Enjoy complimentary customisation on priority with our Enterprise License!
The traffic signal recognition market size is forecast to increase by USD 1.38 billion, at a CAGR of 4.75% between 2023 and 2028. Rapid urbanization is increasing the demand for efficient transportation systems and real-time information to manage traffic flow and ensure road safety. The increasing emphasis on road safety norms is driving the adoption of technologies that can help improve road safety, such as intelligent transportation systems. Further, the Internet of Things (IoT) and digital sensors play a crucial role in these technological systems by enabling real-time data collection and processing. The growing need for real-time information systems is also fueling market growth, as businesses and governments seek to improve the efficiency and safety of transportation networks. Additionally, government initiatives to modify transport infrastructure are driving investment in the market, leading to the development of new transportation solutions and systems.
To learn more about this report, Download Report Sample
The market share growth by the passenger vehicle segment will be significant during the forecast period. In 2022, the passenger vehicle segment has been the largest and fastest-growing segment of the global TSR market. A passenger car is a multi-track vehicle that is used to commute passengers. The growth of the global TSR market in the passenger vehicle segment is anticipated to be fueled by factors such as the rising demand for luxury automobiles in the passenger vehicle segment along with the rising consumer disposable income during the forecast period.
Get a glance at the market contribution of various segments Request a PDF Sample
The passenger vehicle segment was the largest and was valued at USD 3.35 billion in 2018. These high-end passenger vehicles are equipped with advanced driver assistance system (ADAS) technology, which is primarily focused on collision avoidance technologies (such as lane departure warnings and blind-spot applications). Thus, OEMs are offering ADASs with tailback sign recognition systems in the economic passenger vehicles during the forecast period to avoid traffic signal norm-related disputes. Furthermore, manufacturers of passenger vehicles are collaborating with tech companies to develop solutions that will assist their vehicles in intelligently interpreting traffic signs. This method also helps firms in the global TSR market retain market dominance. All such factors are expected to leverage the growth of the passenger vehicle segment of the market during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
APAC is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Another region offering significant growth opportunities to vendors is North America. North America has captured the largest share of the global TSR market. This is attributed to the highest urbanized landscapes of the region in the world. In the US and Canada, 80% of the population is in urban areas. These volumes of urbanization create challenges for the government to manage traffic. Thus, this is increasing the adoption of advanced technologies, such as tailback management systems, to manage traffic, which is anticipated to drive the growth of the TSR market in North America during the forecast period.
The market is witnessing rapid growth due to advancements in traffic-sign recognition (TSR) systems. These systems utilize electronics and digital sensors to detect and interpret signs, enhancing automotive safety. Integrated into Advanced Driver Assistance Systems (ADAS), TSR technology reads speed limits, lane changes, and stop-go signs, improving vehicle speed and lane departure warnings. With Internet of Things (IoT) connectivity, TSR systems are becoming standard in modern vehicles, particularly in luxury cars. As automobile giants and OEMs continue to invest in these technologies, the Market is expected to expand further. In the rapidly evolving market, advancements in technology are overcoming traditional overtaking restrictions and wrong direction alerts through sophisticated instrument clusters and warning systems.
Further, enhanced by additional signs and real-time video analysis, these solutions mitigate human errors and improve road safety. Innovations also include predictive algorithms for anticipating turns ahead and optimizing roadside spaces utilization. The market's growth is fueled by the manufacturing of state-of-the-art sensors and cameras, coupled with AI-driven processes that characterize modern traffic management. As cities expand and traffic volumes increase, the demand for reliable traffic signal recognition technologies rises, driving investments in smart infrastructure. These developments promise safer roads, efficient traffic flow, and a transformative impact on urban mobility worldwide.
Rapid urbanization and emphasis on road safety standards are the major drivers for the growth of the global market. The share of the urban population is increasing significantly every day, leading to tailbacks, especially in Tier I cities worldwide. This increase in urbanization presents major challenges for private and professional mobility in urban areas. As urban populations grow, traffic congestion increases, making commuting difficult for the general population. The rise in urban population also translates to an increase in trade volume with business partners within and outside cities. The development of such systems is crucial, especially as traffic signs become more complex and diverse. The integration of electronics and advanced driver assistance systems (ADAS) is essential for efficient traffic sign recognition technology.
Data banks and collaboration with automobile giants and OEMs are vital for the development of automotive safety systems. Technological advances in ADAS equipment are leading to innovations such as adaptive headlights, lane departure warnings, active braking, and blind-spot detection. These systems, coupled with traffic sign detection and AI software, help in recognizing and responding to speed limits, vehicle speed, lane changes, and stop-go signs. Such systems are not only crucial for passenger vehicles but also for luxury cars where safety and comfort are paramount.
Improving the regulation of traffic flows is a major growth trend in the global market. Since roads are still the most important means of transport in the world, it is thought to improve the tailback flow from the point of view of the economic development of the country. Pedestrian and vehicle safety and efficient traffic are the main factors influencing the growth of countries. Various road safety measures and solutions are being explored to improve traffic flow, and connecting traffic lights is one such solution to avoid tailback.
For instance, in 2019, the Department of Transportation in Kardinya, Australia, completed flow improvements by upgrading pedestrian facilities, extra street lighting, signal modifications, and signage marking improvements at the intersection of South Street and North Lake Road. This was done to reduce the number and severity of crashes at this intersection and improve safety for road users, as around 30,000 vehicles pass across this intersection each weekday. Thus, upgrades and improvements in flow and road safety have driven the global TSR market during the forecast period.
High costs of installation and maintenance are a major challenge to the global market. ADAS solutions are equipped with advanced software and require advanced maintenance. In addition to software, installing an intelligent tailback management system requires several hardware components, such as sensor, communication devices, and control systems. Therefore, the increase in the overall cost of these systems will limit the installation of these systems, thereby hindering the TSR market.
Furthermore, the installation and maintenance of nonintrusive sensors, such as image sensors, microwave sensors, and acoustic sensors, do not have a major impact on road traffic, and the cost of nonintrusive sensors is high compared with leading in road technologies such as inductive loops that provide detailed traffic flow data measurements. High costs impede widespread distribution and limit the application of nonintrusive sensors in gathering traffic information reducing the demand for installing sensors in cars, which is expected to hinder further the market during the forecast period.
The report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their expansion strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Continental AG - The company offers solutions for traffic signal recognition that ensure that the current speed limit and other road signs are displayed to the driver on an ongoing basis.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key traffic sign recognition system market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is witnessing rapid growth driven by advancements in Artificial Intelligence (AI) and Image sensing cameras. These technologies enable Traffic Sign Assist systems and Traffic recognition systems (TSR) to accurately identify and interpret road signs. The market is also fueled by the increasing demand for Autonomous Vehicles and Intelligent transport systems (ITS), aiming to reduce accident rates and improve road safety. As IoT technologies and Smart systems evolve, the market is expected to expand further, offering new applications and services for enhancing driver's safety and passenger's safety.
In addition, the market is evolving with advancements in Multifunction camera technology and Pedestrian detection systems. These innovations enhance automation and safety, reducing on-road accidents, deaths, and casualties. Regulatory programs like the New Car Assessment Program (NCAP) and Euro NCAP drive the adoption of Traffic sign recognition systems in vehicles, promoting road safety. The market growth is supported by Intelligent and connected devices, Software platforms, and the rise of Fully autonomous vehicles. As Urban autopilot systems develop, the market is poised for further expansion, creating investment pockets and improving traffic conditions.
Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.75% |
Market growth 2024-2028 |
USD 1.38 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.07 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, Germany, UK, Japan, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aldridge Traffic Controllers Pty Ltd., Continental AG, D G Controls Ltd., Delphi Technologies Plc, DENSO Corp., dSPACE GmbH, Elektrobit Automotive GmbH, Envoys Electronic Pvt. Ltd., European Safety Systems Ltd., Ford Motor Co., Gentex Corp., HELLA Aglaia Mobile Vision GmbH, Magna International Inc., Mercedes Benz Group AG, Mobileye Technologies Ltd., Robert Bosch GmbH, SKODA AUTO AS, SWARCO AG, Volkswagen AG, and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market forecasting, market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.