Researchers at Global Market Insights suggest that the global traffic management system market is projected to foresee tremendous business growth over the coming years due to the increasing adoption of advanced systems to manage traffic that are powered by innovative technologies such as video analytics and IoT. As a result, Global Market Insights Inc., estimates the traffic management system market would likely exceed a valuation of $25 billion by 2026.
Today, rapid population growth and urbanisation across developing economies has led to significant rise in traffic flow on roadways. This trend has augmented the need for efficient and effective traffic management systems that can optimise the traffic flow and ensure a road transport system that is safe.
Driven by the aforementioned increase in October 2019, the state cabinet of Maharashtra, India approved a new $119 million (Rs 891Cr) project to rollout an intelligent traffic management system to monitor and reduce the traffic woes of the state’s megacities.
The research finds that the following three trends are prominent in influencing traffic management system market growth for the near future:
Increasing demand for on-premise and cloud-based systems
With respect to the deployment model, the market was split into on-premise and cloud models, with both bringing with them their own sets of benefits. Among these, the on-premise deployment model segment is estimated to witness a tremendous growth rate as it offers benefits like greater security against data breaches as well as cyberattacks in comparison to the cloud-based models.
In fact, the greater security offered by this model makes it highly preferred among traffic authorities as it allows more secure storage and transfer of confidential data. However, the massive costs linked with managing and maintaining information on the on-premise deployment is expected to lead customers towards cloud-based solutions over a long-term period.
Growing adoption of adaptive traffic control systems
With regards to application, the adaptive traffic control segment is set to observe significant growth over the coming years due to the increasing prevalence of traffic congestions. These systems are specifically designed to operate according to real-time traffic conditions. The adaptive traffic control system focuses on solving traffic congestion by allowing real-time variation of the signal time. In fact, as per a study conducted by the FHWA (Federal Highway Administration), on average, adaptive traffic signals enhance the overall travel time by about 10%. The various benefits associated to these systems, including reducing traffic congestion, decreasing greenhouse gas emissions, and enhancing road safety would impel industry revenue growth over the coming years.
Rising product penetration across North America
The North American traffic management system industry is slated to witness a period of tremendous growth over the coming years owing to the relatively advanced technological infrastructure within the region. The regional growth is expected to be led by the U.S. as it has been an early adopter of advanced technologies in its infrastructure. In fact, between 2012 and 2016, an advanced traffic signal control system, Surtrac, developed by Rapid Flow Technology has been installed across 50 intersections in Pittsburgh, Pennsylvania.
The system proved to be extremely effective as it helped the city decrease traffic wait time at intersections by 41%, travel time by a significant 26%, and emissions by around 21%. Likewise, in January 2018, Telefonaktiebolaget LM Ericsson teamed up with the Dallas government to deploy enhanced traffic management systems across the county. This solution allowed the government to evaluate the real-time data from cameras and sensors to monitor traffic message signs and traffic lights.
Several companies in the industry are consistently launching new products with new features to gain a competitive edge and boost revenues. Taking March 2020 for instance, Lilin, a Taiwanese IP video-based system producer, reportedly launched its Aida traffic management system at the ISC West in Las Vegas.
