Global Smart Highway Market 2026-2035

Description

List of Tables

Smart Highway Market Size, Share & Trends Analysis Report by Technology (Intelligent Traffic Management System, Intelligent Transportation Management System, Monitoring System, Communication System), By Deployment Model (On-Premise, Cloud), By Service (Consultancy Service, Maintenance & Operational Service, Managed Service), Forecast Period (2026-2035)

Industry Overview

Smart highway market was valued at $58.3 billion in 2025 and is projected to reach $364.8 billion by 2035, growing at a CAGR of 18.3% during the forecast period (2026-2035). The global smart highway market is experiencing steady expansion as countries invest in modern mobility infrastructure. The integration of advanced digital systems, real-time analytics, and adaptive control technologies has enhanced traffic efficiency and safety. Growing urbanization and the push for sustainable transport networks continue to drive demand for these solutions. Companies such as Siemens AG and Cisco Systems Inc. are deploying intelligent connectivity platforms that streamline traffic communication and monitoring. These innovations are helping governments reduce congestion and emissions across key urban corridors.

Market Dynamics

Integration of AI and Predictive Analytics in Traffic Operations

The global smart highway market is increasingly shaped by the integration of artificial intelligence and predictive analytics. Advanced algorithms are being used to forecast traffic congestion, detect anomalies, and optimize lane usage in real time. Companies such as Indra Sistemas S.A. and Iteris Inc. are at the forefront of deploying AI-enabled traffic platforms for urban and intercity roadways. Their solutions combine machine learning with sensor networks to enhance traffic visibility and decision-making accuracy. This technological shift is improving operational efficiency while reducing accident response times. As predictive analytics become more accessible, their adoption is expected to redefine highway management standards worldwide.

Expansion of Connected Vehicle and Communication Infrastructure

The rise of connected vehicle technology is accelerating investments in smart communication frameworks across global highway systems. Integration of vehicle-to-infrastructure (V2I) and vehicle-to-everything (V2X) networks enables seamless information exchange between drivers, vehicles, and control centers. Companies like Nokia Oyj and LG CNS Co., Ltd. are pioneering high-speed communication systems designed to support these connected ecosystems. Their 5G-enabled platforms enhance roadway safety and support autonomous driving features through reliable data transfer. This trend reflects the market's transition toward fully connected mobility environments. Continued collaboration between telecom operators and transport authorities is expected to further strengthen this growth trajectory.

Market Segmentation

Based on technology, the market is segmented into intelligent traffic management systems, intelligent transportation management systems, monitoring systems, and communication systems.
Based on the deployment model, the market is segmented into on-premises and Cloud.
Based on the service, the market is segmented into consultancy service, maintenance & operational service, and managed service.

Intelligent Traffic Management System Segment to Lead the Market with the Largest Share

Rising demand for intelligent traffic management solutions has become a key driver of the smart highway market. Real-time traffic monitoring and automated control systems are increasingly being adopted to address congestion in major cities. Firms such as Kapsch TrafficCom AG and Huawei Technologies Co., Ltd. are developing integrated traffic platforms that enhance signal coordination and incident response. Their technologies enable predictive analysis, reducing travel time and improving commuter safety. With continuous advancements in sensors and communication networks, these systems are becoming more reliable and scalable. This trend reflects a shift toward proactive, data-led traffic governance worldwide.

Managed Services: A Key Segment in Market Growth

The expansion of managed services has added significant momentum to the smart highway market. Governments and transport agencies are outsourcing maintenance, monitoring, and analytics operations to specialized service providers. Companies like IBM Corporation and Honeywell International Inc. offer end-to-end highway management solutions that ensure seamless system performance. Their managed frameworks support predictive maintenance and real-time operational adjustments, minimizing downtime and cost. This model allows authorities to focus on policy and planning while ensuring high service reliability. As infrastructure networks become more complex, the demand for professional management services continues to rise.

Regional Outlook

The global smart highway market is further divided by geography, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Growing Adoption of Intelligent Traffic Systems in Europe

Europe's smart highway market is witnessing strong growth driven by environmental policies and cross-border mobility initiatives. Regional governments are prioritizing intelligent traffic systems to enhance road efficiency and reduce emissions. Siemens AG and Swarco AG are actively implementing adaptive signal control and smart tolling projects across several EU countries. These projects aim to optimize energy use, improve traffic flow, and enhance commuter experience. Advanced communication systems integrated with data analytics are becoming central to European infrastructure upgrades. The continent's coordinated efforts toward digital transformation are positioning it as a global leader in smart transport innovation.

North America Region Dominates the Market with Major Share

The North American smart highway market is advancing rapidly with increased investment in digital road infrastructure and autonomous traffic systems. Public-private partnerships are promoting large-scale integration of smart sensors and cloud-based traffic control platforms. Companies such as Cisco Systems Inc. and TransCore LP are leading deployments across key corridors in the United States and Canada. Their solutions facilitate vehicle-to-infrastructure communication, supporting safer and smoother transportation. The region's emphasis on connected mobility and regulatory support for sustainable transport further accelerates market adoption. Continuous innovation in analytics and telematics continues to shape North America's road modernization efforts.

Market Players Outlook

The major companies operating in the global smart highway market include Cisco Systems Inc., Huawei Technologies Co., Ltd., IBM Corporation, Kapsch TrafficCom AG, Siemens AG, among others. Market players are leveraging partnerships, collaborations, mergers and acquisitions strategies for business expansion and innovative product development to maintain their market positioning.

Recent Developments

In September 2025, Huawei successfully held its smart port roundtable, titled "Ceaseless Smart Port, Endless Cargo Flow. The roundtable aimed to enhance the integration of ports with advanced technologies like AI to boost operational efficiency and enhance safety control. During the event, Huawei released the Intelligent Horizontal Transportation 2.0 and Port Operation AI Agent. Both solutions work on accelerating industry intelligence by providing the port industry with a digital and intelligent foundation.
In February 2025, Cisco announced a family of data center Smart Switches, disrupting traditional data center network design by enabling networking and security services in a compact all-in-one solution. Utilizing programmable AMD Pensando data processing units (DPUs), the switch functions as a high-capacity, multifunctional service-hosting device, architecturally transforming data centers to simplify their design and make them more efficient. Cisco's first integrated offering, the Smart Switch with Cisco Hypershield, introduces a new approach to securing AI data centers by fusing security directly into the network fabric.

The Report Covers:

Market value data analysis of 2024 and forecast to 2035.
Annualized market revenues ($ million) for each market segment.
Country-wise analysis of major geographical regions.
Key companies operating in the global smart highway market. Based on the availability of data, information related to new products and relevant news is also available in the report.
Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
Analysis of market-entry and market expansion strategies.
Competitive strategies by identifying 'who-stands-where' in the market.

Product Code: OMR2023708

1. Report Summary

Current Industry Analysis and Growth Potential Outlook
Global Smart Highway Market Sales Analysis - Technology | Deployment Mode | Service | ($ Million)
Smart Highway Market Sales Performance of Top Countries
1.1. Research Methodology
Primary Research Approach
Secondary Research Approach
1.2. Market Snapshot

2. Market Overview and Insights

2.1. Scope of the Study
2.2. Analyst Insight & Current Market Trends
- 2.2.1. Key Smart Highway Market Trends
- 2.2.2. Market Recommendations
2.3. Porter's Five Forces Analysis for the Smart Highway Market
- 2.3.1. Competitive Rivalry
- 2.3.2. Threat of New Entrants
- 2.3.3. Bargaining Power of Suppliers
- 2.3.4. Bargaining Power of Buyers
- 2.3.5. Threat of Substitutes

3. Market Determinants

3.1. Market Drivers
- 3.1.1. Drivers For Global Smart Highway Market: Impact Analysis
3.2. Market Pain Points and Challenges
- 3.2.1. Restraints For Global Smart Highway Market: Impact Analysis
3.3. Market Opportunities

4. Competitive Landscape

4.1. Competitive Dashboard - Smart Highway Market Revenue and Share by Manufacturers
Smart Highway Product Comparison Analysis
Top Market Player Ranking Matrix
4.2. Key Company Analysis
- 4.2.1. Cisco Systems Inc.
  - 4.2.1.1. Overview
  - 4.2.1.2. Product Portfolio
  - 4.2.1.3. Financial Analysis
  - 4.2.1.4. SWOT Analysis
  - 4.2.1.5. Business Strategy
- 4.2.2. Huawei Technologies Co., Ltd.
  - 4.2.2.1. Overview
  - 4.2.2.2. Product Portfolio
  - 4.2.2.3. Financial Analysis
  - 4.2.2.4. SWOT Analysis
  - 4.2.2.5. Business Strategy
- 4.2.3. IBM Corp.
  - 4.2.3.1. Overview
  - 4.2.3.2. Product Portfolio
  - 4.2.3.3. Financial Analysis
  - 4.2.3.4. SWOT Analysis
  - 4.2.3.5. Business Strategy
- 4.2.4. Kapsch TrafficCom AG
  - 4.2.4.1. Overview
  - 4.2.4.2. Product Portfolio
  - 4.2.4.3. Financial Analysis
  - 4.2.4.4. SWOT Analysis
  - 4.2.4.5. Business Strategy
- 4.2.5. Siemens AG
  - 4.2.5.1. Overview
  - 4.2.5.2. Product Portfolio
  - 4.2.5.3. Financial Analysis
  - 4.2.5.4. SWOT Analysis
  - 4.2.5.5. Business Strategy
4.3. Top Winning Strategies by Market Players
- 4.3.1. Merger and Acquisition
- 4.3.2. Product Launch
- 4.3.3. Partnership And Collaboration

5. Global Smart Highway Market Sales Analysis by Technology ($ Million)

5.1. Intelligent Transportation Management System
5.2. Intelligent Traffic Management System
5.3. Communication System
5.4. Monitoring System

6. Global Smart Highway Market Sales Analysis by Deployment Mode ($ Million)

6.1. On-Premise
6.2. Cloud

7. Global Smart Highway Market Sales Analysis by Service ($ Million)

7.1. Consultancy Services
7.2. Maintenance & Operation Services
7.3. Managed Services

8. Regional Analysis

8.1. North American Smart Highway Market Sales Analysis - Technology | Deployment Mode | Service | Country ($ Million)
Macroeconomic Factors for North America
- 8.1.1. United States
- 8.1.2. Canada
8.2. European Smart Highway Market Sales Analysis - Technology | Deployment Mode | Service | Country ($ Million)
Macroeconomic Factors for Europe
- 8.2.1. UK
- 8.2.2. Germany
- 8.2.3. Italy
- 8.2.4. Spain
- 8.2.5. France
- 8.2.6. Russia
- 8.2.7. Rest of Europe
8.3. Asia-Pacific Smart Highway Market Sales Analysis - Technology | Deployment Mode | Service | Country ($ Million)
Macroeconomic Factors for Asia-Pacific
- 8.3.1. China
- 8.3.2. Japan
- 8.3.3. South Korea
- 8.3.4. India
- 8.3.5. Australia & New Zealand
- 8.3.6. ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And Other)
- 8.3.7. Rest of Asia-Pacific
8.4. Rest of the World Smart Highway Market Sales Analysis - Technology | Deployment Mode | Service | Country ($ Million)
Macroeconomic Factors for Rest of the World
- 8.4.1. Latin America
- 8.4.2. Middle East and Africa

9. Company Profiles

9.1. ABB Ltd.
- 9.1.1. Quick Facts
- 9.1.2. Company Overview
- 9.1.3. Product Portfolio
- 9.1.4. Business Strategies
9.2. ALE International (Alcatel-Lucent Enterprise)
- 9.2.1. Quick Facts
- 9.2.2. Company Overview
- 9.2.3. Product Portfolio
- 9.2.4. Business Strategies
9.3. AT&T Inc.
- 9.3.1. Quick Facts
- 9.3.2. Company Overview
- 9.3.3. Product Portfolio
- 9.3.4. Business Strategies
9.4. Cisco Systems Inc.
- 9.4.1. Quick Facts
- 9.4.2. Company Overview
- 9.4.3. Product Portfolio
- 9.4.4. Business Strategies
9.5. Cubic Corporation
- 9.5.1. Quick Facts
- 9.5.2. Company Overview
- 9.5.3. Product Portfolio
- 9.5.4. Business Strategies
9.6. Honeywell International Inc.
- 9.6.1. Quick Facts
- 9.6.2. Company Overview
- 9.6.3. Product Portfolio
- 9.6.4. Business Strategies
9.7. Huawei Technologies Co., Ltd.
- 9.7.1. Quick Facts
- 9.7.2. Company Overview
- 9.7.3. Product Portfolio
- 9.7.4. Business Strategies
9.8. IBM Corporation
- 9.8.1. Quick Facts
- 9.8.2. Company Overview
- 9.8.3. Product Portfolio
- 9.8.4. Business Strategies
9.9. Indra Sistemas S.A.
- 9.9.1. Quick Facts
- 9.9.2. Company Overview
- 9.9.3. Product Portfolio
- 9.9.4. Business Strategies
9.10. Infineon Technologies AG
- 9.10.1. Quick Facts
- 9.10.2. Company Overview
- 9.10.3. Product Portfolio
- 9.10.4. Business Strategies
9.11. Iteris Inc.
- 9.11.1. Quick Facts
- 9.11.2. Company Overview
- 9.11.3. Product Portfolio
- 9.11.4. Business Strategies
9.12. Kapsch TrafficCom AG
- 9.12.1. Quick Facts
- 9.12.2. Company Overview
- 9.12.3. Product Portfolio
- 9.12.4. Business Strategies
9.13. LG CNS Co., Ltd.
- 9.13.1. Quick Facts
- 9.13.2. Company Overview
- 9.13.3. Product Portfolio
- 9.13.4. Business Strategies
9.14. Nokia Oyj
- 9.14.1. Quick Facts
- 9.14.2. Company Overview
- 9.14.3. Product Portfolio
- 9.14.4. Business Strategies
9.15. Schneider Electric SE
- 9.15.1. Quick Facts
- 9.15.2. Company Overview
- 9.15.3. Product Portfolio
- 9.15.4. Business Strategies
9.16. Siemens AG
- 9.16.1. Quick Facts
- 9.16.2. Company Overview
- 9.16.3. Product Portfolio
- 9.16.4. Business Strategies
9.17. Swarco AG
- 9.17.1. Quick Facts
- 9.17.2. Company Overview
- 9.17.3. Product Portfolio
- 9.17.4. Business Strategies
9.18. Thales Group
- 9.18.1. Quick Facts
- 9.18.2. Company Overview
- 9.18.3. Product Portfolio
- 9.18.4. Business Strategies
9.19. TransCore LP
- 9.19.1. Quick Facts
- 9.19.2. Company Overview
- 9.19.3. Product Portfolio
- 9.19.4. Business Strategies
9.20. Xerox Holdings Corporation
- 9.20.1. Quick Facts
- 9.20.2. Company Overview
- 9.20.3. Product Portfolio
- 9.20.4. Business Strategies