China smart highway market was valued at $7.9 billion in 2025 and is projected to reach $50.0 billion by 2035, growing at a CAGR of 20.4% during the forecast period (2026–2035). The demand for China’s smart highway market is driven by multiple factors, including the growing adoption of connected and autonomous vehicles, the integration of AI, IoT, and big data into transportation systems, increasing focus on traffic efficiency and safety, rising investments in intelligent infrastructure, and the need for real-time traffic management and vehicle-to-infrastructure (V2I) communication. Among these, government policy stands out as the major key driver, as it provides regulatory certainty, investment incentives, and large-scale pilot projects, accelerating digital transformation and intelligent upgrades across national highways and creating a structured environment for widespread adoption of smart highway technologies.
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Government Policy Driving China Smart Highway Demand
China’s policy push under the 15th Five-Year Plan is acting as a powerful growth driver for the smart highway market by creating both regulatory certainty and investment incentives. By officially prioritizing smart connected vehicles and “AI + Transport,” China is actively advancing smart highway development through pilot projects in around 20 cities, covering over 35,000 kilometers of test roads and equipped with more than 11,000 roadside intelligent units, as per the Ministry of Industry and Information Technology of China.
According to the Chinese Ministry of Finance and Ministry of Transportation, starting from 2024, China plans to digitally transform and upgrade busy national highways, building demonstration areas, smart channels, and integrated networks to improve traffic efficiency, safety, and operational management. By deploying technologies such as big data, IoT, AI, Beidou navigation, and real-time traffic perception systems, the government aims to enable intelligent management, active traffic control, and networked services along key highway corridors. This large-scale modernization creates a strong demand for smart highway solutions, including sensor networks, intelligent traffic management systems, V2I communication, and AI-enabled infrastructure. By linking highway upgrades with advanced digital technologies, the policy not only improves traffic efficiency and emergency response but also provides a clear market opportunity for companies delivering smart highway hardware, software, and integrated services, making infrastructure intelligence a key growth driver in China.
Key Development in the China Smart Highway Market
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