Traffic has always been a cause of concern for cities and metropolitan areas of developed countries. The problem is also growing in the developing countries of the world as well. Socioeconomic development of different third world countries like China, India, Brazil, South Africa and such other countries have given way to problems like traffic congestion and mismanagement of parking and traffic facilities. Traditional traffic management solutions are falling short for managing large areas of traffic congestions, which are coming across as a universal problem. Thankfully, intervention of information technology and increasing awareness amongst governments of developing countries are positively reflecting on traffic management market. Increasing demand for these systems is driving the global market at a remarkable rate.
Drivers for Traffic Management Market
Traditional traffic management systems are not able to take care of larger degree of traffic congestion caused in multiple parts of a city. Congestion of roads leads to wastage of time, money and fuel and increases possibilities of fatalities in road accidents. In order to prevent all these effects, road traffic control organizations need strong and advanced traffic management systems (TMS). Advanced systems available on the market help users to plan journeys beforehand. Apart from that, they also help passengers to find nearest routes to their desired destinations by providing real-time solutions. This also helps reducing carbon footprints and saves fuel. As a result, travelers can enjoy traveling on congestion free roads and reach their destination in a hassle free manner. These factors are driving the global traffic management market, which is spreading its wings at a rapid rate.
Challenges for the TMS Industry
Since the advanced systems of traffic management work on information technology, the biggest challenge for the industry is predicted in the form of data management. Managing large amount of data collected from various components of the system, is going to be a major challenge for traffic management market. Increasing dependency on data integration is another challenge that the industry is about to face with the growing rate of demand and adoption. Innovation in the available technologies is also anticipated to be a challenge for the market. Marketing is also expected to be vital in the future condition of the industry.
Segmentation and Forecasting
Basic segmentation in traffic management market is based on the types of systems and solutions provided by the industry manufacturers. Major segments in the industry include dynamic traffic management systems, adaptive traffic control systems, route guidance system, traffic data management systems and urban traffic management and control systems. Segments like extra voltage solutions, LED signals and retrofit solutions, intersection controllers and parking space and toll management are expected to be some of the high growing segments in the TMS market. as far as forecasting reports are concerned, traffic management market is expected to grow at a CAGR of over 37% from 2013 to 2018. During the forecasting period, the industry is anticipated to become worth more than $21,980 million. As of 2013, the industry was worth $8,249.0 million.