The intelligent traffic management system market is projected to reach $41.2bn by 2034 at a 6.7% CAGR, according to market watcher Fact MR.

Ongoing advancements being made in traffic management technologies and the launch of MaaS (mobility-as-a-service) are resulting in the increasing demand for intelligent systems for efficient and smart traffic management. The worldwide market was estimated at $21.55bn in 2024 and predicted to see a CAGR of 6.7% to reach $41.22bn by the end of 2034.

Growth in accident deaths is pushing governments in more countries towards imposition of stringent laws for enhancing road safety. This is forecasted to encourage the implementation of intelligent traffic management systems for averting road accidents. Cities are opting for smart practices, and smart mobility is one of the major elements aiding in this development.

Implementation of smart traffic management systems is expected to be one of the key means for smart cities to enhance day-to-day travel for citizens, increase sustainability and decrease fuel usage. The increasing number of vehicles in different cities of the world because of the increase in population is driving demand for smart systems to ease congestion.

North America is projected to hold a 26.4% market share by 2034, driven by increasing investments in smart city infrastructure and the adoption of advanced traffic control technologies.

Federal and provincial governments are expected to account for 39.4% of the market share by 2034, as authorities focus on reducing congestion, improving road safety and implementing intelligent transportation.

South Korea is anticipated to witness the fastest growth in the market, with a CAGR of 9.9% from 2024 to 2034, attributed to rapid urbanisation, government initiatives and advancements in AI-driven traffic management systems.

Leading players driving innovation in the market include Beijing E-Hualu Information Technology, Quarterhil, Kyosan Electric Manufacturing, Q-Free ASA, Dahua Technology, IBM, Baumer Holding, Siemens, Iteris and Econolite Control Products.

The US market was valued at $3.8bn in 2024 and is projected to reach $7.89bn by 2034, expanding at a CAGR of 7.6%. By 2034, the USA is expected to account for 72.5% of the North American market share, driven by innovations in the ICT sector. The country is witnessing a rising demand for intelligent traffic management systems to track vehicular congestion, enhance transportation efficiency and provide real-time traffic infrastructure insights. Additionally, the increasing adoption of data analytics and cloud computing for collision prevention and smart parking is expected to contribute to the market’s expansion.

The integrated urban traffic control systems market was valued at $5.21bn in 2024 and is projected to reach $10.26bn by 2034, expanding at a CAGR of 7%. By 2034, these systems are expected to account for 24.9% of the global market share, as intelligent algorithms increasingly use real-time traffic data to optimise decision-making and predict traffic loads.

These advancements contribute to improving traffic throughput, reducing vehicle stops and delays, lowering fuel consumption, and controlling emissions. Also known as computerised traffic signal control, these systems are becoming an essential component of large cities and towns, offering multiple benefits in managing densely packed urban networks by harmonising traffic flow and improving overall efficiency.

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