Road Safety Market Report 2025

The road safety market size has grown rapidly in recent years. It will grow from $4.23 billion in 2024 to $4.65 billion in 2025 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period can be attributed to implementation of traffic laws and regulations for road safety, advances in vehicle safety technologies, including airbags and seatbelts, public awareness campaigns onThe importance of road safety, growth in urbanization and increased vehicular traffic, establishment of law enforcement agencies to monitor and enforce road safety.

The road safety market size is expected to see rapid growth in the next few years. It will grow to $7.14 billion in 2029 at a compound annual growth rate (CAGR) of 11.3%. The growth in the forecast period can be attributed to surge in adoption of advanced driver assistance systems (ADAS), integration of vehicle-to-everything (v2x) communication for real-time safety alerts, growth in the development and adoption of autonomous vehicles, adoption of smart infrastructure and traffic management systems, increasing focus on sustainable and eco-friendly transportation modes. Major trends in the forecast period include use of data analytics for predictive analysis of potential road safety issues, vision zero movement, collaboration between different stakeholders, development of connected and intelligent crosswalks for pedestrian safety, active transportation.

The forecast of 11.3% growth over the next five years reflects a slight reduction of 0.2% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. The imposition of tariffs on smart traffic cameras, radar sensors, and other safety-critical imports could hinder the deployment of advanced road safety infrastructure, increasing risks on highways and urban roads. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The rising incidence of road accidents and fatalities is playing a significant role in the growth of the road safety market moving forward. Road traffic accidents are defined as collisions involving two or more objects on the road that result in severe injuries or fatalities. Road safety systems are designed to monitor and identify threats to road safety, as well as to educate and enforce safety regulations to prevent accidents. For example, in May 2023, a report from the Bureau of Infrastructure and Transport Research Economics (BITRE), an Australian government agency that provides economic analysis and statistics related to infrastructure and transport, indicated that road crash deaths reached 1,194 in 2022, reflecting a 5.8 percent increase compared to 2021. Therefore, the increasing number of road accidents and fatalities is driving the growth of the road safety market.

The growth of the road safety market is expected to be propelled by the increasing issue of traffic congestion. Traffic congestion occurs when the flow of vehicles on roads or transportation networks is significantly impeded, leading to slower movement and disruptions. Road safety measures become crucial in mitigating traffic congestion by reducing accident frequency and subsequent disruptions. In 2023, the 2022 Global Traffic Scorecard by Inrix, a US-based software company, revealed that the average American driver spent 51 hours stuck in traffic, equating to approximately one hour per week. This marked an increase from the 31 hours lost to traffic congestion in 2021. Thus, the escalating traffic congestion is a driving factor for the road safety market.

Technological innovations are a significant trend gaining traction in the road safety market. Major companies in this sector are developing new solutions to address complex and emerging road safety challenges while also enhancing existing solutions in use. For example, in July 2023, Toyota’s Collaborative Safety Research Center, a US-based research initiative, announced several new research projects aimed at improving road safety. These projects concentrate on creating driver support features for lane centering, developing in-vehicle intervention prototypes, and leveraging data to improve driver decision-making. Moreover, Toyota has joined the Vulnerable Road User Injury Preventi.

Major players in the road safety market are rolling out cloud-based platforms, such as Safety View by GM Future Roads and Inrix, to elevate road safety standards. Safety View is a cloud-based connected vehicle platform developed by General Motors, a US-based automotive manufacturing company, and Inrix, a US-based software company. Launched in August 2022, this platform offers critical insights and data to transportation planners and officials. It utilizes crash data, vehicle information, vulnerable road user data, and U. S. Census data to assist in prioritizing and assessing the impact of roadway safety projects. The goal is to enhance road safety by providing real-time insights and data analytics, empowering officials to make informed decisions for improving roadway networks.

In December 2023, Harvest Partners, a US-based private equity firm, acquired Road Safety Services, Inc. (RSS) for an undisclosed sum. This acquisition is intended to boost the growth and operational efficiency of Road Safety Services, highlighting the growing significance of road safety services. Road Safety Services, Inc. is a US-based provider of road safety solutions.

Major companies operating in the road safety market include Kapsch TrafficCom AG, Sensys Gatso Group, Redflex Holdings Pty Ltd., Verra Mobility Corp, Teledyne FLIR LLC, Motorola Solutions Inc., Information Engineering Group Inc., Cubic Corporation, Siemens AG, Conduent Inc., Vitronic Machine Vision Ltd., Laser Technology Inc., Syntell Inc., Clearview Intelligence Group Ltd., Zhejiang Dahua Technology Co. Ltd., Truvelo Specialised Manufacturing Ltd., Jenoptik AG, Idemia Identity & Security India Private Ltd., TriFoil Imaging, Swarco Industries Inc., Traffic Management Technologies, Kria Infotech Private Ltd., Simicon GmbH, Minnesota Mining and Manufacturing Company, Flir Systems Inc., Redflex Holdings Limited, JSP Ltd., Heskins Ltd., Iteris Inc., 3M Company.

North America was the largest region in the road safety market in 2024. Asia-Pacific is expected to be the fastest growing region in the forecast period. The regions covered in the road safety market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the road safety market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the resulting trade tensions in spring 2025 are having a considerable impact on the transport services sector by increasing the costs of vehicles, spare parts, and fuel - critical inputs frequently imported from tariff-affected regions. Freight operators, logistics companies, and public transportation providers are experiencing margin pressures as elevated equipment and maintenance expenses coincide with limited flexibility to pass these costs on to customers due to intense market competition. This climate of uncertainty has also led to delays in fleet upgrades and the adoption of greener, more energy-efficient vehicles, hindering progress toward sustainability objectives. In response, transport firms are enhancing route optimization, investing in fuel-efficient technologies, renegotiating supplier agreements, and adopting collaborative logistics strategies to share resources and cushion the financial impact of rising tariffs.

The road safety market research report is one of a series of new reports that provides road safety market statistics, including road safety industry global market size, regional shares, competitors with market share, detailed road safety market segments, market trends and opportunities, and any further data you may need to thrive in the road safety industry. This road safety market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Road safety encompasses strategies and tactics aimed at reducing the likelihood of individuals being involved in car accidents. It involves preventive measures to protect road users from severe injuries or fatalities through the dissemination of awareness using various tools such as road signs, fences, speed detectors, and more.

The primary types of services in road safety include consulting and training, support and maintenance, and managed services. Consulting and training in road safety involve educating the public on better road and traffic practices to mitigate accidents and fatalities. Various solutions are employed, including light speed enforcement, bus lane enforcement, selection enforcement, ANPR/ALPR (Automatic Number Plate Recognition/Automatic License Plate Recognition), incident detection and response, among others. The different types of vehicles considered in road safety efforts include passenger cars, light commercial vehicles, and heavy commercial vehicles.

The road safety market includes revenues earned by entities by providing rescue operation services, vehicle safety inspection and maintenance, vehicle crash management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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