An aging infrastructure, the rising traffic congestion, and the lack of mobility solutions and transportation infrastructure are expected to further lead to traffic congestion, thereby adding to the transportation costs and affecting the everyday life of people. These factors and supportive government initiatives to implement smart cities are anticipated to drive the growth of the market.

Reduction in carbon emissions

One of the key issues caused by road congestion is air pollution. The implementation of intelligent systems makes traffic monitoring easy, thereby reducing harmful emissions, which is expected to positively impact the growth of the market. An intelligent traffic management system is one of the integral parts of a smart city. The rapid urbanisation and the increasing population in developing countries are expected to influence the demand for intelligent traffic solutions. Additionally, the rapid adoption of the fourth industrial revolution is anticipated to boost the growth of smart cities, subsequently fuelling the demand for intelligent traffic management systems.

Enhanced road safety

Road accidents and the fatalities stemming from them are increasing. To mitigate such incidents, the United Nations Economic Commission for Europe (UNECE) is helping in managing road safety legal instruments. Various aspects such as road infrastructure, traffic management, road signs, and signals are negotiated with the member countries and made legally binding. An intelligent traffic management system (ITMS) can potentially help in reducing road accidents and enhancing safety. Several countries, including the U.S. and China, are investing aggressively in ITMS solutions, which is expected to bode well for the growth of the market over the forecast period. For instance, the U.S. DOT has been investing aggressively in the research and development, adoption, and deployment of ITMS across the country.

Integrated corridor management

According to the report, in terms of solutions, the integrated corridor management segment is anticipated to witness considerable growth over the forecast period. Significant improvements in the effective movement of goods and people through institutional collaboration and proactive and aggressive integration of the existing infrastructure along major corridors are expected to help manage integrated corridors and improve traffic management

In terms of region, geographically speaking the analysts predict that the Asia Pacific regional market will register a significant CAGR from 2021 to 2028. Rapid urbanisation, rising awareness regarding intelligent systems, and increasing population are anticipated to propel the regional market growth

The rise in disposable income is expected to increase the purchase of four-wheelers over the forecast period. This is expected to further propel the demand for traffic management solutions in the Asia Pacific region to resolve traffic congestion problems.