Traffic Management Vertical - Market Analysis

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Traffic Management Vertical - Market Analysis

Key Takeaways

  • Companies are collaborating with government authorities to install state-of-the-art traffic management solutions in cities, and in some countries, state authorities are independently launching traffic management systems. In India, The Ministry of Electronics and Information Technology (MeitY), in April 2022, made updates to its current intelligent transportation system. In March 2022, under a joint initiative between the University of Melbourne, the Victorian Department of Transport, and Kapsch TrafficCom, a key player in the traffic management systems market, installed the world's leading traffic management system on one of the busiest streets in Melbourne, Nicholson Street.
  • Both key players and small vendors are launching mobility-as-a-service solutions. Siemens, one of the key players in the traffic management market, has signed a contract with RiVier (NS, HTM, and RET) to develop and sustain an intelligent mobility-as-a-service (MaaS) platform in the Netherlands. ServCity project in the UK is the latest mobility service in the country, and the government, the industry players, jointly fund it.
  • The traffic management market in 2014 was valued at $3.56 billion. This market was forcasted to reach $16.89 billion by 2019, with a CAGR of 36.5% between 2014 and 2019, as per the data provided by Reportlinker. As per a research report from Ameri Research Inc., the global traffic management market accounted for $5.7 Billion in 2016 and was poised to grow at a CAGR of 28.1% between 2017 and 2024.

Introduction

The research is divided into three parts; the first part provides two market trends: MaaS applications and smart traffic management solutions. Next, the second part focuses on providing historical and future market sizes for the global traffic management market. The last part focuses on highlighting three challenges and opportunities in the global traffic management market. Challenges include lack of proper infrastructure, outdated technology in the current traffic management infrastructure, and data fusion limitations. Opportunities include smart mobility systems, MaaS, and the rapid penetration of smart cities.

Trend 1

MaaS

  • A report from Markets and Markets highlighted that the increasing adoption of mobility-as-a-service is driving growth in the traffic management market. Key players and small vendors are also launching mobility-as-a-service solutions.
  • Mobility-as-a-service offers solutions to several traffic-related issues, including traffic congestion, jams, long commute times, and road crashes.
  • Move PGH is a Mobility-as-a-Service (MaaS) application launched in Pittsburgh, Pennsylvania; it enables users to choose from various transit options, including electric vehicles.
  • MaaS is also being used in Helsinki, the capital of Finland; Whim, a MaaS application, is being used by Helsinki's residents to book public transits, taxis, and shared cars.
  • Companies are not restricting their offerings to just regular cars or EVs; they are also focusing on bringing in autonomous vehicles; for instance, the ServCity project in the UK is the latest mobility service in the country, and the government, the industry players, jointly fund it. Honda Mobility Solutions Co., Ltd., a Honda subsidiary company, is also bringing its autonomous mobility as a service solution into the market in the mid-2020s.
  • And now, for the last and the most important example, Siemens, one of the key players in the traffic management market, has signed a contract with RiVier (NS, HTM, and RET) to develop and sustain an intelligent mobility-as-a-service (MaaS) platform in the Netherlands. One of the primary purposes of setting up this service is to integrate travel planning in the country.

Trend 2

Strengthening the Traffic Management in Cities with Smart Traffic Management Systems

  • Traffic management infrastructure is something that market players, government bodies, and everyone in the market are concerned about and are also focused on expanding the current infrastructure to accommodate the growing population and smart city demands. Companies are collaborating with government authorities to install state-of-the-art traffic management solutions in cities, and in some countries, state authorities are independently launching traffic management systems.
  • In India, The Ministry of Electronics and Information Technology (MeitY), in April 2022, made updates to its current intelligent transportation system. The updates included an indigenous Onboard Driver Assistance and Warning System (ODAWS), Bus Signal Priority System, and Common SMart IoT Connectiv (CoSMiC) software; these were developed under a collaborative initiative between the Centre for Development of Advanced Computing (CDAC) and Indian Institute of Technology Madras (IIT-M).
  • In March 2022, under a joint initiative between the University of Melbourne, the Victorian Department of Transport, and Kapsch TrafficCom, a key player in the traffic management systems market, installed the world's leading traffic management system on one of the busiest streets in Melbourne, Nicholson Street. This was done with the intent of reducing traffic congestion and improving road safety in the city.
  • In May 2022, General Motors and INRIX Inc. announced a collaborative initiative to develop traffic safety solutions to help agencies and companies in achieving their road safety goals.

Observations

Both these trends are expected to contribute to the growth of global traffic management systems. The observation is solely based on the logic that advancement in services and products will help the market in:
      • Extending these services to other sectors and in the market.
      • Paving the way for advancement in technologies
      • Allowing more market players to expand their product portfolios.

Market Size and Growth

  • The report from Markets & Markets showed that the global traffic management market size stood at $35.3 billion in 2021 and is expected to reach 61.9 Billion by 2026, with a CAGR of 11.9%.

Historical Data (2014, 2016, 2019 and 2020)

  • The traffic management market in 2014 was value at $3.56 billion. This market was forcasted to reach $16.89 billion by 2019, with a CAGR of 36.5% between 2014 and 2019, as per the data provided by Reportlinker.
  • As per a research report from Ameri Research Inc., the global traffic management market accounted for $5.7 Billion in 2016 and was poised to grow at a CAGR of 28.1% between 2017 and 2024 to reach a market size of $40.1 billion by 2024. This report was published in June 2017.
  • Market Data Forecast's recent research revealed that the market was worth $35.7 billion in 2019 and is expected to reach 61.77 billion by 2025, maintaining a CAGR of 14%.
  • Another report from Maximize Market Research, published in November 2019, highlighted that the global traffic management market size was $31.86 billion in 2020, with a CAGR of 10.8% between 2021 and 2027.

Additional Information; Sub Segments

  • Dynamic traffic management systems, a sub-segment of the global traffic management market, are forecasted to achieve the highest growth between 2019 and 2024. This segment relies on simulation models integrated with real-time traffic and origin-destination data to forecast the effects of different traffic management strategies.
  • The adaptive traffic control systems segment, another market sub-segment, is poised to grow from $4.7 million in 2021 to $15.2 million by 2028, at a CAGR of 18%.
  • The global parking management market size stood at $4.23 billion in 2021 and is forecasted to reach $10.14 billion by 2030, maintaining a CAGR of 11.1% during the forecast period. The route guiding segment of the market is projected to be the leading segment for providing traffic management systems solutions during 2019-2025.
  • As per the report from Markets and Markets, under the solutions category, the route guidance and route optimization segment is going to grow at a higher pace than other segments.
  • In the systems category of the market, incident detection and location systems are expected to hold the highest market share.

Market Risks and Challenges

  • Market reports from Markets and Markets and Allied Market Research highlight the lack of proper transportation infrastructure to support the rising number of vehicles as a major challenge and a growth opportunity. It is being considered a challenge because currently, the transportation infrastructure isn't capable of handling the rising number of vehicles. This could be an opportunity for players to innovate and build advanced and efficient traffic management systems and for governments to update the current transportation infrastructure.
  • While the market has made several technological advancements to its traffic management solutions, the infrastructure required to support these solutions is highly outdated. The advanced solutions require high-speed data to process large chunks of data in real-time, but the current infrastructure is not designed to handle such load and hence is incapable of supporting advanced traffic management solutions. While this is a challenge for the global market, it is also a chance for market players to reach out to government authorities in different countries to update their current transportation infrastructure.
  • Data fusion is leveraged to synthesize large chunks of data to help avoid blind spots and complexities in measuring systems; the data is derived from the numerous touchpoints and sensors that are embedded in traffic management systems. Synthesizing and integrating such large volumes of raw data is tricky and can lead to the failure of these systems. Hence, installing a multi-sensor data fusion technology that collects and processes all the recorded signals to produce a more informed environment for traffic management poses a significant challenge.

Market Opportunities and White Spaces

  • Mobility-as-a-service is currently being seen as a major market opportunity for players. Several companies in the market have already started rolling out MaaS applications to the general public. Players can also make optimum use of this opportunity by providing more advanced versions of MaaS applications or implementing integrated multimodal traffic management in their MaaS offerings.
  • Autonomous driving is also being seen as a great opportunity, particularly because several key players from the automotive industry have committed to launch fully automated cars by 2025 ("Daimler, BMW, Volkswagen, Audi, Tesla, and Volvo"); these cars facilitate effective transportation management; they are equipped with sensor and GPS technologies that allow them to sense their surroundings efficiently, and they also have advanced control systems which can interpret sensory info. Market players have an opportunity here; they can design and develop smart and advanced mobility systems that are compatible with advanced traffic management systems. The autonomous driving segment is expected to record significant growth in the coming years and so this could be a really big opportunity for market players in the global traffic management industry.
  • The rapid penetration of smart cities is also a good opportunity for market players, mainly because smart city projects require advanced traffic management systems. Several players are already taking on smart city projects; for instance, Kapsch TrafficCom, a key player in the traffic management systems market, installed the world's leading traffic management system on one of the busiest streets in Melbourne, Nicholson Street. Kansas City, a smart city, collaborated with Cisco, a key player n the market, to make its streetcar corridor smart.

Research Strategy

For this research on the traffic management market, we leveraged market analysis reports from reputed sources like Markets and Markets, Allied Market Research, and others. We were able to provide data surrounding the growth of traffic management for some of the requested sub-segments of the market, but this piece of data was largely unavailable in the public domain. Research companies have included data about these sub-segments in their reports, but the data is paywalled. We tried searching for individual market research reports about these sub-segments, but we could not find any relevant reports.







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