PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514889
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514889
Electronic Toll Collection Market size was valued at USD 11,123.45 million in 2023, expanding at a CAGR of 7.8% from 2024 to 2032.
Growing urbanization and vehicle ownership are leading to increased traffic congestion. ETC systems help reduce congestion by allowing for smooth and quick toll transactions without stopping vehicles. Many governments are investing in smart transportation systems, including ETC, to improve road infrastructure and reduce environmental impact. Policies favoring cashless transactions and digital payments are also driving the adoption of ETC. The setup cost for ETC infrastructure is significant, including the cost of technology, installation, and integration with existing systems. This can be a barrier, especially for regions with limited budgets.
Electronic Toll Collection Market- Market Dynamics
Rising Demand For Minimizing Traffic Congestion And Fuel Consumption At Toll Stations
Vehicles idling at toll booths contribute significantly to greenhouse gas emissions. Reducing stop-and-go traffic can decrease fuel consumption and lower CO2 emissions, helping to combat climate change. Singapore's Electronic Road Pricing (ERP) system uses electronic gantries to charge vehicles based on real-time traffic conditions, successfully reducing congestion and emissions. According to the United States Department of Transportation, our people's economic well-being and standard of living are seriously threatened by traffic congestion on the country's transport system. Traffic congestion alone cost Americans $87.2 billion in lost productivity and wasted fuel in 2007. It was projected that Americans lost 4.2 billion hours and 2.8 billion gallons of fuel due to it. The increasing demand for minimizing traffic congestion and fuel consumption at toll stations is a critical aspect of modern transportation management.
Electronic Toll Collection Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 7.8% over the forecast period (2024-2032)
Based on technology segmentation, Cell Phone Tolling was predicted to show maximum market share in the year 2023
Based on application segmentation, Urban Zones were the leading type in 2023
Based on region, North America was the leading revenue generator in 2023
The Global Electronic Toll Collection Market is segmented on the basis of Product Type, Application, Technology, and Region.
The market is divided into seven categories based on technology: Radio Frequency Identification (RFID), Dedicated Short Range Communication (DSRC), ANPR, Global Navigation Satellite Systems (GNSS), Video Analytics, Cell Phone Tolling, and Others. In the market for electronic toll collecting, the Toll Transaction Processing System is anticipated to have the biggest market share. A toll transaction processing system charges users a toll without having to take any action or pause. Without forcing cars to stop, the technology deducts the payment from the registered car owners' account or recognizes the license plate for future billing. It conducts an electronic financial transaction between a car using a toll plaza and the company that collects the tolls. It reduces drivers' time and enhances the effectiveness and speed of traffic flow.
The market is divided into two categories based on application: Highways, and Urban Zones. Electronic Toll Collection (ETC) systems in urban zones have several important applications, each contributing to improved traffic management, reduced congestion, and enhanced convenience for both commuters and authorities. ETC systems enable dynamic congestion pricing, where toll rates vary based on the time of day, traffic volume, or vehicle type. This helps to manage traffic flow and reduce congestion during peak hours by encouraging drivers to travel during off-peak times or use alternative routes.
Electronic Toll Collection Market- Geographical Insights
The highest car ownership rates in North America are found in the United States and Canada, which is one of the main drivers driving the electronic toll collection market forward. The greatest state and interstate road networks in the world are found in both nations, and more toll instalment projects for heavily traveled areas are currently in progress. Additionally, both nations have various locations for their cutting-edge toll collection systems. Major metropolitan areas like Toronto and Vancouver have more advanced and widespread ETC systems due to higher traffic volumes and the need to manage congestion efficiently. Mexico has a growing network of toll roads, many of which are operated by private companies with ETC systems like IAVE. The national government has been pushing for greater adoption of electronic tolling to improve efficiency.
Major players in the Electronic Toll Collection Market include Abertis, Atlantia S.p.A, Thales Group, International Road Dynamics Inc., EFKON GMBH, Kapsch TrafficCom AG, etc. Kapsch TrafficCom AG focuses on advanced traffic management systems, including ETC systems and intelligent transportation systems (ITS). TransCore (Roper Technologies) specializes in RFID-based toll collection systems and advanced traffic management. Companies invest heavily in research and development to introduce advanced technologies and maintain a competitive edge. Developing solutions tailored to the specific needs of different regions and customer segments to enhance satisfaction and loyalty. Major players leverage their extensive experience and technological prowess while emerging players drive innovation and offer agile solutions.
In June 2024, the government is seeking Expressions of Interest (EoI) or initial bids from Indian and foreign companies to adopt Global Navigation Satellite System (GNSS) based Electronic Toll collecting (ETC) so that users can be charged solely for the distance traveled on highways with barrier-free toll collecting.
In June 2024, Indian Highways Management Company Limited (IHMCL), a company promoted by NHAI invited Global Expression of Interest (EOI) from innovative and qualified companies to develop and implement a GNSS-based Electronic Toll Collection system in India.
GLOBAL ELECTRONIC TOLL COLLECTION MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Abertis
Atlantia S.p.A
Conduent Inc.
Sanef
Cubic Corporation
Denso Corporation
EFKON GMBH
GeoToll
International Road Dynamics Inc.
Kapsch TrafficCom AG
Neology Inc.
Perceptics LLC
Q-Free ASA
Raytheon Company
Siemens AG
Transcore
Thales Group
Others