Intelligent Road System Market Report 2025

The intelligent road system market size has grown rapidly in recent years. It will grow from $56.12 billion in 2024 to $63.32 billion in 2025 at a compound annual growth rate (CAGR) of 12.8%. The growth observed in the historical period can be attributed to factors such as increasing urbanization, growing traffic congestion, government initiatives supporting smart transportation, advancements in sensor technology, and the rise of vehicle-to-infrastructure (V2I) communication.

The intelligent road system market size is expected to see rapid growth in the next few years. It will grow to $101.61 billion in 2029 at a compound annual growth rate (CAGR) of 12.6%. The growth during the forecast period is expected to be driven by the expansion of autonomous vehicles, increasing investments in smart city projects, the adoption of AI for traffic management, a growing need for real-time traffic monitoring, and the integration of 5G technology in connected road systems. Key trends expected in the forecast period include the development of AI-driven traffic control systems, the rising use of predictive analytics for road safety, greater reliance on cloud-based intelligent transport solutions, the expansion of smart toll collection systems, and the integration of IoT for real-time monitoring of road conditions.

The increasing presence of connected and autonomous vehicles is expected to drive the growth of the intelligent road system market in the coming years. Connected and autonomous vehicles (CAVs) are smart vehicles capable of communicating with one another and operating without human intervention. The adoption of CAVs is rising due to their ability to enhance safety, reduce traffic congestion, and provide more convenience through advanced technology. Both automakers and tech companies are making substantial investments to shape the future of transportation. CAVs contribute to the growth of intelligent road systems by enabling real-time communication between vehicles and infrastructure, improving traffic flow, safety, and efficiency. This helps develop smarter and more responsive road networks. For example, in August 2022, the Insurance Institute for Highway Safety, a US-based non-profit organization, reported that by 2025, the number of autonomous vehicles on American roads is expected to reach 3.5 million, with projections to grow to 4.5 million by 2030. As a result, the expansion of connected and autonomous vehicles is propelling 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 players in the intelligent road system market are 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, and Yunex Traffic GmbH.

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

An intelligent road system (IRS) involves the integration of cutting-edge technologies into road infrastructure to improve traffic management, safety, and overall transportation efficiency. These systems use sensors, cameras, communication devices, and software solutions to gather and analyze real-time data, allowing for dynamic traffic control, incident detection, and enhanced road safety.

The primary types of intelligent road systems include wireless communication, computational technologies, and floating car data (or floating cellular data). Wireless communication enables the transmission of data or signals between devices without physical connections, utilizing radio waves, infrared, or other wireless technologies. These systems consist of various components such as hardware, software, and services, incorporating technologies such as advanced traffic management systems (ATMS), automatic number plate recognition (ANPR), traffic signal control systems, and incident detection and management systems. The applications of IRS include traffic management, road safety, freight management, public transport, and environmental protection. Key end-users include governments, municipalities, transportation authorities, commercial fleet operators, and smart city developers.

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

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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