Traffic management systems market will grow by 18.2% from 2018 to 2028
The global traffic management systems (TMS) market is projected to experience extensive growth from 2018 to 2028. This growth will be attributed to the burgeoning congestion levels that offer high potential for traffic management systems. The traffic management systems market is also increasing due to increasing government focus on boosting safety as well as expanding the smart city initiatives along with rapid advancements in technology, according to Future Market Insight’s report, “Traffic Management Systems Market: Global Industry Analysis (2013-2017) and Opportunity Assessment (2018-2028).“
To capitalize on this opportunity, the players operating in the market are launching new products and entering into mergers and acquisitions to acquire new technology and stay competitive in the market. For instance, in May 2015, IBM Corporation launched a transportation management solution for the New Jersey Turnpike Authority (NJTA). The launch is aimed at reducing traffic congestion and improving traffic flow by employing an enhanced system that assimilates the Internet of Things to provide advanced analytics and predictive capabilities. Moreover, the system provides central management of approximately 900 devices including drum and portable signs, variable messages, traffic cameras, and hybrid displays. Other companies operating in the market include Siemens AG, Thales Group Ad, Mitsubishi Electric Corporation, Kapsch Trafficcom, Iskra, Telegra, SWARCO, and SICE.
According to the report, the global traffic management system market is expected to witness a CAGR of 18.2% from 2018 to 2028. The market is expected to reach a worth of $14,178.4 Mn in 2018 and touch a valuation of $75,228.8 Mn by the end of 2028.
With the growing traffic congestion levels across cities, the implementation of systems to manage the traffic is increasing exponentially. This growing adoption has induced the development of advanced traffic management system devices as well as software to provide advanced capabilities and improved performance. Examples of current TMS technologies include integrated machine learning, wireless charging sensors, integrated toll management systems, weather monitoring solutions, IoT-based ITS, ITS for connected vehicles, and IoT for autonomous vehicles.
Because of the numerous benefits of traffic management systems, governments worldwide are actively engaging themselves in the deployment of smart traffic management systems. Traffic is prioritized according to real-time traffic information. For instance, in July 2017, Miami-Dade County signed a smart traffic contract of $ 11.1 Mn with Econolite Control Products. As part of this contract, the company will install 300 new smart traffic signals that will work on a new technology to change the flow of vehicles. The traffic signals cover nearly 10% of all Miami-Dade traffic lights. The growing initiatives for successful traffic management and increasing investments are projected to bode well for the global traffic management systems market in the long run.
Despite the benefits offered by traffic management systems, the restricted budgets allocated to the traffic industry remain a serious issue. Local authorities are typically budget-constrained and try to save costs by avoiding the adoption of advanced traffic management systems. In addition, the authorities of some developing and underdeveloped regions do not have sufficient budgets to implement the systems. Moreover, the additional costs involved in installation, repairs, and maintenance of these systems will increase the overall expenses. Consequently, budgetary restrictions and high costs involved with advanced traffic management systems are impeding the growth of the market.
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