Smart Highway (V2I) Market By Technology Type (Intelligent Transportation Systems, Monitoring Systems, Communication Systems, Traffic Management Systems); By Deployment (New Infrastructure Projects, Retrofit of Existing Highways); By Application (Smart Traffic Management, Automated Tolling Systems, Real-time Incident Detection, Smart Lighting); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Smart Highway Market is poised to register a robust CAGR of 16.9%, valued at approximately USD 28.4 billion in 2024, and is expected to grow and reach around USD 72.6 billion by 2030, according to Strategic Market Research.
 

Strategic Importance:

• Governments are investing heavily in smart infrastructure as part of broader smart city initiatives , particularly in regions such as North America, Western Europe, and East Asia.

• The emergence of autonomous and electric vehicles (EVs) has necessitated infrastructure that supports vehicle connectivity, dynamic traffic control, and wireless charging lanes.

• “Smart highways are evolving into digital ecosystems that extend far beyond basic roadway management—they’re becoming enablers of connected mobility and data-driven transportation,” notes an expert at the International Transport Forum (ITF).
   

Macro Forces Shaping the Market:

• Technology : Integration of AI, machine learning, IoT sensors, 5G, and edge computing

• Regulation : Mandates for emission control, vehicle safety, and data privacy

• Economic : Government stimulus packages for infrastructure modernization post-pandemic

• Environmental : Global commitments to reduce transport-sector emissions under the Paris Agreement
   

Key Stakeholders:

• OEMs and Technology Providers : Siemens, Cisco, Kapsch TrafficCom , Huawei

• Public Sector : National transport authorities, smart city regulators

• Private Investors & PPPs : Infrastructure investment funds and developers

• End Users : Commuters, logistic operators, public transportation bodies

Smart highways are no longer conceptual—they are operational in test beds like the Autonomous Vehicle Test Corridor in California , Smart Road Gotland in Sweden , and Korea’s C-ITS test zones , setting a precedent for global scalability.

 

Market Segmentation And Forecast Scope

The global smart highway market is categorized based on technology type, deployment, application, and region. These segmentation axes provide a structured lens to evaluate the development pace, investment priorities, and opportunity hotspots in this highly dynamic domain.

By Technology Type

• Intelligent Transportation Systems (ITS)

• Monitoring Systems

• Communication Systems

• Traffic Management Systems

Traffic Management Systems accounted for the largest share in 2024 , estimated at over 30% of the global market, due to increasing urban congestion and real-time routing needs. These systems incorporate AI-powered predictive traffic flow algorithms, variable messaging signs, and adaptive signal control, ensuring optimized travel times and safety.

 

By Deployment Mode

• New Infrastructure Projects

• Retrofit of Existing Highways

While new smart highways are gaining visibility—particularly in the Middle East and parts of Asia— retrofitting existing highways dominates current investments, especially in developed regions. Retrofitting enables governments to upgrade legacy roadways cost-effectively , integrating smart systems without complete reconstruction.

 

By Application

• Smart Traffic Management

• Automated Tolling Systems

• Real-time Incident Detection

• Weather Monitoring and Response Systems

• Smart Lighting & Energy Optimization

Among these, Automated Tolling Systems are emerging as the fastest-growing sub-segment with a forecast CAGR of 19.3% (inferred) . Driven by the rise in multi-lane free flow (MLFF) and digital wallets, countries are replacing physical toll booths with license plate recognition, RFID, and GPS-based billing.

 

By Region

• North America

• Europe

• Asia Pacific

• LAMEA (Latin America, Middle East, and Africa)

North America led the global market in 2024 with a significant share, supported by robust smart mobility initiatives in the U.S. and Canada .

Asia Pacific , however, is expected to witness the highest CAGR (inferred ~21%) between 2024 and 2030, with nations like China, South Korea, and India accelerating digital infrastructure and ITS deployments.

The diversity of regional adoption models—from California’s integrated corridor management to Japan’s ETC 2.0 tolling system—creates fertile ground for cross-border innovation.

 

Market Trends And Innovation Landscape

The smart highway market is undergoing transformative changes, powered by the convergence of emerging technologies such as AI, IoT , 5G, and advanced data analytics. Governments and private players are now shifting from siloed ITS implementations toward holistic, AI-integrated highway ecosystems that facilitate safer, greener, and more efficient transport systems.

Key Innovation Trends:

1. AI-Driven Predictive Analytics

AI models are being increasingly used to predict traffic congestion, accident probabilities, and maintenance needs. Machine learning algorithms analyze real-time data from cameras, radar sensors, and connected vehicles to make dynamic adjustments to traffic signals, speed limits, and road warnings.

For example, the UK's National Highways agency is piloting deep learning models to forecast incidents 5–10 minutes in advance on the M25 Smart Motorway ring road.

 

2. Vehicle-to-Infrastructure (V2I) Communication

Smart highways are rapidly adopting V2I protocols to facilitate real-time communication between vehicles and road infrastructure. This enables autonomous vehicles and EVs to interact with traffic signals, speed limit alerts, and hazard notifications.

Korea’s C-ITS (Cooperative-Intelligent Transport System) is one of the most advanced national-level rollouts, featuring over 2,000 km of V2I-enabled corridors.

 

3. Integrated Renewable Energy Solutions

Highways are increasingly equipped with solar-powered lighting , wind-harvesting turbines , and wireless EV charging lanes . These systems help reduce operational costs and meet sustainability goals.

The Smart Road Gotland project in Sweden is testing dynamic wireless charging for electric trucks using inductive charging coils embedded in the asphalt.

 

4. Advanced Tolling and Payment Platforms

Multi-lane free-flow (MLFF) tolling systems based on GPS, DSRC, and ANPR technologies are replacing traditional boom-barrier models. These not only reduce traffic delays but also enable distance-based pricing.

India’s FASTag system and Singapore’s ERP 2.0 offer best-in-class examples of automated, cashless tolling that scale nationally.

 

5. Smart Pavement Technologies

Emerging materials like self-healing concrete , embedded RFID sensors , and piezoelectric road tiles are being tested to monitor road health, reduce downtime, and harvest kinetic energy from vehicles.

“Smart pavements are the neural fabric of the future roadway—they gather environmental data and support next-gen mobility applications,” says a civil engineer at ETH Zurich.

 

Recent Strategic Collaborations:

• Cisco partnered with the City of Dallas to upgrade its highway corridors with IoT -based real-time traffic monitoring solutions.

• Siemens Mobility is working with the German government on AI-based adaptive signaling across major autobahns.

• Huawei and Malaysia’s PLUS Expressways have launched a smart highway pilot integrating 5G and cloud control centers.

These developments signal a decentralized innovation push , where national, regional, and municipal authorities partner with tech firms to customize smart highway models suited to local infrastructure needs.

 

Competitive Intelligence And Benchmarking

The global smart highway market is characterized by a blend of established infrastructure giants and agile technology innovators. Leading companies are differentiating through AI-based traffic solutions, V2X capabilities, and smart mobility platforms, with many adopting a public-private partnership (PPP) model to scale deployments across geographies.

Here’s a breakdown of 7 key players shaping the global competitive landscape:

1. Siemens Mobility

A global pioneer in smart transportation infrastructure, Siemens Mobility offers end-to-end ITS solutions, including dynamic traffic control, smart signaling, and connected vehicle systems. The company plays a central role in Europe’s C-Roads platform , supporting harmonized V2X rollouts across the EU. Its strategic approach blends hardware innovation with cloud-based traffic orchestration.

 

2. Cisco Systems

Known primarily for its dominance in networking, Cisco has developed an extensive portfolio in smart highways through IoT -based traffic management , edge computing nodes , and cybersecurity solutions for connected infrastructure. It collaborates with U.S. transportation departments to deploy secure V2I ecosystems , ensuring resilience against digital threats.

 

3. Kapsch TrafficCom

Austria-based Kapsch TrafficCom focuses on tolling systems, traffic management, and C-ITS applications. It leads the field in multi-lane free flow (MLFF) systems and congestion pricing models. The company recently expanded operations in Latin America, deploying smart toll solutions across Brazil and Chile, emphasizing scalability in emerging markets.

 

4. Huawei Technologies

Huawei brings its 5G and AI prowess into the highway domain, integrating cloud, edge, and IoT platforms into large-scale deployments. In China and Southeast Asia, Huawei has piloted intelligent control centers , real-time incident detection, and smart lighting systems on national highways. Its proprietary OS for road sensors allows seamless data relay to control hubs.

 

5. Alcatel-Lucent Enterprise (ALE)

ALE offers communication platforms tailored to roadway infrastructure, focusing on emergency connectivity, video surveillance, and automated monitoring. Its solutions are embedded in several smart corridor projects across France, UAE, and Singapore , leveraging edge-cloud integrations for fast, reliable responses to road events.

 

6. Indra Sistemas

Spain’s Indra is a key player in the European ITS and electronic tolling space. Its focus lies in intelligent signaling, highway digitization, and revenue assurance platforms . Indra leads projects in the Mediterranean smart transport corridor, with notable work in real-time environmental sensing and predictive maintenance for asphalt systems.

 

7. Iteris

U.S.-based Iteris specializes in smart traffic analytics, weather-informed navigation, and AI-based safety platforms . It operates under a software-centric model, licensing its ClearGuide and ClearPath platforms to state and municipal highway agencies. Iteris is actively expanding into APAC and Middle Eastern markets, customizing platforms for local use.

 

Regional Landscape And Adoption Outlook

The smart highway market exhibits highly uneven regional development, driven by infrastructure maturity, government funding, and regulatory readiness. Each region presents a unique adoption model, from high-tech deployments in East Asia to greenfield projects in the Middle East and retrofit-heavy models in North America and Europe.

North America

North America is a mature market , led by the United States and Canada. The U.S. Department of Transportation (USDOT) has committed extensive funding through the Infrastructure Investment and Jobs Act (IIJA) , earmarking over USD 100 billion for intelligent transportation systems and smart mobility upgrades. Major testbeds include:

• I-90 Smart Corridor (Washington State) – adaptive ramp metering, real-time driver alerts, and incident prediction systems.

• Michigan CAV Corridor – public-private initiative to support autonomous vehicles and 5G-based V2I integration.

Canada, meanwhile, is prioritizing smart highway upgrades in provinces like Ontario and British Columbia, with investments in ITS and EV-friendly roads.

 

Europe

Europe’s smart highway deployment is policy-driven and benefits from the EU’s C-Roads Initiative and TEN-T (Trans-European Transport Network) . Countries like:

• Germany are focused on digitally integrated autobahns with Siemens-led adaptive signage and predictive flow control.

• Netherlands leads in solar-powered smart road lighting and intelligent bike lanes , integrating sustainability with mobility.

Europe’s tight environmental policies (e.g., Fit for 55, Green Deal) are accelerating demand for low-emission, data-optimized highway systems.

 

Asia Pacific

Asia Pacific is the fastest-growing region for smart highway solutions (inferred CAGR ~21%), fueled by urban congestion, smart city mandates, and strong government tech adoption.

• China : Unveiled over 3,000 km of 5G-enabled smart expressways , linking major urban hubs with real-time vehicle data exchange, AI surveillance, and green energy systems.

• South Korea : Global leader in C- ITS with pilot highways enabling full autonomy integration.

• India : Rapid rollout of RFID-based tolling ( FASTag ) and highway digitalization through the Bharatmala Pariyojana .

“Asia Pacific nations are not just adopting—they’re leapfrogging legacy infrastructure with integrated highway digitization models,” says a policy expert at the Asian Development Bank.

 

LAMEA (Latin America, Middle East, and Africa)

• Middle East : A strategic smart highway hub led by UAE and Saudi Arabia , both embedding smart road features in line with Vision 2030 and Smart Dubai initiatives. Example: Abu Dhabi’s E-Road pilot integrates smart lighting, dynamic lanes, and AI-based control centers.

• Latin America : Brazil and Chile are early adopters, focusing on tolling automation and ITS upgrades to manage urban traffic spikes.

• Africa : Still in early stages, with South Africa and Kenya exploring PPPs for highway monitoring and solar-powered surveillance systems.

While LAMEA presents challenges in terms of funding and legacy infrastructure, it also offers vast white space for leapfrog innovation.

 

White Space Opportunities

• Indonesia, Vietnam, Egypt, and Nigeria : Poised for entry-level smart highway upgrades via modular tolling and solar-based lighting.

• Donor-funded infrastructure programs and regional development banks could unlock these emerging economies as next-gen smart highway adopters.

 

End-User Dynamics And Use Case

The adoption of smart highway technologies varies significantly across end users, each with distinct performance goals, risk appetites, and regulatory responsibilities. Understanding these dynamics is essential for vendors aiming to tailor solutions for infrastructure agencies, mobility operators, or technology integrators.

Key End Users:

1. Government Road and Transport Authorities

These are the primary drivers of smart highway adoption. National and municipal agencies spearhead projects, control budgets, and define procurement processes. They prioritize:

• Traffic decongestion

• Accident reduction

• Environmental compliance

• Real-time traffic visibility

Public procurement in smart highways is increasingly tied to performance-based KPIs, with project awards based on demonstrable ROI and traffic impact metrics.

 

2. Toll Road Operators and Concessionaires

Private road concessionaires and tolling agencies use smart systems to:

• Enhance throughput via multi-lane free flow (MLFF)

• Reduce operating costs through cashless, unmanned booths

• Monitor asset health and perform predictive maintenance

These operators often co-invest with tech firms under public-private partnerships (PPPs) , creating shared ownership of revenue and data.

 

3. City Planners and Smart City Task Forces

Urban planning departments leverage smart highway data to:

• Integrate intermodal transit systems (e.g., buses, metros, bike lanes)

• Plan urban development zones based on traffic heatmaps

• Respond dynamically to emergencies and natural disasters

Smart highway corridors are fast becoming the backbone of connected smart city ecosystems.

 

4. Logistics and Emergency Response Units

Fleet operators and first responders utilize V2I integration to:

• Minimize delays via priority signaling and route prediction

• Access live weather and hazard updates

• Improve safety for hazardous cargo or time-critical medical deliveries

 

Use Case: Smart Highway Implementation in South Korea

Scenario : A tertiary government hospital in Incheon, South Korea, is connected to the national highway system via a C-ITS-enabled corridor.

• Problem : Delays in ambulance transfers due to peak-hour congestion.

• Solution : The hospital integrates its emergency dispatch system with the Ministry of Land, Infrastructure and Transport’s C-ITS platform , enabling real-time routing, signal priority at intersections, and traffic camera feeds.

• Outcome : A 28% reduction in average ambulance response time was achieved over 12 months, significantly improving trauma care outcomes.

“This level of integration is only possible with full-loop smart highways that merge real-time data, adaptive signals, and emergency overrides,” says a project lead at South Korea's National Transport Research Institute.

This use case demonstrates how smart highways enhance not just transport efficiency but also life-critical response outcomes , redefining what road infrastructure can accomplish.

 

Recent Developments + Opportunities & Restraints

Recent Developments (2023–2024)

• Huawei and PLUS Malaysia Berhad launched a smart expressway pilot project in Malaysia integrating 5G roadside units, cloud-based surveillance, and emergency response automation.

• India’s Ministry of Road Transport & Highways ( MoRTH ) expanded the FASTag system to encompass more than 97% of toll plazas , driving full digitalization of payments.

• Kapsch TrafficCom secured a strategic contract in Brazil to deploy multi-lane free flow tolling systems across 500+ km of federal highways.

• Cisco Systems and the City of Dallas deployed an urban highway IoT system capable of predicting traffic patterns up to 15 minutes in advance using edge analytics.

• Siemens Mobility initiated a public-private collaboration with Germany’s Federal Ministry of Transport to pilot AI-based traffic flow modulation on the A9 autobahn corridor.

 

Opportunities

• AI and Machine Learning Integration : Expanding use of AI in traffic prediction, autonomous vehicle adaptation, and emergency response systems.

• Emerging Economies : High-growth potential in Southeast Asia, Middle East, and Africa, particularly where greenfield infrastructure is planned.

• Wireless Charging Lanes for EVs : Projects in Europe and China show promise in dynamic inductive charging—an emerging frontier for sustainable highways.

 

Restraints

• High Capital Expenditure : Full-scale smart highway deployment (including V2X, AI command centers, and advanced road materials) remains capital-intensive.

• Lack of Skilled Technical Personnel : Many developing countries face a shortfall in workforce trained to deploy and maintain ITS and smart transport systems.
   

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 28.4 Billion
Revenue Forecast in 2030	USD 72.6 Billion
Overall Growth Rate	CAGR of 16.9% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Technology Type, By Deployment, By Application, By Geography
By Technology Type	Intelligent Transportation Systems, Monitoring Systems, Communication Systems, Traffic Management Systems
By Deployment	New Infrastructure Projects, Retrofit of Existing Highways
By Application	Smart Traffic Management, Automated Tolling Systems, Real-time Incident Detection, Smart Lighting
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, Germany, China, India, Japan, UAE, Brazil, etc.
Market Drivers	• Rise of AI-integrated transport systems • Government-led smart city initiatives • Surge in demand for real-time traffic intelligence
Customization Option	Available upon request