The efficient management of highways is vital for developing economies like Bangladesh, where transportation infrastructure plays a critical role in national economic growth. This study investigates the operational challenges of a 4-lane multilane highway in Kanchpur, Narayanganj, a crucial industrial zone that accommodates significant traffic volumes on national highways N1 and N2. By analyzing traffic flow, free-flow speed (FFS), and level of service (LOS), this research identifies key factors influencing highway performance through statistical analysis of 450 survey responses using SPSS. This analysis includes multiple linear regression and one-way ANOVA to support the features. The findings indicate that vehicle users, accident incidents, lack of traffic control devices, and road geometry are critical contributors to declining FFS and worsening LOS. The results underscore the potential of Intelligent Transportation Systems (ITS) technologies to improve road safety, enhance traffic flow, and reduce economic losses due to the inobservance of existing systems. The study proposes a selective implementation of ITS user services tailored to the local context. Recommended measures include adaptive traffic control systems, automated incident management solutions, infrastructure-based safety systems, and public transportation management, etc., to optimize traffic flow and prioritize high-occupancy vehicles. Focusing on cost-effective, scalable solutions, this study offers actionable insights for policymakers and transportation planners of developing nations to implement ITS-based structures to drive sustainable economic growth that aligns with the global goals of sustainable infrastructure development.