India Electronic Toll Collection Market: Current Analysis and Forecast (2024-2032)

Electronic Toll Collection (ETC) refers to a technological system for automated payment of tolls on highways and bridges without the need for manual intervention. It employs various technologies, such as Radio Frequency Identification (RFID), Dedicated Short-Range Communication (DSRC), and Automatic Number Plate Recognition (ANPR), to identify vehicles and deduct toll charges electronically from a prepaid account or linked payment method.

The India Electronic Toll Collection Market is expected to grow at a strong CAGR of 12% during the forecast period. ETC systems reduce congestion at toll plazas by allowing vehicles to pass through without stopping, thereby saving commuters time and improving overall traffic flow. Also, continuous advancements in RFID, DSRC, and mobile technology drive the evolution of ETC systems, enabling faster and more secure transactions. Further, collaboration between governments and private sector entities such as technology providers, financial institutions, and toll operators accelerates the deployment and innovation of ETC systems.

On the basis of technology, the market is segmented into RFID, DSRC, and Others. RFID segment led the market in 2023. RFID (Radio Frequency Identification) technology has predominantly led the market due to its widespread adoption and effectiveness in automating toll collection processes. RFID tags are affixed to vehicles, allowing for seamless identification and deduction of toll charges as vehicles pass through toll plazas. This technology is favored for its reliability, efficiency, and compatibility with existing infrastructure across highways in India.

The market is segmented by type into Transponder - or Tag-Based Toll Collection Systems and Other Toll Collection Systems. Transponder or Tag-Based Toll Collection Systems segment led the market in 2023. These systems utilize RFID tags affixed to vehicles (transponders) that communicate with readers at toll plazas. This method ensures quick and accurate toll collection without the need for manual intervention, thus enhancing operational efficiency and user convenience.

On the basis of offering, the market is segmented into Hardware, Back Office and Other Services. Hardware segment led the market in 2023. Hardware offerings, including RFID readers, transponders, and other related equipment, have driven the market significantly. The demand for robust and reliable hardware solutions is essential for deploying effective ETC systems across highways and urban areas in India. Hardware investments are critical for ensuring seamless operation and integration with existing toll plaza infrastructure.

The market is segmented by application into Highways and Urban Areas. Highways segment led the market in 2023. Highways have been the primary application segment driving the ETC market in India. The extensive network of national and state highways necessitates efficient toll collection systems to manage traffic flow and revenue collection effectively. ETC systems on highways reduce congestion, improve travel times, and support economic activities by facilitating smoother transportation logistics.

For a better understanding of the market adoption of the Electronic Toll Collection industry, the Indian market is analyzed based on its presence in regions such as North India, South India, West India, and East India. North India led the market in 2023. North India has witnessed significant investments in highway infrastructure, with projects aimed at expanding and modernizing road networks. This development necessitates efficient toll collection systems like ETC to manage traffic flow effectively. Also, government initiatives, including mandates by the National Highway Authority of India (NHAI), have pushed for the adoption of ETC systems across major highways in North India. These mandates aim to improve transparency, reduce revenue leakage, and enhance overall road management.

The Golden Quadrilateral project, connecting major cities in North India, underscores the importance of seamless transportation infrastructure, necessitating advanced toll collection technologies like ETC.

The DMIC project, passing through several northern states, has spurred economic growth and infrastructure development, driving the need for efficient toll collection mechanisms.

Some of the major players operating in the market include Kapsch TrafficCom AG, EFKON India Pvt Ltd, Mitsubishi Heavy Industries, Ltd., Raytheon Technologies Corporation, Siemens AG, Toshiba Corporation, Cubic Transportation Systems, Inc., Conduent Incorporated, Thales Group, and TransCore, LP.