Smart Highway Market Size, Trends and Growth Analysis by 2027

The smart highway sector is projected to expand significantly, with an anticipated increase from US$ 24.8 billion in 2021 to US$ 81.3 billion by 2028. This growth represents a compound annual growth rate (CAGR) of 18.4% over the period from 2021 to 2028.

The evolution of smart highways entails the incorporation of cutting-edge technologies, including the Internet of Things (IoT) and interconnected devices, into existing road transport frameworks. Numerous regulatory bodies are actively strategizing to enhance their current roadways, particularly highways, to accommodate the infrastructure necessary for intelligent transportation systems (ITS). For example, smart roads are pivotal components of the European Union's "Cooperative Intelligent Transport Systems" (C-ITS) initiative, designed to facilitate the exchange of valuable information between road users and traffic management authorities, thereby improving coordination. To bolster this initiative, the European Commission introduced a European Strategy for C-ITS in November 2016, aimed at expediting investments and updating regulatory frameworks across EU member states.

The rapid implementation of information and communication technologies is propelling the adoption of intelligent transportation systems within smart highways. This integration combines various technologies and services, including transport management systems, monitoring solutions, and automated tolling systems, to enhance mobility and roadway management. The ultimate goal is to create a transportation sector that is safer, more sustainable, and more efficient.

Key players in the smart highway market encompass a range of stakeholders, including component suppliers, systems manufacturers, software developers, system integrators, and end users such as ITS roadway operators, enforcement agencies, and transportation departments. As vehicle sales continue to rise globally, challenges like traffic congestion are becoming more pronounced, underscoring the necessity for smart highway solutions. Component suppliers play a crucial role by providing essential hardware, such as cameras, sensors, smart traffic signals, and intelligent streetlights, which are vital for establishing the physical infrastructure of smart highways. These hardware components are then integrated by smart highway system integrators to form a cohesive solution that facilitates efficient interaction among various elements and their supporting software. Notably, Siemens AG is a prominent system integrator involved in the comprehensive setup and installation of diverse smart highway solutions.

Moreover, law enforcement agencies leverage features of smart highway systems to detect and report violations of roadway regulations, including emissions standards, traffic infractions, and toll evasion. The primary customers for these smart highway systems include transportation departments and agencies that are implementing intelligent technologies to develop a robust smart highway infrastructure.

Impact of the COVID-19 Pandemic on the Smart Highway Market

The COVID-19 pandemic led to the implementation of lockdowns, travel restrictions, and the temporary closure of production facilities, which adversely impacted the performance of key players in the mobility and transportation sectors. Despite a decline in growth during 2020, the market began to recover in early 2021. Various industry stakeholders have been innovating and deploying solutions aimed at keeping motorists informed and safe, ultimately ensuring traveler safety amid changing driving behaviors. For instance, the CEO of Flow Labs, a provider of smart infrastructure software solutions based in California, noted that their cloud-based autonomous traffic signal timing solution utilizes artificial intelligence to lower costs for transportation agencies. This approach helps to address the challenges faced by the transportation industry as a result of the pandemic by employing smart and intelligent mobility solutions.

The overall size of the smart highway market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This phase also aimed to provide a comprehensive overview and forecast of the smart highway market across various segments. Additionally, the research included an analysis of the market based on five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the smart highway market.

Some of the notable companies operating within this market include Cisco Systems, Inc., Huawei Technologies Co., Ltd., Kapsch TrafficCom AG, Nokia Corporation, Siemens AG, Telegra, Conduent, Inc., Toshiba Corporation, Nippon Koei Co., Ltd., and IBI Group.