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Smart Roadside Infrastructure Market

Smart Roadside Infrastructure Market

The market for Smart Roadside Infrastructure was estimated at $2.1 billion in 2024; it is anticipated to increase to $4.6 billion by 2030, with projections indicating growth to around $8.8 billion by 2035.

Report ID:DS2004047
Author:Swarup Sahu - Senior Consultant
Published Date:June 2025
Datatree
Automotive & Transportation
A&T Technologies
Smart Roadside Infrastructure
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Report Summary
Table of Contents
Methodology
Market Data

Global Smart Roadside Infrastructure Market Outlook

Revenue, 2024

$2.1B

Forecast, 2034

$7.7B

CAGR, 2024 - 2034

13.8%
The Smart Roadside Infrastructure industry revenue is expected to be around $2.4 billion in 2025 and expected to showcase growth with 13.8% CAGR between 2025 and 2034. Given these impressive forecasts, There is no doubt that Smart Roadside Infrastructure holds immense significance in today's tech-driven age. The escalating trends of connected vehicles, coupled with increasingly smarter cities, substantially push the demand for these infrastructures. Regulatory focus on safety and sustainability, advancements in communication technology, and a growing need for refined traffic management also fuel this ongoing relevance.

At its core, Smart Roadside Infrastructure houses advanced technologies such as AI, IoT, and data analytics, that facilitate real-time information sharing, seamless traffic flow and increased safety. Its vital role in connected vehicle systems, modern traffic management solutions, and automated toll collections underscore its growing acceptance. Moreover, the trend of real-time weather reporting and predictive analyses for road conditions has been gaining traction and contributing to the mounting demand.

Smart Roadside Infrastructure market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034

Market Key Insights

  • The Smart Roadside Infrastructure market is projected to grow from $2.1 billion in 2024 to $7.7 billion in 2034. This represents a CAGR of 13.8%, reflecting rising demand across Intelligent Transport Systems, Emergency Services and Environmental Monitoring.
  • The market leaders Siemens AG Bosch Group and Cisco Systems Inc. drive the competitive dynamics of this sector.
  • U.S. and China are the top markets within the Smart Roadside Infrastructure market and are expected to observe the growth CAGR of 12.4% to 16.6% between 2024 and 2030.
  • Emerging markets including India, South Africa and Brazil are expected to observe highest growth with CAGR ranging between 9.7% to 14.5%.
  • The Smart Roadside Infrastructure market will receive an additional $800.0 million in growth through 2030 because of Transition like Integration of IoT in Transportation Infrastructure.
  • The Smart Roadside Infrastructure market is set to add $5.6 billion between 2024 and 2034, with manufacturer targeting Road Safety & Freight Management Application projected to gain a larger market share.
  • With Rising demand for smart cities, and Evolution of connected and autonomous vehicles, Smart Roadside Infrastructure market to expand 264% between 2024 and 2034.
smart roadside infrastructure market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032

Opportunities in the Smart Roadside Infrastructure

There is a growing trend of governments collaborating with private entities for the development of Smart Roadside Infrastructure.

Growth Opportunities in North America and Asia-Pacific

North America Outlook

In North America, the implementation of Smart Roadside Infrastructure is significantly evolving. The regions robust tech ecosystem, coupled with comprehensive policies focused on traffic management and road safety, serve as significant drivers in this market. The United States is spearheading this innovation front with an impressive spate of breakthroughs in the Intelligent Transportation Systems domain. Embracing smart technologies including AI, IoT and ML in roadway infrastructure has enhanced the flow of traffic, commuter safety, and overall efficiency. However, the degree of competition in North America is relatively high, primarily influenced by the presence of globally reputed tech conglomerates steering the smart roadside infrastructure landscape. Top opportunities lie in tapping into the rapid urbanization trend, escalating smart city projects, and escalating focus on vehicle-to-infrastructure communication technology.

Asia-Pacific Outlook

Contrastingly, the Asia-Pacific region stands as an emerging hub for Smart Roadside Infrastructure. Countries like China, Japan, South Korea, and India are making significant strides in this sector. The regions market growth is fueled by mounting traffic congestion issues, rising urban population, and an increasing emphasis on smart city development initiatives. Furthermore, the evolution of 5G and IoT technology has opened new growth avenues for technologically advanced roadside systems.

Market Dynamics and Supply Chain

01

Driver: Rising Demand for Smart Cities, and Stringent Government Regulations

Smart Roadside Infrastructure plays a critical role in the development of smart cities. It enhances mobility, safety, and efficiency via intelligent transportation systems blending technology and infrastructure seamlessly. Technologies such as Intelligent Traffic Management and Vehicle to Infrastructure communication are also integral parts of smart cities, fuelling the demand for smart roadside infrastructure. Governments globally have also implemented regulations and initiatives to improve road safety and decrease traffic congestion, prompting advancement and deployment of smart roadside infrastructure. The technology aids in regulatory compliance by providing essential traffic data, improving safety standards, and managing congestion.
The rapid evolution of connected and autonomous vehicles demands sophisticated technologies for seamless navigation and communication. This has also led to the growth of smart roadside infrastructure providing essential support in data communication and real-time decision making.
02

Restraint: Substantial Initial Investment

The deployment of Smart Roadside Infrastructure often requires a significant capital outlay. This includes the costs of technologically advanced equipment, installation, training personnel, and ongoing maintenance. Due to this monetary constraint, many potential market entrants, particularly in developing regions, struggle to adopt Smart Roadside Infrastructure, impacting its overall market demand.
03

Opportunity: Unleashing smarter city infrastructure and Advancements in IoT and AI technologies

As the tug-of-war between urbanization and sustainability continues, the need for Smart Roadside Infrastructure is more critical than ever. These solutions can be leveraged to build more intelligent and efficient city infrastructures. Incorporating real-time data processing mechanisms, they can facilitate traffic management, incident detection, weather surveillance, and more, reducing carbon footprints and enhancing the overall quality of urban life. Also, effective utilization of these systems in untapped markets like Africa and South America could provide significant growth opportunities.
The amalgamation of IoT and AI technologies in the domain of Smart Roadside Infrastructure introduced a new paradigm of possibilities. Roadside devices equipped with AI can process vast amounts of data from sensors and predict potential road hazards in real time. On the other hand, IoT enables seamless communication among devices, making real-time traffic control a possibility. This technological innovation will continue to propel the market, presenting unprecedented growth avenues.
04

Challenge: Technical Complexities and Vulnerability to Cyber Threats

The complexity of integrating Smart Roadside Infrastructure into existing transportation networks can pose substantial challenges. It requires a high level of technical expertise, network capacity, and security measures to prevent cyber threats. This vulnerability to cyber threats and the technical complexities involved restrict the wide-scale adoption of Smart Roadside Infrastructure, thereby impacting the market dynamics.

Supply Chain Landscape

1
Raw Materials Acquisition

Bosch

Siemens

2
Component Manufacturing

Intel

Qualcomm

3
Infrastructure Assembly & Integration

Cisco Systems

IBM

4
End-User

Traffic Management

Fleet Management

Connected Vehicle Services

*The illustration highlights the key stakeholders within the supply chain ecosystem.

Applications of Smart Roadside Infrastructure in Intelligent Transport Systems, Emergency Services & Environmental Monitoring

Intelligent Transport Systems

Smart Roadside Infrastructure plays a pivotal role in the Intelligent Transport Systems.High-resolution cameras, induction loops, and radar sensors commonly constitute the infrastructure, utilized for traffic management, monitoring, and car-to-infrastructure communication. Global entities like Siemens and IBM are offering distinct solutions, leveraging smart infrastructure for more efficient and safer transportation.

Environmental Monitoring

Smart Roadside Infrastructure assumes significance in environmental monitoring. Pollution monitoring sensors and noise measurement devices embedded within the infrastructure actively track environmental factors along the roads. Companies such as Honeywell and Schneider Electric employ this smart infrastructure to provide real-time environmental data, ensuring safer living conditions.

Emergency Services

In emergency services, Smart Roadside Infrastructure incorporating emergency call boxes and Variable Message Signs offers critical assistance. They provide real-time information and enable communication during emergencies. Companies like SWARCO are harnessing this smart infrastructure to enhance roadside safety and emergency response capabilities.

Recent Developments

November 2024

Intelligent Systems Solutions Inc. completed a $5 million project to integrate smart roadside infrastructure into the urban grid of New York City, effectively enhancing traffic flow and safety measures

September 2024

Teledyne Technologies Inc. bagged a contract from the UK Government to deploy smart roadside infrastructure across the M5 motorway, showcasing a proactive approach towards adopting intelligent transportation solutions

July 2024

Urban Mobility Solutions Ltd. announced the successful launch of their next-generation smart roadside infrastructure offerings, promising a significant boost in traffic management efficiency and reducing accident rates.

The emergence and rapid adoption of smart roadside infrastructure have significantly transformed the transportation industry. The intelligent transportation systems have advanced beyond basic functionality to incorporate data-driven solutions, making travel more efficient and safe. One notable development in recent years is the integration of IOT technology. IoT enhances the capabilities of Smart Roadside Infrastructure by enabling real-time data sharing and advanced analytics.

Impact of Industry Transitions on the Smart Roadside Infrastructure Market

As a core segment of the A&T Technologies industry, the Smart Roadside Infrastructure market develops in line with broader industry shifts. Over recent years, transitions such as Integration of IoT in Transportation Infrastructure and Advent of Autonomous Vehicles have redefined priorities across the A&T Technologies sector, influencing how the Smart Roadside Infrastructure market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Integration of IoT in Transportation Infrastructure

The evolution of the Smart Roadside Infrastructure market has been significantly altered by the integration of IOT technologies. These advancements have enabled the creation of an interconnected network of devices, enhancing the collection and use of data in roadside infrastructure. IoT technology within Smart Roadside Infrastructure can augment traffic management systems, enable realtime monitoring of traffic conditions, and improve vehicle safety with better communication between vehicles and infrastructure. This transition has profoundly impacted the transportation and communications industries leading to reduced traffic congestion, increased safety, and improved overall efficiency. This industry transition is expected to add $800 million in the industry revenue between 2024 and 2030.
02

Advent of Autonomous Vehicles

The ongoing advancement of autonomous vehicle technology is creating a significant transition in the Smart Roadside Infrastructure industry. Selfdriving vehicles require highly efficient and realtime data transmission systems for navigation, communication, and safety purposes. In response, Smart Roadside Infrastructure is being equipped with sensors, communications systems, and data processing capabilities to support these autonomous vehicles. This transition massively impacts the automotive industry, thereby revolutionizing commuting, freight transportation, and overall vehicle safety.

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