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India traffic signal controller market size was valued at USD 76.5 million in 2021. The market is projected to grow from USD 87 million in 2022 to USD 271.8 million by 2029, exhibiting a CAGR of 17.68% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, with the traffic signal controller market experiencing lower than anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the Indian market had exhibited a decline of 10.39% in 2020 as compared to 2019.
The traffic signal controller are installed at road intersections which are used to provide to control and manage the flow of traffic. Due to rapid urbanization and globalization, India witnessed a hike in the number of on-road vehicles. According to the World Bank, using development indicators, India's urban population was reported at 35.39 % in 2021 and is growing at the rate of 34.92 %. Thus, increase in the movement of people and on-road vehicles, causing traffic congestion and road accidents, further propelling the demand for such systems.
Use of standard and smart traffic controller in urban areas results in steady traffic management that further ensures smooth and efficient traffic flow. Moreover, rising demand for these systems considering the benefits and reduction in road accidents are further propelling the demand for market. In addition, technological developments and key operating player’s active involvement in this business is growing.
Supply Chain Disruptions During Pandemic to Hamper Market Growth
COVID-19 impacted halted investment contracts on a larger scale and led to liquidity issues during and after the pandemic. Companies and contractors in the infrastructure sector, depending upon workforce and machinery on a larger scale, faced liquidity issues due to higher increasing debts lowering cash flows. Supply chain interruptions will continue to affect the availability of parts and equipment, eventually impacting projects. Commissioning of various road and other projects were delayed to 2021 and beyond.
Due to the lockdown, there has been a reduction in usage and demand for significant infrastructure assets like transportation. This continued to affect market demand even post impact of COVID-19, as well as the generation of revenue. Various City Municipal corporations are also taking initiatives for the development of traffic signals systems. For instance, On 22 September 2019, Additional Commissioner of Police (Traffic) B R Ravikan the Gowda, along with The Bengaluru Traffic Management, announced plans to integrate traffic signals with AI to monitor vehicle density for tight vehicular traffic control. In the systems powered by AI, cameras can track traffic density and will also help determine the time allocation for vehicles to clear a signal.
There was an encouraging rise in demand for traffic controller products and services from the second half of the 2020 year during the COVID-19 lockdown. Several new projects in the cities of Hyderabad, Gorakhpur, and Bangalore were released, and a surge in government orders further in 2021, encouraging activities to have a re-opened market in most regions.
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Increase in Smart City Projects Nationwide to Reflects in the Market Progress
The concept of smart cities involves an urban development where multiple Internet of Things (IoT) and Information and Communication Technology (ICT) solutions are integrated in a secure manner to manage various systems in the city. The adoption of smart city solutions has increased due to the rapid urbanization and the desire of the residents for a better quality of life. Population growth in cities such as Mumbai, Bangalore, and others leads to service delivery and infrastructure management challenges. Smart cities can enable a more efficient traffic flow, reduced congestion, improved road safety, and generally a better commuting experience. Huge losses in terms of both energy and time associated with traffic jams can be reduced with the help of autonomous technology, in developing countries, where parking spaces and roads are stretched to the limit, smart parking solutions, and autonomous driving initiatives can help to solve these problems. In India, the Smart Cities Mission is a national government-level scheme that is developing smart cities in collaboration with state governments. As of March 2021, USD 27.60 billion has been allocated in terms of total investment, and projects worth USD 5.40 billion have been completed.
Rising Urbanization and Demand For Smooth Transportation Systems to Boost Market Growth
Several developing countries have seen rapid economic development due to rising urbanization and industrialization. Today, 35.39% of India's population lives in urban areas, a proportion that is expected to increase to 43.2% by 2035. India's urban population has grown rapidly from 109.7 million in 1970 to 493.1 million in 2021. In 2021, approximately one-third of the total Indian population lived in cities. The reason for this increased urbanization is the increasing number of jobs in the telecommunications and IT sectors.
In addition, growing urbanization enhances people's purchasing power and spending power, which in turn boosts car sales. On the other hand, it also presents difficulties, such as an increased need for interconnected transportation networks and enhanced infrastructure for road safety. Additionally, the growing urban population necessitates effective commuting requirements for seamless transit. Therefore, by implementing controllers for traffic signals in the urban infrastructure, can be achieved with the help of effective traffic management. The development of the India traffic signal controller market is being driven by an increase in projects involving smart cities, cutting-edge linked and cellular technologies, and intelligent transportation infrastructure.
Increasing Demand for Efficient Road Networks across Cities to Propel Market Development
In March 2022, Union Road Transport Minister Nitin Gadkari announced that projects worth USD 7.777 Billion had been undertaken in Delhi to ease traffic congestion and tackle the pollution problem. These projects include ring roads and the Eastern Peripheral Expressway, which have decongested and reduced the pollution in Delhi. Additionally, commuters in India are now seeking a more ecologically friendly commute, which is encouraging the development of technology like driverless automobiles, linked autos, and electric vehicles. These vehicles collect information from their surroundings and communicate it to each other. They connect to the intelligent transportation infrastructure and provide transport authorities with real-time traffic data for better road management and infrastructure planning—the Autonomous Distributed Signal Control (ARTEMIS) developed by Kyosan Electric Mfg. Co Ltd. is an adaptive road traffic signal controller that releases road traffic overcrowding and contributes to the reduction of nitrogen oxide emissions and CO2. This time-based conventional traffic signal controller uses traffic data determined through the active vehicle sensor. Along with keeping traffic controlled and accidents to a minimum, traffic controllers help protect the environment by minimizing pollution brought on by pointless stops and a long line of backed-up vehicles from city traffic. The expanding requirement for time-saving traffic management solutions, the encouragement of the creation and promotion of green fuel, and the rise in connectivity solutions demand are to blame for the increase in the demand for controllers in Indian cities.
Lack of Standardized and Uniform Technologies can hamper the Efficiency of the Systems
The traffic signal controller contributes to effective traffic management system. The system works efficiently and lasts longer if the technological infrastructure is standardized and uniform. With internet connectivity, advanced surveillance systems and IP-based cameras are susceptible to several risks, such as system hacks hampering the system's cyber security leading to accidents and threats to road safety. For instance, the traffic management system deals with several types of vehicles and standards from different countries. For the RFID tag, currently, there is no uniform encoding standard. When the network encounters a foreign vehicle, it could lead to system errors. Thus, all these parameters, coupled with high capital investments, data security, and privacy concerns, are the major factors that restrain the growth of the market. As this system is primarily based on Information and Communications Technology (ICT) and Internet of Things (IoT) technology, many privacy and security risks exists. Additionally, according to a recent report released by the Ministry of Road Transport and Highways, around 1,50,000 people died in road accidents due to violations of traffic rules. In a developing country such as India, where people do not follow traffic rules due to less information or ignorance, these traffic control systems must be implemented after being adequately educated about these systems and traffic rules and regulations. Hence, these factors will restrain the growth of the market.
Increasing Road Infrastructural Development in the Urban Region to Drive the Segment Growth
Based on the type of applications, the market is segmented into urban and suburban regions.
In 2021, the suburban segment holds the largest traffic signal controller market share and is expected to continue its dominance during the forecast period. The suburban segment is a lower-density area with separate residential and commercial areas. They are part of city or urban area or exist as separate residential community within commuting distance of a city as cars have become the dominant way for people to get to work and commute. Hence, the growing adoption of vehicles due to limited transportation access will likely fuel the segment's growth during the forecast period.
The urban segment is expected to witness the fastest CAGR of 17.76% during the forecast period. The growing number of smart cities accelerates rapid urbanization. Therefore, the urban segment is prominently heading towards commuters using the increasing number of vehicles for daily commutes. Hence, increasing traffic congestion in urban areas and implementing advanced technologies such as vehicle-to-vehicle, vehicle-to-infrastructure, and smart parking solutions will likely boost the segment's growth in future years. The urban segment significantly contributes to the economy, and demand for advanced traffic management technology drives the market.
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Rising Use of Advanced Technology Adoptions such as AI, IoT in Controller To Proper Demand For Smart Controller Segment
Based on the type, the market is segmented into standard controller and smart controller.
The standard controller segment held the largest market share in 2021. The standard Controller is the most commonly used traffic signal controller worldwide. The Standard Controller works on fixed timing settings in the microcontroller. Rising traffic congestion and road accidents due to growing transportation in suburban regions and areas with less vehicle density boost the India traffic signal controller market and accelerate the segment growth.
The smart controller segment is projected to witness fastest growth rate from 2022 to 2029. The growth is primarily driven by the inclining preference of the urban populace towards adopting a smart traffic management system which requires smart traffic signal controller to tackle urban road congestion and smart parking solutions for the unavailability of parking spaces. Moreover, for easier transport and public transit, enhanced technologies such as vehicle to infrastructure, vehicle to vehicle, and smart parking solutions needs developed road infrastructure. Hence, their demand is rapidly increasing throughout the Asia Pacific region, where the number of smart city projects is propelling.
Key Player’s Focus on Early Development of Smart traffic management Technology to Drive the Competition
The Indian traffic signal controller market is fragmented, with several OEMs and regional players operating in this market. It is observed that both MNC OEMs and regional players have a diverse product portfolio with a medium focus on geographic expansion. The majority of the players are focused on their acquisitions and growth through dealership activities. Moreover, companies are also focused on technological developments to offer advanced technologies through their products, such as adaptive traffic signal controllers and others that are driving the competition in the market. Additionally, these leading players are targeting Asia Pacific to expand their business due to the increasing number of smart city projects in the region. The top players in the industry, such as Siemens AG, Envoys Electronics Pvt. Ltd., Efkon India Pvt. Ltd., Trafitek Solutions Pvt. Ltd., and ITS Planners and Engineers together account for the majority of the market share.
Siemens AG is a German multinational company focusing on intelligent infrastructure for buildings and distributed energy systems, power generation and distribution, and automation and digitalization in the process and manufacturing industries. The company provides all the essentials required for effective urban traffic control worldwide. The company provides intelligent software and hardware solutions to control and improve traffic flow and road safety. Siemens AG has a workforce of approximately 2,93,000 employees across 200 locations worldwide. In 2021, Siemens acquired Aldridge Traffic Controllers (ATC), a provider of urban traffic controls in Australia.
An Infographic Representation of India Traffic Signal Controller Market
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The India traffic signal controller market report provides a detailed market analysis and focuses on key aspects such as leading companies, product types, end-users, design, and technology. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.
Value (USD Million)
Fortune Business Insights says that the market was valued at USD 76.5 Million in 2021 and is projected to reach USD 271.8 Million in 2029.
The market is expected to register a growth rate of (CAGR) 17.68% during the forecast period 2022-2029
A rapid increase in the number of on-road vehicles and the introduction of smart infrastructure in urban areas have made the segment grow the fastest.
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