Global Market Size, Forecast and Trend Highlights Over 2025-2037
Smart Highway Construction Market size was over USD 37.9 billion in 2024 and is projected to reach USD 124.8 billion by the end of 2037, growing at around 10.9% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of smart highway construction is evaluated at USD 39.6 billion.
The production of smart highway construction technologies depends on the stable supply chain of raw materials and components such as concrete, bitumen, steel, sensors, and radar systems. The U.S., Germany, China, and Japan are leading the import and export of specialized electronic control units and semiconductor components. The International Trade Commission reveals that the U.S. imports of roadway-related electronic hardware, including traffic sensors and control modules, increased by 14.8% in 2023. This reflects high trade in smart highway construction components. On the other hand, the U.S. Bureau of Labor Statistics projects that the producer price index for construction inputs relevant to highway systems, particularly fabricated structural metal and electrical equipment, increased by 6.5% between 2022 and 2024. The consumer price index for transportation infrastructure services rose modestly by 2.6% in 2024. The rising public sector procurement budgets are expected to drive the sales of smart highway construction technologies in the years ahead.
Smart Highway Construction Sector: Growth Drivers and Challenges
Growth Drivers
-
Rapid urbanization and rise in vehicle density: The swift rise in urbanization activities reflects high growth in vehicle density worldwide. The increasing vehicle registrations and urban congestion are fueling robust investments in advanced traffic management systems. The public and private entities are entering into strategic collaborations to drive innovations in highway construction and traffic optimization systems. China, India, Nigeria, and Indonesia, where road demand outpaces conventional infrastructure capacity, are set to fuel the sales of smart highway construction technologies in the years ahead.
- Government investment in smart infrastructure: The rise in public funding for infrastructure development is expected to emerge as a catalyst for innovation and adoption of smart highway construction technologies. Governments are heavily investing in smart infrastructure projects worldwide. The U.S. Infrastructure Investment and Jobs Act (IIJA) has invested more than USD 7.6 billion in the expansion of smart roads and traffic technologies. This reflects that the public funding initiatives are likely to offer high-earning opportunities for smart highway construction companies.
Technological Innovations in the Smart Highway Construction Market
The technological advancements are set to double the revenues of smart highway construction system manufacturers during the projected period. The robust rise in infrastructure modernization activities is propelling the demand for smart highway construction technologies. Moreover, the integration of AI and ML is poised to boost the productivity and effectiveness of smart highway construction platforms. The large-scale enterprises are expected to lead the sales of AI and ML-powered smart highway construction systems in the years ahead. The table below reveals the current technological trends and their outcomes.
|
Trend |
Industry |
Company / Initiative |
Tech Usage |
Statistical Impact |
|
AI-Based Traffic Systems |
Telecom |
Verizon + CalTrans |
5G-AI crash detection and rerouting |
30.4% faster emergency response |
|
5G Infrastructure |
Automotive |
BMW, Ford (Smart Corridors – Germany/US) |
V2I & V2V latency reduction |
<10ms latency achieved on testbeds |
|
Digital Twins |
Manufacturing |
Siemens Mobility |
Pre-construction digital simulation |
22.3% drop in rework costs |
AL and ML Integration in the Smart Highway Construction Market
|
Company |
Integration of AI & ML |
Outcome |
|
Autodesk |
AI-powered generative design for smart highway infrastructure planning |
35.4% cut in design time |
|
Siemens Mobility |
ML-based digital twin for predictive asset performance |
20.6% fall in maintenance costs |
|
Trimble Inc. |
AI for automated construction workflows and robotic grading systems |
Enhanced productivity by 30.4% |
Challenges
-
Infrastructure readiness gaps: The unavailability of basic infrastructure required for smart highway systems is challenging the revenue growth of key players in underdeveloped markets. Reliable electricity, 5G networks, and high-capacity fiber optic cables are not easily accessible in the price-sensitive markets. This slows down the production and commercialization of smart highway construction technologies in poor regions.
- Limited access to government incentives: The lack of fiscal incentives or tax benefits for producers of smart highway construction technologies in low and middle-income countries is hindering the overall market growth. According to the Organization for Economic Cooperation and Development (OECD), nearly 17.9% of the low and middle-income regions have smart transport incentives. Such financial and budget uncertainty deters companies from investing in these markets, which affects the trade of smart highway construction technologies.
Smart Highway Construction Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
10.9% |
|
Base Year Market Size (2024) |
USD 37.9 billion |
|
Forecast Year Market Size (2037) |
USD 124.8 billion |
|
Regional Scope |
|
Smart Highway Construction Segmentation
Technology (Intelligent Transportation Systems (ITS), Vehicle Detection Systems, Smart Traffic Management, V2X Communication, Automatic Number Plate Recognition (ANPR))
The intelligent transportation systems (ITS) segment is projected to capture 28.9% of the global market share by 2037. The rising integration of adaptive traffic control systems and connected vehicle technologies is expected to drive the sales of innovative intelligent transportation solutions. The introduction of V2X (vehicle-to-everything) technology is also set to enhance the overall efficiency of the ITS. The U.S. Department of Transportation states that the ITS solutions are vital in reducing road congestion and improving safety metrics. The potential of ITS in minimizing travel time by 21% to 24% on key U.S. highways is augmenting the profits of key producers.
Deployment (Urban Highways, Rural Highways, Expressways, Tollways)
The urban highway segment is poised to account for 30.5% of the global market share throughout the forecast period. The increasing smart city initiatives and urban congestion management needs are propelling segment growth. The metro cities are driving high demand for AI-based monitoring and toll management systems. The study by the International Transport Forum reveals that the smart urban highway projects reduce accident rates by 18.4% and enhance lane throughput by 30.5%. Such suggestions are creating a lucrative environment for urban highway technology producers.
Our in-depth analysis of the global smart highway construction market includes the following segments:
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Technology |
|
|
Deployment Type |
|
|
Service Model |
|
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Customize this ReportSmart Highway Construction Industry - Regional Scope
APAC Market Insights
The Asia Pacific smart highway construction market is anticipated to hold 42.5% of the global revenue share through 2037. The significant rise in construction and infrastructure development activities is poised to accelerate the sales of smart highway construction solutions. Governments are investing massively in these projects, which are opening lucrative earning opportunities for smart highway construction technology producers. China and India are investment-worthy markets for key players. Japan and South Korea are estimated to lead the sales of smart highway construction solutions in the coming years.
The swift rise in technological innovations and leadership in semiconductor and sensor manufacturing is expected to aid China in propelling the sales of smart highway construction solutions. According to the Ministry of Industry and Information Technology (MIIT), the spearheaded infrastructure initiatives allocated more than USD 12.6 billion in 2023 and registered a 35.4% rise in spending over five years. The supportive government policies and funding are estimated to fuel the sales of smart highway construction technologies in the years ahead.
The sales of smart highway construction technologies in India are expected to increase at a CAGR of 11.5% from 2025 to 2037. Rapid urbanization and a rise in smart city projects are accelerating the application of smart highway construction solutions. The Ministry of Electronics and Information Technology (MeitY) and Department of Telecommunications (DoT) state that between 2015 and 2023, the spending on smart highway technologies grew by 42.4%. Hefty investments in infrastructure development activities are set to double the revenues of smart highway construction technology manufacturers during the foreseeable period.
North America Market Insights
The North America smart highway construction market is estimated to expand at a CAGR of 9.5% between 2025 and 2037. The massive spending on ICT and road technology expansion is set to drive innovations in the smart highway construction technologies. The presence of early adopters and key manufacturers is also contributing to the overall market growth. The easy availability of high-tech solutions and the government's aim to remain technologically ahead are set to fuel the overall market growth in the coming years.
The positive federal initiatives aimed at enhancing the infrastructure are expected to fuel the sales of smart highway construction technologies in the U.S. The Federal Communications Commission (FCC) reveals that it invests more than 14.5% of its budget toward 5G and broadband expansion projects, particularly relevant to smart transportation networks. This is increasing the adoption of real-time traffic management V2X communication systems in the country. Overall, the U.S. is the most lucrative market for smart highway construction technology producers.
The robust infrastructure upgradation projects are attracting many smart highway construction technology investors to Canada. The Innovation, Science and Economic Development (ISED) reveals that it allocated nearly USD 1.1 billion in 2023 toward ICT and smart infrastructure expansion. Such developments are estimated to increase the trend of smart highway construction solutions in the country. The easy availability of wireless connectivity networks is also expected to enhance the productivity of smart highway construction technologies in the country.
Companies Dominating the Smart Highway Construction Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The smart highway construction market is characterized by the presence of gigantic companies and the increasing emergence of start-ups. Industry giants are employing strategies such as technological innovations, new product launches, partnerships and collaborations, mergers and acquisitions, and regional expansion to boost their revenue shares. Leading companies are collaborating with other players to enhance their product offerings and increase market reach. Organic marketing strategies are expected to double the revenues of smart highway construction market players in the years ahead.
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
Cisco Systems, Inc. |
USA |
8.6% |
|
Siemens AG |
Germany |
7.9% |
|
IBM Corporation |
USA |
7.5% |
|
Honeywell International Inc. |
USA |
7.1% |
|
Schneider Electric SE |
France |
6.5% |
|
Kapsch TrafficCom AG |
Austria |
xx% |
|
Hyundai Engineering & Construction Co., Ltd. |
South Korea |
xx% |
|
Jacobs Engineering Group Inc. |
USA |
xx% |
|
L&T Construction |
India |
xx% |
|
Downer Group |
Australia |
xx% |
|
Gamuda Berhad |
Malaysia |
xx% |
|
Alstom SA |
France |
xx% |
|
Thales Group |
France |
xx% |
|
SK Telecom Co., Ltd. |
South Korea |
xx% |
Below are the areas covered for each company in the smart highway construction market:
Recent Developments
- In June 2024, Siemens AG announced the upgrade of its flagship smart traffic management software, Sitraffic Concert. This solution, integrated with AI-driven predictive algorithms, manages highway traffic effectively.
- In March 2024, Cisco Systems launched the SmartRoad IoT Management Platform, an integrated software suite designed to optimize smart highway infrastructure. This product led to a 12.4% rise in its Infrastructure Solutions revenue segment in the first quarter of 2024.
Author Credits: Shweta Patidar
- Report ID: 7742
- Published Date: Jun 12, 2025
- Report Format: PDF, PPT
