Smart highways enable integrated management and operation of different modes of transportation and traffic needs through a variety of applications consisting of smart energy management, autonomous vehicles, smart signs, collision avoidance system, and traffic signal control supporting Internet of Transportation (IoT). This includes cloud computing support, electric vehicle charging and wireless routing is transforming transportation overall. Some key use cases of smart highway applications include variable speed limits, dynamic lane control, emergency vehicle management, automated truck platooning, and mobility as a service integrations.
The global smart highway market is estimated to be valued at US$ 52.5 Mn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Development of intelligent transportation system: Intelligent transportation system (ITS) involves the application of advanced technologies such as artificial intelligence, Internet of things and mobile technologies for better transportation management. Development of ITS is expected to drive the demand for smart highways as it enables various smart applications such as variable speed limit, dynamic lane control and more thereby improving overall transportation system efficiency. This is expected to boost the smart highway market growth over the forecast period.
Increase in demand for electric vehicle charging infrastructure: Rising adoption of electric vehicles is propelling the need for reliable and efficient electric vehicle charging infrastructure which smart highways offer through renewable energy-based electric vehicle charging stations setup along the highways. This is estimated to fuel the smart highway market expansion during the projection timeframe.
Segment Analysis
The global smart highway market can be segmented based on component, technology, and geography. By component, the market is dominated by the hardware sub-segment which includes sensors, cameras, monitoring systems, and displays. Hardware components account for around 60% of the total market revenue owing to their wide applications in traffic management, toll collection, and automatic number plate recognition systems.
PEST Analysis
Political: Government policies and initiatives towards building smart infrastructure and invest heavily in transportation networks are boosting the market growth. Economic: Rising GDP and disposable incomes are increasing vehicle ownership which is leading to traffic congestion issues. This is prompting governments to invest in smart technologies for effective traffic management. Social: Growing urbanization and population are placing increased pressure on existing road networks. This is creating demand for technologically advanced transportation solutions. Technological: Rapid digitalization and emergence of IoT, AI, and cloud computing are enabling the development of innovative smart highway solutions for real-time traffic monitoring, toll management, and automatic incident detection.
Key Takeaways
The Global Smart Highway Market Demand is expected to witness high growth at a CAGR of 5.9% during the forecast period of 2023 to 2030. The global smart highway market is estimated to be valued at US$ 52.5 Mn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030.
Regional analysis indicates that Asia Pacific region currently dominates the market due to rapid infrastructural development projects underway in major countries such as China and India. China accounts for over 30% of the total market revenues owing to large-scale smart highway rollouts, especially along the National Trunk Highway System.
Key players operating in the smart highway market are General Electric Company, Siemens AG, Andritz AG, Voith GmbH & Co. KGaA, China Yangtze Power Co. Ltd, PJSC RusHydro, Électricité de France SA (EDF), and Iberdrola SA. GE and Siemens are the leaders in traffic management solutions while Andritz and Voith dominate hydroelectric turbines supply. China Yangtze Power, RusHydro and EDF are key players in renewable energy generation from hydropower. Iberdrola focuses on smart grid and micro-grid development.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.