Smart Traffic Management Market to Reach $20 Billion by 2027

A new study from Juniper Research has found that the global smart traffic management market will grow by 37% over the next two years, from nearly $15 billion in 2025. This growth, driven by rapid urbanization in emerging markets and a sustainability focus, is expected despite economic pressure and interoperability challenges with legacy smart traffic management systems.

Overcoming interoperability challenges requires expertise and upgrades, increasing difficulties in implementing innovative traffic management solutions on tight budgets. To overcome interoperability and cost challenges, Juniper Research urges smart traffic management vendors to offer software-driven, modular solutions through Software-as-a-Service (SaaS) models.

Offering subscription-based software and services, specifically AI-based analytical and maintenance services, will lower the cost for governments and transportation agencies, increasing accessibility for smaller or financially constrained agencies. These models will also allow vendors to increase credibility with users, as users begin to see value in the services deployed and gain faster returns on investment.

The study predicts that if this approach is adopted as an integral component of vendors’ strategies, the market will be worth double by 2030, reaching $32 billion globally. With technological advancements, namely AI-powered video analytics and the falling costs of sensors, Juniper Research expects the smart traffic market to grow significantly between 2027 and 2030.

“Vendors must focus on deploying their SaaS solutions on tiered subscription pricing models, as this will lower the entry barrier for smaller entities. It will also enable vendors to upsell services as they gain credibility, maximizing revenue,” stated research author Michelle Joynson.