Road Safety Market Size & Share, Market Research and Industry Forecast Report, 2019-2025 (Includes Business Impact of COVID-19)

  • TBI227291
  • November 28, 2020
  • Global
  • 132 pages
  • Lucintel

Industry Insights, Market Size, CAGR, High-Level Analysis: Road Safety Market

The global road safety market size was valued at USD 2.7 billion in 2018 and is expected to register a CAGR of 10.5% from 2019 to 2025. Road safety involves products, solutions, and services used to maintain traffic discipline and prevent road accidents. Products include traffic enforcement cameras, 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. Increasing need for public security and improvement in road infrastructure is expected to drive the market over the coming years. Demand for traffic safety solutions is soaring owing to surge in the number of road accidents and fatalities. According the World Health Organization, road traffic accidents attributed to approximately 1.35 million deaths every year. Additionally, more than 20 million people suffer nonfatal 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 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.

Service Insights of Road Safety Market

The market has been segregated by service into professional and managed services. Managed services are controlled and managed by solution providers for the entire lifecycle of the solution. The segment is expected to register a CAGR exceeding 8.0% from 2019 to 2025. The growth of the segment can be attributed to increasing popularity of outsourcing services to solution providers. Convenience and ease of operation are also contributing to segment growth. The professional services 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 2018 and is expected to retain its dominance throughout the forecast period.

Solution Insights of Road Safety Market

The various solutions included under road safety are red light and speed enforcement, incident detection and response, Automatic Number/License Plate Recognition (ANPR/ALPR), and others. 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. The red light and speed enforcement segment captured more than half the global revenue in 2018. 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 course of the forecast period.

Regional Insights of Road Safety Market

Europe held a substantial share in the global market in 2018 and accounted for over 27.0% of the revenue that year. The regional market is likely to retain its dominance over the forecast period as well, attributed to 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 major share in 2018. The number of vehicles in U.S. is comparatively higher than 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 2019 to 2025, registering a CAGR of over 12.0%. Increasing investments in infrastructure development, coupled with increasing traffic congestion and accidents is expected to drive the regional market over the next few years.

Market Share Insights of Road Safety Market

The market is fragmented and is characterized by high competition among key players such as American Traffic Solutions (Verra Mobility); Kapsch TrafficCom; Redflex Holdings; Vitronic; Sensys Gatso Group AB; FLIR Systems, Inc.; and Jenoptik. 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.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Road Safety Market Research Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global road safety market report based on solution, service, and region:

Solution Outlook (Revenue, USD Million, 2019 - 2030)

  • Red Light & Speed Enforcement
  • Incident Detection & Response
  • Others

Service Outlook (Revenue, USD Million, 2019 - 2030)

  • Professional Services
  • Managed Services

Table of Contents
Chapter 1. Methodology and Scope                  1.1. Research Methodology                  1.2. Research Scope and Assumptions                  1.3. List of Data SourcesChapter 2. Executive Summary                  2.1. Road Safety- Industry Snapshot & Key Buying Criteria, 2015 - 2025Chapter 3. Road Safety Industry Outlook                  3.1. Market Segmentation                  3.2. Market Size and Growth Prospects, 2015 - 2025                  3.3. Value Chain Analysis                  3.4. Market Dynamics                      3.4.1. Market driver analysis              
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