Road Safety Market Size, Share & Trends Analysis Report By Solution (Red Light & Speed Enforcement, Incident Detection & Response, ANPR/ALPR), By Service (Professional, Managed), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global road safety market size was valued at USD 2.8 billion in 2019 and is projected to grow at a compound annual growth rate (CAGR) of 11.2% from 2020 to 2027. Road safety involves products, solutions, and services used to maintain traffic discipline and prevent road accidents. Products include traffic enforcement cameras, and incident response and detection systems, while services cover installation, maintenance, and repair of these systems. All these solutions help in maintaining traffic discipline and ensuring the safety of commuters. The increasing need for public security and improvement in road infrastructure is expected to drive the market for road safety over the coming years. Demand for traffic safety solutions is soaring owing to a surge in the number of road accidents and fatalities.

According to the World Health Organization, road traffic accidents attributed to approximately 1.4 million deaths every year. Additionally, more than 20.0 million people suffer from non-fatal injuries resulting in disabilities and other health conditions. Thus, providing a safe road infrastructure to prevent accidents and fatalities is anticipated to positively influence the market over the forecast period.

The market for road safety is expected to experience considerable growth owing to the implementation of various government initiatives aimed at creating a safe mobility environment. Several governments around the world are taking steps at decreasing traffic accidents through numerous programs and initiatives. For instance, the federal government of the U.S. launched the Road to Zero initiative to eliminate traffic fatalities by 2050. The initiative is launched by the National Safety Council and is focused on adopting safe and technologically advanced systems to end traffic accident fatalities. Such government initiatives are expected to upkeep the demand for traffic safety and monitoring solutions.

In addition to enhancing the safety of the mobility environment, governments across the world are investing in the development of road infrastructure in an attempt to augment commuters’ traveling experience. For instance, the Singapore Government 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.

The market is expected to experience a slight plunge owing to the outbreak of the COVID-19 pandemic. Companies are experiencing a revenue decline in their first-quarter results. The major impact on revenue is incurred from the school bus stop arm and the school zone camera products. This decline is attributable to the closing down of schools across counties owing to the spread of coronavirus and the vulnerability of children’s health. Similarly, reduced vehicle traffic has also affected the revenue generated from photo enforcement tickets.

However, the market for road safety is expected to recover soon and show a healthy growth owing to the strong sales pipeline of the companies, coupled with existing long term contracts. Additionally, companies are still receiving contracts and orders that are anticipated to provide impetus to the market growth in the long run. For instance, in June 2020, Sensys Gatso Group AB announced the finalization of a new five-year contract of school zone photo enforcement in Parma, Ohio. The fully managed service contract is valued at USD 2.2 million over the span of five years.

Service Insights

The professional services segment held the largest revenue share of 79.3% in the market for road safety in 2019. The segment includes several services such as system integration, training, installation, consultancy, and support and maintenance. Each system requires training, calibration, installation, and support. Additionally, companies are offering enhanced services such as stats and monitoring and remote maintenance, which augments segment growth. Owing to the aforementioned factors, the professional services segment held the largest market share in 2019 and is expected to retain its dominance throughout the forecast period.

The managed services segment is projected to witness a CAGR of 9.2% from 2020 to 2027. Managed services are controlled and managed by solution providers for the entire lifecycle of the solution. The growth of the segment can be attributed to the increasing popularity of outsourcing services to solution providers. Convenience and ease of operation are also contributing to segment growth.

Solution Insights

The red light and speed enforcement segment captured a revenue share of 54.4% in the market for road safety in 2019. 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 segment is expected to continue its dominance over the course of the forecast period.

The Automatic Number/License Plate Recognition (ANPR/ALPR) segment accounted for 26.8% of the revenue share of the overall market for road safety in 2019. ANPR/ALPR systems use Optical Character Recognition (OCR) technology and infrared illumination to aid automatic reading and recognizing of vehicle registration numbers. These systems provide 24 hours monitoring even in low light and bad weather conditions. Moreover, it helps in reducing the need for security personnel and can be helpful in automatic toll payment, vehicle tax evasion detection, and vehicle detection and location, among others. Owing to the numerous benefits offered by ANPR/ALPR systems, the segment is expected to register healthy growth in the road safety market.

Regional Insights

Europe held the largest revenue share of over 27.0% in 2019. The regional market for road safety is likely to retain its dominance over the forecast period as well, attributed to the early adoption of technologies and enhanced road infrastructure. The region is characterized by the presence of several service providers, OEMs, and a large customer base. Companies such as Kapsch TraficCom, Sensys Gatso Group AB, and Jenoptik are based in the region, significantly contributing to its dominant market share.

North America also accounted for a significant major share in 2019. The number of vehicles in the U.S. is comparatively higher than in many countries; studies show that there are more than 700 cars per 1000 people in the U.S. Asia Pacific is expected to witness substantial growth from 2020 to 2027, registering a CAGR of over 13.0%. Increasing investments in infrastructure development, coupled with increasing traffic congestion and accidents is expected to drive the regional market for road safety over the next few years.

Key Companies & Market Share Insights

The market for road safety is fragmented and is characterized by high competition among the key players. Each region or country is dominated by a few major players that offer solutions to that particular market. These market players are focusing on partnerships, mergers and acquisitions, and joint ventures/collaborations in order to enhance their market presence. For instance, in September 2019, Verra Mobility announced a partnership with European motorway operator ANPR to enhance its presence in Europe.

Market players are also improving their services in response to the growing competition. Companies are offering solutions with advanced functions that help in improving the effectiveness of solutions and services. For instance, Redflex Holdings provides an advanced monitoring system called Alcyon IQ, which provides real-time event alerts for abnormal incidents or activities. Some of the prominent players in the road safety market include:

• 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 from 2016 to 2027 in each of the sub-segments. For the purpose of this study, Grand View Research has segmented the global road safety market report based on solution, service, and region:

• Solution Outlook (Revenue, USD Million, 2016 - 2027)

  • Red Light & Speed Enforcement

  • Incident Detection & Response

  • ANPR/ALPR

  • Others

• Service Outlook (Revenue, USD Million, 2016 - 2027)

  • Professional Services

  • Managed Services

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa