Traffic Sensor Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Component:

Based on components, the market is segmented into software and hardware.

Trends in the Component:

• There is an increasing trend towards the adoption of hardware sensors for controlling traffic, avoiding accidents, and navigation.
• Rising utilization of advanced software with sensors due to its enhanced capability of traffic detection.

Hardware accounted for the largest revenue share of the total traffic sensor market share in 2024.

• Hardware components include infrared sensors, radar sensors, thermal sensors, inductive loops, piezoelectric sensors, and others, which are used for detecting and predicting traffic.
• Hardware components measure the physical behavior of traffic using different sensors by emitting invisible beams for detecting the presence of vehicles.
• Further, hardware sensor helps in real-time monitoring and efficient traffic management processes.
• For instance, in August 2022, Traffic Technology launched Zelt Evo sensor technology with improved detection of vehicles such as bikes and scooters.
• According to the analysis, the rising developments related to hardware technology including sensors and cameras are driving the traffic sensor market size.

Software is anticipated to register the fastest CAGR during the forecast period.

• Sensors and software are integrated to generate real-time traffic data for managing traffic in crowded environments.
• Further, software implementation enables split-second decisions in traffic management to reduce a significant amount of angle collisions at an intersection.
• Additionally, the integration of AI in traffic management software helps in route suggestions and reduces the travel time of passengers.
• For instance, according to the NIC Goa, in March 2023, the Chief Minister of Goa launched ITMs (Intelligent Traffic Management System) for monitoring traffic violations.
• According to the analysis, the rising developments related to software management systems for monitoring traffic are driving the traffic sensor market.

By Sensor:

Based on sensors, the market is segmented into image sensors, infrared sensors, radar sensors, thermal sensors, inductive loops, piezoelectric sensors, and others.

Trends in the Sensor:

• There is an increasing trend towards the adoption of thermal sensors for recognizing physical parameters based on collected temperature data.
• The adoption of piezoelectric sensors in traffic management systems is rising due to their ability to measure changes in strain, pressure, temperature, acceleration, and others.

Image sensors accounted for the largest revenue share of the overall total traffic sensor market share in 2024 and are anticipated to register the fastest CAGR during the forecast period.

• Image sensor captures light and converts the collected light into an electric signal, which is then processed to create a digital image.
• Moreover, there is a rising utilization of image sensors such as camera modules, digital cameras, and others for detecting information in the form of images.
• Further, high-quality images with low noise are collected using traffic image sensors for different scenarios such as the verification of number plates.
• For instance, in October 2023, Hikvision unveiled its multilane ANPR cameras and radar-assisted ANPR cameras integrated with image sensors for improving transportation security systems.
• Therefore, the rising advancements in image sensors for traffic management are driving the traffic sensor market trends.

By Application:

Based on the application, the market is segmented into traffic management, tolling, vehicle measure & profiling, and others.

Trends in the Application:

• There is an increasing trend towards the adoption of traffic management solutions for reducing carbon emissions.
• Rising utilization of vehicle measurement & profiling for determining average fuel consumption, average emissions, passenger occupancy, and others.

Traffic management accounted for the largest revenue share of 38.42% of the total share in 2024.

• Traffic management is a planned combination of measures that are implemented to improve the safety and security of the road transport system.
• Further, sensors such as image sensors, infrared sensors, thermal sensors, and others are used according to the traffic management solution.
• Traffic management software is used for controlling the light on the roads, collecting traffic density, navigation, and others.
• For instance, in October 2024, Seyond launched SIMPL (Seyond Intersection Management Platform) with advanced LiDAR technology and artificial intelligence to dynamically optimize traffic signal controls.
• According to the analysis, the rising advancements in traffic management systems are driving the traffic sensor market trends.

Tolling is anticipated to register the fastest CAGR during the forecast period.

• Tolling refers to the process of collecting fees from vehicles roads, bridges, and tunnels.
• Further, tolling involves the use of advanced sensors and technologies for the detection, and monitoring of traffic, vehicle measurement, and others.
• Additionally, the sensor is used to detect the vehicle information for calculating the toll based on the distance.
• For instance, in October 2023, Hikvision India launched a Multilane Free Flow Tolling Solution at the TrafficInfraTech Expo to improve the tolling system.
• According to the analysis, the rising advancements in tolling systems for efficiently collecting tolls are driving the traffic sensor market.