As per MRFR analysis, the North America Smart Highways Market Size was estimated at 7.6 (USD Billion) in 2023. The North America Smart Highways Market Industry is expected to grow from 8.8(USD Billion) in 2024 to 46 (USD Billion) by 2035. The North America Smart Highways Market CAGR (growth rate) is expected to be around 16.225% during the forecast period (2025 - 2035).
Key North America Smart Highways Market Trends Highlighted
The North America Smart Highways Market is growing quickly because people are putting more attention on making roads safer and better for transportation. The federal and state governments' investment in intelligent transportation systems (ITS) is one of the main things that drives the market.
These systems help with traffic flow and are especially important for easing congestion and making it easier for people to go around. The U.S. Department of Transportation has started a number of projects to make highways more tech-friendly, which will make travel safer and improve vehicle connectivity. Also, the movement toward green mobility and sustainability is growing in North America.
More and more people want eco-friendly ways to get around that use less energy and produce less pollution. Investments in smart highway projects include renewable energy sources, such as traffic lights powered by solar panels and charging stations for electric cars along highways. These projects are in line with bigger environmental goals.
There are other chances to improve data collecting by using linked devices and sensors on smart roadways. This technology lets you watch traffic and analyse data in real time, which can help you make smart decisions about how to keep the roadway in good shape and make it better. Cities are especially interested in using these technologies to make traffic flow better and make it easier for people to get around in cities.
The North America Smart Highways Market is changing because of the advent of self-driving cars in recent years. As more cities get ready for self-driving cars, it is clear that we need better roads that can handle these cars. As a result, government agencies, private businesses, and tech companies are working together more and more to build systems that work with each other and make it safer for self-driving cars to drive on smart highways.
The emphasis on safety, sustainability, and technological integration is transforming North America's transportation infrastructure, creating numerous opportunities for growth in the smart highways sector.
Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review
North America Smart Highways Market Drivers
Increasing Adoption of Smart Transportation Technologies
The North America Smart Highways Market Industry is witnessing substantial growth attributed to the increasing adoption of smart transportation technologies. Government initiatives in North America are promoting the integration of advanced technologies for traffic management and road safety.
For instance, the United States Department of Transportation has invested over 1 USD Billion in various smart transportation projects over the past five years, highlighting the urgency to modernize the highway infrastructure.As urban populations continue to grow, which is projected to reach approximately 90% by 2050 according to the U.S. Census Bureau, the need for innovative solutions like smart highways that utilize Internet of Things (IoT) devices for real-time data collection and traffic analysis becomes critical.
Furthermore, established organizations such as Siemens and Cisco are developing solutions that enhance road safety and efficiency, thus driving demand for smart highway systems in North America.
Government Support and Infrastructure Investments
Government support plays a crucial role in the North America Smart Highways Market Industry's growth trajectory. Recent infrastructure bills passed in the United States signal a commitment to enhancing highway systems. For example, the Bipartisan Infrastructure Law allocates approximately 110 USD Billion for roads, bridges, and public transit, emphasizing the importance of modernizing highway infrastructure.
This government backing supports the integration of smart technologies like automated tolling systems and vehicle-to-infrastructure communication, expected to reduce congestion by up to 20% according to the Federal Highway Administration.Such initiatives foster public-private partnerships, stimulating market growth as companies like General Electric and Honeywell actively participate in these projects.
Rising Traffic Congestion and Urbanization
The rising levels of traffic congestion in major urban areas across North America are also driving the need for smart highway solutions. According to the Texas A&M Transportation Institute, in 2020 alone, congestion costs U.S. drivers approximately 166 USD Billion in wasted time and fuel, a figure that continues to rise with urban population growth.
As metropolitan regions like Los Angeles and New York City expand, the implementation of smart highways that employ adaptive traffic control systems and real-time monitoring technologies to alleviate congestion is becoming essential.
Major industry players such as IBM and AT&T are investing in smart highway projects to develop solutions that optimize traffic flow and enhance commuter experience, reinforcing the demand for innovative infrastructure in the North America Smart Highways Market.
Growing Environmental Concerns and Sustainable Practices
Environmental concerns and the demand for sustainable transportation solutions are significantly influencing the North America Smart Highways Market Industry. With climate change becoming a pressing issue, many North American states are adopting policies to reduce greenhouse gas emissions.
The Environmental Protection Agency (EPA) reported a 27% increase in electric vehicle sales from 2019 to 2021, suggesting a shift in consumer preference towards more sustainable practices.This transition necessitates the integration of electric vehicle charging stations and clean energy technology into highway infrastructure, elevating the smart highways concept.
Companies like Tesla and ChargePoint are at the forefront of this movement, encouraging investment in infrastructure that supports sustainable transportation, thus boosting the overall market potential for smart highways in North America.
Smart Highways Market Technology Insights
The North America Smart Highways Market is rapidly evolving within the Technology segment, driven by increasing urbanization and the need for efficient transportation solutions. A key area of focus is the Intelligent Transportation Management System, which plays a critical role in enhancing mobility and reducing congestion by integrating advanced technologies for monitoring and controlling traffic flow.
This system utilizes real-time data analytics to optimize traffic signals, manage incidents, and improve travel times, proving essential for urban infrastructure.Meanwhile, the Intelligent Traffic Management System is also significant, particularly given the rise of vehicles embedded with smart technologies.
These systems employ automated traffic control measures and data-driven insights to facilitate seamless travel experiences and improve roadway safety. The coupling of these technologies supports sustainable practices, as they aim to reduce emissions and lower energy consumption through optimized traffic patterns.
As cities and states advocate for smarter infrastructure investments, developments in both areas are expected to drive market progression, leading to a more interconnected and efficient transportation landscape.The North America Smart Highways Market segmentation reflects the growing programs aimed at integrating these intelligent systems into the existing infrastructure framework.
The increasing adoption and reliance on technology to address age-old transportation challenges underscores the necessity of these systems in achieving long-term sustainability and operational efficiency within the North American region's transportation ecosystem. Government policies and initiatives focused on modernizing infrastructure provide a substantial foundation for these technologies, creating an environment ripe for innovation and growth in the Smart Highways Market.
Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review
Smart Highways Market Deployment Insights
The North America Smart Highways Market is undergoing significant transformation with the Deployment segment playing a critical role in shaping its landscape. The market comprises several approaches, primarily On-Premises and Cloud-based systems, both of which contribute to the region's advancing infrastructure. On-Premises solutions offer the advantage of enhanced control over data management and security, appealing particularly to government agencies and organizations preferring localized systems.
In contrast, Cloud-based deployments are gaining traction due to their flexibility, scalability, and cost-effectiveness, making them suitable for real-time data processing and analytics, which are essential for intelligent transportation systems.The preference for deployment methods is intrinsically linked to the growing emphasis on innovative traffic management systems aimed at improving safety and reducing congestion on highways.
Both deployment approaches have their unique advantages, allowing stakeholders to choose based on specific operational needs and technological capabilities. As vehicle automation and connectivity continue to evolve, the Deployment segment is expected to remain pivotal in the North America Smart Highways Market, driving the broader industry toward more efficient transportation solutions.
Smart Highways Market Regional Insights
The North America Smart Highways Market is steadily evolving, with distinct dynamics between the US and Canada shaping its growth. The US market is particularly influential, driven by government initiatives aimed at enhancing transportation efficiency and safety through advanced technologies. This includes the integration of smart traffic management systems, AI-based analytics, and vehicle-to-infrastructure communication.
Canada, focusing on its own unique challenges like vast geographical distances and diverse weather conditions, is also making strides by implementing smart highway solutions that enhance connectivity and reduce congestion.Both regions benefit from increased urbanization and the demand for sustainable transportation solutions, revealing the importance of focusing on Smart Highways Market innovations to mitigate traffic-related issues.
Accelerating technology adoption and the push for infrastructure modernization in North America are critical growth drivers that highlight the potential for significant advancements within each market. The interplay of these components underscores the relevance of regional segmentation to everything from policy formulation to the actual implementation of smart infrastructure projects, ensuring a tailored approach that addresses specific regional needs efficiently.
Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review
North America Smart Highways Market Key Players and Competitive Insights
The North America Smart Highways Market is characterized by a dynamic competitive landscape where technology-driven innovation plays a crucial role in shaping the direction of transport infrastructure development. As urban populations proliferate and road congestion escalates, intelligent transport systems are emerging as essential solutions for enhancing roadway efficiency, safety, and sustainability.
In this context, various stakeholders, including technology firms, service providers, and infrastructure developers, are vying for market share by offering cutting-edge solutions that integrate mobility management, real-time data analytics, and advanced communication networks.
Competitors in this market are focusing on developing strategic partnerships, investing in research and development, and leveraging emerging technologies such as IoT, AI, and machine learning to provide transformative and adaptive highway systems. Trafficware has established a significant presence in the North American Smart Highways Market by focusing on advanced traffic management solutions that enhance the performance and efficiency of existing transport systems.
The company's strengths lie in its comprehensive software solutions tailored for traffic signal optimization, real-time monitoring, and data-driven analytics. Trafficware's robust product portfolio includes intelligent traffic controllers and integration capabilities that facilitate seamless communication with other smart city initiatives. The company distinguishes itself with a focus on enhancing roadway safety, reducing congestion, and improving overall traffic flow, providing municipalities and transportation agencies with actionable insights to optimize their infrastructures.
Their dedication to customer service and collaboration with local governments has further solidified their position as a trusted partner in the development of intelligent highway systems within North America.TransCore, another prominent player in the North America Smart Highways Market, specializes in transportation technology that facilitates efficient tolling, traffic management, and vehicle detection.
This company is known for its state-of-the-art solutions such as electronic toll collection systems and real-time traffic information services that empower road users with immediate data for better decision-making. TransCore's extensive experience and innovative approach position it favorably in the competitive landscape, with a focus on enhancing mobility and reducing congestion.
The company's strengths lie in its robust technology platforms and its commitment to continuous improvement through research and development efforts shaped by evolving market demands. In recent years, TransCore has successfully expanded its market presence through strategic mergers and acquisitions, allowing it to diversify its offerings and strengthen its infrastructure capabilities in smart highway technologies. By providing reliable and effective solutions tailored to the unique needs of North American transportation networks, TransCore is well-positioned to play a pivotal role in the ongoing evolution of smart highways in the region.
Key Companies in the North America Smart Highways Market Include
North America Smart Highways Market Industry Developments
Recent news developments in the North America Smart Highways Market highlight a growing emphasis on technology integration and sustainability. Companies like Siemens, General Electric, and Raytheon Technologies are advancing in automated traffic management systems, aimed at enhancing overall roadway efficiency and safety.
In terms of market valuation, significant growth has been noted due to increased government spending on infrastructure improvements; for instance, funding under the Infrastructure Investment and Jobs Act has spurred initiatives among firms such as AECOM and Cubic Corporation, pushing advancements in smart traffic solutions.
In the merger and acquisition landscape, Trafficware's acquisition by a sizeable tech firm was publicly acknowledged in September 2023, indicating a notable trend of consolidation within the sector. Overall, the North America Smart Highways Market is evolving rapidly, driven by technology adoption and substantial investments.
North America Smart Highways Market Segmentation Insights
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 7.6(USD Billion) |
| MARKET SIZE 2024 | 8.8(USD Billion) |
| MARKET SIZE 2035 | 46.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 16.225% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Trafficware, TransCore, Fluor Corporation, General Electric, Siemens, AECOM, Raytheon Technologies, Cisco Systems, Hitachi, Cubic Corporation, AT&T, WSP Global, IBM, Kapsch TrafficCom, Thales Group |
| SEGMENTS COVERED | Technology, Deployment, Regional |
| KEY MARKET OPPORTUNITIES | Integration of IoT technologies, Demand for enhanced traffic management, Investment in green infrastructure, Development of autonomous vehicle networks, Expansion of smart city initiatives |
| KEY MARKET DYNAMICS | Infrastructure modernization initiatives, Growing demand for traffic management, Advancements in IoT technology, Increasing need for safety measures, Environmental sustainability concerns |
| COUNTRIES COVERED | US, Canada |
Frequently Asked Questions (FAQ):
The North America Smart Highways Market is expected to be valued at 8.8 USD Billion in 2024.
By 2035, the North America Smart Highways Market is projected to reach a value of 46.0 USD Billion.
The expected CAGR for the North America Smart Highways Market from 2025 to 2035 is 16.225%.
The United States holds the largest market share, valued at 5.5 USD Billion in 2024.
In 2024, the Smart Highways Market in Canada is expected to be valued at 3.3 USD Billion.
The Intelligent Transportation Management System is projected to reach a market value of 18.5 USD Billion by 2035.
The Intelligent Traffic Management System is expected to be valued at 5.3 USD Billion in 2024.
Major players include Trafficware, TransCore, Fluor Corporation, and Siemens, among others.
The market size of the US in the Smart Highways Market is expected to be valued at 28.0 USD Billion by 2035.
Challenges such as technological advancements and infrastructure integration may affect the growth of the Smart Highways Market.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
