North America Traffic Management Market Growth, Size - 2030

The North America traffic management market size was valued at US$ 10.04 billion in 2022 and is expected to reach US$ 28.87 billion by 2030; it is estimated to record a CAGR of 13.1% from 2022 to 2030.

North America Traffic Management Market Analyst Perspective:

Traffic control is one of the most essential technical tools for regulating traffic flow, alleviating congestion, and even lowering pollutants. Advancements in information technology, computer technology, and system science have always accompanied its success and evolution. The self-adaptive control system can alter the signal timing settings in real-time based on the manager's control aim (for example, the intersection's minimum delay) and the arrival characteristics of the traffic flow. Compared to timed control and actuated control, the self-adaptive control system can better utilize the road network's overall traffic capacity and efficiently increase traffic efficiency.

Governments across North America are focusing on improving their transportation infrastructure; the self-adaptive traffic signal system can be a useful system to adapt in the near future. For example, Canada incorporated Transportation 2030, a strategic plan for the future of transportation in Canada. Through the plan, the government is focusing on safer, greener, and more innovative transportation. Furthermore, the US government is focusing on investment in transportation infrastructure. The US law includes US$ 39 billion in additional funding to upgrade transit, as well as a five-year extension of existing transit programs as part of surface transportation renewal. In total, the new investments and reauthorization in the Bipartisan Infrastructure Deal provide US$ 89.9 billion in guaranteed funding for public transit over the next five years. Thus, such government initiatives to modernize the transportation system are expected to positively influence the adoption of self-adaptive traffic signal systems to modernize traffic control and boost North America traffic management market growth.

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North America Traffic Management Market: Strategic Insights

Market Size Value in	US$ 10.04 billion in 2022
Market Size Value by	US$ 28.87 billion by 2030
Growth rate	CAGR of 13.1% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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North America Traffic Management Market Overview:

Information and communication technologies are becoming integral to traffic management with the rising number of connected vehicles. Modern-day traffic management involves hardware, software, and services. Hardware collects multivariate data, such as road conditions, pollution level, traffic movement, accidents, and recording traffic violations. It includes different types of cameras, sensors, and display boards. Software is required to access the data generated through hardware, collate, and derive meaningful insights. Different types of services are required for the smooth running of a traffic management system. It includes repair and maintenance of the hardware, operating the data collection centers, and software maintenance. The North America traffic management market report emphasizes the key factors driving the market. The ecosystem of the North America traffic management market involves a variety of stakeholders, including component providers, traffic management hardware manufacturers, traffic management software providers, traffic management service providers, and end users. The component providers supply components, such as lenses, memory modules, chips, and LEDs, to the hardware manufacturers. Hardware manufacturers, such as Axis, Hikvision, and Dahua, manufacture crucial hardware systems, including different types of cameras, sensors, and display boards required for traffic management. The software developers are responsible for developing software that enables the hardware systems to derive meaningful insights from the collected and analyzed data. Several hardware manufacturers collaborate with software developers to develop their software solutions. IBM and Siemens are among the leading software developers in this industry.

Service providers are uniquely positioned in the traffic management market ecosystem. They serve all the other stakeholders. SGS SA, for example, provides testing and inspection services for hardware manufacturers, while SNC-Lavalin provides varied services to the end user for smooth installation and functioning of the systems. End users are mostly government authorities and infrastructure development companies responsible for the proper functioning of roadways. Government authorities can include federal and state bodies.

North America Traffic Management Market Driver:

Increasing Urbanization Fuels North America Traffic Management Market Growth

As per the United Nations Conference on Trade and Development (UNCTAD), 56.2% of the global population resided in urban areas in 2020, compared to 51.6% in 2010. The percentage of urban dwellers was above 79% in the US. Such a growing urban population puts increased stress on the roadways. Several other factors are also directly linked with rising congestion in urban areas, which leads to an increased requirement for better traffic management systems. Firstly, the rising urban population increases the number of vehicles on the road, leading to congestion. To cite an example, according to the National Institute of Corrections, the population of the US in 2022 was 338,289,857, a 0.38% increase from 2021, while, according to the Bureau of Transportation Statistics, the total vehicle production in the US, including passenger cars and commercial vehicles, increased from 8.8 million units in 2020 to 9.1 million units in 2021. The total domestic sales in the US, including passenger cars and commercial vehicles, increased from 11.5 million units in 2020 to 11.8 million units in 2021. The positive impact of the factor mentioned above was considered while calculating the North America traffic management market forecast. Secondly, ride-hailing services from cab aggregators, such as Uber, Grab, and Lyft, have been increasing at a rapid pace. Such services have been substituting mass transit systems, leading to a surge in vehicles on the road. Thirdly, growing urbanization positively impacted the growth of e-commerce and on-demand platforms. Delivery vehicles, including two-wheelers, witnessed rapid demand due to the growth in online purchases. Such factors are expected to boost the North America traffic management market.

North America Traffic Management Market Segmental Analysis:

The North America traffic management market is segmented on the basis of component and application. Based on component, the market is segmented into hardware, software, and service. The hardware segment has been further segmented into cameras, display boards, and sensors, while the software segment has been further bifurcated into on-premise and cloud. Based on application, the market is segmented into automatic tolling, lane management, parking management, surveillance, traffic signal management, and others. By Country, the North America traffic management market is segmented into the US and Canada. The US traffic management market is further segmented into Arizona, Kentucky, Maryland, Michigan, New York, North Carolina, Ohio, South Carolina, Virginia, Wisconsin, and the Rest of US. The Canada traffic management market is segmented into Alberta, British Columbia, Ontario, Quebec, and the Rest of Canada.

By component, the market is segmented into hardware, software, and service. The hardware segment held the largest North America traffic management market share in 2022. Hardware is an important component of the traffic management market, as it is the primary tool through which data is collected. Hardware includes cameras, display boards, and sensors. Cameras aid in identifying a signal-violating vehicle, tracking a vehicle being searched for, and recording traffic movement. Display boards help inform drivers of various updates on the road ahead and display a variety of information. Sensors are used for different applications, such as monitoring road conditions and calculating the number of vehicles at a specific road stretch. Hardware can be termed the most important component of traffic management, as the other two components will be rendered inoperable without it. Different government agencies have been investing in upgrading their traffic management hardware, which is primarily driving the North America traffic management market for the segment.

North America Traffic Management Market Regional Analysis:

The US held the largest North America traffic management market share. The US Department of Transportation (DOT) has significantly invested in intelligent traffic management system (ITMS) research and development, implementation, and acceptance. Regional governments' strong emphasis on building transportation infrastructure is driving the adoption of traffic management systems. The revolution of the transportation network across the region is expected to be ushered in by advancements in communication technology and the rising need to combat vehicle congestion for increased efficacy of transport capacity through a real-time interchange. Furthermore, the increasing use of mobile and radio devices with short-range dedicated technology has surged the demand for ITMS solutions across the region.

The growing adoption of smart traffic systems for managing the centrally controlled traffic signals and sensors used to regulate and control the flow of traffic across the cities is strongly promoting market growth in North America. These systems permit the cities to decrease traffic congestion by efficiently handling traffic flows, responding to the emerging demand from travelers in real-time, and decreasing pollution across the city. As smart traffic systems eradicate stop-start driving, they are considered more efficient and less polluting. Thus, the growing adoption of ITMS is expected to boost the US's traffic management market during the forecast period.

North America Traffic Management Market Key Player Analysis:

Key North America traffic management market trends indicate that the major players are taking several measures to take advantage of the opportunities emerging through rising urban development. Axis Communications AB, Cisco Systems Inc, Cubic Corporation, Dahua Technology Co Ltd, Hangzhou Hikvision Digital Technology Co Ltd, IBM Corporation, SGS SA, Siemens AG, SNC-Lavalin Group Inc, and Teledyne FLIR LLC are among the prominent players analyzed in the North America traffic management market report. Several other important players were also evaluated during this North America traffic management market analysis to get a holistic view of the market and its ecosystem. The leading players focus on feature upgrades, expansion and diversification, collaboration, and acquisition strategies, which enable them to grab new business opportunities.

North America Traffic Management Market Recent Developments:

The players highly adopt inorganic and organic strategies. Following are a few major developments:

• In December 2023, the Michigan DOT installed 14 new digital signs along Interstate 94 (I-94) between Western Kalamazoo County and Eastern Berrien County. The new signs are expected to be a significant improvement over existing boards and will most likely promote safe driving during severe weather conditions.
• In July 2022, Dahua launched new upgrades powered by AI. The Dahua WizMind is a full portfolio of solutions composed of project-oriented products, including IPC, NVR, PTZ, XVR, and thermal cameras that adopt industry-leading deep learning algorithms. With a focus on customer's actual needs and requirements, WizMind provides precise, reliable, and comprehensive AI solutions for vertical markets.