The global smart highway market is estimated to account for US$ 43.23 Mn in terms of value by the end of 2021. Smart highway technologies include wireless communication technologies, Internet of Things (IoT), artificial intelligence, and smart/connected cars. With the growing number of connected and autonomous vehicles, the future of this technology looks bright. Moreover, a smart highway will increase the ability of automated vehicles to identify and avoid accidents. It can also enhance safety features with real-time feedback.
Global Smart Highway Market: Drivers
Increasing requirement for business travel, growing popularity of smart vehicles, and expanding policy measures are the factors expected to boost growth of the global smart highway market over the forecast period. The number of business travels is increasing around the world, and adoption of smart vehicles is also growing in several regions. To offer ease of transportation and prevent traffic congestion on the roads, several countries are adopting smart highway technologies, this is in turn is supporting growth of the global smart highway market.
Global Smart Highway Market: Opportunities
Increasing number of vehicles in developing countries is expected create growth opportunities in the global smart highway market over the forecast period. The number vehicle sales increases each year globally. Due to the unsatisfactory transportation infrastructure, the vehicle sales are increasing in several countries. Moreover, due to rise in urbanization, globalization and increasing disposable incomes, the vehicles sales is increasing, and this factor is expected to bring growth opportunities for market players in the global smart highway market. For instance, the number of vehicles sold in 2018 globally was 95 million, as per the International Organization of Motor Vehicle Manufacturers.
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Global Smart Highway Market: Restraints
Dearth technically skilled workforce is expected to hinder growth of the global smart highway market over the forecast period. Emerging and underdeveloped regions face lack of skilled professionals or technologically aware professionals. Operating smart technologies for highways and maintenance of these smart highways require skilled workforce as systems used in these roads can be complex to operate. Hence, dearth of technically skilled professionals is to restrain growth of the global smart highway market over the forecast period.
Global Smart Highway Market - Impact of Coronavirus (Covid-19) Pandemic
The epidemic of COVID-19 significantly disrupted several industries around the world. Several countries suspended transportation services. Under the lockdown regulations many of the industrial operations were also disrupted. Manufacturing plants were closed down temporarily, due to disrupted transportation, the supply chains were disrupted. Moreover, number of vehicle sales also declined in this period. Thus, the COVID-19 pandemic negatively impacted the global smart highway market. However, as the pandemic situation returns to normal, the market is likely to regain growth.
The global smart highway market was valued at US$ 43.23 Mn in 2021 and is forecast to reach a value of US$ 113.03 Mn by 2030 at a CAGR of 10.2% between 2022 and 2030.
Asia Pacific segment held dominant position in the global smart highway market in 2021, accounting for 39.41% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Smart Highway Market Trends:
Smart transportation management system segment is gaining traction in the market, which is expected to boost growth of the global smart highway market over the forecast period. STMSs include congestion management and monitoring systems, advanced traffic management systems, and integration of access control, traffic control centers, and route guidance systems offering several benefits. These systems owing to their benefits are increasing being adopted all over the world, and this factor is supporting the market growth.
Key players in the market are adopting various growth strategies such as partnerships and acquisitions to gain a strong edge in the market. For instance, in January 2021, Central Logic, a healthcare and orchestration access company announced the acquisition of Acuity Link, a provider of logistic management and transportation communication software. This trend is expected to continue in the global smart highway market in the near future.
Global Smart Highway Market: Competitive Landscape
Xerox Corporation, Alcatel-Lucent Enterprise (Nokia Corporation), Siemens AG, Cisco Systems Inc., Schneider Electric SE, IBM Corporation, LG CNS Co. Ltd (LG Electronics Inc.), Indra Sistemas SA, Kapsch AG, Infineon Technologies AG, and Huawei Technologies Co. Ltd.
Global Smart Highway Market: Recent Developments
In March 2021, Infineon Technologies AG developed an advanced sensing solutions that provides sense of hearing to vehicles. This solution added XENSIV MEMS microphones to the existing sensor systems. It allows cars to see near the corner and warns about hidden moving objects in the blind spot.
In January 2021, Huawei Technologies Co. Ltd. started working on smart road technology and testing of the infrastructure of the four-kilometer stretch of road where an autonomous road can dive back and forth, make stops, navigate obstacles, accelerate and decelerate among other activities.