Road Safety Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Road Safety Market Data

Road Safety Market Trends & Drivers

V2V Communication Is a Key Market Trends

•  V2V communication, also known as connected car technology, is capable of integrating 360-degree-view sensors, which enables the car to avoid hazards on the road.
• The technology collects data from short-range (approximately 300 meters) peer-to-peer exchanges, which include other cars enabled with the same feature, to monitor or sense the surroundings and alert the driver of congestion or any danger.
• Owing to the collaborative working of the V2V technology with IoT, it is being utilized to enhance the capabilities of other technologies, such as ADAS, Pedestrian detection systems, and augmented reality head-up displays (HUDs).
• The ability of V2V depends on the data sharing among vehicles in real time.

V2V also enables other features, which include adaptive route control, best route planning in accordance with real-time situations, redirection to avoid congestion, and alerts to drivers regarding traffic conditions or any crash sites.

Rapid Urbanization and Increasing Frequency of Accidents Drive Market

• With urbanization, the need for road safety practices has increased as the growing population directly impacts the number of accidents on roads.
• With a ballooning population, roads are congested, and the number of accidents has also increased significantly. As per the WHO, the number of annual road accident deaths is approximately 1.2 million.
• The implementation of regulations by the government also significantly drives the growth of the market. There are mandates for numerous assisted-driving technologies, including anti-lock braking (ABS), electronic stability control (ESC), and lane departure warning system (LDWS), in certain European countries.
• For instance, India is highly populated and has a relatively poor road safety infrastructure, the share of road accident deaths in the country in the total number of such mishaps around the world rose from 11% to 13%, with the death toll increasing from 134,000 in 2010 to 154,000 in 2021, despite a global decline.

Presence of Numerous Standards Brings Major Challenges

• A major challenge faced by the road safety market is a lack of standardization in the rules. Different countries have different rules and regulations, network standards, and communication protocols, which restrains the solutions offered by the market players from being universally acceptable everywhere.
• The presence of a variety of specific standards across countries restricts solution providers from spreading the business across the globe. This is because market players need to provide a wide range of specifically tailored hardware and software solutions, as per requirement.
• This also impacts the cost of these solutions, especially those that are installed on onboard vehicle computers. For instance, upper-segment vehicles come with modern technologies that assist vehicles in driving through changing road conditions. On the other hand, mid- and economy-segment vehicles are integrated with cost-effective technologies.

Road Safety Industry Outlook

Solution Insights

• The automatic number plate recognition (ANPR) category is projected to grow at the highest CAGR, of 18.3%, during 2024–2030, as well as hold the largest market share. The ANPR system is extensively used in CCTVs and road rule enforcement cameras to pinpoint the location of the vehicle, by capturing photos of its registration number. This allows law enforcement agencies to know the identity of the vehicle owner and ascertain whether the vehicle was stolen.
• By integrating this software into CCTVs, breaking traffic signals, over-speeding, rash driving, driving on the opposite lane, and other traffic rules violations can be recorded and analyzed.
• The ANPR system is used for law enforcement, smart parking management, journey time analysis, intelligent traffic management, retail park security, and tollbooth records.
• Over two weeks in June 2023, Peterborough police reported around 20,000 cases of expired license plates, via ANPR-integrated CCTVs installed in its marked cars and a few unmarked cruisers.

During the study, we covered the following categories in the segment:

• Enforcement
• Automatic Number Plate Recognition (Largest and Fastest-Growing Category)
• Incident Detection and Response
• Railroad Crossing Safety
• Back Office Systems

Service Insights

• Professional services had a larger share, of around 70%, in 2023, due to the high demand for support and maintenance of road safety equipment and their deployment and integration into the overall traffic rule enforcement ecosystem.
• Professional services also include consulting and training for the equipment required to make roads safer. For instance, BRO personnel are guided toward safer and more secure strategies and policies regarding road safety.
• Moreover, road safety equipment is required to be updated in accordance with the latest traffic rules and regulations, which impels end users to contact professional service providers.
• Whereas, the managed service category is projected to grow at a higher CAGR, of 18.0%, during 2024–2030.
• Managed services improve operations and also reduce expenditures through the reduction of directly employed staff. The backbone operations, including data backup, network security, and IT support, are taken up by the managed service providers.
• Managed services eliminate chances of injustice by assessing everyone against the same objective standards, resulting in more disclosure and response to feedback.
• Providing basic information on vehicle performance regardless of the incident being accounted for in different circumstances to industry peers is a basic function managed by these entities, which further increases the possibilities of enhancing the safety standards.

The following services have been covered in the segment:

• Professional (Larger Market)
• Managed (Faster-Growing Market)

North America Holds 50% of Share

• The North American region held the largest share, with a share of around 50%, in 2023. This is due to the increasing number of road accidents in the region because of a lack of road safety infrastructure.
• With technological advancements, 5G-enabled road safety features have improved driving safety by providing real-time tracking, and pedestrian safety alerts. Moreover, this is allowing autonomous driving or self-driving concepts to flourish, which would also enable making roads safer.
• The Asia-Pacific region is projected to grow at the highest CAGR, of 18.5%, during 2024–2030.
• The rapid urbanization, the highly populated cities continue to see an increase in the number of road accidents, which has swung governments into action.
• Being a highly populated region, the road infrastructure is also vast, which necessitates a highly developed road safety system. Further, the rising adoption of ADAS, V2V Communication, AR HUDs, improved road markings and signage, intelligent speed assistance (ISA), smart traffic lights, and intelligent transportation systems (ITS) drive the growth of the market.
• In February 2024, India’s road transport and highway secretary claimed that the government has built 92,000 km of national highways in about 10 years and projected that by the end of March, the number would be 95,000 km.

The regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • U.K.
  • France
  • Spain
  • Italy
  • Rest of Europe
• APAC (Fastest-Growing Region)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • U.A.E. (Largest and Fastest-Growing Country Market)
  • Saudi Arabia
  • South Africa
  • Rest of MEA

Competitive Analysis

The global road safety market is highly competitive due to the presence of a large number of players and new product offerings. Urbanization, unmannered traffic management, and advanced technologies are positively impacting traffic control and safety and driving the market. New norms and regulations regarding road safety have impelled market players constantly to upgrade their services and expand their business via partnerships and other agreements.

Road Safety Market Companies News

• In November 2023, technology company Jenoptik developed VECTOR-SR cameras, which use a video-based system that coordinates with an intelligent virtual grid to judge if a driver is speeding. It can be operated for monitoring other traffic rule violations, such as using mobile phones or not wearing a seatbelt.
• In December 2023, Kapsch Traffic Technology integrated TrafficCom’s cameras, sensors, and radar system with an urban and flexible traffic management software platform. They are extensively being utilized on Latvia’s high-speed Kekava Bypass to ensure the safety of drivers along the route between the capital Riga and Lithuania.
• In February 2024, Motorola Solutions provided an advanced mobile application to the Department of Transport and Main Roads Queensland (DTMR) to enhance the productivity of its transport inspectors and supplement road safety in Queensland.