Providers of smart city traffic technology will see revenues in the sector more than double in the next four years, according to a new report.
Analysis by Juniper Research found that traffic technology solutions deployed to ease chronic congestion in cities will generate $4.4bn (£3.5bn) in revenue in 2023, up from $2bn (£1.6bn) in 2019.
These solutions typically use sensors in combination with machine learning software algorithms to dynamically alter traffic light phasing according to traffic levels, helping to smooth urban traffic flows, the research firm explained.
Smart traffic technology can also provide data to build a more responsive public transport system, make it easier for drivers to find a parking space, improve pedestrian safety, and help vehicles pass through congested and hazardous areas safely.
Juniper’s new report, Smart Cities: Leading Platforms, Segment Analysis & Forecasts 2019-2023, says that by helping cities to lower their emissions footprint, technology-driven traffic solutions will save the equivalent of over 780 billion passenger vehicle miles’ worth of greenhouse gas emissions over the forecast period.
The research also suggests that while ride-hailing services such as Uber and Lyft are often blamed for increased congestion, these companies have an opportunity when it comes to future MaaS (Mobility-as-Service) deployments because they collect huge volumes of data on congestion, traffic and passenger flows.
“Analysis of this data will be fundamentally useful in optimising the MaaS travelling salesman problem, and provides an opportunity for smart city data monetisation,” said research author Steffen Sorrell.
Tags: traffic technology