The global road safety market size was valued at USD 2.88 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 12.4% from 2021 to 2028. During the COVID-19 pandemic, road fatalities witnessed a sharp decline. However, in the second quarter of 2020, traffic volume witnessed a rise with ease in lockdown restrictions. This period witnessed an increase in road fatalities caused mainly by drivers engaging in risky behavior by violating speed limits, failing to wear seat belts, and being under alcohol influence. Therefore, traffic management and safety authorities worldwide kicked off a program to mitigate such incidences by investing in new road safety solutions. Although the pandemic hindered the growth in 2020, the market was expected to reach pre-COVID levels by the end of 2020 and a steady recovery in 2021.
Road safety future is uncertain and not the same for all regions worldwide. For instance, countries in Europe have a mature road safety approach, focusing on proactive techniques. Although the mortality rate due to road accidents is lower in Europe than the global average, it varies mainly among countries. Therefore, several countries are engaged in designing their road safety strategies to lower the risk of such fatalities. Initiative and guidelines promoting road safety will upkeep the demand for road safety equipment in the EU.
Globally, a rise in road fatalities has been a primary factor favoring road safety sales. As per the World Health Organization (WHO), road accidents lead to over 1.3 million deaths each year, with over 15 million people suffering non-fatal injuries resulting in disability or other health conditions. Therefore safety on highways has gained prominence, with governments worldwide promoting initiatives to lower these numbers. On account of these factors, the road safety market will gain traction over the forecast period and shall surpass USD 6 billion by 2028.
Favorable initiatives supporting the deployment of road safety measures including rules and regulations and devices to track traffic will go a long way in favoring the growth over the forecast period. For instance, the U.S. federal government launched the Road to Zero initiative to eliminate traffic fatalities by 2050. The initiative is launched by the National Safety Council and is encourages the use of safe and advanced systems to put an end to traffic fatalities. In India, the Ministry of Road Transport and Highways have also been taking initiatives towards the improvement of road safety to reduce accidents on National Highways.
The managed road safety services segment is estimated to register a CAGR exceeding 9% from 2021 to 2028. These services are managed as well as controlled by dedicated vendors' end-to-end, thereby making them a popular choice among end customers. The high growth of the segment is attributable to the growing preference for service outsourcing among customers. Additionally, outsourcing services' ease of business and convenience is a key factor favoring the demand for managed services worldwide.
System integration, installation, training, consultancy, and support and maintenances are covered under the professional services segment. The segment captured over 70% of the overall revenue share in 2020 and will continue to dominate the overall market revenue by 2028. Implementation of the equipment requires a certain degree of calibration along with periodic maintenance and monitoring. Therefore, the demand for professional services has been dominating industry growth over the last few years and would continue to do so in the future.
Automatic Number/License Plate Recognition (ANPR/ALPR) captures the largest share in 2020, contributing over 25% of the overall market revenue. Varied end use applications such as parking lots, road intersections, schools, and private land, among others, are contributing factors to the large revenue share of the ANPR/ALPR segment. These solutions aid in locating a vehicle in case of theft, involvement in criminal activities, or traffic violations. The systems are also known to provide 24 hours monitoring even in low light or bad weather conditions, further favoring their demand. Apart from ANPR/ALPR, the market has been segmented into red light and speed enforcement and incident detection and response solutions.
The red light and speed enforcement segment captured over half of the global revenue in 2020. The segment will register a CAGR exceeding 10% over the forecast period. Traditionally these systems were installed at road intersections or along roads to maintain traffic discipline. However, with advances in technology, companies began to focus on providing systems that offer speed and red-light monitoring capability in a signal device. These advances in product design drove the market growth in 2020, a trend expected to continue over the next seven years. For instance, TraffiStar and Jenoptik provide combined speed monitoring and red light that uses high-resolution cameras to record traffic offenses up to four lanes. Similarly, Vitronik provides the Poliscan Red+Speed solution designed for intersection points to help monitor red light and speed by vehicles.
Europe led the demand for road safety solutions in 2020 with a revenue share of over 27%. However, North America is expected to overtake the regional demand by 2028, closely followed by Asia Pacific. State-of-the-art road infrastructure coupled with high technology penetration has favored the sales in Europe till 2020. The region will continue to contribute to the overall market demand with the prevalence of several players marking a strong regional presence along with a large end customer base.
North America captured one-fourth of the overall industry revenue in 2020. Large-scale investment infrastructure projects along with initiatives to encourage safety in mobility services are estimated to support regional growth over the forecast period. Asia Pacific is estimated to register a CAGR of over 12% during the forecast period, primarily led by infrastructure development and the need to curb traffic congestions as well as road fatalities.
Key market players include American Traffic Solutions (Verra Mobility); Kapsch TrafficCom; Redflex Holdings; Vitronic; Sensys Gatso Group AB; FLIR Systems, Inc.; and Jenoptik. Partnerships, M&A, and joint ventures are the key focus strategies for most vendors conducting business in this space. For instance, in September 2020, Verra Mobility and European motorway operator APRR announced a partnership to enhance their presence in Europe.
In addition to the inorganic growth strategies, vendors emphasize improving after-sale service offerings to ensure periodic maintenance of installed products. For instance, Alcyon IQ offered by Redflex Holdings is an advanced monitoring system giving real-time event alerts for abnormal activities. Some of the prominent players operating in the global road safety market are:
Jenoptik
Kapsch TraficCom
Flir Systems, Inc.
IDEMIA
Sensys Gatso Group AB
VITRONIC
Redflex Holdings
Report Attribute |
Details |
Market size value in 2021 |
USD 2.94 billion |
Revenue forecast in 2028 |
USD 6.66 billion |
Growth Rate |
CAGR of 12.4% from 2021 to 2028 |
Base year for estimation |
2020 |
Historic data |
2017 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Revenue in USD million and CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Solution, service, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; China; India; Japan; Brazil; Mexico |
Key Companies Profiles |
Jenoptik; Kapsch TraficCom; Flir Systems, Inc.; IDEMIA; Sensys Gatso Group AB; VITRONIC; Redflex Holdings |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global road safety market report based on solution, service, and region:
Solution Outlook (Revenue, USD Million, 2017 - 2028)
Red Light & Speed Enforcement
Incident Detection & Response
ANPR/ALPR
Others
Service Outlook (Revenue, USD Million, 2017 - 2028)
Professional Services
Managed Services
Regional Outlook (Revenue, USD Million, 2017 - 2028)
North America
The U.S.
Canada
Europe
U.K.
Germany
France
Asia Pacific
China
India
Japan
Latin America
Brazil
Mexico
Middle East & Africa
b. The global road safety market size was estimated at USD 2,876.1 million in 2020 and is expected to reach USD 2,942.2 million in 2021.
b. The global road safety market is expected to grow at a compound annual growth rate of 12.4% from 2021 to 2028 to reach USD 6,663.8 million by 2028.
b. Europe led the demand for road safety solutions in 2020 with a revenue share of over 27% in the global market.
b. Some key players operating in the road safety market include American Traffic Solutions (Verra Mobility); Kapsch TrafficCom; Redflex Holdings; Vitronic; Sensys Gatso Group AB; FLIR Systems, Inc.; and Jenoptik.
b. Key factors that are driving the road safety market growth include the imminent need to ensure safe road infrastructure to prevent accidents and investments made by the governments in road infrastructure development.
b. The managed road safety services segment is estimated to register a CAGR exceeding 9% from 2021 to 2028 in the global market.
b. Automatic Number/License Plate Recognition (ANPR/ALPR) captures the largest share in 2020, contributing over 25% of the overall road safety market revenue.
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The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for COVID-19 as a key market contributor.
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