USD 9.14 Billion
Electronic Toll Collection Market Size, Share, Growth Analysis, By Application(Highways, and Urban Areas), By Type(Transponder/Tag-Based Tolling Systems, Other Types), By Technology(Radio Frequency Identification (RFID), Dedicated Short Range Communication (DSRC), Others), By Offering(Hardware, Back Office, and Other Services), By Toll Payment Method(Prepaid, Postpaid, Combination), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG20U2010 |
Region:
Global |
Published Date: August, 2024
Pages:
202
|Tables:
91
|Figures:
76
Electronic Toll Collection Market Insights
Global Electronic Toll Collection Market size was valued at USD 8.5 Billion in 2022 and is poised to grow from USD 9.14 Billion in 2023 to USD 15.23 Billion by 2031, at a CAGR of 6.6% during the forecast period (2024-2031).
The primary purpose of the electronic toll collection market is to streamline toll collection processes and improve the overall transportation experience. Several key factors are driving the growth of the electronic toll collection market. increasing urbanization and population growth have led to a surge in vehicle ownership, resulting in higher traffic volumes and the need for efficient toll collection systems. government and transportation authorities worldwide are recognizing the benefits of electronic tolling in terms of reducing traffic congestion, improving air quality, and enhancing overall transportation efficiency. The positive growth trajectory, the electronic toll collection market also faces certain restraining factors. One significant challenge is the initial high implementation cost associated with installing the required infrastructure, such as toll gantries, electronic tags, and back-end systems.
The electronic toll collection market encounters several challenges. One key challenge is ensuring interoperability between different tolling systems, particularly when motorists travel across multiple regions or countries with varying electronic tolling technologies. Standardization efforts and collaborative agreements among toll authorities are crucial to address this challenge. The electronic toll collection market presents significant opportunities for growth and innovation. With advancements in vehicle-to-infrastructure (V2I) and vehicle-to-everything (V2X) communication technologies, there is potential for integrating electronic tolling systems with other smart transportation solutions, such as traffic management systems and connected vehicles. The global electronic toll collection market is driven by the need for efficient toll collection processes, improved transportation systems, and enhanced user experience. While facing challenges such as implementation costs and interoperability issues, the market presents opportunities for innovation and integration with emerging technologies.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Highways
Fastest Growth
Urban Areas
Growth Rate
6.6% CAGR
Global Electronic Toll Collection Market ($ Bn)
Country Share for North America Region (%)
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Electronic Toll Collection Market Segmental Analysis
The global electronic toll collection market is segmented by application, type, technology, offering, toll payment method, and region. Based on application, the market is segmented into highways, and urban areas. In terms of type, the market is segmented into transponder and other types. Based on technology, the market is segmented into Radio Frequency Identification (RFID), Dedicated Short Range Communication (DSRC), and others. Based on offering, the market is segmented into Hardware and Backoff. Based on toll payment method, the market is segmented into prepaid, postpaid and combination. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Electronic Toll Collection Market Analysis by Application
The highway segment holds the largest share of the electronic toll collection market due to several compelling reasons. Firstly, highways experience high traffic volumes, making toll collection a critical process that requires efficiency and seamless operations. Electronic toll collection systems offer a convenient and time-saving alternative to traditional cash-based toll collection methods, reducing congestion and improving overall traffic flow. As a result, toll authorities and governments across the globe are increasingly adopting electronic tolling systems to enhance highway operations and ensure a smooth journey for motorists. Electronic toll collection on highways provides a substantial revenue stream for governments and toll authorities. By implementing cashless payment methods, such as RFID technology or mobile apps, toll authorities can efficiently manage toll revenues, reduce the risk of revenue leakage, and improve financial transparency.
The fastest-growing segment in the electronic toll collection market is urban areas. Urban areas are characterized by dense populations, heavy traffic congestion, and a need for efficient transportation solutions. Electronic toll collection systems are gaining prominence in urban areas to address traffic congestion and enhance mobility. In urban areas, electronic toll collection systems offer multiple benefits. Firstly, they enable authorities to implement congestion pricing strategies, where toll rates can be dynamically adjusted based on traffic conditions and demand. By implementing variable toll pricing, urban areas can effectively manage traffic flow, reduce congestion, and incentivize the use of alternative transportation modes. This approach helps promote sustainable transportation practices and reduce environmental impact.
Electronic Toll Collection Market Analysis by Type
The Automatic Vehicle Identification System (AVIS) segment holds the largest share in the electronic toll collection market due to its fundamental role in enabling seamless and efficient toll transactions. AVIS systems utilize advanced technologies such as radio frequency identification (RFID) and dedicated short-range communication (DSRC) to automatically identify vehicles and deduct toll charges from prepaid accounts or digital wallets. This eliminates the need for manual toll collection processes and significantly improves the overall tolling experience for motorists. The attractiveness of the AVIS segment is further reinforced by the numbers. The adoption of AVIS systems has witnessed substantial growth globally, driven by the advantages they offer. These systems ensure quick and accurate vehicle identification, eliminating the delays and inconveniences associated with traditional cash-based toll payment methods.
The fastest-growing segment in the electronic toll collection market is the Violation Enforcement System (VES). This segment addresses the critical need for enforcing compliance and deterring toll evasion. VES utilizes advanced technologies, such as video surveillance and automatic license plate recognition (ALPR), to capture images and data of vehicles that fail to pay tolls or violate tolling regulations. The growth potential of the VES segment can be attributed to several factors. as electronic toll collection systems become more prevalent and cash-based toll collection methods are phased out, there is a growing need for effective enforcement mechanisms.
Electronic Toll Collection Market Analysis by Technology
In 2022, the RFID sector held a dominant market share of around 41.19%. Using RFID technology to read account data associated with individual toll passes, drivers may pay for their usage of the toll road on a weekly, monthly, or annual basis instead of paying for each use. RFID tolling applications often employ UHF Passive or Active RFID due to the required read range.
Global Electronic Toll Collection Market Size By Application (%)
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Electronic Toll Collection Market Regional Insights
North America's dominance in the electronic toll collection market is primarily due to early adoption and a mature market landscape. The United States has been at the forefront of implementing electronic tolling systems, with various state-level programs and interoperable solutions. The E-ZPass system, launched in 1993, covers a significant portion of the northeastern states, facilitating seamless travel and reducing congestion at toll plazas. Similarly, the FasTrak system in California enables efficient toll collection on major highways and bridges. These successful implementations, coupled with robust infrastructure and supportive government policies, contribute to North America's dominant position.
Asia Pacific is witnessing rapid growth in electronic toll collection due to several factors. China, with its massive population and extensive road network, has been aggressively implementing electronic tolling systems to address traffic congestion and improve transportation efficiency. The Electronic Toll Collection (ETC) program, initiated in 2013, aims to cover all national and provincial highways in China with electronic toll collection infrastructure. India is also making significant strides in the adoption of electronic tolling systems, with the FASTag program gaining traction across major highways in the country. Japan, with its advanced technological capabilities, is leveraging electronic tolling systems for seamless travel on expressways and bridges
Global Electronic Toll Collection Market Size By Geography
- Largest
- Fastest
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Electronic Toll Collection Market Dynamics
Global Electronic Toll Collection Market Drivers
Government Initiatives and Infrastructural Development
- Governments around the world played a crucial role in driving the adoption of electronic toll collection systems. In 2022, several governments initiated or expanded their electronic tolling programs to enhance transportation infrastructure and improve the overall travel experience. For instance, in India, the National Highways Authority of India (NHAI) mandated the implementation of the FASTag program for all toll plazas on national highways. This move aimed to promote cashless transactions, reduce traffic congestion, and enhance toll collection efficiency.
Increasing Urbanization and Traffic Congestion
- The growing urbanization and associated traffic congestion problems worldwide were significant drivers for the electronic toll collection market. Urban areas faced escalating traffic volumes and the need for efficient transportation solutions. Electronic tolling systems offered a viable solution to address traffic congestion, encourage sustainable transportation practices, and improve overall mobility.
Global Electronic Toll Collection Market Restraints
Initial Infrastructure Costs
- The high initial infrastructure costs associated with implementing tolling systems. Upgrading existing toll plazas or deploying new electronic tolling infrastructure involved substantial investments in hardware, software, communication networks, and back-end systems. This cost factor often posed a challenge for toll authorities, especially in regions with limited financial resources or budget constraints.
Interoperability Challenges
- With various tolling systems deployed across different regions and countries, achieving seamless travel and toll collection across borders became a complex task. Lack of standardization and incompatible technologies hindered the interoperability of electronic tolling systems, leading to inconvenience for motorists traveling across different jurisdictions. Overcoming these interoperability challenges required collaborative efforts among toll authorities, standardization bodies, and technology providers.
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Electronic Toll Collection Market Competitive Landscape
The Global Electronic toll collection Market is highly competitive, with several key players vying for market share and striving to offer innovative solutions to meet the evolving needs of the industry. The competitive landscape is characterized by a mix of established companies with a strong market presence and emerging players bringing new technologies and solutions to the market. The global electronic toll collection market is characterized by fierce competition among established players and the emergence of innovative companies. The market's competitive landscape is shaped by companies offering comprehensive tolling solutions, leveraging advanced technologies, and focusing on interoperability, scalability, and customer-centric approaches. The industry's future will likely witness intensified competition and increased collaboration to address evolving market demands and unlock new opportunities in the electronic toll collection sector.
Top Player’s Company Profiles in Global Electronic Toll Collection Market
- Kapsch TrafficCom AG (Austria)
- Thales Group (France)
- Cubic Corporation (US)
- Neology, Inc. (US)
- Conduent Incorporated (US)
- Q-Free ASA (Norway)
- Siemens AG (Germany)
- Toshiba Corporation (Japan)
- Ferrovial (Spain)
- Accenture (Ireland)
- SICE (Spain)
- Efkon AG (Austria)
- Mitsubishi Heavy Industries, Ltd. (Japan)
- Indra Sistemas (Spain)
- Transurban Limited (Australia)
- Honeywell International Inc. (United States)
- Schneider Electric SE (France)
- Hitachi, Ltd. (Japan)
- Egis Group (France)
- KLD Engineering, P.C. (United States)
Global Electronic Toll Collection Market Recent Developments
-
In May 2024, IRB Infra Toll collection jumps 29% YoY in April.
- In May 2024, FASTag will be on three more highways in the state soon.
- In May 2024, Macquarie Group wins India’s first ToT project with a bid of Rs9,681.5 crore.
- In April 2024, the 'One Vehicle, One FASTag' norm comes into force.
- Neology and the Humber Bridge Board (HBB) (UK), the organization in charge of overseeing and maintaining the bridge, signed a contract in January 2024. The contract states that Neoloy will give the HBB roadside systems, back-office systems, website, and mobile app solutions, as well as end-to-end tolling capabilities.
- A contract to provide customer support for the e-TOLL system at 100 distribution locations throughout Poland was awarded to Kapsch TrafficCom AG in December 2023. Numerous support services were covered under the contract, such as data registration for customers, information provision, payment acceptance, user account charging, and on-board equipment provision.
- To create a ground-breaking solar cell technology dubbed Powerfoyle for self-charging, environmentally friendly communications solutions, Kapsch TrafficCom AG teamed up with Exeger Operations AB (Sweden) in November 2023. Through this collaboration, Exeger's proprietary Powerfoyle solar cell technology could be utilized by Kapsch TrafficCom AG to bolster the ecosystem for sustainable mobility.
- A contract to provide customer support for the e-TOLL system at 100 distribution locations throughout Poland was awarded to Kapsch TrafficCom AG in October 2023. Numerous support services were covered under the contract, such as data registration for customers, information provision, payment acceptance, user account charging, and on-board equipment provision.
- Kapsch TrafficCom AG increased its Vienna production capabilities in September 2023, resulting in a 30% rise in output.
Electronic Toll Collection Key Market Trends
- Integration with Connected Vehicles and Mobility Solutions: A significant trend observed in the electronic toll collection market in 2022 was the integration of electronic tolling systems with connected vehicles and mobility solutions. The advancements in vehicle-to-infrastructure (V2I) and vehicle-to-everything (V2X) communication technologies paved the way for seamless interactions between vehicles and tolling systems. This integration enabled features such as real-time toll information, automatic toll payment deduction, and personalized travel recommendations.
- Shift towards All-Electronic Tolling (AET): the electronic toll collection market is the widespread adoption of all-electronic tolling systems. AET eliminates the need for traditional toll booths and cash transactions, replacing them with automated systems that leverage technology for seamless toll collection. This trend is driven by several factors, including increased efficiency, reduced congestion, and improved user experience.
Electronic Toll Collection Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global electronic toll collection market analysis, the increasing need for efficient and convenient toll collection methods are key growth drivers. Electronic toll collection systems replace traditional manual toll booths with automated systems that utilize technologies such as RFID, GPS, and automatic license plate recognition (ALPR). These systems allow vehicles to pass through toll points without stopping, resulting in improved traffic flow and reduced congestion. The market analysis of the global electronic toll collection industry reveals several key factors driving its growth.
The global electronic toll collection market is witnessing substantial growth driven by the need for efficient toll collection methods, increased focus on digital payments, and the advancement of transportation infrastructure. While challenges exist, such as interoperability and cost considerations, the industry continues to evolve, presenting opportunities for technological advancements and improved mobility experiences for motorists worldwide.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 8.5 Billion |
| Market size value in 2031 | USD 15.23 Billion |
| Growth Rate | 6.6% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Electronic Toll Collection Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Electronic Toll Collection Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Electronic Toll Collection Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Electronic Toll Collection Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Electronic Toll Collection Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Electronic Toll Collection Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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