Global Electronic Toll Collection Market Size, Share & Industry Trends Analysis Report By Type (Transponder-/Tag-based Tolling Systems and Other Tolling Systems), By Technology, By Offering, By Application, By Regional Outlook and Forecast, 2022 - 2028

Global Electronic Toll Collection Market Size, Share & Industry Trends Analysis Report By Type (Transponder-/Tag-based Tolling Systems and Other Tolling Systems), By Technology, By Offering, By Application, By Regional Outlook and Forecast, 2022 - 2028

The Global Electronic Toll Collection Market size is expected to reach $11.6 billion by 2028, rising at a market growth of 6.0% CAGR during the forecast period.

A toll road is a public or private road for which a charge is made while traveling. Since toll collection was previously only a manual procedure, there are delays in traffic during peak hours caused by the toll booths. In addition to being more error-prone than automated techniques, manual toll collection is also much slower. Due to this restriction, the manual toll payer & receiver activities have been replaced by an electronic toll collection system.

These computerized toll collection methods are becoming more commonly used as both developed and developing nations invest in and adopt new technologies. In contrast to traditional manned toll plazas, technological advancements have made it possible to eliminate boring, repetitive tolling operations like vehicle identification (AVI), transit traction, vehicle classification (AVC), and enforcement of fines for violators. This has simplified the procedure and increased system efficiency significantly.

Reduced traffic, accidents, as well as environmental pollution, strong government support for expanding the use of electronic toll collection systems, enhanced convenience from cashless payments, & technical advances in transportation infrastructure, are the key factors driving the market's growth. Additionally, the efficient implementation of ETC systems offers a variety of advantages, including a decrease in traffic and vehicle pollution, smooth transit transactions, as well as intelligent transportation services on expressways.

Thus, it is anticipated that during the forecast period, the long-term advantages of adopting ETC systems will fuel demand for such systems across a range of emerging nations and present lucrative business opportunities for market players. Government attempts to promote cashless transactions and higher government funding for road safety & control in certain nations are among the factors anticipated to drive the electronic toll collecting market.

COVID-19 Impact Analysis

Many nations such as India, China, Germany, Canada and the United States and toll collection agencies have embraced digital transformation to manage their businesses successfully during these trying times. Providers of electronic toll collecting systems are concentrating on providing fresh approaches, alliances, and partnerships to combat the COVID-19 pandemic. As a result, this aspect is contributing to the recovery of the market for electronic toll collection systems. Although, the increased concern of people of baby's health encouraged parents to maintain hygiene which would result in market growth post pandemic period.

Market Growth Factors

Technological Developments In The Infrastructure Of Transportation

Multiple cutting-edge technologies, including mobility, analytics, data communications, and smart sensors, are incorporated into electronic toll systems. The adoption of these technologies in recent years has enhanced device and sensor communication, leading to increased toll collecting accuracy. Nearly any object in the real world can now be connected to the internet due to advancements in communication technologies. Moreover, sophisticated sensors, radars, high-definition security cameras, and different data processing techniques allow for a better knowledge of the behavior of the traffic and lead to better decision-making.

Adoption Of A Fully Electronic Tolling System

Most roadways in developed and emerging nations have all-electronic tolling (AET) systems installed. When compared to manual & coin-based tolling systems, AET systems have a substantially greater adoption rate due to their advantages. The AET system eliminates the need for tollbooths at toll plazas and permits free-flow tolling. This lowers the cost of labor and infrastructure while also reducing traffic congestion. The majority of forthcoming toll projects in various nations are based on AET, according to subject matter experts.

Market Restraining Factors

Limited Use Of Satellite-Based Gps Technology

The satellite-based GNSS and GPS, which assist in tracking the locations of the vehicles and charging them in accordance with the distance traveled, cannot be adopted by every region and nation across the world. Inaccurate tolling charges will result from the lack of implementation of these technologies in electronic toll collection systems. GPS technology is used for electronic toll charging in GPS-based toll collection systems. A satellite-based navigation system like GPS can function in any weather. Prior to using the tolling system, vehicle owners must install hardware interfaces in their vehicles, which is more expensive.

Type Outlook

Based on type, the electronic toll collection market is segmented into transponder-/tag-based tolling systems and other tolling systems. In 2021, the transponder/tag-based tolling system segment witnessed the largest revenue share in the electronic toll collection market. ETC offers a more precise solution for high-risk circumstances including air pollution, traffic congestion, & fuel usage because it employs a tag-based tolling mechanism. It also contributes to a healthier as well as more environmentally friendly atmosphere & a longer vehicle lifespan.

Offering Outlook

On the basis of offering, the electronic toll collection market is fragmented into hardware and back office & other services. The back office & other services segment held the highest revenue share in the electronic toll collection market in 2021. Account management, inquiry processing, legal support, billing, payment gateways, operational enforcement, financial transaction management, & tolling fee database management are some of the back-office services available.

Technology Outlook

By technology, the electronic toll collection market is classified RFID, Dedicated Short-Range Communication (DSRC) and others. The DSRD segment covered a substantial revenue share in the electronic toll collection market in 2021. The intelligent transportation system (ITS) uses devoted short-range communication (DSRC), a wireless communication technology, to connect vehicles to other vehicles or infrastructure. Road tolls are frequently collected using the ETC (Electronic Toll Collection) system. Recently, the ETC's vehicle ID service was made public in an effort to raise awareness of the ETC on-board units' several purposes outside of toll collection.

Application Outlook

Based on application, the electronic toll collection market is divided into highways, and urban areas. The urban area segment generated a substantial revenue share in the electronic toll collection in 2021. This is because the traffic in urban areas is rising continuously which is resulting in demand for well-maintained roads. As the road is being developed across the urban areas, the number of toll collection installations is increasing. Thus, the market for electronic toll collection would expand in urban areas in upcoming years.

Regional Outlook

Region wise, the electronic toll collection market is analyzed across North America, Europe, Asia Pacific and LAMEA. In 2021, the North America region procured the highest revenue share in the electronic toll collection market. The region's demand may increase as a result of developments in reducing component size and the introduction of new technologies like RFID. The adoption of cutting-edge technological solutions, such as GPS and GNSS toll collection and tracking solutions, as well as rapidly rising vehicle demand and production in North America, are driving the growth of the regional electronic toll collection market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Thales Group S.A., Raytheon Technologies Corporation, Kapsch TrafficCom AG (Datax Handels Gmbh), Conduent, Incorporated, Cubic Corporation, Siemens AG, TransCore (ST Engineering), Efkon GmbH (STRABAG SE), and FEIG ELECTRONIC GmbH.

Scope of the Study

Market Segments covered in the Report:

By Type

• Transponder-/Tag-based Tolling Systems
• Other Tolling Systems

By Technology

• RFID
• Dedicated Short-Range Communication (DSRC)
• Others

By Offering

• Back-office & Other Services
• Hardware

By Application

• Highways
• Urban Areas

By Geography

• North America

US

Canada

Mexico

Rest of North America

• Europe

Germany

UK

France

Russia

Spain

Italy

Rest of Europe

• Asia Pacific

China

Japan

India

South Korea

Singapore

Malaysia

Rest of Asia Pacific

• LAMEA

Brazil

Argentina

UAE

Saudi Arabia

South Africa

Nigeria

Rest of LAMEA

Companies Profiled

• Thales Group S.A.
• Raytheon Technologies Corporation
• Kapsch TrafficCom AG (Datax Handels Gmbh)
• Conduent, Incorporated
• Cubic Corporation
• Siemens AG
• TransCore (ST Engineering)
• Efkon GmbH (STRABAG SE)
• FEIG ELECTRONIC GmbH

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