The global traffic management market was valued at $5.7 Billion in 2016 and is forecast to grow at a robust CAGR of 28.1% between 2017 and 2024, culminating to global revenue of $40.1 Billion by 2024.
Industry at a Glance
The rapid increase in population worldwide has significantly resulted in snowballing number of vehicles on the road thus increasing the traffic density and thereby the incidences of a road accident. With industrialization speeding up, countries are increasingly demanding a sound traffic management system. This is expected to bolster the global traffic management market growth significantly over the forecast period.
Traffic management system offers real-time data along with the ability to analyze and react instantly. Government initiatives to transform traffic infrastructure in most of the developing countries across the globe is a major factor driving market growth. Growing public concern for safety paired with increasing urbanization are among other prominent market drivers.
The mounting urbanization has been increasing the traffic density levels resulting in hard commuting for the common masses. While developed countries have been quickly transforming their traffic infrastructure, the developing countries are slowly integrating modifications in their traffic management systems.
“Optimal Price Point (OPP) for Traffic Management”
Estimated average traffic management cost – $ xx globally. However, with improving access and availability of options, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
With a large pool of well-established players offering advanced products, customers certainly have a buying power. This has instigated companies to offer products at a relatively low price in order to sustain in this high competition market.
By software, the market has been segmented into traffic analytics, route guidance, and smart surveillance. The route guidance and traffic analytics software segments collectively accounted for more than 60% of the overall market share in 2016. These segments are also anticipated to witness considerable growth over the next few years owing to rising traffic congestion across cities resulting in elevating need to effectively manage and control the traffic.
Based on hardware, the market is categorized into sensors, display boards, and cameras. Among these, display boards captured a sizeable portion of the overall traffic management market in 2016. Extensive usage of display boards to provide relief to drivers by providing guidance regarding the best route available is a major factor driving segment growth over the forecast period.
Based on the system, the market is classified into UTMC (Urban Traffic Management & Control), JTMS (Journey Time Management System), and ATCS (Area Traffic Control Management System). UTMC system segment is anticipated to flourish over the coming years on account of growing traffic congestion resulting in increased demand for this solution.
Based on region, the market is classified into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. Europe accounted for the majority market share in 2016 and is anticipated to witness significant growth over the forecast period. This is accredited to the large-scale investments in the smart transportation along with the need for better traffic management and control mechanisms in the region.
Asia Pacific emerged as the fastest growing regional market closely followed by the Middle East. The growth in Asia Pacific is attributed to the high adoption of traffic management systems to minimize congestions and provide better traffic management and control.
Growth Drivers & Restraints
Prominent growth drivers residing in the global traffic management market include escalating demand for a real-time information system, favorable government initiatives, and hyper-urbanization in developing countries. The industry is also characterized by a lack of standardization and high-security risks that are expected to hinder market growth over the forecast period.
Merger & Acquisition Outlook
The industry is characterized by intense competition with leading industry participants adopting mergers and acquisitions as a key growth strategy. With snowballing number of new entrants in the market, companies emphasize on acquiring these players in an attempt to prevail in this highly competitive environment.
Top Players & Company Share
Leading industry players include Accenture PLC, Atkins Group, Cellint, Cisco Systems Inc., Cubic Corporation, EFKON AG, FLIR Systems Inc., IBM Corporation, IntelliVision Technologies, Iteris Inc., Jenoptik AG, Kapsch TrafficCom AG, LG CNS Co. Ltd., Metro Infrasys Pvt. Ltd., and Siemens AG.
Traffic Management Market, by Software (Revenue, USD Billion)
- Traffic Analytics
- Route Guidance
- Smart Surveillance
Traffic Management Market, by Hardware (Revenue, USD Billion)
- Display Boards
Traffic Management Market, by System (Revenue, USD Billion)
Traffic Management Market, by Region (Revenue, USD Billion)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- Saudi Arabia