The traffic sensor market is expected to grow from USD 228.0 Million in 2017 to USD 381.3 Million by 2023, at a CAGR of 8.94% during the forecast period
The market growth can be attributed to several factors such as the growing need for real-time information systems, government initiatives to modify transport infrastructure, and the increasing urbanization and population. Also, many countries are focusing on innovations and expansions in the existing projects. This factor would increase the demand for traffic sensor in the coming years.
The traffic sensor market has been segmented on the basis of sensors types, which include piezoelectric sensors, bending plates, inductive loops, magnetic sensors, image sensors, acoustic sensors, infrared sensors, radar sensors, LiDAR sensors, and thermal sensors. Among all, the market for radar sensors is expected to grow at the highest rate during the forecast period. Radar sensors are resistant to lightning and other weather conditions such as haze, rain, and cloudy conditions compared to other detection technologies such as image sensors, which acts as a major driving factor for the growth of the market for radar sensors.
Moreover, the market is segmented on the basis of application into vehicle measurement and profiling, weigh in motion (WIM), traffic monitoring, and automated tolling (e-toll). Among all applications, traffic monitoring is expected to grow at the highest CAGR during the forecast period. Vehicle counting and vehicle motion tracking are the major applications under traffic monitoring leading to a high rate of adoption of traffic sensors.
On the basis of geography, the traffic sensor market has been segmented into North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW). North America accounts for the largest market share for traffic sensors. In North America, various traffic problems are increasing day by day due to the increase in vehicles despite a large number of developments during the 2 decades in the field of roadways infrastructure. As a result, the focus of countries all over the world is shifting from the infrastructure development to the best use of infrastructure facilities available.
Moreover, the traffic sensor market in APAC is expected to grow at the highest CAGR during the forecast period. The market growth can be attributed to the several initiatives by the governments in APAC. Moreover, the presence of major players in the traffic sensor ecosystem results in the increasing adoption of traffic sensor in APAC. However, high cost and fulfillment of fundamental requirements for the installation nonintrusive sensors is a major restraint for the traffic sensor market.
Key players in this market focus more on inorganic strategies such as acquisitions and partnerships to increase their revenue. In April 2016, Kapsch TrafficCom announced the closing of the acquisition of Schneider Electric's (France) transportation business. The acquisition would expand Kapsch's portfolio and strengthen its market position, especially in Spain, Latin America, North America, and the Middle East.
Growing Need for Real-Time Information System
Government Initiatives to Modify Transport Infrastructure
Increasing Urbanization And Population
High Cost And Fulfillment of Fundamental Requirements for the Installation of Nonintrusive Sensors
Growth in Cycling Infrastructure Leading to Higher Adoption of Bicycle Counting Sensors
Adoption of Analytics-Based Transport Solutions
Deployment of Multi-Sensor for Effective Traffic Control