The traffic management market in North America is expected to grow from US$ 11,500.63 million in 2022 to US$ 22,182.96 million by 2028; it is estimated to grow at a CAGR of 11.6% from 2022 to 2028.
In most developing nations, the migration of people from rural to urban areas is increasing at a steady pace. The percentage of urban dwellers was above 79% in developed countries, such as the US. Such growth in the urban population puts stress on the roadways. Several other factors are also directly linked with rising congestion in urban areas, which leads to an increased requirement for better traffic management systems.
At first, the rising urban population increases the number of vehicles on the road, leading to congestion. The number of private vehicles nearly doubled during that period. Second, ride-hailing services from cab aggregators, such as Uber, Grab, Ola, and Lyft, have rapidly increased. Such services have been substituting mass transit systems, leading to a surge in vehicles on the road. Third, growing urbanization positively impacted the growth of e-commerce and on-demand platforms. According to the US Department of Commerce, internet-based purchasing was 0.3% of retail purchases in 1998 and rose to 8.4% in 2014 in the US alone.
In 2021, e-commerce commanded 14.7% of the overall retail sales. Delivery vehicles, including two-wheelers, witnessed rapid demand due to such growth in internet-based purchases since e-commerce deliveries include movement between warehouses, missed deliveries, and returns, among other trips. Lastly, the relatively low effectiveness of specific policies leads to a further buildup of congestion. For example, banning roadside parking without an alternative parking area can confuse traffic buildup. Similarly, investment in creating separate lanes for buses and high occupancy vehicles (HOV) can increase congestion if not planned well. These lanes are often designed to smoothen the public transit system and reduce dependence on private vehicles. However, several densely populated cities are quite old and hence not developed in a planned manner. Thus, owing to operational issues and challenges in implementing such projects, congestion gets exacerbated instead of reduced. All the factors mentioned above are strongly driving the traffic management systems market.
With robust traffic management systems, comprising software, sensors, cameras, and display boards, congestion can be effectively reduced. These systems can be installed on an existing road without the requirements of infrastructural modification and, thus, can significantly aid in reducing congestion. Parking management systems can provide information to the driver regarding space availability and reduce confusion and congestion arising from the same. Similarly, a lane management system can effectively manage traffic flow by opening or closing lanes, depending on the traffic rate at each point in time. Considering the advantages of traffic management systems, the fast urbanization rate is expected to boost the traffic management market during the forecast period.
With new features and technologies, vendors can attract new customers and expand their footprints in emerging markets. This factor is likely to drive the North America traffic management market at a substantial CAGR during the forecast period.
North America Traffic Management Market Revenue and Forecast to 2028 (US$ Million)
North America Traffic Management Market Segmentation
The North America traffic management market is segmented by component, application, and country. Based on component, the market is segmented into hardware, software, and services. In 2022, the hardware segment held a larger market share. On the other hand, the software superconductors segment is expected to register a higher CAGR during the forecast period.
Based on hardware, the market is segmented into camera, display boards, and sensors. In 2022, the camera segment held a larger market share. On the other hand, the sensors segment is expected to register a higher CAGR during the forecast period.
Based on software, the market is segmented into cloud and on-premise. In 2022, the on-premise segment held a larger market share. On the other hand, the cloud is expected to register a higher CAGR during the forecast period.
Based on application, the market is segmented into automatic tolling, lane management, parking management, surveillance, traffic signal management, and others. The traffic signal management segment held the largest share in 2022. The surveillance segment is expected to register the highest CAGR in the market during the forecast period.
Based on country, the market is segmented into the US, Canada, and Mexico. In 2022, the US held a larger market share and is expected to register a higher CAGR during the forecast period.
AXIS COMMUNICATIONS AB; Cisco Systems, Inc.; Dahua Technology Co., Ltd.; IBM Corporation; Hangzhou Hikvision Digital Technology Co., Ltd.; SGS SA; Siemens AG; Teledyne FLIR LLC; Cubic Corporation; and SNC-Lavalin Group are the leading companies in the North America traffic management market.