Smart Highway Market Report 2026

The smart highway market size has grown rapidly in recent years. It will grow from $49.5 billion in 2025 to $56.93 billion in 2026 at a compound annual growth rate (CAGR) of 15%. The growth in the historic period can be attributed to initial adoption of basic traffic monitoring technologies, rise in road safety initiatives, reliance on conventional traffic control infrastructure, early integration of digital signage systems, growing congestion in urban highway networks.

The smart highway market size is expected to see rapid growth in the next few years. It will grow to $98.71 billion in 2030 at a compound annual growth rate (CAGR) of 14.8%. The growth in the forecast period can be attributed to increasing adoption of connected roadway systems, expansion of autonomous mobility ecosystems, rising investments in smart infrastructure, enhanced use of AI-driven traffic optimization, growing deployment of cloud-based highway management platforms. Major trends in the forecast period include growing deployment of real-time traffic monitoring solutions, increasing adoption of smart traffic lights and adaptive signaling, expansion of automated tolling across highway networks, rising integration of environmental and road condition sensors, growing investments in highway modernization and intelligent roadways.

The expansion of smart cities is driving growth in the smart highway market. A smart city is an urban area that excels across key domains such as economy, mobility, environment, people, lifestyle, and governance, promoting sustainable economic growth and a high quality of life. With increasing urbanization and population growth, governments worldwide are investing in smart city initiatives to enhance economic development and improve living standards for citizens. These initiatives include the development of intelligent urban roads, advanced water supply and disposal systems, and other infrastructure upgrades. For example, in July 2025, the European Commission, the executive body of the European Union based in Belgium, reported progress toward its objective of making 100 European cities climate-neutral and smart by 2030, positioning them as innovation and experimentation hubs to guide and inspire other European cities to achieve the same by 2050. Therefore, the ongoing development of smart cities is expected to drive demand for smart highways over the forecast period.

Major companies in the smart highway market are increasingly focusing on cloud-based solutions to drive revenue growth. These cloud-based smart highway solutions utilize cloud computing to manage and optimize traffic, infrastructure, and services on highways, enhancing safety, efficiency, and sustainability. For example, in February 2024, Huawei, a technology corporation based in China, launched its Intelligent Transportation System 2 (ITS 2.0). This innovative solution employs software-defined cameras, radar-integrated cameras, edge computing, and big data to intelligently detect traffic incidents, optimize signal control, and analyze traffic situations, resulting in a 15% improvement in overall traffic efficiency.

In May 2023, Helios Technologies, a US-based industrial valve manufacturing company, acquired i3 Product Development for an undisclosed amount. This acquisition is intended to help Helios Technologies expand its product portfolio, enhance its market presence, and leverage synergies to drive innovation and efficiency. I3 Product Development, also based in the US, specializes in product design and development.

Major companies operating in the smart highway market are Cisco System Inc., International Business Machines Corporation (IBM), Huawei Technologies Co. Ltd., LG Electronics Inc., Schneider Electric SE, Alcatel-Lucent Enterprise, Indra Sistemas SA, Infineon Technologies AG, HAAS Alert, Miovision, RoadBotics Inc., Urban DK, WiTricity Corporation, Upstream Security, Prisma Photonics, Siemens AG, Xerox Corporation, Kapsch AG, Intelligent Highway Solutions Inc., Vodafone Group PLC, Indra Philippines, Kapsch TrafficCom AG, Panasonic Corporation, Samsung Electronics Co. Ltd., Cubic Corporation, Swarco AG, Traffic Tech Gulf LLC, TransCore LP, Iteris Inc., Clearview Intelligence Ltd., Sensys Gatso Group AB, Vaisala Oyj.

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.

Tariffs on semiconductor components, communication modules, and sensor hardware have increased costs for smart highway equipment, affecting technologies such as intelligent transportation systems, monitoring systems, and communication infrastructure, particularly in regions heavily reliant on imported electronics such as North America and Europe. These tariffs have contributed to delayed deployments and higher installation expenses; however, they have also encouraged domestic innovation, strengthened regional manufacturing capabilities, and supported the development of locally sourced, cost-efficient smart mobility technologies.

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

Smart highways are advanced road systems that incorporate sophisticated technologies and sensors to enhance management and promote sustainable traffic flow. These technologically integrated roads aim to address issues such as traffic fatalities and congestion, ultimately leading to more efficient fuel usage and reduced construction needs.

Key products within the realm of smart highways include intelligent transportation management systems, intelligent management systems, communication systems, monitoring systems, and other related solutions. Intelligent transportation management systems encompass a range of cutting-edge information and communication technologies deployed in traffic and transportation systems. These technologies are designed to improve driving experiences and enhance the safety, efficiency, and sustainability of transportation networks. The components of smart highways, including hardware, software, and services, can be deployed either over the cloud or on-premise.North America was the largest region in the smart highway market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart highway market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa. The countries covered in the smart highway market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

The smart highway market consists of the sale of sensors, monitoring systems and smart traffic lights. 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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