The Smart Highway Market is estimated to be valued at US$ 58.43 Bn in 2024 and with CAGR of 14.6% over the forecast period 2024-2031. Governments across regions are investing heavily in improving road infrastructure, which is driving the adoption of smart highway technologies. Furthermore, the growing need to efficiently manage increasing traffic volumes is also fueling demand.
Market Dynamics:
Growing road infrastructure spending by governments worldwide is a key driver boosting the adoption of smart highway technologies. Smart highways enable better monitoring and management of traffic flows, which helps reduce congestion and fuel consumption. Additionally, rising focus on improving traffic safety is also driving the smart highway market growth. Governments are actively working with technology providers to deploy connected vehicle technologies, intelligent transport systems, and smart traffic control systems along major highways. These initiatives aim to provide drivers with real-time traffic updates, automatically detect accidents, and help emergency response teams reach the site faster. However, high initial investment requirements for upgrading existing highways and integrating advanced IT systems poses a challenge to widespread adoption. Nevertheless, decreasing technology costs and increasing government allocations for smart city projects are expected to support the smart highway market growth over the forecast period.
Market Drivers: Increasing Demand for Intelligent Transportation Systems
Governments across the world are investing heavily in developing intelligent transportation systems to reduce traffic congestion and improve road safety. Smart highways are a key component of intelligent transportation as they integrate various technologies to collect real-time traffic and road conditions. This allows traffic managers to monitor traffic flow and respond quickly to any disruptions. It also provides commuters with live updates on traffic and alternate routes, enabling efficient traffic management. The growing demand for intelligent transportation is a major driver for the smart highway market.
Market Driver: Rising Focus on Connected and Autonomous Vehicles
Vehicle manufacturers and technology companies are investing billions in research and development of connected and autonomous vehicle technologies. Smart highways play a crucial role in the development of connected and autonomous vehicles as they require reliable real-time data collection and communication infrastructure for safe operations. Smart highways equipped with sensors, cameras and wireless connectivity allow connected vehicles to share data on road and traffic conditions. It also helps autonomous vehicles obtain critical road mapping and localization data. The increasing focus on connected and autonomous vehicles is expected to significantly drive demand for smarter highway infrastructure.
Market Restraints: High Investment Costs
The installation of extensive sensor networks, communication platforms, and traffic management systems requires massive capital expenditure. Smart highway projects involve high costs for procurement of advanced technologies, civil works, and long-term maintenance. Retrofitting existing highways also increases project costs substantially. The high upfront costs act as a major restraint for widespread adoption, especially for transportation departments in developing countries with limited budgets.
Market Restraints: Interoperability Challenges
Ensuring seamless interoperability between different smart devices, systems, platforms, and protocols poses significant technical challenges. Achieving a high level of standardization is difficult due to the involvement of multiple vendors supplying technologies. Issues pertaining to data integration, management, and cybersecurity further increase integration complexities. These interoperability challenges have restrained faster and larger scale rollout of smart highway infrastructure globally.
Market Opportunities: Scope for Public-Private Partnerships
Governments are increasingly exploring public-private partnership models to fund smart highway projects. This provides opportunities for private players to participate in different stages from design to operation. Areas like highway tolling, traffic management services, and infrastructure maintenance offer revenue streams. Established technology giants can leverage their expertise to initiate large smart corridor projects through such partnerships.
Market Opportunities: Growing Adoption of Cloud and IoT Technologies
The integration of cloud computing and Internet of Things (IoT) technologies provides new opportunities in the smart highway domain. Cloud-based platforms help store and analyze massive traffic data generated through IoT devices. It enables offering of advanced data-driven services to drivers, transport bodies, and city planners. IoT also supports the deployment of innovative solutions like connected vehicles, smart tolling, and dynamic traffic management. The rising Cloud and IoT adoption paves way for the development of next-gen smart mobility solutions.
*Link: https://www.coherentmarketinsights.com/market-insight/smart-highway-market-5340
Key Developments:
- In December 2021, the Department of Highways (DOH) in Thailand joined forces with BGSR Joint Venture, which includes well-known Thai companies, BTS, Gulf, STEC, and Ratch. Together, they formed a Public-Private Partnership (PPP) to upgrade Thailand's M6 and M81 highways using ETC solutions. Their goal is to make these highways smarter and easier to use. The BGSR Joint Venture plans to invest USA$3.09 billion to install an efficient ETC system called FETC in Thailand as part of these projects.
- In August 2020, Huawei introduced Open-Road Tolling (ORT) technology to simplify toll collection on expressways at provincial borders. This new method has significantly reduced traffic jams, lowered transportation costs, and made road travel more convenient. ORT is a big step forward in transportation, advancing smart highways, and digital transformation. Huawei employs AI, big data, cloud computing, and the Internet of Things (IoT) to ensure effective toll management and control, reducing toll evasion and losses.
Key Players:
Schneider Electric SE, Siemens AG, SAP SE, Indra Sistemas S.A., Panasonic Corporation, Honeywell International Inc., Masstrans Technologiies Pvt. Ltd., Kapsch AG, Infineon Technologies AG, ALE International, ALE USA Inc, Kapsch TrafficCom AG, Huawei Technologies Co., Ltd., Cisco Systems Inc., IBM Corporation, General Electric Company, and ABB Ltd.
