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By Component;
Hardware-[Sensors, Display Boards, Surveillance Cameras, Communication Devices and Others], Software-[Predictive Analytics Software, Data Management & Analysis Software, Simulation & Optimization Software, Video Analytics Software and Others] and Services-[Consulting, Deployment & Integration and Support & Maintenance]By Deployment Mode;
On-Premises and Cloud-BasedBy Application;
Urban Traffic Management, Highway Traffic Management, Public Transportation Management, Parking Management, Freight Management, Incident Detection & Management and OthersBy End Use;
Government Agencies, Highway Operators, Municipalities and Toll AuthoritiesBy Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031)Next-Gen ATM Market Overview
Next-Gen ATM Market (USD Million)
Next-Gen ATM Market was valued at USD 18642.62 million in the year 2024. The size of this market is expected to increase to USD 28031.61 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 6.0%.
Next-Gen Advanced Traffic Management (ATM) Market
*Market size in USD million
CAGR 6.0 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 6.0 % |
| Market Size (2024) | USD 18642.62 Million |
| Market Size (2031) | USD 28031.61 Million |
| Market Concentration | Medium |
| Report Pages | 391 |
Major Players
- DIEBOLD INC.
- Euronet
- Fujitsu
- GRG Banking
- HESS Terminal Solutions GmbH & Co.
- Hitachi Payment Services Pvt. Ltd.
- Nautilus Hyosung
- NCR Corporation
- Triton Systems of Delaware LLC
- Wincor Nixdorf AG
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Next-Gen Advanced Traffic Management (ATM) Market
Fragmented - Highly competitive market without dominant players
The Next-Gen Advanced Traffic Management (ATM) Market is witnessing rapid transformation as urban centers adopt intelligent solutions for mobility. With nearly 40% of traffic congestion linked to inefficient systems, next-generation platforms powered by AI, IoT, and predictive analytics are reshaping traffic flow and enhancing operational efficiency.
Technological Advancements
Around 55% of traffic operations now rely on real-time analytics and adaptive control systems. From connected vehicles to smart sensors and automated incident detection, these innovations are creating smoother commuting experiences while minimizing disruptions.
Safety and Efficiency
Regions implementing advanced ATM solutions have recorded over 30% fewer accidents. The inclusion of AI-enabled route optimization, intelligent surveillance, and emergency coordination allows authorities to respond faster and create safer roadways.
Sustainability Benefits
Optimized traffic flow can deliver up to 20% emission reduction. Strategies such as eco-routing, synchronized green signals, and congestion prediction are aligning transportation with environmental goals, lowering carbon footprints, and supporting eco-friendly mobility.
Integration with Smart Cities
With more than 60% of urban innovation projects integrating advanced ATM systems, cities are enabling real-time coordination between infrastructure, public transit, and emerging mobility platforms, fostering smarter and more resilient transportation networks.
Next-Gen Advanced Traffic Management (ATM) Market Key Takeaways
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Rapid urbanization and rising congestion levels fuel adoption of intelligent traffic management technologies for optimized mobility, safety, and real-time road network efficiency.
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Integration of AI, edge computing, and connected infrastructure enhances incident detection, predictive traffic flow analytics, and automated response systems for smarter city operations.
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Increasing deployment of adaptive traffic signal control and smart intersections supports seamless vehicle movement, reducing delays and emissions across urban corridors.
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Expansion of C-V2X and IoT sensor networks enables vehicle-to-infrastructure communication, improving situational awareness and supporting future autonomous mobility ecosystems.
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Growing emphasis on multi-modal traffic management integrates public transit, pedestrian flow, freight systems, and micro-mobility into unified real-time control platforms.
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Government investments in ITS modernization and sustainable urban mobility accelerate public-private collaboration for scalable digital transportation infrastructure.
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Rising focus on cyber-secure traffic control systems drives adoption of encrypted communication, access control, and threat monitoring to safeguard critical road infrastructure.
Next-Gen ATM Market Recent Developments
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In October 2020, NCR Corporation launched its next-generation ATM platform, Activate Enterprise NextGen, built to seamlessly integrate ATMs into the digital banking ecosystem. The system features a modern, user-friendly interface with a freestanding tablet design and enhanced digital functionalities. It supports contactless card transactions and enables banks to deliver personalized experiences through HTML and CSS customization, addressing evolving customer expectations amid the COVID-19 pandemic.
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In 2021, the global count of ATMs declined, especially across developed markets, as the expansion of digital banking and fintech solutions reduced the need for cash-based transactions. In the United States, the number fell from 470,000 in 2019 to 456,000 in 2021. Despite this trend, ATMs remain vital in underserved regions where cash continues to dominate, providing critical financial access and connectivity to banking services.
Next-Gen Advanced Traffic Management (ATM) Market Segment Analysis
In this report, the Next-Gen Advanced Traffic Management (ATM) Market has been segmented by Component, Deployment Mode, Application, End Use and Geography.
Next-Gen Advanced Traffic Management (ATM) Market, Segmentation by Component
The Component segmentation includes Hardware, Software and Services. Each component plays a critical role in improving traffic efficiency, reducing congestion, and enabling real-time data-driven decision-making across smart transportation networks.
Hardware
Hardware solutions form the foundation of ATM systems by providing the necessary infrastructure for data collection and signal control. These include various sensing and communication technologies that ensure efficient monitoring and management of road networks.
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Sensors
Sensors are vital for detecting traffic density, vehicle speed, and flow patterns. Advanced radar, LiDAR, and infrared sensors enable real-time data acquisition essential for adaptive signal control and congestion forecasting.
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Display Boards
Display boards serve as dynamic message signs that deliver traffic alerts, lane closures, and travel-time information to commuters. Their integration with IoT networks enhances situational awareness and driver compliance.
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Surveillance Cameras
Surveillance cameras support continuous video monitoring for incident detection, law enforcement, and traffic violation analysis. The shift toward high-definition and AI-enabled vision systems is transforming traffic surveillance operations.
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Communication Devices
Communication devices facilitate seamless data transmission between field sensors, control centers, and vehicles. The deployment of V2X (Vehicle-to-Everything) and 5G technologies is improving system responsiveness and reliability.
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Others
Other hardware components include traffic controllers, signal processors, and power management units that ensure uninterrupted ATM operations and support integration with urban mobility platforms.
Software
Software solutions enable the analytical backbone of next-gen ATM systems by providing tools for data analysis, simulation, and optimization. They empower decision-makers to implement predictive traffic control strategies and resource allocation.
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Predictive Analytics Software
Predictive analytics software leverages machine learning algorithms to forecast traffic flow, congestion, and potential incidents. Its use helps cities implement proactive traffic management measures and reduce travel delays.
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Data Management & Analysis Software
Data management platforms consolidate information from multiple traffic sources to enhance operational insights. They play a central role in enabling integrated mobility dashboards and real-time analytics.
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Simulation & Optimization Software
Simulation tools model complex traffic scenarios to test control strategies before deployment. They are essential for optimizing signal timings and maximizing intersection throughput.
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Video Analytics Software
Video analytics software processes camera feeds using AI algorithms for object detection, vehicle counting, and license plate recognition. These systems enhance safety monitoring and law enforcement efficiency.
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Others
Other software modules include weather integration, route optimization, and dashboard management tools that improve system scalability and user interaction.
Services
Services ensure the efficient implementation and continuous operation of ATM systems through strategic consulting, integration, and support. The growing complexity of multi-platform deployments has increased the need for specialized technical expertise.
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Consulting
Consulting services guide government agencies and private operators in developing smart traffic strategies and selecting suitable technologies for regional deployment.
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Deployment & Integration
Deployment and integration services ensure seamless connectivity between legacy infrastructure and new ATM platforms. These services are vital for system interoperability and data synchronization.
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Support & Maintenance
Support and maintenance services provide continuous system monitoring, upgrades, and troubleshooting. Predictive maintenance powered by AI and IoT analytics enhances system uptime and longevity.
Next-Gen Advanced Traffic Management (ATM) Market, Segmentation by Deployment Mode
The Deployment Mode segmentation includes On-Premises and Cloud-Based models. The increasing need for scalable, data-driven solutions is pushing traffic authorities toward cloud migration for flexible and cost-efficient operations.
On-Premises
On-premises deployment offers greater control over security and system customization. It remains essential for regions with strict data privacy regulations and limited cloud infrastructure. However, high setup costs can restrict adoption in developing economies.
Cloud-Based
Cloud-based deployment enables real-time data sharing and centralized management across geographically distributed systems. Its scalability, remote accessibility, and integration with AI-driven analytics make it the preferred model for smart city projects and national traffic programs.
Next-Gen Advanced Traffic Management (ATM) Market, Segmentation by Application
The Application segmentation includes Urban Traffic Management, Highway Traffic Management, Public Transportation Management, Parking Management, Freight Management, Incident Detection & Management and Others. Each application area contributes to enhancing road safety, operational efficiency, and mobility optimization.
Urban Traffic Management
Urban traffic management systems leverage AI and IoT analytics to alleviate congestion and improve traffic flow. Smart signal control and adaptive routing technologies are helping cities reduce emissions and improve commuter experience.
Highway Traffic Management
Highway traffic management solutions focus on improving lane control, congestion detection, and emergency response. The integration of automated toll systems and real-time vehicle communication networks is transforming highway operations.
Public Transportation Management
Public transport management utilizes integrated data from buses, metros, and shared mobility services to enhance route optimization and passenger information systems. Predictive analytics ensure better fleet utilization and reduced delays.
Parking Management
Parking management systems optimize parking space utilization through sensor-based occupancy detection and mobile payment platforms. These systems are key to reducing urban congestion and improving user convenience.
Freight Management
Freight management integrates real-time logistics tracking and route planning to improve cargo delivery efficiency. Growing e-commerce and logistics expansion are driving investments in intelligent freight movement systems.
Incident Detection & Management
Incident detection and management solutions use AI-powered video analytics and predictive algorithms to minimize accident response times and ensure safer transportation corridors. Integration with emergency response networks is expanding globally.
Others
Other applications include weather monitoring, environmental assessment, and adaptive signal coordination systems that further enhance overall traffic management performance.
Next-Gen Advanced Traffic Management (ATM) Market, Segmentation by End Use
The End Use segmentation includes Government Agencies, Highway Operators, Municipalities and Toll Authorities. Public-private partnerships and smart city initiatives are key in driving large-scale ATM deployments across these user categories.
Government Agencies
Government agencies are the leading end users, implementing nationwide smart mobility and congestion control programs. Investments in intelligent traffic infrastructure and public safety systems are rising as part of national transportation strategies.
Highway Operators
Highway operators employ ATM solutions for incident detection, toll automation, and traffic flow optimization. Increasing adoption of connected highway technologies and automated monitoring enhances operational efficiency.
Municipalities
Municipal authorities play a pivotal role in urban traffic planning, leveraging ATM systems to improve public transport coordination and manage growing urban mobility demands. Integration with smart grids and city IoT ecosystems ensures holistic development.
Toll Authorities
Toll authorities utilize ATM systems for seamless electronic toll collection, congestion pricing, and vehicle classification. The expansion of multi-lane free-flow tolling technologies is boosting automation across toll management networks.
Next-Gen Advanced Traffic Management (ATM) Market, Segmentation by Geography
In this report, the Next-Gen Advanced Traffic Management (ATM) Market has been segmented by Geography into five regions: North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Regions and Countries Analyzed in this Report
North America
North America leads the global ATM market with advanced deployment of AI-based traffic analytics and connected infrastructure. The U.S. spearheads investments in smart highways and 5G-enabled vehicle communication networks, emphasizing safety and congestion reduction.
Europe
Europe remains a pioneer in sustainable mobility systems, driven by EU smart transportation frameworks and low-emission urban mobility projects. Germany, the U.K., and the Netherlands are adopting integrated ATM systems aligned with their Vision Zero traffic safety goals.
Asia Pacific
Asia Pacific is the fastest-growing region, led by large-scale urbanization, infrastructure expansion, and the introduction of intelligent transportation systems (ITS) in China, Japan, South Korea, and India. Government-led smart city initiatives are propelling massive ATM deployments.
Middle East & Africa
Middle East & Africa are emerging markets with increasing investment in intelligent road and tunnel management systems. The UAE and Saudi Arabia are leading digital transformation efforts under their national smart city visions, while African nations are exploring adaptive traffic solutions.
Latin America
Latin America is showing steady progress as cities modernize their transport systems through public-private partnerships. Brazil and Mexico are deploying cloud-based traffic management solutions to reduce congestion and improve road safety.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Next-Gen ATM Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Rising Demand for Secure and Advanced Transaction Technologies
- Increased Adoption of Digital Banking Solutions
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Integration of Biometrics and Contactless Payment Systems- The integration of biometrics and contactless payment systems has emerged as a significant driver in the global next-generation ATM market. Biometrics, such as fingerprint recognition, facial recognition, and iris scanning, are enhancing the security and user experience in ATM transactions. By incorporating biometric authentication, ATMs offer a higher level of protection against fraud and unauthorized access, ensuring that only the legitimate user can complete a transaction. This trend is becoming increasingly important in the face of rising cyber threats and identity theft, where conventional PIN-based systems are often vulnerable.
The adoption of contactless payment systems is transforming how customers interact with ATMs. With the rise of mobile wallets and NFC-enabled cards, consumers can now use their smartphones or contactless cards to withdraw cash or complete other banking services without needing to insert a card into the machine. This convenience reduces transaction times and improves the overall customer experience, making ATMs more efficient and user-friendly. It also reduces wear and tear on ATM hardware, as customers no longer need to physically insert or remove cards during transactions.
The growing demand for seamless and secure financial services is driving the ATM industry's shift towards integrating these advanced technologies. Financial institutions are increasingly investing in next-gen ATMs that not only provide traditional banking services but also offer enhanced functionalities, including biometric verification and contactless payment options. This integration helps banks stay competitive by providing cutting-edge solutions that meet the evolving expectations of customers, ensuring that ATMs remain relevant in an increasingly digital world. As the adoption of these technologies continues to rise, the global next-gen ATM market is expected to experience significant growth.
Restraints:
- High Initial Setup and Maintenance Costs
- Cybersecurity and Data Privacy Concerns
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Limited Adoption in Rural and Underdeveloped Areas- In the global next-generation ATM market, one of the key restraints is the limited adoption in rural and underdeveloped areas. This is due to several factors such as inadequate infrastructure, lack of technological expertise, and limited access to high-speed internet, which are crucial for operating advanced ATMs. These areas often struggle with the necessary resources to support the implementation of next-gen ATMs that require more sophisticated systems and connectivity. Consequently, financial institutions are hesitant to deploy such advanced systems in these regions, which hinders the growth of the market in rural and underdeveloped areas.
Rural and underdeveloped regions often face challenges such as low levels of financial inclusion and limited access to banking services. The lack of awareness about modern banking solutions further contributes to the slow adoption of advanced ATMs in these areas. In many cases, traditional cash-based systems remain dominant, and customers are less inclined to embrace new technology that they may not fully understand or trust. This cultural resistance to change makes it difficult to introduce next-generation ATMs to such regions and poses a significant barrier to market expansion.
The cost of upgrading ATM networks to next-generation systems can be prohibitive for financial institutions operating in these areas. The expense of installing and maintaining high-tech ATMs, along with the need for reliable and secure connectivity, often outweighs the potential benefits in rural and underdeveloped regions. This financial burden makes it less attractive for banks and ATM operators to invest in next-gen systems in these markets, further restricting their adoption and delaying the growth of the global next-gen ATM market.
Opportunities:
- Expansion of ATM Networks in Emerging Markets
- Advancements in AI and IoT for ATM Automation
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Growth in Cash Recycling ATMs and Green ATM Initiatives- The growth in cash recycling ATMs presents a significant opportunity in the global next-gen ATM market. Cash recycling technology allows ATMs to accept deposits and dispense the same currency, which enhances operational efficiency for financial institutions. This reduces the need for cash transportation, lowers costs, and improves the overall cash management process. As cash usage remains relevant in many regions, particularly in emerging markets, the demand for these ATMs is expected to increase, supporting the growth of the next-gen ATM market.
Another key opportunity is the growing adoption of green ATM initiatives. With environmental concerns on the rise, banks and financial institutions are increasingly looking for ways to minimize their carbon footprint. Green ATM initiatives focus on energy-efficient designs, the use of renewable energy sources, and sustainable materials. These ATMs consume less power, reduce waste, and contribute to environmental conservation, making them attractive to consumers and institutions that prioritize sustainability. This trend is expected to drive demand for next-gen ATMs with eco-friendly features.
The combined impact of cash recycling and green initiatives aligns with the evolving needs of both financial institutions and consumers. As banks strive to reduce operational costs and enhance sustainability, the next-gen ATM market is poised for growth. These factors are particularly important in the context of increased competition and the growing expectation for more technologically advanced, environmentally responsible banking solutions. The convergence of efficiency and sustainability will likely fuel innovation and expansion in the ATM sector, creating a dynamic and rapidly evolving market landscape.
Next-Gen Advanced Traffic Management (ATM) Market Competitive Landscape Analysis
Next-Gen Advanced Traffic Management (ATM) Market is characterized by a competitive landscape driven by constant innovation and strategic partnerships. Key players focus on enhancing growth through advanced technological solutions and collaborative initiatives. With over 50% of market share dominated by top providers, ongoing merger activities and regional expansion are pivotal in maintaining competitive advantages.
Market Structure and Concentration
The market structure is moderately concentrated, with top players commanding about 60% of the share, while new entrants capture nearly 30%. This concentration fosters intense competition, promoting continuous innovation and strategic collaboration. As a result, companies are focused on driving growth through specialized solutions and cutting-edge technologies, enhancing their market positioning.
Brand and Channel Strategies
Leading companies adopt diversified channel strategies, with over 40% of sales driven by direct digital platforms. Strategic partnerships with government bodies and industry stakeholders further promote market expansion. Brands leverage their innovation and trusted reputation to penetrate new regions, ensuring sustained growth through efficient customer engagement and tailored offerings.
Innovation Drivers and Technological Advancements
Technological advancements are central to the market, with more than 55% of companies focusing on AI-driven traffic solutions and data analytics. Innovations in traffic management systems, coupled with strategic collaboration with tech firms, fuel growth and improve operational efficiency. Continuous R&D investment enhances competitiveness by driving cutting-edge technological advancements in real-time traffic optimization.
Regional Momentum and Expansion
Asia-Pacific leads the market with over 40% of market share, driven by rapid urbanization and infrastructure development. Strong regional expansion strategies by key players foster continued growth, with significant investments in North America and Europe. Partnerships with local governments ensure tailored solutions, supporting strategic growth in these key regions.
Future Outlook
The future outlook indicates continued growth in the ATM market, underpinned by ongoing technological advancements and collaboration. With increasing urban challenges, over 60% of companies are expected to integrate smart city solutions into their offerings. Competitive advantage will depend on the adoption of next-gen innovations and strategic partnerships to enhance operational efficiencies.
Key players in Next-Gen ATM Market include:
- Siemens AG
- Thales Group
- TransCore LP
- Cubic Corporation
- Conduent Incorporated
- Johnson Controls International plc
- Kapsch TrafficCom AG
- Iteris Inc.
- PTV Group (Porsche SE)
- Q-Free ASA
- SWARCO AG
- TomTom NV
- FLIR Systems Inc. (Teledyne Technologies)
- INRIX Inc.
- Indra Sistemas S.A.
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Share Market Analysis
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Component
- Market Snapshot, By Deployment Mode
- Market Snapshot, By Application
- Market Snapshot, By End Use
- Market Snapshot, By Region
- Next-Gen Advanced Traffic Management (ATM) Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Rising Demand for Secure and Advanced Transaction Technologies
- Increased Adoption of Digital Banking Solutions
- Integration of Biometrics and Contactless Payment Systems
- Restraints
- High Initial Setup and Maintenance Costs
- Cybersecurity and Data Privacy Concerns
- Limited Adoption in Rural and Underdeveloped Areas
- Opportunities
- Expansion of ATM Networks in Emerging Markets
- Advancements in AI and IoT for ATM Automation
- Growth in Cash Recycling ATMs and Green ATM Initiatives
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Next-Gen Advanced Traffic Management (ATM) Market, By Component, 2021 - 2031 (USD Million)
- Hardware
- Sensors
- Display Boards
- Surveillance Cameras
- Communication Devices
- Others
- Software
- Predictive Analytics Software
- Data Management & Analysis Software
- Simulation & Optimization Software
- Video Analytics Software
- Others
- Services
- Consulting
- Deployment & Integration
- Support & Maintenance
- Hardware
- Next-Gen Advanced Traffic Management (ATM) Market, By Deployment Mode, 2021 - 2031 (USD Million)
- On-Premises
- Cloud-Based
- Next-Gen Advanced Traffic Management (ATM) Market, By Application, 2021 - 2031 (USD Million)
- Urban Traffic Management
- Highway Traffic Management
- Public Transportation Management
- Parking Management
- Freight Management
- Incident Detection & Management
- Others
- Next-Gen Advanced Traffic Management (ATM) Market, By End Use, 2021 - 2031 (USD Million)
- Government Agencies
- Highway Operators
- Municipalities
- Toll Authorities
- Next-Gen Advanced Traffic Management (ATM) Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Next-Gen Advanced Traffic Management (ATM) Market, By Component, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Siemens AG
- Thales Group
- TransCore LP
- Cubic Corporation
- Conduent Incorporated
- Johnson Controls International plc
- Kapsch TrafficCom AG
- Iteris Inc.
- PTV Group (Porsche SE)
- Q-Free ASA
- SWARCO AG
- TomTom NV
- FLIR Systems Inc. (Teledyne Technologies)
- INRIX Inc.
- Indra Sistemas S.A.
- Company Profiles
- Analyst Views
- Future Outlook of the Market