Smart Highway Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Smart Highway Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Smart Highway Market is expected to grow by registering a CAGR of 20.71% over the forecast period (2022–2027). The growing investment in smart cities, along with benefits associated with smart technologies, such as traffic safety improvement, and data-driven traffic control to reduce infrastructure damage, drives the growth of the smart highway market.

Key Highlights

• Owing to rapid urbanization, there is an increase in greenhouse gas (GHG) emissions contributing to an expanding carbon footprint and forcing the need for the adoption of clean and sustainable technology for intelligent transportation. For instance, according to the United States Environmental Protection Agency, Greenhouse gas (GHG) emissions from transportation account for about 27 percent of total U.S. greenhouse gas emissions.
• The smart transport management systems use digital sensors which can acquire and record data in a landslide, poor weather conditions, and traffic congestions and can display forecasts and alerts on LED screens across the states and national highways.
• The market is driven by many factors, such as reducing the number of accidents occurring on highways, providing safe and efficient transportation systems, and reducing the transportation time on highways connecting the major cities of a country. All of these can be done through the implementation of smart technologies, which efficiently monitor traffic and help in the proper functioning of highways while providing real-time information to the authorities.
• Several governments in developed economies, such as the United States, Germany, and the United Kingdom, have proactively focused on deploying various smart highway projects to overcome the challenges faced by their populace and renovate their infrastructure to stay ahead of the adoption curve. For instance, in March 2022, it was announced that the Salerno-Reggio Calabria highway, the approximately 400-kilometer roadway between Salerno and Reggio Calabria, will be developed to make it the first smart motorway in Europe.
• However, the cost of installing all the technologies and components that make up the intelligent highway network is quite high, which, in turn, might challenge the market growth.
• The outbreak of COVID-19 significantly impacted the construction process of highway projects, particularly after the initial outbreak, due to supply chain disruptions as a result of lockdown-induced transportation restrictions. Additionally, the consequent reduction in traffic also impacted the toll collection and other revenue streams from the highways. However, the pandemic also attracted attention to the benefits of smart technologies on highways, which is expected to support the growth of the studied market during the forecast period.

Key Market TrendsSmart Transportation Management System Offers Potential Opportunities

• The primary goal of the highways is to sustainably, safely, and cost-effectively facilitate the movement of people and goods. Countries around the world face some major challenges in the transportation system, such as climate change, congestion, major injuries and fatalities, unequal economic opportunity, and deteriorating facilities. According to the Inrix Global Transportation Scorecard report, the United States was among the leading countries in terms of time lost to traffic congestion. For instance, in 2021, drivers in Chicago (104 hours), New York (102 hours), and Philadelphia (90 hours) lost the most time to traffic congestion.
• The smart transportation management systems include advanced traffic management and congestion monitoring and management systems, with the integration of traffic control centers, access control, and route guidance systems that offer a range of benefits.
• The benefits offered by such technologies have already been acknowledged, considering that in countries where ITSs were implemented (Europe, USA, and Japan) and as reported by the European Commission, their application results in significant travel time reduction, reduction in accidents, and an increase in roadway capacity and safety.
• Considering the benefits, governments, and vendors across the globe are increasing their investment in smart technologies to make the highway infrastructure modern and safe. For instance, in July 2021, Hitachi Transport System, Ltd. launched SSCV-Safety, a new service providing support for secure transportation management. The launched product is a part of the company's SSCV (Smart & Safety Connected Vehicle) digital platform for transportation.

North America to Account for a Major Market Share

• North America is a global technological leader. Coupled with this strength, the increased spending on construction and road infrastructure will offer more opportunities for the region to expand. Also, the public construction spending on highway and street projects in the United States is very high. For instance, according to the U.S Census Bureau, in 2021, the value of federal construction spending on highway and street projects in the United States increased significantly to reach about USD 1.4 billion.
• The United States Department of Transportation implements various intelligent transportation systems to improve transportation safety and mobility and enhance American productivity by integrating advanced communication technologies into vehicles and infrastructure.
• Moreover, investments in connected highway technology in the region will also significantly contribute to the growth of the market in the future. For instance, the scope of the US 550—US 160 Connection South highway project, whose construction is expected to be complete in 2023, involves constructing a new, 1.1 mile, four-lane section of US 550 north of La Plata County Road 220 to connect the existing US 160 interchange with the major highway, and widening a 3.3-mile area of US 550 south of CR 220 to four lanes, tying into the CR 302 intersection.
• Furthermore, the increasing road accidents in North American countries, especially in the United States, is another major reason expected to drive investments into the smart highway concept. For instance, according to the National Highway Traffic Safety Administration, a division of the Department of Transportation, about 42,915 people died in motor vehicle traffic crashes in 2021, a 10.5% increase from the 38,824 fatalities in 2020.

Competitive Landscape

The Smart Highway Market is concentrated due to the high cost of installing all the technologies and components that make up the intelligent highway network, which, in turn, is hindering the smart highway market. Some of the key players in the market include Siemens AG, Xerox Corporation, Cisco Systems, Infineon Technologies, and IBM Corporation.

• October 2021 - T.net, a startup under EIT Digital's portfolio, unveiled Smart Road 4.0, an innovative system capable of significantly improving mobility and road safety in a smart road, an area in which connected vehicles send and receive information via a network of intelligent sensors.
• February 2021 - India inaugurated its INR 427-crore Smart Road project, where roads spanning 37 km fall under the Area-Based Development (ABD) area of the Thiruvananthapuram Corporation upgraded to smart roads by making all overhead utilities underground.
• January 2021 - Central Logic, an orchestration and healthcare access company, acquired Acuity Link, a transportation communications and logistics management software provider. Acuity Link's technology will power Central Logic's new intelligent transport capability.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.