Traffic Sign Recognition System Market

Rising Connected and Autonomous Vehicle Adoption to Boost the Growth of Traffic Sign Recognition System Market

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The global Traffic Sign Recognition System Market is estimated to be valued at US$ 5.82 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Traffic sign recognition system enables driver assistance systems in vehicles to recognize and interpret traffic signs using cameras and image processing algorithms. It captures images of traffic signs using sensors and recognizes the signs using pattern recognition and optical character recognition technologies. The recognized signs are matched with an internal database of signs for interpretation and response. This helps drivers to stay alert of speed limits, stop signs, warning signs and other regulatory traffic signs while driving. It improves road safety by preventing accidents caused due to misinterpretation of signs.

Market key trends:

One of the major trends in the traffic sign recognition system market is integration with advanced driver assistance systems (ADAS). Leading automakers are focusing on developing autonomous vehicles equipped with advanced ADAS features like adaptive cruise control, lane departure warning, automatic emergency braking etc. Traffic sign recognition acts as an important input for these systems. It provides real-time traffic and road condition data to ADAS for controlling vehicle speed, navigation and route guidance in accordance with present traffic rules. This is facilitating large-scale adoption of traffic sign recognition systems across different levels of vehicle autonomy.

Porter’s Analysis:

  • Threat of new entrants: New entrants face high entry barriers as the traffic sign recognition system market is highly capital intensive and dominated by few established players.
  • Bargaining power of buyers: Buyers have moderate bargaining power due to availability of various substitutes and influx of low cost products.
  • Bargaining power of suppliers: Established suppliers have moderate bargaining power due technology expertise required and differentiation in their product offerings.
  • Threat of new substitutes: Threat from new substitutes is low as few alternatives provide the level of safety and accuracy required for traffic sign recognition.
  • Competitive rivalry: Intense competition among major players to gain higher market share.

Key Takeaways:

The Global Traffic Sign Recognition System Market Size is expected to witness high growth, exhibiting 12% CAGR over the forecast period, due to increasing road accidents globally. North America dominated the traffic sign recognition system market in 2023, owing to stringent regulations regarding vehicle and road safety.

Regional analysis:

Asia Pacific is expected to be the fastest growing region in the traffic sign recognition system market during the forecast period. This can be attributed to the increasing vehicle production and sales in major economies such as China and India. Furthermore, rising disposable income and development of road infrastructure will further propel the demand.

Key players:

Key players operating in the traffic sign recognition system market are Continental, Daimler, Delphi Automotive, Bosch, Denso, Itseez, Toshiba, Mobileye, ZF Friedrichshafen, and Magna International. Continental Corporation held the largest market share in 2023 owing to its diversified product portfolio and strong geographical presence across key regions.

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.