The Smart Highway Market is estimated to be valued at US$ 52.5 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The Smart Highway Market aims to transform roadways into connected platforms for vehicles and travelers. Smart highways seek to reduce accidents, emissions, and congestion through integration of advanced sensors, cameras, displays, and communication systems to collect and share real-time traffic and road condition data.
Market Overview:
Smart highways incorporate advanced technologies such as 5G connectivity, sensor networks, Internet of Things (IoT), and predictive algorithms to monitor road conditions and traffic patterns. This helps convey timely alerts regarding accidents, traffic jams, road works, weather conditions, and available parking spaces to drivers. Real-time traffic updates ensure smoother traffic flow and safety of commuters. Smart displays along the highways also provide directions, route choices, and advertisements.
Market key trends:
One of the key trends in the smart highway market is the rising focus on developing autonomous and connected vehicle infrastructure. Transportation authorities are increasingly collaborating with telecom and technology firms to deploy dedicated short-range communications (DSRC) and cellular vehicle-to-everything (C-V2X) technologies along highways. This allows vehicles to share data on speed, positioning, and road conditions to detect potential collisions. Such innovative connectivity solutions will facilitate safer driving and traffic management. Furthermore, deployment of advanced traffic management systems (ATMS) integrated with artificial intelligence and cloud computing is increasing globally. ATMS helps predict traffic congestion and automatically adjust traffic signals and electronic signboards to optimize traffic flow.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the smart highway market requires large capital investments and well-established infrastructure. Bargaining power of buyers: The bargaining power of buyers is moderate as there are few alternatives available and switching costs are high. Bargaining power of suppliers: The bargaining power of suppliers is low due to the presence of numerous component manufacturers. Threat of new substitutes: There is low threat from substitutes as smart highways provide better connectivity and convenience compared to traditional highways. Competitive rivalry: Competition in the market is high as key players focus on new technologies and service offerings.
SWOT Analysis
Strength: Smart highways offer improved safety, efficiency and connectivity. They aid in real-time traffic management and emergency response.
Weakness: High initial investment requirements pose challenges for widespread adoption. Infrastructure upgrades require long-term planning and coordination.
Opportunity: Growing global infrastructure spending on intelligent transportation systems presents lucrative growth prospects. Emerging technologies will further enhance the user experience.
Threats: Cyber threats and privacy concerns associated with connected systems act as deterrents. Dependence on telecom networks increases vulnerability.
Key Takeaways
The Global Smart Highway Market is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing investments in modernizing transportation infrastructure. Government initiatives to develop smart cities and promote clean mobility will augment the market expansion.
Regional analysis: North America dominates the global market backed by significant technology adoption. Asia Pacific is anticipated to demonstrate the fastest growth owing to rising urban population and growing focus on smart city projects in countries like China and India.
Key players operating in the smart highway market are 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. Key players focus on developing advanced IoT and communication solutions to gain a competitive edge. Strategic partnerships are another area of focus for technology integration and new product launches.
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