Intelligent Road System Market Report 2026

The intelligent road system market size has grown rapidly in recent years. It will grow from $62.94 billion in 2025 to $70.75 billion in 2026 at a compound annual growth rate (CAGR) of 12.4%. The growth in the historic period can be attributed to urban traffic congestion growth, early ITS deployments, government road safety initiatives, expansion of sensor based infrastructure, increasing vehicle density.

The intelligent road system market size is expected to see rapid growth in the next few years. It will grow to $111.66 billion in 2030 at a compound annual growth rate (CAGR) of 12.1%. The growth in the forecast period can be attributed to smart city investments, connected vehicle adoption, AI based traffic analytics demand, infrastructure digitalization programs, rising focus on accident reduction. Major trends in the forecast period include real time traffic monitoring, vehicle to infrastructure communication, adaptive traffic signal control, integrated incident detection systems, data driven road safety management.

The growing adoption of connected and autonomous vehicles (CAVs) is expected to propel the growth of the intelligent road system market going forward. CAVs are smart vehicles capable of communicating with each other and operating without human control. Their increasing adoption enhances safety, reduces traffic congestion, and improves convenience through advanced technology. Intelligent road systems benefit from CAVs by enabling real-time communication between vehicles and infrastructure, optimizing traffic flow, improving safety, and creating more responsive road networks. For instance, in August 2024, according to a report by the UK Parliament, the UK government announced a commitment of up to £150 million (US$0.185 billion) to support the research, development, and deployment of autonomous vehicle (AV) technologies on UK roads through 2030. Therefore, the growing adoption of connected and autonomous vehicles is driving the growth of the intelligent road system market.

Key players in the intelligent road system market are focusing on innovations such as AI-powered cameras to enhance traffic monitoring, improve accident detection, and optimize traffic management through real-time data analysis and automated decision-making. An AI-powered camera is an advanced surveillance system that uses artificial intelligence to analyze video footage in real-time, offering features such as object detection, facial recognition, and automated alerts. For example, in September 2024, Teledyne FLIR LLC, a US-based thermography company, introduced the TrafiBot Dual AI, an advanced multispectral traffic camera system designed to improve safety on bridges and in tunnels. Equipped with a fast thermal core and FLIR’s proprietary AI models, this system allows early fire detection, object classification, and real-time traffic data collection with high accuracy. The camera leverages AI-driven 3D tracking to predict vehicle speed and trajectory, detect fallen objects, unusual vehicles, and vulnerable road users, and identify sudden lane changes or wrong-way drivers. This technology provides traffic managers with reliable incident detection and fewer false alarms, ensuring safer interurban roadways.

In October 2023, Koito Manufacturing Co., Ltd., a Japan-based automotive lighting equipment manufacturer, partnered with DENSO Corporation to enhance road safety. Their collaboration focuses on integrating advanced lighting technologies with sensors and AI-driven systems to improve visibility and reduce nighttime accidents. By combining Koito’s expertise in automotive lighting with DENSO’s vehicle sensor technology, the partnership aims to develop smart lighting solutions that seamlessly integrate with intelligent road systems, improving nighttime driving conditions. DENSO Corporation is also a Japan-based automotive manufacturer.

Major companies operating in the intelligent road system market report include Siemens AG, Intel Corporation, WSP Global Inc., HARMAN International Industries Inc., Dahua Technology Co. Ltd., Cubic Transportation Systems Inc., SWARCO AG, Intellias Ltd., Kapsch TrafficCom AG, TomTom International BV, Antea Group N.V., Digi International Inc., Lanner Electronics Inc., Iteris Inc., Q-Free ASA, EFKON GmbH, Robustel Technologies Co. Ltd., Faststream Technologies LLC, Loadlink Technologies, Yunex Traffic GmbH.

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

The intelligent road system market consists of revenues earned by entities by providing services such as electronic toll collection, incident detection and management, and pedestrian and cyclist safety systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The intelligent road system market also includes sales of sensors, cameras, communication devices, and software solutions. 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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