Intelligent Traffic Management System Market Report 2026

The intelligent traffic management system market size has grown rapidly in recent years. It will grow from $12.99 billion in 2025 to $14.6 billion in 2026 at a compound annual growth rate (CAGR) of 12.4%. The growth in the historic period can be attributed to growth in urban vehicle population, early traffic signal automation, government congestion control programs, expansion of surveillance infrastructure, public safety concerns.

The intelligent traffic management system market size is expected to see rapid growth in the next few years. It will grow to $23.1 billion in 2030 at a compound annual growth rate (CAGR) of 12.2%. The growth in the forecast period can be attributed to smart city traffic projects, AI driven traffic platforms, real time congestion management demand, urban mobility planning needs, investment in digital road infrastructure. Major trends in the forecast period include automated traffic flow optimization, dynamic message sign deployment, AI based incident detection, integrated urban traffic control, real time traffic data analytics.

The increasing number of vehicles on roads is expected to propel the growth of the intelligent traffic management system market going forward. Factors driving the rise in vehicles include urbanization, economic growth, affordability, demand for fuel-efficient vehicles, and a growing focus on sustainability and environmental considerations in the automotive industry. Intelligent traffic management systems help ensure smooth traffic flow, reduce congestion, enhance safety, and optimize transportation networks. For instance, in October 2025, according to the Department for Transport, a UK-based government organization, as of June 2025, there were 1,625,000 licensed zero-emission vehicles on the road, representing 3.9% of all licensed vehicles. Therefore, the increasing number of vehicles is driving the growth of the intelligent traffic management system market.

Major companies in the intelligent traffic management system market are focusing on innovations such as integrated detection and connected vehicle (CV) systems to improve traffic safety and optimize flow in real time. Integrated detection and CV systems combine real-time traffic sensing with vehicle-to-everything (V2X) communication, helping prevent accidents, reduce congestion, and enhance overall traffic efficiency by providing dynamic alerts and optimizing signal timing. For instance, in December 2023, Iteris Inc., a US-based smart mobility technology company, launched Vantage CV, an integrated detection and connected-vehicle system for safer intersections. Vantage CV combines Iteris’ Vantage Apex or Vantage Next traffic detection hardware and software with C-V2X roadside communications to generate and distribute real-time safety alerts to connected vehicles. The system also includes in-vehicle deployable technologies for immediate benefits while the broader fleet transitions to V2X and introduces VantageARGUS CV for CV data visualization, travel-time and corridor analysis, system monitoring, and analytics. Its scalable, end-to-end design delivers comprehensive intersection coverage, advanced safety features, and cloud integration to help agencies reduce collisions and improve traffic flow.

In August 2024, NoTraffic Inc., a US-based smart traffic management technology company, partnered with SWARCO McCain Inc. to enhance intelligent transportation systems with AI-driven smart intersection solutions. This collaboration aims to improve urban mobility and traffic safety by integrating real-time traffic management software with advanced traffic signal and roadway hardware, enabling more efficient traffic flow and smarter city infrastructure. SWARCO McCain Inc. is a US-based company specializing in traffic signals, controllers, and intelligent roadway systems.

Major companies operating in the intelligent traffic management system market report include Huawei Technologies Co. Ltd, Siemens, Raytheon Technologies Corporation, International Business Machines Corporation (IBM), Cisco Systems Inc, Schneider Electric SE, Thales Group, Advantech Co. Ltd, FLIR Systems Inc, TransCore LP, Cubic Corporation, SWARCO AG, TomTom N.V, VITRONIC Dr.-Ing. Stein Bildverarbeitungssysteme GmbH, Beijing E-Hualu Information Technology Co. Ltd, Iteris Inc, Global Traffic Technologies LLC (GTT), Q-Free ASA, Econolite Group Inc, Cohda Wireless Pty. Ltd, Sensys Networks Inc, Clearview Intelligence Limited, PTV Group, EFKON AG, Peek Traffic Corporation.

Asia-Pacific was the largest region in the intelligent traffic management system market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the intelligent traffic management system market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the intelligent traffic management system market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The intelligent traffic management system market consists of revenues earned by entities by providing services such as traffic data analytics, connected vehicle integration, and GIS for traffic planning. The market value includes the value of related goods sold by the service provider or included within the service offering. The intelligent traffic management system market also includes real-time monitoring, dynamic route guidance systems, and others. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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