Smart Highway Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast 2021 - 2026
Smart Highway Market Overview
The global Smart Highway market is expected to reach $79.0 billion by 2026, growing at a CAGR 18.8% during the forecast period 2021-2026. Factors such as clean energy consumption, transport efficiency, wireless vehicle charging, improved safety, traffic management, convenient and hassle-free driving are geared up to drive the Smart Highway industry growth. An increase in the number of consumers buying private vehicles and rise in road accidents along with technological developments such as AI, IoT and others have paved the way for developing advanced smart highways thus, enlarging the smart highway market share. Further climate target plans are being set by countries across the world to curb the ever-increasing toxic emissions which in turn will propel the market growth for smart highways in the forecast period 2021-2026. In addition to this, a major switch to electric vehicles, vehicle to everything system and intelligent transport systems such as digitally automated and interconnected mobility have buckled down to drive the expansion of smart highways as it will significantly lower pollution and congestion on the roads. Hence these factors are analysed to drive the Smart Highway industry outlook in the forecast period 2021-2026.
Report Coverage
The report: “Smart Highway Market– Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Smart Highway Market.
By Components: Hardware, (Speed sensors, Acoustic Sensors, Traffic Monitoring Sensors, Cameras, Digital Signalling Displays, Solar panels, Others), Software (Artificial Intelligence, Big Data Analytics, Others), Services.
By Power type: Solar, Electric, Others.
By Deployment: On Premise, Cloud services.
By Technology: Intelligent Transportation Management system, Intelligent Traffic Management system, Communication system, Monitoring System.
By End User: Expressways & National Highways, State Highways, Urban Highways, and Rural Highways.
By Geography: North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Netherlands and Others), APAC (China, Japan India, South Korea, Australia, Others), South America (Brazil, Argentina, Others), ROW (Middle East and Africa).
Key Takeaways
- The European Commission has set ambitious goals and is geared up to be one of the major global Smart Highway market share holders in the coming years owing to the rising rate of transport sector’s emissions, planned targets, investments and others.
- According to World Health Organisations (WHO), roughly 1.3 million people die every year in road accidents. The United Nations General Assembly has set an achievable target of reducing the number of deaths by half until the year 2030. The establishment of intelligent transport systems and traffic management will help attain this goal.
- Increasing goals of adopting sustainable, efficient, and convenient technologies for better living are the factors that have attributed towards market growth of the Smart Highway industry.
- The companies for Smart highways are strengthening their status through various technological advancements, product launches, partnerships and constantly are investing in research and development (R&D) activities to come up with solutions to make provisions for the changing requirements of consumers.
Global Smart Highway Market Value Share, By Geography, 2020 (%)
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Smart Highway Market Segment Analysis - By Components
Cloud deployment in Smart Highway market is growing at a highest CAGR of 10.8% in the forecast period as it offers operational flexibility and real-time deployment to the companies compared to on-premises solutions. It also offers numerous benefits, including reduced operational costs, simple deployment process, and higher scalability in terms of connected resources. The cloud-based customer self-service software comprises applications with a set of multiple services that are compliant with the service-oriented architecture and provide robust transformation processes to meet business objectives. Additionally, the cost-effective cloud-based solutions ease installation when compared to the on-premises solutions. Further several companies have been integrating cloud based solutions to the smart highways. For instance, HIKOB Company provides wireless data acquisition systems to collect road weather data and to create a powerful road weather information system (RWIS) system. This data can be accessed either by connecting remotely to the gateway or via the HIKOB cloud-computing infrastructure.
Smart Highway Market Segment Analysis - By End Users
Smart Expressways & Smart National Highways in Smart Highway market is growing at the highest CAGR of around 19.2% in the global Smart Highway Market during 2021-2026. Increasing goals of adopting sustainable, efficient, and convenient technologies for better living are the factors that have been attributed to market growth. In addition, government initiatives or investments towards establishing smart and green infrastructures over time have brought about a shift towards smart highways. Beijing Capital Highway Development Company built the first smart expressway in China — Beijing-Chongli Expressway (Beijing section) with the assistance of Huawei. In this expressway, 5G-empowered, monitoring solutions are used to support autonomous driving with vehicle-road interaction. In 2019, a self-driving truck company named TuSimple and its partner Huawei, used innovative technologies such as Cellular Vehicle-to-Everything (C-V2X) and high-precision maps to perform autonomous driving and fleet formation scenario tests on multiple vehicles on the Beijing-Chongli Expressway. The main focus of its portfolio strategy is automation and digitalisation making optimum use of the possibilities of cloud computing, 5G and Artificial Intelligence. Encouraging the use of electric vehicles and improving wireless vehicle charging channels will further boost the market growth of smart highway market and enlarge its market size across all types of highways and roads in the long run.
Smart Highway Market Segment Analysis - By Geography
The Smart Highway market in North America is set to dominate the market with a share of 33% in 2020. An increase in the number of vehicles on the road and surge in road traffic injuries drive the growth of the Smart Highway market in North America. According to World Health Organization (WHO), 1.35 million people approximately die each year from road traffic crashes. In addition to this, about 20-50 million people suffer non-fatal injuries, with many suffering from disabilities. As smart highway is considered as one of the best solutions to reduce the number of road traffic injuries, the United Nations has made a 2030 Agenda for Sustainable Development with an ambitious target of halving the global number of road traffic injuries by 2030. In addition, government initiatives or investments towards establishing smart and green infrastructures are also analysed to drive the market growth. Further technological advancements along with investment in R&D activities for developing more advanced smart and effectual road products and services overtime is set to assist the market growth forward.
Smart Highway Market Drivers
Technological advancements such as AI, IoT and others is set to drive the Smart Highway Market
Various companies have been focusing on developing cost-efficient, reliable and innovative next-generation wireless smart highway solutions such as weather censoring systems, lights that is charged during daytime to glow in the dark, sensors to weigh vehicles and others in order to provide intelligent, faster and smooth solutions thus, impacting the market growth. Moreover incorporation of advanced technologies such as IoT, AI, cloud computing, machine learning, and other helps in providing accurate real-time data analytics. In 2021, IBM Corporation announced advances in Artificial Intelligence, hybrid cloud and quantum computing to assist its clientele in speeding their digital revolutions and building strategic ecosystems such as smart highway solutions. The integration of smart highways is owed majorly to technological developments such as IoT, AI, and Big Data among others. These software solutions improve traffic flow, enhances security by providing a highly responsive, service-centric environment which is based on intelligent information systems and is thus set to drive its market growth ahead.
Rise in fatal accidents is driving the market growth of the Smart Highway Market in the forecast period
Rise in fatal road accidents and injuries acts as a major driver boosting the market growth of smart highway markets. According to WHO, road accident deaths equal to around 1.3 million each year and these crashes leave about 20 – 30 million with non-fatal injuries worldwide. In addition to the agonizing pain caused by road traffic injuries, they also incur a heavy financial weight on victims and their families. This is so, because of high treatment costs and loss of productivity of those killed or disabled. Owing to the rise in accidents and traffic congestion, governments of several countries have been investing heavily for the development of smart highways. In 2021, the UK Department of Transport’s Highways England has awarded $178 million of worth contract to Conduent Transportation to install automated free flow charging solutions in east London which will further help to reduce congestion and make it easy moving. Hence these kinds of developments are analysed to drive the smart highway market growth in the forecast period 2021-2026.
Smart Highway Market Challenges
Exorbitant costs for Smart Highway Solutions hinders the market growth
Constructing smart roads and highways involves humongous amount of expenditure that leads to its unaffordability. For instance, China is investing approximately $551 million per year in Intelligent Transport System (ITS). Improvement of existing roads requires longer time periods which further increases the resource and cost of the project. Similarly, complexities in infrastructure development and lack of internet penetration in under developed countries further need heavy investments to improve supporting infrastructure for Smart Highways. Components such as speed sensors, weather detection sensors, energy efficient lights, solar panel charging and others are highly expensive. Hence, high investments in developing smart highways are a hindrance for the smart highway market growth in the forecast period 2021-2026.
Smart Highway Market Landscape
Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Smart Highway Market. In 2020, the market of Smart Highway Market industry outlook has been fragmented by several companies. Smart Highway Market top 10 companies include:
- Alcatel-Lucent
- Indra
- International Business Machine
- Kapsch AG
- LG CSN
- Schneider Electric
- Cisco Systems
- Siemens AG
- Xerox Corporation
- Conduent
Acquisitions/Technology Launches/Partnerships
- In April 2021, Spain based transportation technology company named Indra was chosen to lead the RDI mobility 2030 project which will focus on the progress of new technologies for installing connected and autonomous vehicles securely and efficiently and will also promote the usage of electric vehicle (EVs) by improving range and wireless charging.
- In November 2020, Siemens Mobility announced a partnership with ASFiNAG, who is the operating authority for the Austrian highway network, to offer intelligent traffic management systems that enables the exchange of safety information between all means of transportation and the road. The “Cooperative Intelligent Transport System” (C-ITS) is a next generation traffic management system that makes use of broadcast technology to scrutinise roadway conditions and gives out information to drivers that are related to traffic jams, accidents, and narrow roads.
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