Traffic congestion is a major issue in major cities of the world. While there are discussions going on how to optimize this problem, Analytics can be seen as a major problem solver. With the help of Analytics, traffic systems will become 'smart'. They will predict the flow of vehicles in future and depending on that information, decisions can be taken in managing congestion.
In fact, the City of Cologne, Germany has implemented Analytics to make traffic systems smart.
To see how they have done, please go through this link: http://www.futuregov.asia/articles/2013/jan/22/german-city-uses-analytics-solve-traffic-jams/.