Traffic Signals Global Market Report 2024

The traffic signals market size has grown strongly in recent years. It will grow from $27.21 billion in 2023 to $29.01 billion in 2024 at a compound annual growth rate (CAGR) of 6.6%. The growth witnessed in the historical period can be ascribed to robust economic expansion in emerging markets, the installation of new traffic signals to enhance traffic management and safety, and heightened investments in the development of road infrastructure.

The traffic signals market size is expected to see strong growth in the next few years. It will grow to $38.97 billion in 2028 at a compound annual growth rate (CAGR) of 7.7%. The anticipated growth in the forecast period can be linked to the escalating trend of urbanization, a rise in road traffic accidents, and increased air traffic. Notable trends expected in this period include a shift towards LED technologies for brighter illumination, reduced power consumption, and extended lifespan of traffic signals. Furthermore, the adoption of artificial intelligence for monitoring traffic congestion and aiding traffic management, as well as the development of virtual traffic lights to eliminate the necessity of waiting at traditional stop lights, are expected to shape the industry landscape.

The installation of new traffic signals to enhance traffic speed and reduce accidents is a significant driver of growth in the traffic signals market. These signaling systems are strategically placed at road crossings and pedestrian walkways to regulate and monitor traffic flows. For instance, in May 2023, the Nevada Department of Transportation, a government agency based in the United States, initiated a project to install a traffic light and upgrade U.S. 50, aimed at improving safety and mobility on a corridor used by approximately 19,000 vehicles daily. The implementation of new traffic signals has led to an increased demand, thereby contributing to the growth of the traffic signals market.

The rising trend of road accidents is anticipated to fuel the growth of the traffic signal market in the foreseeable future. Road accidents, also referred to as traffic accidents or car crashes, occur when a vehicle collides with another vehicle, a pedestrian, an animal, an object, or runs off the road. Effective traffic signal systems, well-designed and strategically positioned, play a crucial role in accident prevention by regulating the movement of vehicles and pedestrians, thereby reducing the likelihood of collisions at intersections. For example, in May 2022, a report from the National Highway Traffic Safety Administration, a U.S.-based government agency, revealed that 42,915 people died in motor vehicle traffic crashes in 2021, marking a 10.5% increase from the 38,824 incidents recorded in 2020. Consequently, the growing emphasis on road safety is expected to drive the market for traffic signals, contributing to market growth.

Artificial intelligence (AI) is emerging as a significant trend in the traffic signals market, with the potential to alleviate traffic congestion. AI involves the simulation of human intelligence in machines, enabling them to perform tasks that typically require human capabilities, such as visual perception, speech recognition, decision-making, and language translation. An example of this is the deployment of Adaptive Traffic Signal Control (ATSC) systems by the Greater Hyderabad Municipal Corporation (GHMC) in June 2022. These systems dynamically adjust the color of traffic signals based on real-time traffic information, optimizing traffic flow along the city's main corridors. The Composite Signal Control Strategy (CoSiCoSt), developed by the Centre for Development of Advanced Computing (C-DAC), is an adaptive control technique that modifies cycle time, green splits, and offsets in real-time to handle area-wide traffic efficiently.

Leading companies in the traffic signal market are introducing innovative technologies such as AI-powered traffic management systems. These systems leverage AI to enhance the control and monitoring of traffic flow in urban and transportation environments. Utilizing AI algorithms and technologies, they collect, process, and analyze data from diverse sources, including traffic cameras, sensors, and connected vehicles, in real-time. For instance, a new AI-powered traffic management system deployed in Goa uses AI to recognize emergency vehicles such as ambulances and fire trucks, clearing the road for them. This system contributes to traffic monitoring, enhances security, and assists traffic police in their duties.

In July 2021, Miovision, a Canada-based developer of a traffic management platform, acquired Traffop, a Germany-based technology company, for an undisclosed amount. This acquisition positions Miovision to offer a software-only option for municipalities seeking to analyze traffic data from intersections without the need for additional hardware installation immediately.

Major companies operating in the traffic signals market report are LITE-ON Technology Corp, Econolite Group Inc, Oriux, Swarco AG, Traffic Technologies Ltd., North America Traffic, Ver-Mac, ARCUS USA Inc., D G Controls Ltd., Alphatronics NV, Kyosan Electric Mfg. Co. Ltd., Envoys Electronic Pvt. Ltd., Sumitomo Electric Industries, Ltd., Trafitek Solutions Pvt Ltd., Efkon India Pvt., ITS Planners and Engineers, Microtrans Infratech Pvt. Ltd., Onnyx Electronisys Pvt. Ltd., Pfannenberg Group Holding, BELFOX Torautomatik GmbH, Dialight, Pfister Waagen Bilanciai GmbH, SRL, E2S Warning Signals, Johnson Controls, ELINTEL, La Semaforica srl, CROSS Zlín, a.s, SEA Company, Federal Signal, McCain Traffic Systems, K2 Traffic Engineering, Inc., Horizon Signal Technologies, General Electric, Leotek Electronics USA LLC, Peek Traffic, WERMA, Traffic Safety Corp, Pat-Traffic / IRD Argentina, BBE Led, SMB Safety Equipment Manufacturing LLC, Mtp Traffic Sign LLC, Al Mohanad Advertising, Automotor Traffic Signal Co, Zama Traffic Signals, TSA International, Syntell (Pty) Ltd., Ethio-Telecom.

The Asia-Pacific was the largest region in the traffic signals market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global traffic signals market report during the forecast period. The regions covered in the traffic signals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the traffic signals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The primary product categories for traffic signals include portable and stationary types. Portable Traffic Signals (PTS) serve as temporary traffic management solutions on single carriageways, offering an alternative to human flaggers while establishing a safer work zone. The various power sources for these signals include electric power and solar energy. Traffic signals find applications in diverse settings such as railways, airports, urban traffic, and other contexts.

The traffic signals market research report is one of a series of new reports that provides traffic signals market statistics, including traffic signals market industry global market size, regional shares, competitors with a traffic signals market share, detailed traffic signals market segments, market trends and opportunities, and any further data you may need to thrive in the traffic signals market industry. This traffic signals 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.

The traffic signals market consists of sales of equipment that are used to safeguard pedestrians and automobiles at busy intersections and prevent excessive traffic delays. Traffic signals, also known as traffic lights, are signaling devices located at intersections between roads, pedestrian crossings and other locations to ensure safety in the orderly flow of traffic. 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. 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.