Smart Highways Market Size
The global smart highways market was valued at USD 36.28 billion in 2025 and is projected to reach nearly USD 80.23 billion by 2033, growing at a CAGR of 17.95% during the forecast period from 2026 to 2033.
The market is witnessing strong growth driven by increasing investments in intelligent transportation infrastructure, rising urbanization, and growing demand for safer and more efficient road networks worldwide. Smart highways are gaining significant importance due to their ability to improve traffic management, enhance road safety, reduce congestion, optimize fuel consumption, and support connected and autonomous vehicle ecosystems. Increasing government focus on smart city initiatives, sustainable mobility solutions, and advanced transportation systems is further accelerating the expansion of the global smart highways market.
The market is also benefiting from continuous advancements in IoT-enabled traffic monitoring systems, AI-powered analytics, intelligent signaling technologies, vehicle-to-infrastructure (V2I) communication, and smart lighting solutions that improve real-time traffic flow and operational efficiency. Growing adoption of smart highways across urban transport corridors, expressways, toll roads, and logistics networks is creating substantial long-term growth opportunities worldwide. Rising investments in 5G infrastructure, electric vehicle charging corridors, connected mobility platforms, and renewable energy-powered road systems are further strengthening market development across both developed and emerging economies.
Leading companies, including Siemens Mobility, Kapsch TrafficCom, Cisco Systems, IBM, and Schneider Electric, are actively focusing on AI-driven traffic management systems, connected mobility infrastructure, smart tolling technologies, and advanced roadway monitoring solutions to strengthen their global market presence. Recent investments in autonomous vehicle infrastructure, smart sensor networks, digital twin transportation platforms, and sustainable highway electrification technologies are expected to reshape the competitive landscape of the smart highways market over the coming years.
Smart highways and roads are the types of roadways that exploit the technological advances in the field of electronics and ICT (Information and Communications Technology) to resolve the issues of current transportation. A road that monitors the traffic flow through a centralized monitoring system and provides solutions to ensure effective transportation is an instance of a smart highway.
Smart Highways Market Summary
| Metrics | Details |
| Market CAGR | 17.95% |
| Segments Covered | By Component, By Deployment Model, By Technology, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Smart Highways Market Dynamics
The global market of smart highways is affected by drivers like the need for better and sustainable highways, increasing demand for smart cities, supported by the government in developing better transportation methods, increasing vehicular population, and innovation in information and communication technologies.
Need for better and sustainable highways
One of the major problems faced by commuters daily is traffic congestion. According to TT Traffic Index 2019 report, traffic congestion has gone up globally for the last decade and so has the opportunity cost of extra time spent on the road by people. The most congested cities in the world are Mumbai in India, with 65% extra time spent in traffic by its drivers, followed by Bogota in Colombia with the percentage to be 63%, Lima in Peru with 58%, New Delhi in India with 58% and Moscow in Russia (56%).
Another problem faced by commuters is traffic accidents. According to the World Health Organization Report on Traffic,2020, approximately 1.35 million people die each year as a result of road traffic crashes, road traffic crashes cost most countries 3% of their gross domestic product, and road traffic injuries are the leading cause of death for children and young adults aged 5-29 years.
It can be solved to a significant extent by incorporating technology in vehicles and roadways. By integrating Networking and Machine Learning technology in traffic lights, the roads become smart enough to respond to real-time demand. One use case is when the traffic at certain roads intersections is uncontrollably higher than on other connecting roads. Smart traffic lights can collect and analyze real-time data to cooperate with other traffic signals on the same road and maximize road capacity.
For instance, Barcelona has adopted the Dynamic Forecasting System which has two aspects Parking management and traffic control cameras that try to improve traffic congestion. There are sensors installed at parking spots and video with analytics that provide real-time data on parking availability, which are transmitted through the city’s Wi-Fi infrastructure, linking devices belonging to the end-user and local authorities. Traffic control cameras are connected by fiber optics to the transport authority to monitor traffic in real-time, providing the control center with means to increase or reduce the frequency of green lights according to the traffic conditions.
Another purpose that the integration of ICT (Information and Communications Technologies) and electronic technologies accomplish is avoiding and increasing response time to accidents on the highways. A substantial number of accidents are caused due to vehicles, especially trucks being overweight and traveling at non-permissible speeds. Weigh-in-motion (WIM) devices are installed at entry points which collect the weights and size of the vehicles, thus alerting the highway system of the potential threat. Sensors lined on highways are used to detect accidents.
The Eastern peripheral expressway in India which is the first and only finished smart highway project in India has WIMs installed at every entry point with two gates one leading to the expressway and the other for a U-turn. This application of WIMs has considerably reduced the frequency of accidents in contrast to other national highways where traffic congestion is comparable.
Clean Energy and Drop-in Fossil Fuel Consumption
Nations around the world are investing actively and hugely in smart city projects. For instance, China has over 300 smart city projects and India is going to invest trillions in over 100 smart city projects.
The rapid transportation of goods and commodities has enabled the scaling of businesses and the creation of new cities. While transportation is commonly viewed as a classical civil and structural engineering problem, it is increasingly becoming digitally enabled with info-communication technologies.
Solar panel technology used in smart highways attempts to reduce the consumption of fossil fuels and provides clean energy for the environment. According to a report by World Health Council, in 2021, the global energy demand is expected to double by 2050. To meet this demand smart roads can be used to capture, store and redistribute energy.
The world’s first solar road opened to public traffic in Jinan, Shangdong, China in 2017. It is said to generate enough power for 800 homes. In its first 14 weeks of testing the photovoltaic cell(solar) road generated 96 MW of energy. The power generated is expected to power street lamps and signposts. The solar technology innovators in China predict that with the advancement of solar technology in China the cost of installation of the photovoltaic cell on the roads will considerably drop. They further claim that if two lanes of every highway are installed with solar cells, then it can produce nearly 7 million GWh per year which is 1.3 times the total power consumption of China in 2015 and will reduce greenhouse gas emissions by 7.2 billion tonnes.
One use case of smart highways is reducing the carbon emission of vehicles by using electrified roads. The general population of the smart cities will tend to use electric vehicles and the recent surge in the market of electric vehicles points towards it. A person can only charge his vehicle at the nearest charging station. These stations are rarely located near each other; hence the electric car companies use high-capacity batteries. The installation of electric lines on the roads will change the way one charges an electric vehicle. The vehicles can be charged while in motion. This allows the electric vehicles to use batteries significantly smaller in size thus reducing carbon emission by about 80-90%.
Sweden was the first nation to implement this technology on a 1.2-mile stretch of road in Stockholm. The stretch has embedded electric rails which charge the batteries of trucks and other electric vehicles. The country has planned to expand this project throughout the country to become fossil-fuel-free by 2030.
The Global Smart Highways Market is also affected by restraints like lack of infrastructure, government funding, technical knowledge and training, and strict laws imposed on construction companies.
Smart Highways Market Segmentation Analysis
The global smart highway market is segmented based on the component, deployment model, technology, and region. In terms of components, it is split into hardware, software, and services. In terms of the deployment model, the software market is bifurcated into on-premise and cloud. In terms of technology, it is divided into the intelligent transportation management system, intelligent management system, communication system, monitoring system, and others.
The component segment of the market is dominated by hardware as is evident from the graph. The Intelligent Highway Management system uses smart traffic lights which are embedded with IoT devices, video imaging cameras, and other hardware devices. In August 2020, the UN General Assembly adopted a resolution "Improving global road safety", announcing the Decade of Action for Road Safety 2021-2030, with the ambitious target of preventing at least 50% of road traffic deaths and injuries by 2030.
The Weight in Motion devices includes sensors, charge amplifiers, an inductive loop system, measuring system, and video imaging cameras. Overloaded trucks and lorries can cause various kinds of hazards such as mechanical failures and structural deformation, which causes accidents, and it is an illegal and punishable offense in many countries. For instance, according to the South African National Road Traffic Regulations, driving an overloaded vehicle leads to prosecution for an offense under regulations in the National Road Traffic Act. According to the U.S. Department of Transportation, vehicle conditions and road/environmental conditions are the two factors that are collectively responsible for 5.2% of road accidents.
The software component is becoming increasingly efficient with the advancement of technology and hence there is a rise in its deployment. For instance, in May 2021, a Finland-based company called Wirepas announced the world’s first intent-based non-cellular 5G technology. This will allow any network to work autonomously and allow systems to automate it to its purpose. This will allow more IoT devices to be installed as the cost of connecting these devices would reduce significantly. Thus, a greater number of traffic signals would be able to communicate with each other.
Global Smart Highways Market Geographical Share
In terms of region, the global smart highways market is divided into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America dominated the market. It is expected to grow at the highest CAGR during the forecasted period due to advanced technology and raise government investment for sustainable development with growing traffic followed by the Europe region. According to a report by Forbes, in 2020, six of the ten smartest cities in the world are located in North America and Europe.
For instance, in 2018, Eberle Design Inc, a US-based manufacturer and developer of electronic intersection monitoring and detection products for traffic, launched a traffic data aggregator called iCITE® Data Aggregator – an innovative way to collect and analyze traffic safety metrics for more intelligent traffic management. The useful interpretation of the data collected into real-time information provides for effective action by traffic engineers.
According to the Urban Institute of Brooking Institution Tax Policy Center Organization in 2017, the United States state and local governments have spent around USD 181 billion on the development of highways. Approximately 6 percent of direct general spending on road and highway development includes smart devices and software expenditure.
Key Developments
February 2026: Rising demand for intelligent transportation systems, connected infrastructure, and traffic management solutions accelerated growth in the global Smart Highways market across North America, Europe, and Asia-Pacific. Companies increased investments in advanced mobility technologies and smart infrastructure development.
January 2026: Increasing adoption of AI-enabled traffic monitoring, smart sensors, and vehicle-to-infrastructure communication strengthened innovation in the Smart Highways market across the United States, China, Germany, and Japan. Governments focused on next-generation transportation systems and digital highway technologies.
December 2025: Growing focus on road safety, traffic congestion reduction, and sustainable transportation accelerated investments in smart highway projects across Europe, North America, and Asia-Pacific. Organizations expanded intelligent traffic management and connected mobility initiatives.
November 2025: Expansion of urban infrastructure, electric vehicle networks, and smart city projects across Asia-Pacific and North America supported rising demand for smart highway technologies globally. Enterprises increased investments in advanced transportation infrastructure and automated traffic control systems.
October 2025: Rising advancements in AI-powered surveillance, IoT-enabled highway systems, and smart lighting technologies improved operational efficiency across the United States, Europe, and China. Research organizations focused on autonomous mobility solutions and sustainable transportation technologies.
September 2025: Increasing collaborations between transportation authorities, technology providers, and infrastructure companies accelerated development in the Smart Highways market across Europe, North America, and Asia-Pacific. Companies focused on strategic partnerships and commercialization of intelligent roadway solutions.
August 2025: Growing investments in smart road infrastructure, digital tolling systems, and connected transport networks strengthened market expansion across China, India, the United States, and Europe. Enterprises increasingly adopted AI-driven traffic systems and automated highway management technologies.
July 2025: Rising focus on autonomous vehicles, smart mobility, and real-time traffic analytics accelerated market developments globally. Analysts highlighted growing demand for connected transportation systems and intelligent roadway infrastructure as major growth drivers.
June 2025: Increasing demand from transportation authorities, infrastructure developers, and smart city projects supported strong growth in the global Smart Highways market. Asia-Pacific remained the leading region, while North America emerged as a fast-growing market supported by urban modernization and expanding intelligent transportation investments.
Smart Highways Market Companies and Competitive Landscape
The global market of smart highways has many key corporations including ABB Ltd, ALE International, AT&T Inc., Cisco System Inc., IBM Corporation, Huawei Technologies Co. Ltd., LG CSN, Honeywell International Inc., Schneider Electric SE, and Siemens AG. The different growth strategies adopted by the companies include product launches, improving relations with the state and central government, initiating environment-friendly projects, and various others. The broad array of technological products that are launched from time to time and the opportunities available due to a wide spectrum of problems make the market highly competitive.
A US-based start-up called SURTRAC creates software that aims to reduce traffic congestion, and waiting time and decrease pollution in urban cities. One city which has witnessed these results is Quincy, Massachusetts where the software is installed in around 20 busiest intersections. With the success of examples like Quincy, the federal and state transport authority is looking forward to installing SURTRAC (the name of the software) in highly populated cities.
In the Netherlands, a construction company called Heijmans developed a cheaper solution to ensure safety on the highways by deploying glowing lines as a pilot project. The roads are painted with a certain chemical that charges during the day and glows for around 8 hours during the night acting as the partition of the roads and borders on the curves of steep slopes. A solution that uses minimal resources attracts contracts from the government.
