>
>

Intelligent Traffic Signal System Market Size - By Technology, By Component, By Application, By End Use, Analysis, Share, Growth Forecast, 2025 - 2034

Download Free PDF

Intelligent Traffic Signal System Market Size

The global intelligent traffic signal system market size was valued at USD 5 billion in 2024 and is projected to grow at a CAGR of 10.2% between 2025 and 2034. The growing adoption of modern innovative technologies are currently taking over the intelligent traffic signal system industry by enhancing the effectiveness of traffic systems. With the growing use of AI and ML, traffic signal systems can forecast the traffic on the roads and change the signal times depending on the situation.
 

Intelligent Traffic Signal System Market

Thus, there is reduced congestion, fewer delays, and better traffic flow. Furthermore, the monitoring of traffic is now easily done with the help of IoT devices that include connected sensors, cameras, and traffic lights. Such devices allow the integration of vehicles and traffic signals by means of Vehicle-to-Infrastructure (V2I) technologies. This allows signals to give preference to emergency vehicles, public transport, and other congested areas to ensure better control of traffic.
 

For instance, in October 2024, SRL Traffic Systems launched Ultralight, a new portable traffic signal, compliant with TOPAS standards. This product is poised for growth as it satisfies the standards set by TOPAS 2540A, which is in high demand for use in Intelligent Transport Systems (ITS). Users of UltraLight using SRL’s Solar Plus technology will reduce their carbon emissions and be able to use solar energy.
 

The growing number of vehicles due to the increasing urban population across the globe has increased traffic congestion, which has led to increased travel times and inefficient movement of vehicles.  In this regard, intelligent traffic signal systems offer a technological solution by balancing the intersection traffic flow. Advanced traffic control, which uses real-time data to modify the traffic signal, helps to cut down on delays, enhance traffic flow rates, and improve traffic management overall.
 

Intelligent Traffic Signal System Market Trends

Adaptive signal control technologies are being implemented at an increasing rate due to their ability to alter traffic signals automatically based on current traffic conditions, the weather, and accidents that occur. Such ability enhances traffic flow, cuts down on traffic congestion, and improves road safety. As Smart City projects increase, cities are focusing more on incorporating IoT devices into transportation systems. Such devices, including sensors, cameras, and connected traffic lights, facilitate the collection of data in real-time and also promote communication between vehicles and other systems, which improves urban mobility coordination and decision-making processes.
 

Installing artificial intelligence and machine learning models on traffic signal systems is gaining wide acceptance. With these technologies, traffic conditions can be analyzed and congestion anticipated so that the traffic signal will cycle to the right configuration. Also, AI-enabled applications can give priority to certain routes and public transport, which leads to better distribution.
 

Integration challenges and integration costs are significant obstacles in the expansion of the intelligent traffic signal system market. Many cities still use older traffic systems, which are difficult to integrate with new modern technologies. In addition, there is little interaction between vendors to tender their products to integrate with other systems. Traffic signal systems, sensors, communication networks, and software are operating on multiple protocols and platforms, which makes communication and data exchange difficult. This results in the increase of time integration costs, mass deployment duration, and chances of service interruptions.
 

Intelligent Traffic Signal System Market Analysis

 Intelligent Traffic Signal System Market, By Application, 2022–2034, (USD Billion)

Based on application, the market is segmented into urban traffic management, highway traffic management, smart city initiatives, public transportation management, and emergency vehicle management. In 2024, the urban traffic management segment held a intelligent traffic signal system market share of over 31% and is expected to exceed USD 4 billion by 2034.
 

  • The urban traffic management segment is witnessing some traction owing to the relative ease of addressing the problems associated with increasing urbanization and related urban mobility management issues.
     
  • Traffic, however, continues to be a major challenge in cities, which has a direct impact on travel time, fuel consumption, and pollution. Existing systems for managing traffic have a systemic failure in addressing the intricate and variable nature of urban traffic.
     
  • Modern issues such as traffic congestion, poor traffic flow, and ineffective road safety measures are partly solved by intelligent traffic signal systems, which utilize real-time data and adaptational signal control technology.
     
Intelligent Traffic Signal System Market Share, By Component, 2024

Based on the component, the intelligent traffic signal system market is divided into hardware, software, and services. The software segment held around 42.5% of the market share in 2024.
 

  • The software component in the smart traffic control system market is the biggest contributor to the component segment as it is critical in the operating and optimization of intelligent traffic systems.
     
  • Key tasks, including processing traffic data in real-time, signal timing, and the entire system performance, are handled by software solutions. In contrast with the old systems with unchanging cycles for light changes in the phases, the present systems employ complex software programs to consider everything about the traffic and cycle changes to maximize usefulness and minimize the density of traffic.
     
U.S. Intelligent Traffic Signal System Market Size, 2022 -2034, (USD Billion)

North America dominated the global intelligent traffic signal system market with a major share of over 35% in 2024 and U.S. holds a significant share of this region.
 

  • Intelligent traffic systems are widespread in the US thanks to the conducive infrastructure, receptiveness to technology and extensive investment opportunities in the US. Taking into account these factors, we can see that the share of US in intelligent traffic systems is significant.
     
  • Retrofitting of information networks in different regions in the US will also reduce the incidence of road traffic in New York, Los Angeles and Chicago which have been greatly affected by the increasing urban population. Such measures would also mitigate traffic congestion that is caused by modern technological advancements. In conjunction these challenges, local governments and transport agencies have embarked on projects that enhance more efficient management of traffic congestion at the same time improving the safety of road users. For instance, AI and ML based smart traffic signal systems optimize the control of traffic patterns.
     
  • Due to initiatives geared toward developing 'smart cities' and with a focus on sustainability, there has been an increased need for intelligent traffic signal systems across Europe and all these come in the midst of the increasing urban traffic congestion.
     
  • The vehicle populations, the cities physical expansion, pollution, and extended commuting durations have all gone up due to rapid urbanization in countries including France, the Netherlands, Germany, and the UK.
     
  • Traffic management usually involves a mix of the different factors mentioned above, and when it comes to coping with the congestion issues, the traditional methods tend to be inefficient, which results in a requirement for ITSS systems. ITSS systems comprise technologies that enhance safety, streamline communication, and give real-time control over traffic lights, among other things.
     
  • There's been a high boost in demand for intelligent traffic signal systems in the Asia Pacific, and this can be attributed to the massive urbanization, growing ownership of vehicles, and infrastructural techniques aimed at developing countries, including India and China.
     
  • The region is amidst one of the largest urbanization and population influxes, which makes it quite difficult as there are a ton of challenges that need to be dealt with, including pollution, outdated transportation systems, and traffic congestion.
     
  • The situation has been worsened by the constant rise in the number of vehicles, which has increased average commute time and worsened air quality overall. Issues such as these can't be resolved with the traditional traffic managing systems at hand, leading the way for more evolved solutions including ITSS to surface.
     

Intelligent Traffic Signal System Market Share

Siemens and Cubic Corporation collectively held a substantial market share of over 12% in the intelligent traffic signal systems industry in 2024.
 

  • The two firms possess a notable share of the intelligent traffic signal system market due to their know-how, high-end technology, and integrated solutions.
     
  • Siemens offers various traffic systems that are integrated with Artificial Intelligence and cloud-based platforms, which assist cities in enhancing their traffic control and curbing congestion.
     
  • Cubic Corporation provides customizable solutions that aim at resolving the intricate issues of urban mobility with the help of data-driven technologies and effective transport systems. Their combined efforts in research and development, wide market coverage, and innovation dynamics allow both firms to retain their leadership in this market.
     
  • Swarco AG and Teledyne FLIR are focusing on particular strategies to widen the range of their activities within the intelligent traffic signal systems market. Around the same time, Swarco AG is increasing its portfolio of smart mobility solutions with new offerings pertaining to cloud software and sophisticated traffic control systems.
     
  • The firm is also increasing its participation in international smart city initiatives and works with municipalities to deploy intelligent traffic control solutions.
     
  • Similarly, Teledyne FLIR is increasing its presence in the market with new products such as thermal imaging and modern sensors that are integrated into traffic control signal systems alongside AI-based analytics. All of these innovations aim to enhance safety and traffic control and aid in the decision-making process in real-time.
     

Intelligent Traffic Signal System Market Companies

Major players operating in the intelligent traffic signal systems industry are:

  • AECOM
  • Cubic
  • Dynniq
  • Econolite
  • Intelligent Traffic Systems
  • Iteris Inc
  • Kapsch
  • LG CNS
  • LITE-ON Technology
  • Parsons
     

Just like any technological market, the APTS market also faces fierce competition as firms are keen on capturing market share through technological advancement and innovations. The enhancement of something that escalates operational efficiency, eases the traffic, and improves the experience of a passenger alongside the growing necessity for more competent, dependable, and eco-friendly public transportation solutions is indeed moving towards a direction for a revolution.
 

Global market leaders are observing the flux in the intelligent traffic signal systems market due to several factors such as mergers and acquisitions, strategic alliances with the government and transportation authorities, and raising their expenditure on research and development. For instance, companies are integrating AI, IoT, and cloud computing to gather real-time insights and use them to customize engagement models, thereby eliminating operational hurdles.
 

Intelligent Traffic Signal Systems Industry News

  • In August 2024, The GMDA is set to further develop the smart traffic signal project by adding 32 junctions in the Gurugram Sector 58 to 115. This is part of the second phase of the smart traffic control project aimed at improving the level of control over vehicle traffic and the safety of pedestrians within the city as it is ongoing. These new smart traffic signals are also integrated with ATCS which modify and change the timings of traffic lights according to the density and movement of other automobiles using real time data.
     
  • This capability is designed with the sole purpose of improving traffic and minimizing congestion. To cut down the risks associated with busy traffic intersections, user-friendly signals, which will also include pedestrian lights, will be fitted.
     
  • In July 2024, LEOTEK announced its successful acquisition of Dialight’s traffic business, a well-known global LED commercial and industrial luminaire company. These further positions them as one of the key suppliers and manufacturers of traffic signals within the Americas region. This event can also be interpreted as a company’s strategic attempt to extend its positioning within the smart transportation space, which is a part of LEOTEK’s geographic expansion plan.
     

The intelligent traffic signal systems market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

Market, By Technology

  • Fixed time signal systems
  • Vehicle actuated signal systems
  • Adaptive signal control systems
  • Artificial intelligence-based signal systems
  • Connected vehicle-based signal systems

Market, By Component

  • Hardware
    • Traffic signal controllers
    • Sensors
    • Communication devices
    • Power supply systems
  • Software
    • Traffic management software
    • Analytics platforms
    • Cloud-based solutions
  • Services
    • Installation
    • Maintenance
    • Consulting
    • Integration services

Market, By Application

  • Urban traffic management
  • Highway traffic management
  • Smart city initiatives
  • Public transportation management
  • Emergency vehicle management

Market, By End Use

  • Government transportation departments
  • Municipal corporations
  • Highway authorities
  • Public transit agencies
  • Smart city developers
  • Private infrastructure companies

The above information is provided for the following regions and countries:

  • North America
    • US
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
    • Russia
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Southeast Asia
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia

 

Authors: Preeti Wadhwani, Aishvarya Ambekar
Frequently Asked Question(FAQ) :
Who are the major players in the intelligent traffic signal system industry?
The key players in the industry include AECOM, Cubic, Dynniq, Econolite, Intelligent Traffic Systems, Iteris, Kapsch, LG CNS, LITE-ON Technology, and Parsons.
How much is the North America intelligent traffic signal system market worth?
How big is the intelligent traffic signal system market?
What is the size of the software segment in the intelligent traffic signal system industry?
Intelligent Traffic Signal System Market Scope
  • Intelligent Traffic Signal System Market Size
  • Intelligent Traffic Signal System Market Trends
  • Intelligent Traffic Signal System Market Analysis
  • Intelligent Traffic Signal System Market Share
Related Reports
    Authors: Preeti Wadhwani, Aishvarya Ambekar
    Buy Now
    $4,123 $4,850
    15% off
    $4,840 $6,050
    20% off
    $5,845 $8,350
    30% off
        Buy now
    Premium Report Details

    Base Year: 2024

    Companies covered: 20

    Tables & Figures: 200

    Countries covered: 22

    Pages: 180

    Download Free PDF

    Top