The global smart traffic management market will grow 37% over the next two years, from nearly $15bn in 2025 to $20bn by 2027, according to Juniper Research.

This growth, driven by rapid urbanisation in emerging markets and a sustainability focus, is expected despite economic pressure and interoperability problems with legacy smart traffic management systems.

Overcoming interoperability difficulties requires expertise and upgrades, increasing the challenge of implementing innovative traffic management on tight budgets.

To overcome interoperability and cost problems, Juniper urges smart traffic management vendors to offer software-driven, modular options through software-as-a-service (SaaS) models. Offering subscription-based software and services, specifically AI-based analytical and maintenance services, will lower the cost for governments and transportation agencies, increasing accessibility for smaller or financially constrained agencies. These models will also allow vendors to increase credibility with users, as users begin to see value from the services deployed and gain faster returns on investment.

The study predicts that if this approach is adopted as an integral component of vendors’ strategies, the market will be worth double by 2030, reaching $32bn globally. With technological advancements, namely AI-powered video analytics and the falling costs of sensors, Juniper expects the smart traffic market to grow significantly between 2027 and 2030.

“Vendors must focus on deploying SaaS on tiered subscription pricing models, as this will lower the entry barrier for smaller entities,” said research author Michelle Joynson. “It will also enable vendors to upsell services as they gain credibility, maximising revenue.”

The research suite offers an assessment of the smart traffic management market, including market analysis and in-depth forecasts for more than 60 countries. The dataset contains over 37,000 market statistics within a five-year period. It includes a competitor leader board, examining current and future market opportunities.

Find out more about the report at www.juniperresearch.com/research/sustainability-smart-cities/smart-cities/smart-traffic-management-research-report, and download the free report at www.juniperresearch.com/resources/free-research/red-amber-green-innovations-in-smart-traffic-management.