India is home to the second largest road network in the world; the total road network spans over 5 million km and is broadly divided into four sections, which are as follows:
- National Highways
- State Highways
- Major District Roads
- Other Roads (mainly consists of rural and other lanes)
Realizing the growing significance of the road network for the country’s growth, the Government of India has set aside 20 percent of the 12th Five-year Plan investment to develop road infrastructure. The Indian Government has planned to build around 67,000 km of road by 2016 through programs such as the NHDP, the SARDP-NE, and LWE.
Why the big demand for improved traffic safety?
The global traffic fatality rate was 18 per 100,000 people in 2013. However, middle-income countries, including India, have the highest rate at 20.1 per 100,000.
While the registered vehicle population accounts for just over 50 percent of the total registered vehicle population, road traffic deaths represent 80 percent of the total road traffic deaths. This indicates poor infrastructure, negligent driving, and a lack of road safety awareness among vehicle users.
What is the Four E’s Initiative?
The Government of India has established four separate working groups to improve road safety, aptly named the Four E’s. These groups work on submitting short-term and long-term recommendations to the government on various aspects of road safety.
For each of the above initiatives, the working groups will require adequate support from traffic safety equipment manufacturers and service providers to ensure timely recommendations are issued to the government. As a result, vendors in the market will gain revenue by providing existing products and services through collaboration with these groups.
In addition, such groups also serve as a platform for vendors to showcase their new products and launch them in the market.
Untapped Market in Tier 2 and Tier 3 Cities
Urban cities will primarily witness the repair and maintenance of the existing road network, while the rural areas will receive newly constructed roads. As the length of time for the replacement of traffic safety products such as reflective paints is generally long, the demand for maintenance work is low.
However, traffic safety equipment vendors significantly benefit from the construction of new roads. As a result, companies are capitalizing on this development, bidding competitive contracts, and winning new clients. With continued marketing and promotional initiatives, companies are expanding their network, retaining their client base, and ensuring a stable stream of revenue.
