Fire services received a report of a speed camera alight just after 11pm on Wednesday.
The fire service said the incident "looks to be malicious" and police were also asked to attend the scene.
In photos, a black object that appears to be a tyre is seen blazing atop the camera on Haybridge Road in Hadley, Telford before being put out by fire crews.
Aaron Hawtin, 47, from Wellington said he had passed the scene just minutes earlier and all was quiet. By the time he was on his way home, the camera was an 'inferno'.
"I saw nothing suspicious on my way through Hadley at about 10.30pm, I even commented on how quiet the street was. There was hardly anyone about.
"Twenty minutes, half an hour later I was on my way home and the whole thing was on fire.
"By the time I pulled up the fire engine was just pulling round the corner.
"Crazy that it could go from fine one minute to this inferno the next. It was so warm, it looked like the whole thing had melted."
The camera was installed in 2015 just yards from where a nine-year-old boy was hit by a vehicle and killed on the busy road.
West Mercia Police has been asked to comment.