Intelligent Traffic Management System Market

Intelligent Traffic Management System Market Outlook (2024 to 2034)

Constant developments taking place in traffic management technologies and the introduction of MaaS (Mobility as a Service) are leading to the rising demand for intelligent traffic management systems for effective and smart traffic management. The global intelligent traffic management system market is calculated to reach US$ 21.55 billion in 2024 and further rise at a CAGR of 6.7% to climb to US$ 41.22 billion by the end of 2034.

Increasing cases of accident-related deaths are stimulating governments in more countries for the imposition of stringent legislation for improved road safety. This is estimated to lead to the adoption of intelligent traffic management systems for the prevention of road accidents. Various cities are giving preference to smart practices, and smart mobility is one of the key components helping in achieving this goal.

Adoption of intelligent traffic management systems is anticipated to be one of the pivotal ways, which help smart cities in improving daily commutes for citizens and enhance sustainability with assistance in reduced fuel consumption. The rising vehicle population in various cities around the world due to the growing population is stimulating demand for intelligent traffic management systems for reducing congestion.

• East Asia is forecasted to hold 33.7% of the intelligent traffic management system market share by 2034.
• Demand for intelligent traffic management systems in Japan is estimated to increase at a CAGR of 7.6% from 2024 to 2034.
• Worldwide sales of integrated urban traffic control systems are evaluated to climb at 7% of CAGR and reach US$ 10.26 billion by the end of 2034.

Traffic management systems help in data collection from multiple sources, including CCTV cameras, sensors, etc. The same real-time data is further transmitted to control centers for effective operation of traffic signals, controlling variable message signs, and other elements, which are expected to have a direct impact on traffic and ensure smooth mobility.

Report Attributes	Details
Intelligent Traffic Management System Market Size (2024E)	US$ 21.55 Billion
Forecasted Market Value (2034F)	US$ 41.22 Billion
Global Market Growth Rate (2024 to 2034)	6.7% CAGR
North America Market Share (2034F)	26.4%
Market Share of Federal & Provincial Governments (2034F)	39.4%
South Korea Market Growth Rate (2024 to 2034)	9.9% CAGR
Key Companies Profiled	Beijing E-Hualu Information Technology Co. Ltd. Quarterhill Inc. Kyosan Electric Manufacturing Co. Ltd. Q-Free ASA Dahua Technology Co. Ltd. IBM Corporation Baumer Holding AG Siemens AG Iteris Inc. Econolite Control Products, Inc.

Which Factors are Positively Transforming the Market for Intelligent Traffic Management Systems?

“Advancements in AI and VR Complementing Market Expansion”

Constant advancements in virtual reality and artificial intelligence are estimated to assist in enhancing transportation networks around the world. These advanced technologies are anticipated to help drivers have a better traveling experience with updated information about traffic and other related data. Providers of intelligent traffic management systems are incorporating AI tools for offering more advanced solutions to attract new consumers.

• Lilin is a manufacturer of IP video-based systems in Taiwan. In March 2020, it unveiled the Aida ALPR series, which is a traffic management system based on AI. In addition to this, a range of various types of surveillance cameras and innovative equipment was also offered. Accurate object detection systems for vehicle speed detection, plate recognition, parking spot detection, pedestrian variations, etc., facilities are provided through this range.

“Constantly Increasing Number of Road Accidents”

The count of deaths caused due to accidents is estimated to reach alarming levels. Therefore, governments in multiple countries are imposing legislation and issuing fines for improved road safety. In addition, they are also adopting intelligent traffic management systems for preventing road accidents by imposing stringent regulations.

Which Key Challenges Do Market Players Face?

“Financial Crisis in Certain Countries Impeding Market Growth Prospects”

Ongoing financial crises in certain countries are estimated to adversely impact the intelligent traffic management system market growth. The deployment and implementation of these advanced traffic management systems need active investments from the respective government, which is estimated to act as one of the roadblocks to market expansion.

“Comparatively Slow Development of Infrastructure in Some Regions”

Traffic management systems need data speed for real-time data processing. Therefore, a well-established infrastructure is required for the implementation of new technology. The high costs of replacing current equipment lead to noteworthy capital expenditures. Certain governments have limitations in the financial aid required for smart road infrastructure as constant upgrades are required for the smooth functioning of the system.

Which Intelligent Traffic Management System Market Trend are Startups Focusing On?

“Rising Adoption of Telematics Services”

Telematics services play a vital role in enhancing driver safety, enabling cost reduction, improving driver behavior, and reducing fuel consumption. With an increased investment in these services, new market players are anticipated to enhance the safety and security of passengers.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, in its recently updated report, asserts that East Asia is forecasted to hold 33.7% share of the global market by 2034. The increasing population in some of the regional countries, China, etc., is estimated to result in traffic congestion due to the rising count of vehicles on the road. Therefore, intelligent traffic management systems are adopted to eradicate this issue.

What’s Contributing to Rising Adoption of Intelligent Traffic Management Devices in the United States?

“Revolutionary Innovations Taking Place in the ICT Sector”

Attribute	United States
Market Value (2024E)	US$ 3.8 Billion
Growth Rate (2024 to 2034)	7.6% CAGR
Projected Value (2034F)	US$ 7.89 Billion

The United States is approximated to account for 72.5% share of the North American market by 2034. In recent years, various revolutionary innovations have been taking place in the ICT sector in the country. An increased demand for intelligent traffic management systems is encountered in the country for tracking vehicular congestion to ensure improved effectiveness of transport systems with the assistance of real-time information on traffic infrastructure and conditions.

Growing adoption of data analytics and cloud computing to avoid collision and for smart parking solutions in the United States is anticipated to add to the expansion of the intelligent traffic management system market size.

What is the Demand Outlook for Intelligent Traffic Management Systems in China?

“Development of Smart Transportation Facilities Enhancing Market Prospects”

Attribute	China
Market Value (2024E)	US$ 3.93 Billion
Growth Rate (2024 to 2034)	7.3% CAGR
Projected Value (2034F)	US$ 7.96 Billion

China is evaluated to enjoy 57.3% share of the market in East Asia by the end of 2034. The adoption of smart transportation systems in the country is projected to generate lucrative opportunities for market players. Xi’an, an ancient-walled city in China deployed intelligent traffic management systems to assist in reducing journey time and improving traffic flow. The economic growth of this city led to the development of advanced traffic control systems to control daily movements.

Category-wise Insights

An increase in the demand for integrated urban traffic control systems is attributed to their assistance in minimizing the count of stopping and starting vehicles, controlling emissions, and improving traffic throughput.

Which Type of Intelligent Traffic Management System is Popular?

“Growing Use of Integrated Urban Traffic Control Systems for Well-informed Decision Making”

Attribute	Integrated Urban Traffic Control Systems
Segment Value (2024E)	US$ 5.21 Billion
Growth Rate (2024 to 2034)	7% CAGR
Projected Value (2034F)	US$ 10.26 Billion

Integrated urban traffic control systems are forecasted to account for 24.9% share of the global market by 2034. Intelligent algorithms use information related to current traffic conditions for supporting decisions and predicting traffic loads on network control measures and optimal traffic. This is estimated to help in improving traffic throughput, reducing the number of stopping and starting automobiles, minimizing delays and fuel consumption, and controlling vehicle emissions.

These systems are also known as computerized traffic signal control and are becoming a pivotal norm for large cities and towns. There are multiple benefits of using these computers in densely urban networks to harmonize traffic control.

What is the Contribution of Federal & Provincial Governments to This Market?

“Adoption of Novel Ways for Controlling Issues of Traffic Congestion”

Attribute	Federal & Provincial Governments
Segment Value (2024E)	US$ 8.34 Billion
Growth Rate (2024 to 2034)	6.9% CAGR
Projected Value (2034F)	US$ 16.24 Billion

Federal & provincial governments are anticipated to account for 39.4% of the global market share by the end of 2034. Various federal & provincial governments are looking for novel ways to reduce traffic congestion with the implementation of intelligent traffic management systems. In addition, these systems support multiple smart city applications, including ensuring a safer passage to emergency vehicles, which is further positively impacting market growth.

Competitive Landscape

Leading market players are taking advantage of the growing demand for intelligent traffic management systems in multiple applications. They are relying on partnerships, collaborations, and acquisitions, with large-, medium-, and small vendors. New product development, offering quality products, and management of supply chain systems are some other initiatives taken by market players to get a competitive edge.

For instance :

• Indra is one of the prominent global technology engineering organizations, which is catering to the requirements of the defense, mobility, and aerospace sectors. In October 2023, it planned to centralize the management of roads of Transurban in Queensland with the assistance of advanced traffic control systems, which are equipped with artificial intelligence.

Key players in the intelligent traffic management systems market include Beijing E-Hualu Information Technology Co. Ltd., Quarterhill Inc., Kyosan Electric Manufacturing Co. Ltd., Q-Free ASA, Dahua Technology Co. Ltd., IBM Corporation, Baumer Holding AG, Siemens AG, Iteris Inc., and Econolite Control Products, Inc.

Segmentation of Intelligent Traffic Management System Market Research

• By Product Type :

  • Integrated Urban Traffic Control Systems
  • Variable/Dynamic Message Signs
  • Emergency Response Systems
  • Border Control Systems
  • Electronic Toll Collection Systems
  • Parking Management Systems
  • Violation & Measurement Systems
  • Tunnel Management Systems
  • Freeway Management Systems

• By Spender Type :

  • Infrastructure Enterprises & PPSs
  • Federal & Provincial Governments
  • Industries & Commercial Enterprises

• By Component :

  • Traffic Controllers & Signals
  • Surveillance Cameras
  • Video Walls
  • Servers
  • 3D Simulators
  • GUI Workstations
  • Detectors & Sensors

• By Region :

  • North America
  • Europe
  • East Asia
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania