Smart city traffic technology solutions deployed to ease chronic congestion in cities will generate $4.4 billion in revenue in 2023, up from $2 billion in 2019, according to Juniper Research.
The research firm said these solutions typically use sensors in combination with machine learning software algorithms to dynamically alter traffic light phasing according to traffic levels.
With lower the emissions footprint of cities, the technologies are expected to save the equivalent of over 780 billion passenger vehicle miles’ worth of greenhouse gas emissions over the forecast period.
The research report, “ Smart Cities: Leading Platforms, Segment Analysis & Forecasts 2019-2023,” identified North America alongside Far East & China as major investment regions, driven by strong prevalence for technology deployment over policy-driven solutions to lower traffic congestion.
Juniper also examined the impact of city traffic innovation on citizens in terms of policy and investment direction and the five leading cities in the world leading this are: Barcelona, San Francisco, Singapore, London, Portland in the US.
Barcelona leads the rankings on account of its investment into smart traffic solutions, electric vehicle charging infrastructure and policy, aimed at improving air quality and lowering private vehicle use, according to Juniper.
The research found that while ride-hailing services are widely blamed for increased congestion, these same companies have an opportunity to capitalize on the road towards future MaaS (Mobility-as-Service) deployments.
“Entities such as Didi capture vast amounts of data in regard to congestion, traffic and passenger flows,” explained research author Steffen Sorrell. “Analysis of this data will be fundamentally useful in optimizing the MaaS traveling salesman problem, and provides an opportunity for smart city data monetization.”