The global route guidance & traffic management systems market is anticipated to grow at a CAGR of 10.5% during the forecast period (2021-2027). The route guidance & traffic management systems refer to IT solutions provided by vendors to improve traffic flow and enhance passenger safety. These systems use data from different sources such as road sensors, CCTV cameras, and traffic control centers. The system processes this data and generates useful information that is passed on to end users such as passengers, traffic control agencies, and police stations. In order to manage the congestion, the need for real time route guidance &traffic management systems is growing. These systems support in managing traffic behaviors in real time by utilizing a network of technologies including sensors, smart cameras, GPS and Bluetooth/Wi-Fi. This can be used to efficiently reduce congestion, bottlenecks and other traffic issues. 

Moreover, the Government initiatives such as increasing funding for transport infrastructure, network enhancement and improved road maintenance, and introduction of automatic fare collection systems to ease traffic movement to reduce the traffic conjunction is also the factor expected to drive the market growth during the forecast period. For instance, the Australian Government is investing $110 billion over 10 years from 2021-22 in transport infrastructure across Australia through its rolling infrastructure pipeline under the Infrastructure Investment program. Such type of initiatives will support in market growth during the forecast period. 

Impact of COVID-19 on Global Route Guidance & Traffic Management Systems Market

The route guidance & traffic management systems market was negatively impacted by the COVID-19 pandemic. The pandemic has affected transportation sector along with global economy. Major industries, such as manufacturing, automotive, textile, transportation and logistics, travel and hospitality, and consumer goods, have been closed due to country-level lockdown across the globe. Due to minimum number of vehicles on road, the need for route guidance & traffic management systems were less. In addition, traffic accident deaths were also reduced during pandemic. Japan's traffic accident deaths fell to a record low of 2,839 in 2020 as people stayed home during the pandemic. In addition, the pandemic has also decreased the new vehicle sales globally. This led to the declination in deployment of route guidance & traffic management systems. Hence market registered downfall in growth.

Segmental Outlook  

The global route guidance & traffic management Systems market is segmented based on deployment and application. Based on deployment, the market is bifurcated into on-premises, and cloud-based. Cloud-based segment is anticipated to hold leading position in the market during the forecast period. On the basis of application, the market is classified into on-demand food delivery, retail &FMCG, field services, and others. 

Global Route Guidance & Traffic Management Systems market by Share, 2020 (%)

The Cloud-Based Segment Holds Significant Share in the Market 

Among deployment, the cloud-based segment held the largest share in the market in 2020, and it is expected to dominate the market during the forecast period. The cloud-based route guidance & traffic management systems need low maintenance requirement and does not require any capital investment. Cloud-based deployment systems provide businesses a variety of deployment options without compromising on functionality. Therefore, it is widely used by both SMEs and large corporations. In route guidance & traffic management systems, cloud computing uses the geographic information system technology to bring together data collected by humans and machines, which helps validating the traffic flow using simulation modeling techniques. The deployment of cloud-based systems in route guidance which includes GPS-based interaction for video surveillance and broadcast systems is expected to drive the market growth. 

Regional Outlook 

Geographically, the global route guidance & traffic management systems market is classified into four major regions including North America (the US and Canada), Europe (UK, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (India, China, Japan, and Rest of Asia-Pacific), and Rest of the World (Latin America and the Middle East and Africa (MEA)). North America is expected to hold significant share in the market during the forecast period. Growth in infrastructure, and significant investments into advanced technologies by enterprises are the major factors driving the market growth in the region.Major countries such as the US and Canada in North America region have been extremely responsive towards adopting the latest technological advancements in traffic management systems, such as route guidance and smart signaling Systems. Besides, Europe is estimated to hold the considerable share in the market during the forecast period. Significant investments in smart city and smart transportation projects, and the demand for upgrades in traffic control and management mechanisms are considered to be the major drivers for the regional growth.

Global Route Guidance & Traffic Management Systems market Growth, By Region 2021-2027

Asia-Pacific will be the Fastest Growing Region in Global Route Guidance & Traffic Management Systems market 

Geographically, Asia-Pacific is anticipated to grow at the fastest CAGR during the forecast period. In Asia-Pacific, China, India, and Japan are the major contributor to the market growth. The adoption of new cloud-based technologies across various sectors, increase in awareness regarding driver safety, regulations to improve road safety, and growth in transportation and logistics industries that has increases the number of vehicles on road is the factors driving the need for route guidance and traffic management systems in the region. The increase in urbanization and huge population base in Asia-Pacific major countries has resulted in a traffic congestion. Due to the increased traffic, the demand for route guidance and traffic management Systems’s are high in the Asia-Pacific. Besides, government initiatives, and investments supporting smart city projects are estimated to further enhance the market growth during the forecast period. 

Market Players Outlook

The key players in the route guidance & traffic management systems market contributing significantly by providing different types of products and increasing their geographical presence across the globe. The key players of the market include AMCS Group, Cisco Systems, Inc., Esri Global Inc., FLS GmbH, IBM Corp, and Scientific Logistics, Inc., among others. These market players are adopting several market strategies including product launch and approvals, merger and acquisition, partnership collaboration, business, and capacity expansion, and others. For instance, in July 2021, Mitsubishi Fuso Truck and Bus Corp(MFTBC),under the umbrella of Daimler Trucks Asia (DTA), signed a business alliance agreement with Wise Systems Inc.MFTBC will start offering the Wise Systems routing and dispatching solution from the fourth quarter of 2021 onwards to customers in Japan.

The Report Covers

    • Market value data analysis of 2020 and forecast to 2027.

    • Annualized market revenues ($ million) for each market segment.

    • Country-wise analysis of major geographical regions.

    • Key companies operating in the global route guidance & traffic management systems market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.

    • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

    • Analysis of market-entry and market expansion strategies.

    • Competitive strategies by identifying ‘who-stands-where’ in the market.