Road Safety Market Analysis Report By Solution, By Service, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global road safety market size was worth USD 2.7 billion in 2018. The market is projected to grow at a CAGR of 10.5% over the forecast period. Road safety includes products, services, and solutions used in preventing road accidents. Various products for road safety include detection systems, enforcement cameras, and incident response along with installation and repair of these products. These products and solutions help in ensuring the commuters' safety by maintaining discipline in traffic. Growing road infrastructure coupled with emphasizing public safety is projected to propel market growth.

There has been a considerable rise in the number of road accidents in the recent past that led to an increase in focus on road safety. As per the World Health Organization (WHO), nearly 1.35 million people die in road accidents each year. In addition, over 20 million people suffer from different kinds of nonfatal injuries. Thus, owing to the growing number of accidents, governments are focusing on strengthening road infrastructure, which, in turn, is supplementing the market growth.

The road safety market is anticipated to witness significant growth owing to favorable governments’ initiatives across the globe. For example, the U.S government introduced an initiative named Road to Zero that is aimed at reducing road accidents by 2050. National Safety Council introduced this initiative and it focuses on the adoption of a technically advanced system.

Apart from road safety, governments are also investing huge money in the development of sustainable road infrastructure to ease commuting experiences. For example, Smart Mobility 2030 plan has introduced the government of Singapore in collaboration with Intelligent Transportation Society Singapore (ITSS). The aim of this initiative is to develop an intelligent system of transport using technology. In this initiative, smart cameras, a green link determining system, and traffic light control have been deployed in July 2019.

Service Insights

Based on service, the market has been segmented into professional and managed services. Of them, managed services are projected to rise at a CAGR of 8.0% over the forecast duration. These services are managed and controlled by solution providers. The rise in popularity of outsourcing services owing to their easy operation is attributing to the growth of these services.

On the other hand, professional services occupied the largest market share in 2018 and it is projected to remain dominant over the forecast period. These services include calibration, support, training, and installation. In addition, companies are also providing monitoring, stats, and remote maintenance, which, in turn, driving the segment growth.

Solution Insights

Based on the solution, the market is segmented into incident detection & response, red light & speed enforcement, Automatic Number/License Plate Recognition (ANPR/ALPR), and others. ANPR/ALPR uses technologies such as infrared illumination and Optical Character Recognition (OCR) that help in reading the vehicle's registration number. Further, it helps in automatic toll collection, vehicle detection, and vehicle detection in cases of tax evasion. Owing to these aforementioned benefits, this segment is likely to register a significant growth rate over the forecast duration.

On the other hand, the red light & speed enforcement category accounted for over 50% of the market share in 2018. In the past, these systems were used to maintain discipline in road traffic. However, owing to advancements in technologies, companies are providing a combination of both red light and speed monitoring systems together. For example, Jenoptik introduced TrafficStar that provides speed and red light monitoring features combined, and can recognize traffic offenses using high-resolution cameras.

Regional Insights

In 2018, Europe accounted for more than 27% of the share in the global market. Owing to early technologies adoption and improved road infrastructure, the region is projected to maintain its dominance over the forecast duration. Further, the presence of various OEMs, services providers, and a huge customer base also contributes to the region’s growth. Key players such as Jenoptik, SensysGatso Group AB and Kapsch TraficCom are present in the region.

North America held a considerable market share in 2018, primarily because of the higher number of vehicles in the U.S. In the U.S, there are over 700 cars on every 1,000 people. On the other hand, Asia Pacific is estimated to ascend at a CAGR of more than 12.0% over the forecast duration. Factors such as the rise in the number of road accidents, increasing road infrastructural developments and the number of vehicles are attributing to the growth of the region.

Road Safety Market Share Insights

Owing to the presence of a large number of players, the market is competitive and fragmented in nature. Key players in the market include FLIR Systems, Inc., Jenoptik, American Traffic Solutions (Verra Mobility), Vitronic, Redflex Holdings, and FLIR Systems among others. A few major players offering solutions in each region are dominating the regional market. Strategic initiatives such as mergers & acquisitions, joint ventures, and partnerships are getting traction among consumers. For example, Verra Mobility collaborated with ANPR in order to strengthen its presence in the European market.

Amid increasing competition, the market players are emphasizing providing better services to gain an edge. Key players are providing advanced functions with an aim to increase the effectiveness of their services. For example, Redflex Holdings offers Alcyon IQ, a monitoring system that offers alerts in real-time in case of accidents.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global road safety market report based on solution, service, and region:

• Solution Outlook (Revenue, USD Million, 2015 - 2025)
    • Red Light & Speed Enforcement
    • Incident Detection & Response
    • ANPR/ALPR
    • Others

• Service Outlook (Revenue, USD Million, 2015 - 2025)
    • Professional Services
    • Managed Services

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • France
    • the Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa