PUBLISHER: The Business Research Company | PRODUCT CODE: 1653403
PUBLISHER: The Business Research Company | PRODUCT CODE: 1653403
Smart highways are advanced road systems that incorporate sophisticated technologies and sensors to enhance management and promote sustainable traffic flow. These technologically integrated roads aim to address issues such as traffic fatalities and congestion, ultimately leading to more efficient fuel usage and reduced construction needs.
Key products within the realm of smart highways include intelligent transportation management systems, intelligent management systems, communication systems, monitoring systems, and other related solutions. Intelligent transportation management systems encompass a range of cutting-edge information and communication technologies deployed in traffic and transportation systems. These technologies are designed to improve driving experiences and enhance the safety, efficiency, and sustainability of transportation networks. The components of smart highways, including hardware, software, and services, can be deployed either over the cloud or on-premise.
The smart highway market research report is one of a series of new reports from The Business Research Company that provides smart highway market statistics, including smart highway industry, global smart highway market size, regional shares, competitors with a smart highway market share, detailed smart highway market segments, market trends and opportunities, and any further data you may need to thrive in the smart highway industry. This smart highway market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The smart highway market size has grown rapidly in recent years. It will grow from $42.91 billion in 2024 to $49.77 billion in 2025 at a compound annual growth rate (CAGR) of 16.0%. The growth in the historic period can be attributed to increasing urban population, the rise in traffic congestion, growing environmental concerns, safety improvements, government investments and initiatives for infrastructure development.
The smart highway market size is expected to see rapid growth in the next few years. It will grow to $88.04 billion in 2029 at a compound annual growth rate (CAGR) of 15.3%. The growth in the forecast period can be attributed to connected and autonomous vehicles (cavs), renewable energy integration, sustainability, emergency response integration, technological advancements. Major trends in the forecast period include connected vehicle technology, solar roadways, dynamic road markings, eco-friendly materials, electrification of roadways.
The growth of the smart highway market is being driven by the development of smart cities. These urban areas excel in critical areas such as economy, mobility, environment, people, lifestyle, and government, leading to sustainable economic growth and an enhanced quality of life. Governments worldwide are investing in the creation of smart cities to optimize economic development and improve the well-being of their citizens. Initiatives include the development of smart urban roads, upgraded water supply, and water disposal facilities. Notably, the U.S. federal government launched the Strengthening Mobility and Revolutionizing Transportation (SMART) grant program in April 2022, allocating $500 million to support smart city initiatives, fostering the development of sustainable and intelligent transportation solutions.
The growing adoption of electric vehicles (EVs) is anticipated to drive the growth of the smart highway market in the coming years. Electric vehicles are powered by electricity and utilize electric motors and batteries for propulsion. Smart highway systems are designed to meet the unique needs of EVs, offering features such as dynamic charging infrastructure, real-time traffic management, and vehicle-to-infrastructure (V2I) communication. For instance, in January 2024, Eurostat, a European Commission database organization, reported that in 2022, the number of battery-only electric passenger cars in EU countries nearly reached 3.0 million, reflecting a 55% increase compared to 2021 when there were 1.9 million. Thus, the rising adoption of electric vehicles is driving the expansion of the smart highway market.
Major companies in the smart highway market are increasingly focusing on cloud-based solutions to drive revenue growth. These cloud-based smart highway solutions utilize cloud computing to manage and optimize traffic, infrastructure, and services on highways, enhancing safety, efficiency, and sustainability. For example, in February 2024, Huawei, a technology corporation based in China, launched its Intelligent Transportation System 2.0 (ITS 2.0). This innovative solution employs software-defined cameras, radar-integrated cameras, edge computing, and big data to intelligently detect traffic incidents, optimize signal control, and analyze traffic situations, resulting in a 15% improvement in overall traffic efficiency.
Innovative solutions, such as intelligent transport management solutions (ITMS), are also a focus for major companies in the smart highway market. ITMS is a comprehensive system or software platform designed to enhance the management, operation, and efficiency of transportation networks, particularly in urban areas. For example, in September 2023, 3SC Solutions, an India-based company, introduced its iTMS platform-a high-performance solution for end-to-end transportation planning, settlement, and execution, utilizing advanced analytics to maximize financial efficiency and logistics excellence.
In May 2023, Helios Technologies, a US-based industrial valve manufacturing company, acquired i3 Product Development for an undisclosed amount. This acquisition is intended to help Helios Technologies expand its product portfolio, enhance its market presence, and leverage synergies to drive innovation and efficiency. I3 Product Development, also based in the US, specializes in product design and development.
Major companies operating in the smart highway market include Cisco System Inc., International Business Machines Corporation (IBM), Huawei Technologies Co. Ltd., LG Electronics Inc., Schneider Electric SE, Alcatel-Lucent Enterprise, Indra Sistemas SA, Infineon Technologies AG, HAAS Alert, Miovision, RoadBotics Inc., Tevva Motors, Urban DK, WiTricity Corporation, Upstream Security, Prisma Photonics, Siemens AG, Xerox Corporation, Kapsch AG, Intelligent Highway Solutions Inc., Vodafone Group PLC, Indra Philippines, Kapsch TrafficCom AG, Panasonic Corporation, Samsung Electronics Co. Ltd., Cubic Corporation, Swarco AG, Traffic Tech Gulf LLC, TransCore LP, Iteris Inc., Clearview Intelligence Ltd., Sensys Gatso Group AB, Vaisala Oyj
North America was the largest region in the smart highway market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart highway market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The countries covered in the smart highway market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
The smart highway market consists of the sale of sensors, monitoring systems and smart traffic lights. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Smart Highway Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on smart highway market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for smart highway ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The smart highway market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.