Smart Highway Market Size, Share, and Industry Analysis, By Technology (Intelligent Transportation Management System, Intelligent Management System, Communication System, Monitoring System, and Others), By Deployment (Cloud and On-Premise), By Displays (Variable Message Signs, Digital Signage, and Others), and Regional Forecast, 2025-2032

Smart highways are sustainable roads. The GLOWING LINES design charges during the day and glows for hours at night, creating an iconic highway experience and increasing safety. Other designs, such as "VAN GOGH BICYCLE PATH" and "TORS OF LIGHT," were also implemented to enhance safety and poetry. The goal was to create smart streets using light, energy, and information that interact with traffic conditions. The smart highway consists of the following projects: Dynamic Paint, Electric Priority Lane, Interactive Light, Glowing Lines, Wind Light, and Road Printer.

With rapid urbanization, rising greenhouse gas (GHG) emissions are contributing to rising carbon footprints, forcing the adoption of clean and sustainable technologies in smart transportation. For instance, according to the Environmental Protection Agency of the U.S., greenhouse gas emissions from transportation account for about 28% of the total greenhouse gas emissions in the U.S. Additionally, the market is driven by many factors, such as providing a safe and efficient transportation system, reducing the number of accidents on highways, and reducing transportation time on highways connecting major cities in the country. All this can be achieved by deploying smart technologies that efficiently monitor traffic and contribute to the proper functioning of highways while providing real-time information to authorities.

The COVID-19 pandemic caused significant disruption to the daily lives of modern society. Among the various urban systems, transportation services, especially highways, were the most affected. Highway operators faced two major challenges: the need to deal with the potential disruption caused by the pandemic and almost three months of national lockdown, the requirement to ensure the provision of road services, proper operation and maintenance, and two. On the other hand, the pandemic had a severe negative impact on traffic.

Impact of Generative AI on the Smart Highway Market

Generative AI is significantly impacting the smart highway market by enhancing various aspects of research and development, design, and operational efficiency. One of the primary contributions of generative AI is its ability to optimize design processes. This technology can rapidly produce multiple design iterations, enabling more efficient use of materials and optimized manufacturing processes, which is crucial for smart highway infrastructure development. Generative AI can improve the design of components, such as communication devices, sensors, and energy-efficient systems, by generating more effective and innovative solutions that might not be apparent through traditional methods. This leads to better performance and lower costs in building and maintaining these advanced road systems.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by the Key Players


• Impact of Generative AI on the Global Smart Highway Market


• Consolidated SWOT Analysis of Key Players

Analysis by Deployment

By deployment, the smart highway market is segmented into cloud and on-premise.

The on-premise segment holds a major market share in 2023. On-premise deployment refers to managing and hosting smart highway applications and infrastructure on the premises of the organization or government agency responsible for highway management. One of the main reasons for the proliferation of on-premises deployments is the huge need for data security and control. Smart highways require the collection and processing of large amounts of sensitive data, including real-time traffic information, vehicle data, and user behavior patterns. By taking an on-premises deployment approach, stakeholders have complete control over their data and can ensure that it remains within a secure network. This is especially important in terms of privacy regulations and cybersecurity concerns. All these factors contribute to the growth of the market.

Regional Analysis

The global smart highway market is distributed into five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

North America has the highest market share as government agencies across the region are actively promoting the adoption of intelligent transportation solutions to address traffic congestion, reduce accidents, and improve overall transportation efficiency. Additionally, public construction spending on road projects and highways in the U.S. is exceptionally high. For instance,

• In October 2022, the U.S. Department of Transportation's Federal Highway Administration (FHWA) invested USD 59.90 billion in 12 official programs to support investments in critical infrastructure, such as roads, bridges, and tunnels.

Asia Pacific is the fastest-growing market. The strong technological infrastructure and high penetration of smartphones in the region have facilitated the adoption of ITS technologies such as electronic toll collection systems, traffic management systems, and real-time traffic information. For instance,

• In March 2024, Road Highways and Transport Minister Nitin Gadkari stated in Parliament that the government plans to implement a global navigation satellite system based on a new-fangled highway toll collection system.

The distribution of the global smart highway market by region of origin is as follows:

• North America – 38%


• South America – 5%


• Europe – 27%


• Middle East & Africa – 7%


• Asia Pacific – 23%

Key Players Covered

The key players in this market include Alcatel Lucent, Kapsch AG, LG CNS, Siemens AG, IBM Corp., Kapsch, TrafficCom, Cisco Systems, Inc., Indra Sistemas SA, ALE  International, ABB Ltd., and Huawei Technologies.

Key Industry Developments

• December 2023: China increased its smart highway network as part of new infrastructure construction. The 157-kilometer expressway from Chengdu to Yibin is said to be China's first "total factor" intelligent expressway. Smart columns equipped with radar and cameras will be installed every 800 meters to collect road information.


• May 2023: In Italy, a public-private partnership was launched to transform the city of Taormina into a smart city. The “Taormina Technological City System” project is one of the experimental steps to transform the country with a smart approach. The project aims to digitize everything in the city and manage it through an intelligent network of sensors, including the "Smart Roads 4.0" system, which uses a variety of modern technologies to connect vehicles and improve traffic flow.