-fatal injuries, and many end up with disabilities. The number of casualties brought on by automobile accidents must urgently be reduced, and Smart Highways are one of the best solutions to this problem. Smart lighting, speed monitoring, and other features of Smart Highways have been created to reduce fatalities from auto accidents. People and commodities must be facilitated sustainably, safely, and economically. Major issues with the global transportation system include climate change, traffic congestion, serious injuries and fatalities, unequal economic opportunities, and decaying infrastructure.

Smart Highway Market Size, 2022 To 2030 (USD Billion)

AI (GPT) is here !!! Ask questions about Smart Highway Market

According to the Inrix Global Transportation Scorecard report, the United States was among the leading countries regarding time lost to traffic congestion. For instance, in 2022, drivers in Chicago (104 hours), New York (102 hours), and Philadelphia (90 hours) lost the most time to traffic congestion. The COVID-19 outbreak had a considerable negative influence on the development of highway projects, especially after the initial outbreak, due to supply chain problems brought on by transit limitations brought on by the lockdown. The resultant traffic drop affected toll collection and other highway revenue streams. The benefits of smart technology on highways, however, were also brought to light by the epidemic, and this is what is anticipated to help the studied market grow over the projection year.

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Key Highlights

  • North America generated more than 42.6% of revenue share in 2022.
  • Asia Pacific is expected to expand at the fastest CAGR from 2023 to 2030.
  • Based on Technology, Intelligent Traffic Management Systems led the market during 2022.
  • Based on Display, the Variable Message Signs segment recorded the most significant market share in 2022.
  • Based on Service, the Managed Service segment contributed a significant revenue share in 2022.
  • Based on Deployment, on cloud segment contributed more than 66.2% of revenue share in 2022.

Economic Insights

The Smart Highway market offers several economic insights that add to its importance and expansion potential. Adopting smart roadway technologies results in significant cost savings regarding higher fuel efficiency, better traffic management, and reduced congestion. Smart motorways can efficiently alleviate traffic jams by utilizing intelligent transportation technologies, such as real-time traffic monitoring and dynamic traffic rerouting, which results in less fuel consumption and cheaper transportation costs. The main cause of the rise in automobile sales is inadequate transportation infrastructure in many nations. Furthermore, the populace's disposable income is growing due to globalization and urbanization. The International Organization of Motor Vehicle Manufacturers predicted that 85 million automobiles would be sold worldwide in 2022. However, the number of vehicles will increase traffic, particularly in urban areas. Therefore, there is a rising need for Smart Highways and roads that track traffic congestion on each road and reroute traffic as necessary for quicker and more efficient travel.

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.

Top Market Trends

  • Sustainable and Green Solutions: The rising demand for sustainable and green solutions across various industries is a significant market trend. This trend is especially noticeable in the energy, transportation, and construction sectors. Governments and organizations emphasize incorporating environmentally friendly practices and technologies in constructing smart motorways. This includes integrating electric vehicle charging stations, using energy-efficient lighting systems, and using renewable energy to power smart infrastructure. The focus on sustainability complements international initiatives to cut carbon emissions and lessen the effects of climate change.
  • Increasing adoption of smart transportation systems: Smart transportation systems (ITS) are utilized to enhance safety, reduce congestion, and improve traffic flow. Their usage is on the rise. ITS collects data on traffic conditions using sensors, cameras, and other technologies, and then uses that data to modify traffic signals, lane closures, and other actions. The market for Smart Highways is expanding as ITS usage rises.
  • Artificial intelligence and data analytics: The abundance of data produced by Smart Highways poses both a challenge and an opportunity. According to market trends, data analytics and artificial intelligence (AI) are increasingly crucial for gaining insightful information and streamlining processes. Accurate traffic projections, incident detection, and real-time decision-making are made possible by processing enormous volumes of data gathered from sensors and other sources thanks to advanced analytics techniques. AI systems can dynamically change speed limits, optimize traffic signal timings, and detect possible dangers. Using data analytics and AI, intelligent highways can increase traffic efficiency, lessen congestion, and improve user experience.
  • Autonomous and Connected Vehicle: The market for Smart Highways is being significantly shaped by the growth of connected and autonomous cars (CAVs). To interact with one another and the road network, CAVs rely on smart infrastructure, enabling features like automated emergency braking and lane deviation warnings. To handle CAVs, Smart Highways are being renovated and constructed with dedicated lanes, communication systems, and infrastructure for seamless integration. Integrating CAVs with smart roads can increase traffic flow, decrease accidents, and improve road safety by removing human error and enabling effective vehicle-to-vehicle communication.

Market Segmentation

The global Smart Highway market can be categorized into the following: Technology, Display, Service, Deployments, and Region. Based on Technology, the market is segmented into Intelligent Transportation Management Systems, Intelligent Traffic Management Systems, Communication Systems, and Monitoring Systems. Furthermore, based on the segment Display, the market is segmented into Variable Message Signs, Digital Signage, and Other Displays. Additionally, based on Deployment, the market is split into On-Cloud and On-Premises. Moreover, based on Service, the market is further segregated into Managed Services, Maintenance & Operation Services, and Consultancy Services. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Technology

Intelligent Traffic Management Systems to Account for the Largest Market Share

Intelligent Traffic Management Systems (ITMS), which account for the largest market share, are expected to rule the technological world. These innovative solutions effectively control and optimize traffic flow, improve road safety, and reduce congestion. They combine powerful data analytics, artificial intelligence, and real-time monitoring. ITMS technologies are positioned to change transportation networks and nurture smarter, more sustainable cities for the future thanks to their capability to intelligently adapt to changing traffic patterns and provide useful information for urban planning.

Based on Display

Variable Message Signs will dominate the market during Forecast Period

Variable Message Signs (VMS) are anticipated to rule the market for display technologies during the forecast period. These adaptable signs allow for dynamic and personalized messaging, enabling the real-time distribution of pertinent information to drivers and pedestrians. The capacity of VMS to display vital information like traffic conditions, weather alerts, and PSAs makes them invaluable for improving traffic management and promoting road safety. They are a top choice for transportation authorities and urban planners because of their agility and flexibility, guaranteeing effective communication and contributing to more responsive, smoother urban settings.

Based on Service

Managed Service holds the largest share

The managed service category is anticipated to account for Smart Highways' most significant market share. Managed services describe outsourcing innovative highway system management and operation to a different service provider. These companies handle the ongoing monitoring, upkeep, and support of the intelligent highway infrastructure, ensuring it operates efficiently. Network management, problem detection and response, software upgrades, and performance optimization are routine duties included in managed services. Utilizing managed services allows businesses and governments to concentrate on their core competencies while using specialized knowledge to ensure the efficient running of their intelligent highway systems.

Based on Deployment

Cloud Deployment will accommodate the majority of the market

The market for Smart Highways was dominated by on-cloud deployment, which is proliferating. Cloud deployment hosts and administers Smart Highway apps and data using cloud-based infrastructure and services. Because it eliminates the need for on-site infrastructure maintenance and gives on-demand access to resources, it has benefits, including scalability, flexibility, and cost-effectiveness. Cloud deployment allows centralized management, real-time data processing, and a simple interface with other intelligent systems.

Based on Region

North America accounted for the most significant Revenue

North America contributes the most to market revenue. North America has built a favorable environment for developing and using cutting-edge technologies due to its highly developed technological infrastructure, strong economy, and significant investments in several industries. The extensive adoption of cutting-edge solutions across numerous industries, including IT, automotive, healthcare, and aerospace, which stimulates innovation and propels market expansion, is responsible for this region's revenue supremacy. Along with a solid consumer base, the region's emphasis on research and development further solidifies its position as the main revenue-generating market for the foreseeable future. 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.

Competitive Landscape

The Smart Highway market is fragmented and competitive, with numerous companies and players actively providing various technologies and solutions. The market was characterized by diverse offerings, including intelligent traffic management systems, variable message signs, tolling systems, smart lighting, and other innovative infrastructure components. Many technology giants, established transportation companies, and startups vied for market share by developing and deploying advanced Smart Highway solutions. This competition drove innovation and improved the quality and capabilities of these technologies, benefiting consumers and the transportation industry. For instance, in January 2021, Huawei created Smart Highways to communicate with self-driving automobiles. This improves traffic flow and safety. It is part of China's first national initiative for intelligent and connected cars, and it employs telecom equipment giant Huawei Technologies and partners. Such strategic moves are expected to provide lucrative growth in the market during the forecast period.

The key players in the global Stem Cell Therapy market include- Alcatel-Lucent Enterprise (France), Nokia Corp. (Finland), Cisco Systems Inc. (U.S.), IBM Corp. (U.S.), Indra Sistemas SA (Spain), Infineon Technologies AG (Germany), Huawei Technologies Co. Ltd. (China), Kapsch AG (Austria), LG CNS Co. Ltd. (South Korea), Schneider Electric SE (France), Siemens AG (Germany), Xerox Corp. (U.S.) among others.

Recent Market Developments

  • October 2021:, 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.

Segmentation of the Global Smart Highway Market

Parameter Details
Segments Covered

By Technology

  • Intelligent Transportation Management System
  • Intelligent Traffic Management System
  • Communication System
  • Monitoring System

By Displays

  • Variable Message Sign
  • Digital Signage
  • Other Displays

By Service

  • Consultancy Service
  • Maintenance & Operation Service
  • Managed Service

By Deployment

  • On-Premise
  • On-Cloud

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Regions & Countries Covered
  • North America - (U.S., Canada, Mexico)
  • Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
  • Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
  • Latin America - (Brazil, Argentina, Rest Of Latin America)
  • Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
Companies Covered
  • Alcatel-Lucent Enterprise (France)
  • Nokia Corp. (Finland)
  • Cisco Systems Inc. (U.S.)
  • IBM Corp. (U.S.)
  • Indra Sistemas SA (Spain)
  • Infineon Technologies AG (Germany)
  • Huawei Technologies Co. Ltd. (China)
  • Kapsch AG (Austria)
  • LG CNS Co. Ltd. (South Korea)
  • Schneider Electric SE (France)
  • Siemens AG (Germany)
  • Xerox Corp. (U.S.)
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis
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Frequently Asked Question
  • The global Smart Highway valued at USD 25.2 Billion in 2022 and is expected to reach USD 84.6 Billion in 2030 growing at a CAGR of 18.9%.

  • The prominent players in the market are Alcatel-Lucent Enterprise (France), Nokia Corp. (Finland), Cisco Systems Inc. (U.S.), IBM Corp. (U.S.), Indra Sistemas SA (Spain), Infineon Technologies AG (Germany), Huawei Technologies Co. Ltd. (China), Kapsch AG (Austria), LG CNS Co. Ltd. (South Korea), Schneider Electric SE (France), Siemens AG (Germany), Xerox Corp. (U.S.).

  • The market is project to grow at a CAGR of 18.9% between 2023 and 2030.

  • The driving factors of the Smart Highway include

    • Need For Better and Sustainable Highways

  • North America was the leading regional segment of the Smart Highway in 2022.