Global LED Traffic Signs and Signals Market 2024-2031

Global LED Traffic Signs and Signals Market 2024-2031

Global LED Traffic Signs and Signals Market Size, Share & Trends Analysis Report by Product (Electric Powered and Solar Powered), and by Application (Railway, Airport and Urban Traffic), Forecast Period (2024-2031)

The global LED traffic signs and signals market is anticipated to grow at a CAGR of 4.2% during the forecast period (2024-2031) owing to increasing government investments in the development of road infrastructure, adoption of artificial intelligence (AI) in traffic signs enables centralized management, and energy efficient compared to incandescent bulbs. Energy efficiency is one of the major factors driving the adoption of LED technology in the traffic signs and signals industry. LED lighting has several advantages over traditional lighting systems in terms of efficiency and energy use. LED lights are far more energy-efficient than traditional incandescent bulbs. Significant energy savings can be achieved by using LED traffic signs and signals in comparison to incandescent traffic lights. LED traffic signals need 80–90% less energy and have a longer lifespan of five to ten times. Additionally, LED traffic signs are bright in color and require low maintenance, which further boosts the market growth.

Segmental Outlook

The global LED traffic signs and signals market is segmented by the product, and application. Based on the product, the market is sub-segmented into electric powered and solar powered. Based on the application, the market is sub-segmented into railway, airport and urban traffic. Among the product, the electric powered sub-segment is anticipated to hold a considerable share of the market owing to the increasing demand for electric-powered LED traffic signs and signals is attributed to their superiority in urban areas with reliable grid access, and ensuring consistent power. In September 2021, Traffic Group Signals introduced the Metro Haul Route Crossing System, a wireless, temporary traffic signal range for hire in the UK. At 11 feet, 2 inches high, it complies with haul route permit conditions, addressing safety concerns on high-speed roads. The system, featuring a high visibility base unit and reflective signal pole, offers a secure crossing solution for construction haul routes, considering the diverse traffic on these challenging sites.

The Urban Traffic Sub-Segment is Anticipated to Hold a Considerable Share of the Global LED Traffic Signs and Signals Market

Among the application, the urban traffic sub-segment is expected to hold a considerable share of the LED Traffic Signs and Signals market owing to owing to increasing government investments in the development of road infrastructure, energy traffic lights, and adoption of artificial intelligence (AI) in traffic signs enables centralized management. According to the United Nations Statistics Division (UNSD), more than half of the world's population lives in cities, and it's expected that by 2050, around 7 out of 10 people will be in urban areas. Cities serve as the powerhouse of the economy across the globe, representing approximately 80.0% of the global GDP.Government investments play a major role in the LED traffic signs and signals market with the investment in developing infrastructure and promoting safer driving practices. Nation such as US is home to several mega projects and has been continuously developing its infrastructure. Texas Department of Transportation (TxDOT) responsible for the construction and maintenance of the state's immense state highway system has been investing in various highway projects. For instance, in December 2022 work begin on Southeast Connector project with aim of of rebuilding and widen approximately 16 miles of I-20 and I-820. According to TxDOT, the project will cost $1.6 billion. Southeast Connector has been approved by the Texas Transportation Commission to be a part of the state-wide Texas Clear Lanes initiative, a program to address the most congested chokepoints in the state. The Southeast Connector project is estimated to finish in 2028. This development will bring the opportunity for the LED Traffic Signs and Signals market as the route is far bigger and requires many LED signal light installations.

Regional Outlook

The global LED Traffic Signs and Signals market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, North America is anticipated to hold a prominent share of the market across the globe, owing technological improvements in traffic management, rapid urbanization, and growing airport infrastructure investment is boosting demand for LED traffic signs. Airports are critical to US economic success which produce an annual economic output of $1.7 trillion. Airports Council International - North America (ACI-NA) projects that $151 billion will be required for airport infrastructure overall between 2023 and 2027.

The Asia-Pacific Region is Expected to Grow at a Significant CAGR in the Global LED Traffic Signs and Signals Market

Among all regions, the Asia-Pacific regions is anticipated to grow at a considerable CAGR over the forecast period due to the growing focus of nation such as China, India and Japan in strengthening its transport infrastructure in road, rail, and aviation. Additionally, regional governments increasing investing in improving road safety, and traffic management system boosting the market growth. As per the data from Global Infrastructure Outlook, total infrastructure investment in road transport in China is expected to grow from $356.0 billion in 2023 to $518.0 billion in 2040, while railway infrastructure development is expected to grow $192.0 billion in 2023 to $277.0 billion in 2040 which will boost the LED traffic signs and signals market growth in the region due to higher installation.

Government plays a crucial role in promoting the adoption of LED traffic signs and signals in railways to increase the acceptance and implementation of these advanced signaling systems. In October 2022, Indian Railways entities and departments introduced the provision of LED signals to enhance visibility and reliability for loco pilots. To improve signal visibility, LED signals have been installed at 315 stations of the Southeastern Railway (SER). To enhance reliability, Integrated Power Supply (IPS) will be implemented at all stations, Interlocked Barrier Huts (IBH), Level Crossing (L.C.) gates, and Auto-signalling locations. To prevent situations with no light, IPS has been provided at 292 stations. The work for the provision of IPS will be carried out concurrently with EI commissioning.

Market Players Outlook

The major companies serving the LED Traffic Signs and Signals market include Siemens AG, SWARCO AG, Traffic Technologies Pty Ltd, Availed Technologies Inc., Data Signs Pty Ltd, Carmanah Technologies Corp., Digi International Inc., Signal Technologies, Simmonsigns Ltd. and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, In October 2023, Kimley-Horn Launches Advanced Traffic Signal Priority and Preemption Software. The cloud-based traffic signal software Traction PriorityTM from Kimley-Horn reacts to real-time GPS data from existing equipment on buses, trucks, emergency vehicles, and more.

The Report Covers

Market value data analysis of 2023 and forecast to 2031.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global LED traffic signs and signals market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.