The smart highways market size is projected to reach US$ 125.78 billion by 2031 from US$ 34.41 billion in 2023. The market is expected to register a CAGR of 17.6% during 2023–2031. The increasing government initiatives for smart city development drive market growth. Increasing adoption of advanced technologies for smart city establishment across the globe is a driving trend in the market.
Increasing development of smart highways with the integration of advanced technologies, such as artificial intelligence, Internet of Things, and connected devices, in the transportation roadways drives the smart highways market growth. There are various governing bodies that plans to modify their routes, especially highways to support the intelligent transportation systems and road infrastructure across the globe. For instance, in Europe, Cooperative Intelligent Transport Systems built for smart roads that allows the road users and traffic managers to coordinate and share helpful information for about the road activities.
Rising adoption and project development of the “Smart city” in urban areas with integration of extensive sensors network to promote better connectivity drives the market growth. The smart cities around the world are undergoing significant changes to make the lives of citizens better, more efficient, and eco-friendly. Innovations such as smart city construction are anticipated to bolster the market for smart highways significantly in the years to come.
With projects from both the public and private sectors, New York City is currently undergoing digital transformation with cutting-edge technology offered by the Internet of Things and connected devices.
A sustainable highway enables societal development and economic growth and reduces negative impacts on the environment. According to the Federal Highway Administration (FHWA), sustainable highways are an integral part of sustainable development that should be assessed and considered for implementation throughout its lifecycle, from design through construction, operations, and maintenance. In addition to addressing environmental and natural resource needs, a sustainable highway caters to the demand for accessibility of transportation services and safe and comfortable walking, cycling, and transit routes. Highway authorities in the US are addressing sustainability through a wide range of initiatives, such as intelligent transportation systems (ITS), recycling, planning, environment linkages, and the National Environmental Policy Act (NEPA) requirements.
Increased government spending on construction and road infrastructure will offer more opportunities for North America's Smart Highway market. The public construction spending on the high way and street projects in the US reached US$ 95.5 billion in 2021, according to the US Department of Transportation. Also, as per the US Department of Transportation around US$ 350 million have been invested in the public and private funds for the smart city developments.
Various technologies, such as ad-hoc mesh Wi-Fi and Cellular Vehicle-to-Everything (C-V2X), keep the drivers informed of the changes in traffic lights and communicate with other vehicles to avoid collisions. Innovations in digital technologies are anticipated to provide lucrative growth opportunities for the smart highway market players during the forecast period. Governments across the globe are significantly investing in connected vehicle technologies to boost the smart highway market growth. For instance, The Colorado Department of Transportation plans to equip 2,500 government vehicles with C-V2X and Dedicated Short-Range Communications (DSRC) technologies in 10 years. In China, C-V2X is widely adopted by the government as a key enabler of connected vehicles as they provide broad coverage.
Key segments that contributed to the derivation of the Smart Highways market analysis are disc technology, components, and geography.
The geographic scope of the smart highways market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America.
North America is expected to have the largest share in 2023. This is primarily owing to increasing investments in the highway to pay for bridges, toll roads, and tunnels. There are over 300 facilities across the US that transform the region's road transportation and highway scenario. According to Toll Miner Data Visualization tools, there are more than 114 operators that run more than 321 tolled facilities in the US. This uses ETC, covering a whopping 6,235 center-line miles of roadway. Therefore, the large-scale adoption of automated tolling systems, which eliminates cash payments (and toll plazas) from the facilities, encourages the successful implementation of other components and technologies of smart highways in North America.
The regional trends and factors influencing the Smart Highways Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Smart Highways Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 34.41 Billion |
| Market Size by 2031 | US$ 125.78 Billion |
| Global CAGR (2023 - 2031) | 17.6% |
| Historical Data | 2021-2022 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Technology
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Smart Highways Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Smart Highways Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The smart highways market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Smart Highways Market are listed below:
The “Smart Highways Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
North America is expected to dominate the smart highways market in 2023.
Increasing demand for sustainable highways to reduce traffic congestion drives the market growth.
Increasing adoption of advanced technologies for smart city establishment across the globe is a driving trend in the market.
Conduent, Inc., Huawei Technologies Co., Ltd., IBI Group, Cisco, Kapsch TrafficCom AG, Nippon Koei Co., Ltd., Nokia, Siemens, TelegraToshiba Infrastructure Systems & Solutions Corporation are among the major companies operating in the Smart Highways market.
The smart highways market size is projected to reach US$ 125.78 billion by 2031 from US$ 34.41 billion in 2023.
The market is expected to register a CAGR of 17.6% during 2023–2031.