Next-Gen Advanced Traffic Management (ATM) Market Size, Share, Report 2034

Next-Gen Advanced Traffic Management (ATM) Industry Perspective:

The global next-gen advanced traffic management (ATM) market size was valued at around USD 7.49 billion in 2024 and is projected to reach approximately USD 12.87 billion by 2034, with a compound annual growth rate (CAGR) of roughly 7% between 2025 and 2034.

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Key Insights:

• As per the analysis shared by our research analyst, the global next-gen advanced traffic management (ATM) market is estimated to grow annually at a CAGR of around 7% over the forecast period (2025-2034)
• In terms of revenue, the global next-gen advanced traffic management (ATM) market size was valued at around USD 7.49 billion in 2024 and is projected to reach USD 12.87 billion by 2034.
• The next-generation advanced traffic management (ATM) market is projected to grow significantly due to the adoption of smart city initiatives, the rise in autonomous and connected vehicles, and government investments in intelligent transportation systems (ITS).
• Based on product type, the smart ATM segment is expected to lead the market, while the conventional/bank ATM segment is expected to grow considerably.
• Based on technology, the AI segment is the dominant segment, while the IoT integration segment is projected to witness sizable revenue growth over the forecast period.
• Based on the solution, the deployment segment is expected to lead the market compared to the managed services segment.
• Based on application, the bank segment dominated the market, while the retail segment progressed considerably.
• Based on region, North America is projected to dominate the global market during the estimated period, followed by Europe.

Next-Gen Advanced Traffic Management (ATM) Market: Overview

Next-generation advanced traffic management systems are enhanced solutions designed to improve road traffic flow, reduce congestion, and enhance safety through intelligent control and monitoring technologies. These systems integrate real-time data from sensors, connected vehicles, and cameras to manage traffic signals, plan routes more effectively, and respond to incidents more efficiently. The global next-gen advanced traffic management (ATM) market is projected to witness substantial growth, driven by the growing urbanization and vehicle density, government smart city initiatives, and the integration of connected vehicle and IoT technologies. Rapid urbanization and increasing vehicle ownership are leading to significant traffic congestion, underscoring the need for intelligent traffic management solutions to enhance road usage and improve the commuter experience.

Moreover, governments worldwide are investing in smart city projects that incorporate ITS (intelligent transportation systems) and ATM solutions to enhance public safety, optimize urban mobility, and reduce traffic congestion. Furthermore, the proliferation of IoT devices, vehicle-to-infrastructure (V2I) communication, and connected sensors allows real-time traffic monitoring, automated traffic signal adjustments, and predictive analytics.

Although drivers exist, the global market is hindered by factors such as high initial implementation costs and concerns over data security and privacy. Deploying ATM infrastructure, which comprises IoT sensors, software platforms, communication networks, and cameras, requires a significant capital investment, potentially hindering adoption in emerging economies. Likewise, the collection and real-time analysis of commuter data and analysis increase privacy concerns and impending cybersecurity risks, which in turn slow industry penetration and regulatory approvals.

Even so, the global next-gen advanced traffic management (ATM) industry is well-positioned due to its integration with electric and autonomous vehicles, cloud-based traffic management solutions, and the adoption of predictive analytics and AI, or smart mobility. ATM systems can support driverless vehicle navigation, EV charging, and intelligent routing, creating fresh revenue streams and industry adoption avenues. The adoption of cloud platforms for traffic monitoring and analytics enables cities to install scalable, real-time, and cost-effective traffic solutions with reduced local IT requirements. Additionally, leveraging AI to predict traffic congestion, manage incidents, and optimize routing in real-time offers cities improved commuter satisfaction and enhanced operational efficiency.

Next-Gen Advanced Traffic Management (ATM) Market Dynamics

Growth Drivers

How is the next-gen advanced traffic management (ATM) market driven by increasing demand for road safety and accident prevention?

Rising concerns over traffic fatalities are driving the adoption of next-generation advanced traffic management (ATM). This considerably fuels the growth of the next-gen advanced traffic management (ATM) market. According to the WHO, nearly 1.35 million yearly deaths are reported from road accidents worldwide, underscoring the need for safety-based systems. European studies denote that automated incident detection and adaptive signal controls can reduce collisions by 20-30%. The United States Department of Transportation recently funded AI traffic camera projects at high-risk intersections. Demand for safe roads significantly fuels investments in next-generation ATM solutions.

Government investments and policy support considerably fuel the market growth

Government funding and policies are crucial for expanding the adoption of next-generation ATMs. The European Union distributed Euro 5 billion in 2024 for smart mobility programs, supporting intelligent traffic infrastructure. In the United States, the Federal Highway Administration has funded pilot projects aimed at improving highway traffic efficiency. India's Smart Cities Mission incorporates AI traffic analytics in 100 cities, demonstrating policy-driven adoption. These programs fuel both market growth and technological advancements in traffic management.

Restraints

Lack of technical expertise and skilled workforce restricts the market progress

The adoption and operation of the next-gen ATM system need expert knowledge and proficiency in IoT, AI, system management, and data analytics. According to the World Economic Forum, the scarcity of skilled workforce in intelligent transportation solutions and AI is projected to continue by 2030. In Southeast Asia, many smart mobility projects have been delayed due to a lack of a technical workforce to operate and maintain advanced systems. This challenge hinders efficient deployment and limits the industry's growth in the developing economies.

Opportunities

How does the expansion of IoT and sensor-based traffic networks create lucrative opportunities for the next-generation advanced traffic management (ATM) market to grow?

The proliferation of traffic sensors and IoT devices enables more granular control and monitoring, creating potential for the next-gen advanced traffic management (ATM) industry to grow. According to reports, the IoT in the smart transportation industry is anticipated to reach $130 billion by 2030. Seoul has deployed IoT-based traffic lights that dynamically adapt to real-time conditions, enhancing travel efficacy by 20%. Siemens declared a worldwide expansion of its intelligent traffic sensor networks in 2025. These deployments highlight opportunities for integrating sensor-based systems in current urban infrastructure.

Challenges

How is resistance to technology adoption limiting the growth of the next-generation advanced traffic management (ATM) market?

Some city residents and the administration resist novel traffic management solutions due to concerns over reliability, job security, and privacy. According to a 2024 survey, nearly 28% of municipalities refrained from adopting AI-based traffic systems because of citizen pushback. In France, pilot projects incorporating AI signals have faced local opposition, citing concerns about surveillance issues. This resistance slows down implementation and restricts industry growth.

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Next-Gen Advanced Traffic Management (ATM) Market : Report Scope

Next-Gen Advanced Traffic Management (ATM) Market: Segmentation

The global next-generation advanced traffic management (ATM) market is segmented by product type, technology, solution, application, and region.

Based on product type, the global next-gen advanced traffic management (ATM) industry is divided into conventional/bank ATM, solar-powered ATM, self-cashed or fully serviced ATM, smart ATM, cash dispenser ATM, free-standing ATM, through-the-wall ATM, brown label ATM, white label ATM, and others. The smart ATM segment accounted for a substantial market share due to its advanced features, including biometric authentication, cash recycling, and multi-function banking services.

On the other hand, the conventional/bank ATM segment holds a second-leading share due to broad deployment and continuous reliance for banking operations and basic cash withdrawals.

Based on technology, the global market is segmented into contactless, voice recognition, biometrics, video banking, AI, and IoT integration. The AI segment holds leadership due to its ability to optimize traffic flow, enable real-time adaptive traffic management, and predict congestion.

Conversely, the IoT integration segment holds second place, as it controls cameras, sensors, and vehicles for data-driven traffic control and real-time monitoring.

Based on the solution, the global next-gen advanced traffic management (ATM) market is segmented into deployment, onsite, offsite, worksite, and mobile, as well as managed services. The deployment segment holds a leading share due to its role in implementing comprehensive traffic management systems in highway and urban networks.

However, the managed services segment holds a second-leading position since agencies and cities largely depend on outsourced experts for real-time maintenance, optimization, and monitoring.

Based on application, the global market is segmented into bank service agents, banks, retail, and enterprises. The bank segment holds a dominant share due to the high adoption of ATM systems for cash management, financial services, and customer transactions.

Nevertheless, the retail segment follows leadership due to ATMs in retail locations improving customer convenience and helping to increase foot traffic.

Next-Gen Advanced Traffic Management (ATM) Market: Regional Analysis

What gives North America a competitive edge in the global Next-Gen Advanced Traffic Management (ATM) Market?

North America is likely to maintain its leadership in the next-gen advanced traffic management (ATM) market due to high urbanization and vehicle density, strong government initiatives and smart city projects, as well as the integration of IoT and advanced technology infrastructure. North America holds the highest urbanization rates worldwide, with more than 82% of its population living in urban regions. The region experiences significant traffic congestion in cities such as Los Angeles, Chicago, and New York, underscoring the need for advanced traffic management solutions. Governments in Canada and the United States are actively investing in intelligent transportation and smart city initiatives. Programs like the U.S. Department of Transportation's ITS Joint Program Office encourage adaptive traffic control and real-time traffic monitoring.

In 2023, state-level investments in ATM and ITS systems surpassed $5 billion, impacting the regional prominence. Moreover, North America boasts a broader high-speed internet, IoT infrastructure, and 5G networks, enabling the unified deployment of IoT- and AI-based ATM solutions. This advanced infrastructure supports predictive traffic management and real-time data collection.

Europe continues to hold the second-highest share in the next-gen advanced traffic management (ATM) industry, driven by high urbanization and traffic congestion, as well as strong government policies and smart city initiatives. Europe is densely populated, with urban areas such as Berlin, Paris, and London, where traffic congestion is a significant challenge. Nearly 75% of Europeans reside in urban areas, resulting in a persistent demand for traffic optimization solutions.

European nations have adopted strong policies backing smart mobility and intelligent transportation systems. Programs like the EU's C-ITS (Cooperative Intelligent Transportation Systems) program encourage real-time traffic monitoring and vehicle-to-infrastructure integration. Investment in ATM solutions in the region surpassed €3 billion in 2023, indicating robust governmental support.

Furthermore, Europe benefits from its IoT infrastructure and advanced telecommunications, enabling the efficient deployment of connected traffic solutions. More than 65% of key European cities have adopted adaptive signal control systems and sensor-based traffic monitoring.

Next-Gen Advanced Traffic Management (ATM) Market: Competitive Analysis

The leading players in the global next-gen advanced traffic management (ATM) market are:

• Siemens AG
• Kapsch TrafficCom AG
• Cubic Corporation
• TransCore
• Swarco AG
• Iteris Inc.
• Thales Group
• Q-Free ASA
• FLIR Systems Inc.
• Huawei Technologies Co. Ltd.
• Bosch Mobility Solutions
• Huawei Technologies
• Schneider Electric SE
• Mitsubishi Electric Corporation
• Veolia Transport

Next-Gen Advanced Traffic Management (ATM) Market: Key Market Trends

Integration of connected vehicle and IoT technologies:

IoT-based sensors, connected vehicles, and cameras are being extensively deployed to offer real-time traffic communication and monitoring between vehicles and infrastructure. This integration improves situational awareness, supports smart city initiatives, and facilitates adaptive traffic control.

Cloud-based traffic management solutions:

Cloud platforms are becoming popular for centralized monitoring and management of traffic systems. They allow cities to scale solutions, perform analytics, and store large datasets without heavy on-site IT infrastructure. Cloud adoption also backs predictive decision-making and remote monitoring.

The global next-gen advanced traffic management (ATM) market is segmented as follows:

By Product Type

• Conventional/Bank ATM
• Solar Powered ATM
• Self-Cashed or Fully Serviced ATM
• Smart ATM
• Cash Dispenser ATM
• Free Standing ATM
• Through-the-Wall ATM
• Brown Label ATM
• White Label ATM
• Others

By Technology

• Contactless
• Voice Recognition
• Biometrics
• Video Banking
• AI
• IoT Integration

By Solution

• Deployment
• Onsite
• Offsite
• Worksite and Mobile
• Managed Services

By Application

• Bank Service Agent
• Bank
• Retail
• Enterprises

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa