Electronic Toll Collection Market Size, Share & Segmentation By Type (Transponder (Tag-Based Tolling Systems), Other Tolling Systems) By Offering (Hardware, Back-Office & Other Services) By Technology (RFID, DSRC, GPS, GNSS, Others) By Application (Highways, Urban Areas), By Regions, And Global Forecast 2024-2032

Electronic Toll Collection Market Report Scope & Overview:

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The Electronic Toll Collection Market Size was valued at USD 9.4 billion in 2023 and is expected to reach USD 18.11 billion by 2032 and grow at a CAGR of 7.56 % over the forecast period 2024-2032

The electronic toll collection (ETC) system is a high-end technology that allows for automatic toll collection without the driver having to stop. It employs cutting-edge technological solutions such as RFID, DSRC, GPS & GNSS toll collection to efficiently manage traffic in congested areas, thereby easing toll collection.

Electronic toll collection, also known as automated toll collection, is expected to grow in market value over the forecast period due to potential benefits such as increased time efficiency, vehicle identification, and technological advancements. Because of strong government support, the demand for the Electronic Toll Collection market is skyrocketing in developing countries. Tolls are collected by governmental organisations in developed countries on highways, tunnels, and bridges, which contributes to traffic congestion and fatal accidents. In order to reduce such occurrences, they are installing Electronic Toll Collection Systems in addition to traditional Toll Collection Systems to ensure free traffic flow.

MARKET DYNAMICS:

KEY DRIVERS:

• Cashless payments provide greater convenience.

• There is strong government support for expanding the deployment of electronic toll collection systems.

• Increased use of electronic tolling systems to reduce traffic congestion, accidents, and pollution.

RESTRAINTS:

• Satellite-based GPS technologies are not widely used.

• Developmental countries face implementation challenges.

OPPORTUNITIES:

• All-electronic tolling systems are becoming more popular.

• A growing number of public-private partnership agreements are being signed in the transportation sector.

• Blockchain technology integration into toll collection systems.

 CHALLENGES: 

• Problems with toll collection technology selection.

• No common technological standards for vehicle recognition.

IMPACT OF COVID-19:

Several manufacturing verticals and production units have seen their growth stifled as a result of the pandemic. The pandemic had a particularly negative impact on the automotive, construction, transportation, and semiconductor industries. Because the manufacturing units were shut down, the supply and chain disruption were exacerbated throughout the pandemic. These elements have had a significant impact on the overall growth of the Electronic Toll Collection industry. Furthermore, raw materials for electronic equipment such as RFID chips, controllers, processors, cameras, and transponders were shipped from countries such as China and the United States to manufacturing units around the world. Because of significant restrictions on global movement and logistics at international borders, raw materials were not transported to manufacturing companies, affecting manufacturing processes as well. As a result, the widespread COVID 19 has had a significant impact on the value of the Electronic Toll Collection Industry.

Based on type, the electronic toll collection market is segmented into Transponder (Tag-based Tolling Systems), and Other Tolling Systems. Based on technology, the electronic toll collection market is segmented into RFID, DSRC, GPS, GNSS, and Others.

Transponders have long been used to identify vehicles. An RFID chip is mounted on the vehicle in this method, particularly near the rear-view mirror. The transponder or tag responds to radio signals transmitted by gantries located in high-traffic areas such as cities or highways. Tolls can be paid with credit or debit cards by vehicle owners. On-board DSRC technology-based transponders deployed on or in vehicles communicate with roadside DSRC technology-based transponder units, which alert the driver to potential safety hazards, toll payments, and parking payments. There are also GNSS-based electronic toll collection systems and transponders on the market.

Based on application, the electronic toll collection market is segmented into Highways, and Urban Areas. Highways play a critical role in making our lives easier. They are necessary for getting from one location to another quickly and efficiently. However, high-speed traffic poses some difficulties. Safety is critical on highways designed for high-speed traffic. The more up-to-the-minute information motorists have about the current traffic situation, the safer they will be while driving. On highways, vehicles travel at high speeds; electronic toll collection systems enable vehicle owners to conduct a convenient digital payment without stopping at tollbooths. This system has ushered in a new era by making toll collection easier, faster, and more efficient.

KEY MARKET SEGMENTS:

BY TYPE

• Transponder (Tag-based Tolling Systems)

• Other Tolling Systems

BY OFFERING

• Hardware

• Back-office & Other Services

BY TECHNOLOGY

• RFID

• DSRC

• GPS

• GNSS

• Others

BY APPLICATION

• Highways

• Urban Areas  

REGIONAL ANALYSIS:

North America is expected to continue to lead the electronic toll collection market by capturing the largest market share throughout the forecast period, Due to the replacement of legacy payment systems with digital tags, Minimization of component size and the emergence of new technologies such as RFID have the potential to boost demand in the region. The rising number of government initiatives aimed at achieving congestion-free transportation, rapidly increasing vehicle demand and production in North America, and adoption of cutting-edge technological solutions, such as GPS and GNSS toll collection and tracking solutions, are propelling the regional electronic toll collection market forward.

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REGIONAL COVERAGE:

• North America

  • USA

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • The Netherlands

  • Rest of Europe

• Asia-Pacific

  • Japan

  • south Korea

  • China

  • India

  • Australia

  • Rest of Asia-Pacific

• The Middle East & Africa

  • Israel

  • UAE

  • South Africa

  • Rest of Middle East & Africa

• Latin America

  • Brazil

  • Argentina

  • Rest of Latin America

KEY PLAYERS:

The key players in the electronic toll collection market are Abertis, Cubic Corporation, GeoToll, Kapsch TrafficCom, Raytheon Company, Conduent, Denso Corporation, International Road Dynamics, Perceptics, Siemens & Other Players.