Government Policies Driving European Smart Highway Market Growth at 17% CAGR

European smart highway market was valued at $20.5 billion in 2025 and is projected to reach $98.6 billion by 2035, growing at a CAGR of 17.0% during the forecast period (2026–2035). The European Smart Highway Market is being driven by multiple factors, including the push for low-emission freight transport, the deployment of Electric Road Systems (ERS) with dynamic wireless charging, IoT-enabled emission monitoring and green tolling, and the expansion of connected infrastructure under the Intelligent Transport Systems (ITS) Directive. Among these, government policies and legislative measures are the primary growth driver, as initiatives including the European Climate Law and the ‘Fit for 55’ package that accelerate the modernization and electrification of road networks across Europe.

Browse the full report description of “European Smart Highway Market Size, Share & Trends Analysis Report by Technology (Intelligent Traffic Management System, Intelligent Transportation Management System, Monitoring System, Communication System), By Deployment Model (On-Premise, Cloud), By Service (Consultancy Service, Maintenance & Operational Service, Managed Service), Forecast Period (2026-2035)” at https://www.omrglobal.com/industry-reports/europe-smart-highway-market

Government Initiatives and Legislative Measures Driving the European Smart Highway Market

Under the European Climate Law, the EU has committed to reducing its net greenhouse gas emissions by at least 55% by 2030, with the ‘Fit for 55’ package of legislation ensuring that all sectors of the EU economy contribute to achieving this target. This ambitious climate agenda is a key growth driver for smart highways in Europe, as it encourages the adoption of low-emission transport solutions and the modernization of road infrastructure.

In this line the EU’s investment in Electric Road Systems (ERS) is driving demand for smart highways across Europe by enabling dynamic wireless charging for electric trucks. By embedding inductive charging coils beneath road surfaces, trucks can charge while driving, reducing the need for heavy batteries and increasing payload capacity. This makes electric freight more economically competitive with diesel, boosting the adoption of smart highway infrastructure, particularly along major corridors like the Trans-European Transport Network (TEN-T).

The shift to IoT-enabled emission monitoring and “green tolling” under the Revised Eurovignette Directive is also driving demand for smart highways in Europe. Advanced sensors and cameras detect vehicle-specific emissions in real time, allowing high-polluting vehicles to be charged higher tolls while zero-emission vehicles receive discounts. Implementing these “Polluter Pays” schemes requires dense networks of smart sensors and digital infrastructure, creating significant opportunities for smart highway development across European road networks.

Additionally, the EU’s Intelligent Transport Systems (ITS) Directive has been revised to accelerate the deployment of connected and digital road infrastructure, including communication between vehicles and infrastructure, real-time traffic data, and other intelligent services that underpin smart highways across the EU.                

Key Industry Moves Driving Europe’s Smart Highway Expansion

• In June 2025, at the Transport Logistic Munich 2025, Milence, the joint venture between Daimler Truck, TRATON GROUP, and Volvo Group, officially launched its vision for electric freight corridors, Megawatt Charging System (MCS) infrastructure, and a smart charging booking solution, showcasing next-generation smart highway support for electrified heavy-duty vehicles (eHDVs) across Europe.

• In October 2025, Electreon announced the world’s first dynamic wireless charging highway on the A10, enabling passenger vehicles and heavy-duty trucks to charge while driving without cables. Led by VINCI Autoroutes and backed by Bpifrance, this project demonstrates scalable wireless charging in real traffic conditions, supporting long-distance electrification and smart highway deployment.

• In November 2025, a consortium of ON, Voltix, and GreenWay secured €70.3?million in EU funding under the Alternative Fuels Infrastructure Facility (AFIF) to deploy 330 Megawatt Charging System (MCS) points across 55 logistics hubs in nine European countries by 2028. This initiative is set to significantly expand smart charging infrastructure for heavy-duty electric freight transport across major EU corridors.

Market Coverage

• The market number available for – 2025-2035
• Base year- 2025
• Forecast period- 2026-2035
• Segment Covered-
• Technology
• Deployment Mode
• Service

• Competitive Landscape – Indra Sistemas, S.A., Kapsch TrafficCom AG, Siemens AG, SWARCO Traffic Systems GmbH, and Thales Group

Key questions addressed by the report.

• What is the market growth rate?
• Which segment and region dominate the market in the base year?
• Which segment and region will project the fastest growth in the market?
• Who is the leader in the market?
• How are players addressing challenges to sustain growth?
• Where is the investment opportunity?

European Smart Highway Market Report Segment

By Technology

• Intelligent Transportation Management System
• Intelligent Traffic Management System
• Communication System
• Monitoring System

By Deployment Mode

• On-Premise
• Cloud

By Service

• Consultancy Services
• Maintenance & Operation Services
• Managed Services

European Smart Highway Market Report Segment by Region

• UK
• Germany
• Italy
• Spain
• France
• Russia
• Rest of Europe

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