Road Safety Market Size, Share & Trends Analysis Report By Solution (Red Light & Speed Enforcement, ANPR/ALPR), By Service (Professional, Managed), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global road safety market size was valued at USD 2.87 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.

Road Safety Market Trends

The road safety market is gaining momentum owing to surge in the number of road accidents and fatalities. Increasing need for public security and improvement in road infrastructure bodes well with the market growth. Additionally, several governments around the world are taking steps at decreasing traffic accidents through numerous programs and initiatives. In an attempt to curb the growing road accident and fatalities, governments worldwide are focusing on maintaining traffic discipline and ensuring commuters' safety.

Road safety products have witnessed several developments over the past few years. Traditionally, red light and speed monitoring systems were installed individually along roads and intersections to maintain traffic discipline. However, with increasing technological advancements, companies focus on offering systems that combine speed and red light monitoring capabilities in a single unit. For instance, Jenoptik launched its TraffiStar systems that provide combined red light and speed monitoring using high-resolution cameras and can record traffic offenses up to four lanes. Similarly, Vitronik provides the Poliscan Red+Speed solution, specially designed for intersection points to monitor speed and red light violations of vehicles traveling in different directions. Owing to the onset of such systems, the market is expected to continue its record substantial growth over course of the forecast period.

Growing awareness of public security has forced authorities to invest in road infrastructure. For instance, Singapore Government has launched the Smart Mobility 2030 strategic plan, jointly developed by the Intelligent Transportation Society Singapore (ITSS) and the Land Transport Authority (LTA) of Singapore. The initiative is aimed at deploying intelligent transport systems to provide sustainable smart mobility solutions for commuters. As of July 2019, new speed camera systems, ANPR camera systems, smart traffic light control systems, and green link determining systems have been tested or deployed under the Smart Mobility 2030 initiative. Such initiatives, aimed at the development of road infrastructure, are expected to drive the demand for road safety market over the coming years.

Companies are also investing heavily in developing advanced technologies that combine the use of artificial intelligence, cameras, and sensors to identify traffic issues. For instance, Transoft Solutions (ITS) Inc. provides solutions that help urban planners collect, monitor, and analyze traffic data. An in-depth analysis of the collected data is useful in understanding the road user behavior and the traffic flow. This data helps the city planners to make informed and better traffic infrastructure planning decisions. The company’s BriskLUMINA solution is capable of leveraging the existing road camera infrastructure to conduct video analysis. This data is used to track near-misses and other instances that can result in a potential crash. Such technologically advanced solutions not only help in law enforcement but also in infrastructure planning that can completely lower the risk of road accidents.

Furthermore, growing preference for connected commercial vehicles is helping road safety solution providers implement solutions that can simultaneously collect vehicles and road infrastructure. Thus, investments in developing infrastructure that supports connected and autonomous vehicles provide new avenues for road safety solution providers. Companies can provide existing data to analyze the road user behavior and traffic mobility and help in developing improved road infrastructure. For instance, the Mesta Control solution offered by IDEMIA links data from multiple modules such as traffic management module, law enforcement module, and others to form a combined analysis report. This reduces the need for deploying numerous sensors on the road infrastructure. Such solutions are anticipated to have a significant impact on the market growth supported by the advent of connected vehicles.

Service Insights

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.

Solution Insights

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.

Regional Insights

Europe led the demand for road safety solutions in 2020 with a revenue share of over 26.5%. 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 13% during the forecast period, primarily led by infrastructure development and the need to curb traffic congestions as well as road fatalities.

Growing investments in road infrastructure development and increasing need to maintain traffic discipline is boosting the regional growth. Additionally, countries such as China and India have large geographical area and have extensive roads and highways covering the region. More and more road construction & development in these countries are all together driving the road safety market growth in the Asia Pacific region. 

Key Companies & Market Share Insights

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

Road Safety Market Report Scope

Segments Covered in the Report

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