Road Safety Market - Growth, Trends, Impact Of Covid-19, and Forecasts (2023 - 2028)

Road Safety Market - Growth, Trends, Impact Of Covid-19, and Forecasts (2023 - 2028)

The road safety market is expected to witness a CAGR of 7.6% during the forecast period. The huge increase in accidents and fatalities worldwide drives the expansion of the road safety market.

• Growing urbanization and rising demographic trends, rapid motorization, rising road fatalities and accidents, and government attempts to promote road safety are significant factors driving the road safety market.
• Road safety has become critical for passengers, cars, drivers, and pedestrians. Road safety products include products and services that prevent and reduce the risk of accidents, control and curb errant vehicle movement, maintain traffic discipline, and assure commuter safety.
• The number of road fatalities increased, primarily due to drivers engaging in unsafe conduct such as exceeding speed limits, neglecting to wear seat belts, and alcoholic driving. Thus, traffic management and safety authorities worldwide launch programs to reduce such incidents by investing in new road safety systems, leading to a marked growth of the market.
• Governments take initiatives to achieve a significant improvement in road safety. For instance, according to the Ministry of Road Transport and Highways of India, steps are being taken to ensure that safety features are built-in at the design, manufacture, usage, operation, and maintenance stages of motorized and non-motorized vehicles following international standards and practices to minimize adverse safety and environmental effects of vehicle operation on road users (including pedestrians and bicyclists) and infrastructure.
• Moreover, the Ministry of Transportation of Kuwait undertook a project to reduce traffic accidents. Jenoptik approved the project and delivered and installed 60 TraffiTower 2.0, 40 non-invasive measuring systems, and 120 external flash units in collaboration with First Joint Group. The traffic cameras and measurement systems are accurate, dependable, and efficient. The First Joint Group also aims to use the current infrastructure and an enhanced traffic strategy to avoid traffic congestion and accident black spots.
• Companies invest extensively in developing new technologies that integrate artificial intelligence, cameras, and sensors to identify traffic difficulties. For instance, Transoft Solutions (ITS) Inc. provides solutions that assist urban planners in collecting, monitoring, and analyzing traffic data. An in-depth examination of the acquired data is beneficial in understanding road user behavior and traffic flow. This information assists city planners in making more educated and effective transportation infrastructure decisions.
• New South Wales collaborated with partners, stakeholders, and members of the NSW community in establishing the 2026 Road Safety Action Plan. Their consultations were well-attended and eventually aided in the developing several programs. The Engagement Summary for the 2026 Road Safety Action Plan gives a snapshot of the engagement activities and responses received throughout NSW during the consultation. These actions support the growth of the NSW region's road safety market.

• The global increase in accidents drives the growth of the road safety market. For instance, according to the WHO Global Status Report on Road Safety 2022, there were 1.3 million deaths in road traffic in 2021, and 20 to 50 million people were injured or impacted due to road incidents. More than 93% of road traffic accidents happen in low- and middle-income countries. Pedestrians, motorcyclists, and cyclists are among the most vulnerable road users.
• Several innovations in road safety products occurred in recent years. Red light and speed monitoring systems were traditionally put separately along roads and intersections to maintain traffic discipline and reduce accidents. Now companies focus on offering systems that combine speed and red light monitoring capabilities in a single unit.
• Jenoptik introduced TraffiStar systems, which use high-resolution cameras to provide combined red light and speed monitoring and capture traffic infractions over four lanes. Similarly, Vitronik offers the Poliscan Red+Speed system, explicitly built for intersections, to monitor the speed and red light violation of vehicles driving in different directions. With othe introduction of such systems, the market is likely to grow significantly over the forecast period.
• Road traffic incidents in Nigeria were generally rated as severe as of the fourth quarter of 2021. Around 2,200 such cases were reported till then in the year. Furthermore, the country's fatal and minor road traffic crashes totaled 888 and 320, respectively. According to the Federal Road Safety Corps (Nigeria), most incidents occurred in Kaduna State. These instances fueled the demand for road safety solutions. It also prompted governments to consider a revision of their regulatory policies.
• The US government is introducing rules and regulations to improve road safety to reduce traffic accidents, thus driving the road safety market. For instance, the National Safety Council, part of the US federal government, created the Road to the Zero project to eradicate highway fatalities by 2050.

• North America is expected to dominate the road safety market due to technological developments, the availability of developed infrastructure, and major road safety and security solution investments. According to the NHTSA, job growth and low gasoline prices are two elements actively contributing to the growing number of drivers in United States.
• According to the US Department of Transportation, 95% of all transportation deaths in United States occur on America's streets, roads, and highways, and the number is increasing. In 2020, an estimated 38,680 people perished in car accidents. An estimated 20,160 people died in the first half of 2021, an 18.4% increase over the first six months of 2020. This increase in death cases prompted the government to reconsider its regulatory policies, fueling the demand for the road safety market.
• Governments are investing in highway and road safety programs to reduce road incidents in that region. For instance, in February 2022, Federal guidance issued funds to pay for improvements such as bridge and roadway reinforcement, with federal subsidies for speed and red-light cameras only permitted in school zones. However, Biden's infrastructure package enables states to spend up to 10% of their USD 15.6 billion highway safety money over five years on "non-infrastructure activities," including automated traffic enforcement and public awareness campaigns.
• More than 150 communities in United States have automated speed safety systems (known as speed safety cameras). Such systems can reduce road violence and establish a more equal traffic policing framework. Many installations of automated speed safety cameras require maintenance and replacements, which drive market growth.
• According to the US Department of Transportation, traffic deaths in the following categories increased significantly in 2021 compared to 2020: Fatalities in multi-vehicle crashes by 16%, fatalities on urban roads by 14%, fatalities among drivers 65 and older by 14%, pedestrian fatalities by 13%, motorcyclist fatalities by 9%, and deaths in speeding-related crashes by 5%. This demonstrates that the region demands additional road safety measures, thus boosting market expansion.

The road safety market is highly fragmented, with numerous firms offering advanced road safety solutions. Along with inorganic growth initiatives, vendors prioritize increasing after-sales service offerings to ensure installed products' maintenance.

• June 2022 - Sensys Gatso Group, a global leader in traffic safety solutions, received a TRaaS contract extension to operate and maintain the Dutch fixed systems for speed and red-light enforcement as part of the EG100 contract. Contract renewal is worth SEK 10 million (USD 1 million) over a term of two years.

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