Traffic Signal Controller Market Size, Share & COVID-19 Analysis, By Product Type (Standard Controller and Smart Controller), By Application (Urban and Suburbs), and Regional Forecast, 2023-2030

The global traffic signal controller market size was valued at USD 4.62 billion in 2022. The market is projected to grow from USD 5.15 billion in 2023 to USD 13.83 billion by 2030, exhibiting a CAGR of 15.1% during the forecast period.

Traffic Signal Controller (TSC) is a device used to control and manage traffic flow at intersections, pedestrian crossings, and other roadways. These devices typically include signal controllers, cabinets, detectors, and other components that work together to optimize traffic flow and improve safety for drivers, pedestrians, and cyclists.

The market is driven by a variety of factors, including increasing urbanization, rising traffic congestion, and the need for improved safety and efficiency on roadways. However, lack of standardized and uniform technologies can hamper the market growth. Government authorities across the globe are investing in smart city infrastructure, which includes advanced traffic management systems to drive the market growth of traffic signal controller.

COVID-19 IMPACT

Delays in Infrastructure-related Projects due to COVID-19 Restrictions Impacted the Market Growth

In the infrastructure sector, contractors and companies faced the problems with the liquidity according to the workforce and machinery. The liquidity issues were due to increasing number of debts and low cash flow. Disruptions in the supply chains led to negative impact on availability of the equipment and parts, affecting the projects. Commissioning of various roads and other projects was delayed to 2021 and beyond. Due to the lockdown, there has been a reduction in usage and demand for significant infrastructure assets such as transportation.

In June 2021, A Michigan-based transportation data management company, MS2, launched the “Daily Traffic Volume Trends (DTVT)" traffic dashboard to provide timely information for monitoring traffic impacts. According to their data, overall national traffic dropped by up to 65% in 2020. Aspiring the advantage of this, some companies, such as Movebr and TTI, used this situation effectively to complete or upgrade traffic control systems.

However, there was an encouraging rise in demand for traffic controller products and services from the second half of 2020 during the COVID-19 lockdown. Several new projects were released and a surge in customer orders further in 2021 encouraged activities to re-open markets in most regions. Developing smart cities and urban planning systems has witnessed significant growth in recent years. This critical parameter resulted in a substantial impact on the rise of the camera-based traffic surveillance system market.

LATEST TRENDS

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Increase in Smart City Projects Worldwide to Support the Market Growth 

The adoption of smart city solutions has increased due to rapid urbanization trend and residents' desire for a better quality of life. Population growth in cities, such as Mumbai, Tokyo, and New York, 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.

Considerable 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.

Hence, there is a rising trend of smart city initiatives, especially in India and China, which include the most number of cities (46 and 102, respectively) with a population of more than 1 million, where the potential for retrofitting smart city concepts is considerable. All these factors are expected to surge the demand for smart traffic signal controllers during the forecast period.

DRIVING FACTORS

Increased Government Initiatives for Traffic Management System to Boost the Market Growth

Owing to increasing urban traffic congestion, several governments are taking initiatives through their regulations and implementing solutions and projects of smart cities and traffic management systems to deploy intelligent services.

For instance, in June 2022, the Greater Hyderabad Municipal Corporation (GHMC) installed Adaptive Traffic Signal Control (ATSC) systems that validate traffic signal colors based on real-time traffic data.

Additionally, governments in various countries, such as the UAE, Singapore, China, India, South Korea, and Japan, are focused on smart development of their economies. Such initiatives are expected to drive the traffic signal controller market growth in the coming years.

Increased Demand for Efficient Road Networks around the Globe to Propel Market Growth

Developed economies are now focusing on an environment-friendly commute that is giving rise to technologies such as electric vehicles, connected vehicles, and autonomous vehicles.

For instance, the Autonomous Distributed Signal Control (ARTEMIS) developed by Kyosan Electric Mfg. Co Ltd. is an adaptive road traffic signal control system that relieves road traffic congestion and contributes to the reduction of CO2 and nitrogen oxide emissions.

The time-based conventional controller used traffic data determined through the active vehicle sensor, and currently, the use of a new technology-based product named ARTEMIS has resolved this hurdle by using the road TSC itself with access to real-time traffic updates at each signal intersection.

Thus, the surge in demand for connectivity solutions, the encouraging development and promotion of green fuel, and the rising need for time-saving traffic management solutions are responsible for the growing demand for traffic signal control systems across the globe.

RESTRAINING FACTORS

Lack of Standardized and Uniform Technologies Related to Traffic Management to Hamper Market Growth

Traffic signal controller is an accurate mechanism contributing to an effective traffic management system. However, it will be operated 24X7 and has its operational limits. The complete system would work efficiently and last long only if the technological infrastructure supporting them is standardized and uniform.

The significantly adopted advanced surveillance system and IP-based cameras in the system are vulnerable to several risks due to internet connectivity, allowing hackers to hack the system easily. Lack of standardized and uniform technological tools can also hamper 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 & standards from different countries. Currently, there is no uniform encoding standard for RFID tags. When the network encounters a foreign vehicle, it could lead to system errors. Thus, all these parameters, coupled with high capital investment, data security, and privacy concerns, are the major factors that restrain the market.

SEGMENTATION

By Product Type Analysis

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Standard Controller Dominates Market Owing to Less Complex Structure and Cost

By product type, the market is segmented into standard controller and smart controller.

The standard controller segment secured the maximum global market share in 2022, and is expected to lead the market during the forecast period. The cost of a standard controller is less expensive as compared to a smart controller as it encompasses fewer features. Moreover, standard controllers are often designed with user-friendly interfaces and intuitive programming making them easier to install, configure, and maintain, thus fueling the market growth.

The growth of the smart controller segment is attributed to the rising demand for intelligent, adaptive systems catering to the development of smart cities. Smart controllers are designed to be interoperable with other smart city technologies and systems, making it easier to manage traffic flow and respond to changing traffic patterns. In December 2021, the Bombay Municipal Corporation initiated the replacement of 70 existing conventional traffic signals with intelligent adaptive traffic signals. This augments the market growth during the forecast period.

By Application Analysis

Urban Segment to Capture Largest Market Share Owing to Rapid Urbanization and Increased Vehicles on Road

Based on application, the market is bifurcated into urban and suburbs.

The urban segment accounts for the largest global traffic signal controller market share owing to the growing urban population and their traveling needs. Considering the low operating costs, connected and autonomous cars make them the preferred choice for customers. Rapid urbanization, improved living standards, and increasing high net worth of individuals have increased the spending capacity of individuals, which eventually increased vehicle sales which, in turn, caused traffic issues at significant junctions.

The growing demand for these controllers in the suburbs, owing to concerns over road safety and traffic management in the suburbs is driving the segmental market growth over the forecast period.

REGIONAL INSIGHTS

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North America to Hold Largest Market Share Due to Rising Popularity of Connected EVs

The North America market stood at USD 1.59 billion in 2021. The region is likely to dominate the global market due to the presence of many leading traffic signal controller manufacturers in the region. Furthermore, the rising acceptance of connected EVs is expected to bolster the market in the region in the coming years. The development of the market is also attributed to the presence of well-established infrastructure and technological giants.

Europe holds the second-largest position in the market, of which Germany ranks first in this regional market as major auto manufacturers are situated here. Furthermore, the government's strict regulations on road safety and increasing support of AI and automation will enhance the market growth.

Asia Pacific is anticipated to be the fastest-growing region during the forecast period. This region's growth is due to the high population in China and India, taking up more than 38% of the global population. The growing trend toward connected and autonomous vehicles, high urbanization, and smart cities are expected to propel the market growth.

The Latin America market is expected to show steady growth during the forecast period. This is due to many underdeveloped and developing countries present in this region. The Middle East & Africa market is expected to show steady growth during the forecast period. The increasing vehicle sales in the region, which can lead to further high traffic volume and congestion, augment the market during the forecast period.

KEY INDUSTRY PLAYERS

Significant Product Offerings by Econolite to Brighten its Market Prospects

Some of the key players in the traffic signal controller market include Siemens AG, Econolite Group Inc., and Johnson Controls, among others. These companies offer a range of product services from standard signal controllers to advanced systems incorporating machine learning and other technologies.

LIST OF KEY COMPANIES PROFILED:

• Aldridge Traffic Controllers (Australia)


• Traffic Technologies Pty Ltd (Australia)


• Siemens AG (Germany)


• Johnson Controllers (Ireland)


• Econolite (U.S.)


• Sumitomo Electric Mfg Co (Japan)


• Dynamic Traffic Systems (Malaysia)


• Sena Traffic Systems (Malaysia)


• Kyosan Electric Mfg Co Ltd (Japan)


• PPK Technology Sdn. Bhd (Malaysia)


• Indra Sistemas, S.A. (Spain)

KEY INDUSTRY DEVELOPMENTS:

• January 2023− Hamilton’s priority street intersections are to be installed with Centracs, a USD 6 million centralized traffic computer system. This will add to the 27 intersections along the High-Main Street corridor between Hampshire Avenue at Ohio 129 and Eaton Avenue. A total of 30 intersections are installed with adaptive traffic signals, which will allow the Centracs system to help adjust to backups and congestion.


• November 2022− Researchers at Chung Ang University in Korea developed a meta-RL model for traffic-signal control. The team developed an extended deep Q-network (EDQN)-incorporated context-based meta-RL model that will be beneficial for traffic signal controller. It determines the traffic regime, whether it is saturated or unsaturated, with the help of utilizing a latent variable indicating the overall environmental condition. Based on the traffic flow, the model maximizes throughput or minimizes delays, similar to a human controller.


• March 2022− The Gurugram Metropolitan Development Authority (GMDA) announced the beginning of its work to convert 90 conventional traffic lights into smart traffic signals situated at various locations across the city. The project started in May 2022 and was focused on the conversion of the existing traffic lights into intelligent traffic lights, utilizing an Adaptive Traffic Control System (ATCS).


• December 2021− Traffic Technologies announced a contract worth USD 10 million for five years until 2026 with Procurement Australia to supply safety traffic products and directional & instructional signs to local councils across Victoria, Australia. The contract further secured a recurring revenue stream and embedded the Signage & Safety products business until 2026.


• May 2021 – Aldridge Traffic Controller (ATC) announced its flagship project, Remote Access Management System (RAMS). RAMS software is loaded onto the controller’s Logic Processor Module. This enables maintenance staff to remotely access the controller using a web browser on their local PC, laptop, or tablet. The RAMS web interface connects to the traffic signal controller via a secure, password-protected IP address. Once connected, maintenance personnel can begin the fault retrieval process to establish what is required for rectification or even begin rectification remotely.

REPORT COVERAGE

An Infographic Representation of Traffic Signal Controller Market

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading traffic signal controller applications. 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 contributing to the market's growth in recent years.

Report Scope & Segmentation