Equipped with artificial intelligence (AI), smart traffic cameras enhance traffic management by capturing real-time data, processing, and controlling traffic flow for public safety.
Building upon its market value of USD 8.36 billion in 2020, the growth of smart traffic cameras is primarily attributed to the increasing public safety concerns, the number of vehicles on roads, and insufficient infrastructure.
The development of smart cities is expected to accelerate market expansion. However, the high cost of equipment installation, security threats, and hacker challenges may pose difficulties in market growth.
Regional Growth
Asia-Pacific has emerged as the market leader for global smart traffic cameras in 2020 and is set to maintain its dominance in the coming years.
The region’s growth is fueled by the collective need to monitor red light violations and speed offenses, and detect road incidents such as over speeding.
Additionally, improvements in traffic infrastructure in developing nations, such as motion analysis, face recognition, video data transmission, and video information extraction, have catalyzed the growth in the Asia-Pacific region.
Market Segmentation
The surveillance and traffic management segment dominates the industry, accounting for over three-fourths of the global smart traffic camera market–the largest share in 2020.
Driven by the increase in traffic issues and environmental issues such as accidents and pollution, the surveillance and traffic management segment is poised to maintain its leading position.
Notably, the toll management segment is anticipated to exhibit the fastest CAGR of 17.0% from 2021 to 2030 due to supportive government regulations toward installing smart traffic cameras on toll booths in developing nations across Asia and Latin America, Middle East, and Africa (LAMEA).
Through connected vehicle technology, smart traffic cameras can directly control vehicles, preventing accidents with pedestrians or other vehicles.
The hardware segment delivered the highest share in 2020 and is set to uphold its market leadership throughout the forecast period. Accounting for over three-fifths of the market share, the increasing demand for hardware components drives the segment’s growth.
The software segment is projected to reveal the highest CAGR of 17.7% due to the growing demand for improved road safety and reduced traffic congestion and parameters.