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Demand Management

Demand Management: the way to a city without congestion? Find out more about this compelling new solution offered by Kapsch TrafficCom.

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Getting from A to B without interruptions plays an increasingly important role in our everyday life. A smoothly functioning transport system is therefore one of the main goals of modern mobility. Consequently, solutions are required that both improve the flow of traffic on the roads and increase the use of alternatives such as public transport or bicycle traffic. In short, demand management means not only directing the flow of traffic on the roads, but also that of all travelers through the transport system as a whole. This makes demand management the next logical step in the development of modern traffic management.

Because they are essentially based on software, the demand management solutions from Kapsch TrafficCom represent a fast and cost-effective way of tapping considerable potential for social benefits as well as achieving ambitious goals for the environment and mobility.

Demand management for smart cities

Demand management resides on top of the individual transportation systems that operate in a city or agglomerated area and interfaces with them:

  • Urban road and arterial networks with its roadside devices, with respect to car traffic and non-car transport modes like bicycle and walking
  • City-near highways and freeways
  • Curbside and its related management systems
  • Public transit and light rail
  • Routing, navigation and mobility services
  • Fleets and transport service providers
  • Road pricing and access schemes, including urban congestion pricing, access zones and managed lanes

Demand management aims to orchestrate the transportation sub-systems so that they deliver an overall optimum of the travel patterns – in accordance with the mobility goals preset by politics and the administrations.

For this purpose, demand management implements a broad number of schemes, ranging from simple, single-mode applications to interdependent, complex systems. Drawing from these options, it influences user behavior in many different ways. This includes the dissemination of the so-called policies: commands (to roadside systems), rules, recommendations, monetary and non-monetary incentives, dynamic toll rates and many others.

As an example, a city may offer discounted public transport tickets on days with high smog levels. Commuters are provided monetary incentives to drive outside of rush hours and to adopt car sharing. Road tolls, traffic signals and routing recommendation are adjusted in accordance to further contribute to smog mitigation.

Demand management becomes most powerful when it is combined with access restrictions for vehicles, in terms of Limited Access Zones or Congestion Charging. These Urban Access Management schemes have proved to confine road traffic as well as associated pollution in a very impactful way. What’s more, they generate revenues, which allows for investments into sustainable transport modes or to compensate for potential social issues.


In order to achieve optimal access to all aspects of mobility, Kapsch TrafficCom often combines demand management with its integrated traffic and mobility management (Integrated Mobility Management IMM), both in relation to road traffic and non-motorized modes of transport.

Meeting traffic and mobility objectives

Demand management makes it possible to meet a number of political and environmental goals:

  • Substantial modal shift to ‘green’ transport modes
  • Significant reduction of emissions
  • Compliance with air pollution thresholds
  • Reallocation of road space for ‘green’ transportation
  • Strong reduction in external costs of transportation at a very favorable benefit-to-cost-ratio
  • Fast und inexpensive implementation due to the mainly software-driven design
  • More flexible, fairer pricing structures
  • Overcoming the acceptance problems of otherwise unpopular schemes like congestion charging
  • Compliance to regulations and legal framework

In essence, safer, greener, and healthier ways to citizens getting to school or work are delivered, and the quality of living is greatly improved.


Further down the road 

Our visions don't stop at the above mentioned demand management solutions. Progressing from our existing portfolio, we are working on even more advanced services.

Ready for the future? Here are some other areas we will focus on next:

  • Guaranteed time of arrival
  • Performance-based remuneration
  • Loading zones management
  • Autonomous vehicles

Find out more about interesting projects 

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