Smart Signaling Market Outlook:
Smart Signaling Market size was valued at USD 20.9 billion in 2025 and is expected to reach USD 39.2 billion by 2035, expanding at a CAGR of 6.5% during the forecast period, i.e., 2026-2035. In 2026, the industry size of smart signaling is evaluated at USD 884.1 billion.
The growing concerns related to road safety has driven the sector’s expansion. A myriad of factors drives the global smart signaling market’s supply chain. For instance, the U.S. Bureau of Labor Statistics (BLS) reports that in August 2025, the consumer price index for urban consumers increased by 0.4% after seasonal adjustments. Over the past year, it went up by 2.9% without seasonal adjustments, influenced by the broader inflation trends that have influenced the adoption rates of smart signaling technologies.
In terms of major investments, the U.S. Department of Transportation allocated USD 100 million annually from 2022 to 2026 under the aegis of the SMART Grants Program for projects that utilize advanced technology to solve critical pain points of transportation. In terms of trade, the global trends highlight a greater focus on securing defense-critical supply chains, which includes components related to smart signaling systems. In Europe, around USD 7.63 billion has been committed to bolstering the transport infrastructure under the Connecting Europe initiative. The market is set to expand due to the large-scale investments funneled to improve transportation infrastructure in multiple economies.
