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The traffic control services market size is estimated to grow by USD 9.65 billion at a CAGR of 8.83% between 2023 and 2028. The market is experiencing significant expansion due to several key factors. Primarily, the increasing number of road accidents necessitates more effective traffic management solutions. Additionally, the growing demand for organized transportation systems, particularly in urban areas, presents a substantial opportunity for market growth. Furthermore, increasing initiatives on road safety from both public and private sectors are driving market development. These factors collectively contribute to the expanding market.
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The market is experiencing a rapid transformation due to advancements in technology such as the Internet and communication sector, Smart vehicles, and Autonomous cars. The integration of GPS and Sensor technologies has enabled the development of sophisticated Traffic management systems that support Autonomous driving. This is particularly relevant in the context of increasing Urbanization, where Artificial Intelligence and 5G Technology are utilized to provide Real-time Traffic Information for Smart Cities. The demand for Interoperability between various systems is also driving the market, while concerns about Air Pollution are prompting the deployment of innovative solutions by companies like INRIX. Whether through Cloud-Based Deployments or On-Premise Deployments, the market is poised for significant growth as it addresses the challenges of modern urban mobility. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing initiatives on road safety are notably driving the market growth and trends. Various road safety measures and solutions for improved flow are studied, along with the incorporation of control services. Traffic control services, such as lane closures and detours, flagging operations, and sign installation, can prevent errant vehicles from crashing pedestrians, infrastructure, and vehicles across the roadsides, as well as between the roads. These services are designed to prevent vehicles from negatively impacting roadside hazards by absorbing impact energy created by vehicle striking and provide an appropriate flow through channels.
Moreover, road safety programs have a positive influence on services. For instance, in 2020, the Indian government announced a 14,000 crore state support plan to improve road safety across the country. The target is set to reduce accident fatalities by 30% in a four-year period. Thus, the rise in road safety programs, which aim to lower the number of road fatalities, drives the market.
The increasing number of vehicles on the road is one of the major market trends. The increasing number of vehicles on the roads has increased the demand for better safety measures to avoid accidents and injuries. This has a positive influence on the market as it is one of the crucial road safety aspects. After the slowdown in global automobile sales in 2020 due to the outbreak of COVID-19, car sales recovered in 2021 across major countries worldwide, including the US, China, the EU, and Japan, due to ease in lockdown restrictions and large-scale vaccination drives.
Moreover, in H1 2021, the Japanese automobile market grew by 12% compared with the previous year, while in the EU, automobile sales increased by 27% compared with the previous year. The automobile industry in the US grew by almost 30% in H1 2021 over the previous year. One statistic showed that the number of registered vehicles in the US rose from 284.5 million in 2019 to 286.9 million in 2020 despite the economic slowdown caused by the COVID-19 pandemic. The increasing number of vehicles on roads leads to the increased demand for road safety, which thereby will contribute to the growth of the market during the forecast period.
The lack of skilled traffic management staff is the major challenge impeding the market growth. Companies require skilled traffic management staff to properly manage congestion and other problems. Traffic management staff have to undergo a certification course to properly and effectively use equipment that is used in jam control services. Skilled management staff should know how to effectively and safely use a stop-slow bat, direct pedestrian jams, including cyclists or those with mobility issues, and use handheld radios and other communication devices. Controllers may not be fully aware of all types of equipment and practices used in services.
Thus, the lack of trained professionals leads to low information or misinformation to authorities, which creates further issues. Also, hiring skilled professionals incurs huge costs for companies. Therefore, all these factors will act as a challenge to the growth of the market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global 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.
Triumph Traffic - The company focuses on providing traffic control services, safety training, and equipment to various construction and engineering projects.
The market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key 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 share growth of the Event Safety segment will be significant during the forecast period. The rising number of vehicles on the road and increasing road accidents, especially on the highway due to the overspeeding of vehicles, increased the demand for services on highways. Proper pacing is required on highways to reduce the number of road accidents. Thus, proper pacing is required to slow down the speed of the vehicles.
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The Event Safety was valued at USD 4.26 billion in 2018. The growth in highway infrastructure development is driving the demand. Governments of emerging economies such as India are making investments in the development of highway infrastructure. Thus, such developments in highway infrastructure will drive the growth of the market during the forecast period.
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North America is estimated to contribute 38% 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. North America is the largest region for the market. The US is the biggest contributor to the market in the region. The major driving factors for the growth of the market in North America are the increasing number of jams in the region, the high cost of developing new road infrastructure, and the need to improve overall road safety in the region. Traffic control services help improve road safety by alerting both vehicles and traffic authorities about natural calamities such as landslides or bottlenecks such as roadblocks or other related issues. The use of services also reduces the number of police personnel patrolling the roads for violations. Thus, these factors are leading to the increased demand for services in the region, which will boost the growth of the regional market during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The IoT revolution has ushered in a new era for inner-city traffic management, where digital parking and permitting services are seamlessly integrated. Leveraging big-data insights and sensors, cities are optimizing their transportation network to tackle challenges such as labor shortage and recession in an inflationary environment. Through data fusion and traffic analytics, municipalities are reimagining surveillance camera segments, enhancing driver safety and incident detection. Leading players like ZF Friedrichshafen are pioneering mobility as a service and multimodal traffic management to deliver route optimization and guidance through the cloud. The Vilnius and Athens Traffic Management Systems exemplify this shift towards dynamic traffic management in smart city projects, where surveillance cameras and location systems form a comprehensive solution to urban congestion. As cities grapple with IT budgets, the demand for smart and efficient traffic control services continues to grow. Traffic management technologies, including traffic signal control systems and connected cars, play a crucial role in public safety by mitigating traffic congestion and enhancing overall traffic management systems.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.83% |
Market growth 2024-2028 |
USD 9.65 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.92 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, Germany, China, France, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ATS Traffic, Barricade Traffic Services Inc., Claytons Traffic Control Services, Colorado Barricade Co., Direct Traffic Management Inc., GardaWorld Security Corp., JSK Traffic Control Services, Nationwide Traffic Solutions, RoadSafe Traffic Systems Inc., Roadway Construction Service, SWARCO AG, The Barricade Co., The Traffic Management Co., Traffic Control Co., Traffic Management Inc., Traffic Safety, Traffic Safety and Management Ltd., Traffic Safety Services Inc., Triumph Traffic, and United Traffic Control Services |
Market dynamics |
Parent market analysis, Market forecasting 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 market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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