A Juniper Research study has revealed that the global smart traffic management market is projected to grow by 37% over the next two years, reaching approximately $20 billion by 2027, up from nearly $15 billion in 2025.
The growth is primarily driven by rapid urbanisation in emerging markets and a strong focus on sustainability, despite the economic pressures and interoperability challenges associated with legacy systems.
The findings highlight that as urban populations expand, the need for efficient traffic management becomes increasingly critical.
“Vendors must focus on deploying their SaaS solutions on tiered subscription pricing models, as this will lower the entry barrier for smaller entities,” said Michelle Joynson, the research author. “It will also enable vendors to upsell services as they gain credibility, maximising revenue.”
To tackle the interoperability challenges that hinder the implementation of innovative traffic management solutions, Juniper Research advocates for a shift towards software-driven, modular solutions via Software-as-a-Service (SaaS) models.
These subscription-based services, particularly those leveraging AI for analytics and maintenance, are expected to reduce costs for governments and transportation agencies, making smart traffic management more accessible, especially for smaller or financially constrained entities.
The report emphasises that embracing this service-based model could significantly enhance the market's credibility, as users begin to recognise the value of the deployed services and achieve quicker returns on their investments.
With technological advancements, such as AI-powered video analytics and decreasing sensor costs, the smart traffic management market is poised for substantial growth between 2027 and 2030.
Juniper Research anticipates that if vendors adopt a service-oriented approach, the market could double in value, reaching an estimated $32 billion globally by 2030. This growth trajectory underscores the importance of adaptability and innovation in the face of evolving urban landscapes and sustainability goals.
As cities continue to grapple with increasing congestion and environmental pressures, the demand for smart traffic management solutions will only intensify.
The integration of advanced technologies and strategic business models will be vital for stakeholders looking to capitalise on this burgeoning market, ensuring that they remain competitive in a rapidly changing environment.
