by Smart highways involve integration of advanced technologies such as IoT, AI and wireless communications to enable effective traffic management and enhanced road safety. Smart highways are equipped with technologies such as variable message signs, automatic number plate recognition, toll collection systems, surveillance cameras and sensors to detect vibrations, temperature and traffic behavior. This helps in monitoring traffic patterns, road conditions and providing real-time alerts to drivers. The need for smart highways stems from growing road congestion and increasing road accidents globally. Implementation of smart technologies helps in optimizing traffic flow, reducing travel time and enhance safety of commuters.
The global 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.
Market Opportunity
Growing adoption of connected and autonomous vehicles provides a key market opportunity for smart highway market players. Integration of V2X communications allows autonomous vehicles to communicate with infrastructure and other vehicles, thereby improving road safety. As autonomous vehicles require real-time data from smart infrastructure to navigate efficiently, their adoption will drive more implementation of technologies such as vehicle detection systems, variable speed limits and traffic signal controls. This presents an opportunity for smart highway construction across major economies to optimize road infrastructure for autonomous driving. Connected highway systems will help advance testing and commercialization of autonomous vehicles over the coming years.
Porter’s Analysis
Threat of new entrants: The smart highway market requires large capital investments in infrastructure development and upgradation which acts as a barrier for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate as switching to other smart infra technologies is difficult once installed.
Bargaining power of suppliers: The presence of several technology solution providers gives buyers more options but proprietary systems increase supplier bargaining power.
Threat of new substitutes: Emerging smart transportation technologies can replace traditional highways but network effects make smart highways hard to substitute in the short run.
Competitive rivalry: The market sees intense competition due to technological advancements and focus on networking infrastructure by established players.
SWOT Analysis
Strength: Developed smart infrastructure enables efficient traffic management and improved road safety. Integrated communication systems provide real-time traffic and emergency response updates.
Weakness: High initial costs and long payback periods discourage infrastructure developers. Interoperability between systems of different vendors poses integration challenges.
Opportunity: Growing urbanization and the need for sustainable mobility presents opportunities. Integration of IoT and connected vehicles opens new application areas.
Threats: Cyber threats to connected systems risk data theft and network disruptions. Delays in technology standards development restrict collaboration.
Key Takeaways
The global Smart Highway Market Share is expected to witness high growth. The Asia Pacific region dominates the market currently due to rapid infrastructure development projects in major countries like China and India. The smart highway network built between Beijing and Zhangjiakou will be the largest to date.
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. Players focus on developing integrated solutions combining sensors, cloud platform, and data analytics services. They also collaborate to optimize vehicle-infrastructure interaction.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
