Electronic Toll Collection (ETC) Market Size - By Technology (RFID, DSRC, GPS/GNSS, Video analytics), By Payment Method (Prepaid, Hybrid, Postpaid), By Application (Urban Zones, Highways), Type Regional Analysis & Global Forecast, 2023 - 2032

Electronic Toll Collection (ETC) Market Size - By Technology (RFID, DSRC, GPS/GNSS, Video analytics), By Payment Method (Prepaid, Hybrid, Postpaid), By Application (Urban Zones, Highways), Type Regional Analysis & Global Forecast, 2023 - 2032

Global Electronic Toll Collection (ETC) Market size is poised to record more than 12.6% CAGR from 2023-2032, on account of the rising number of smart city initiatives. In recent years, ETC data has grown increasingly popular for enhancing urban mobility, reducing traffic-related pollution, and supporting transportation planning. In August 2023, the Serbian government inked an agreement with Montenegro for introducing an integrated system of electronic toll collection between the two countries. The growing implementation of ERP systems in many cities to manage traffic congestion will also outline the market development.

The ETC industry is segmented based on technology, type, payment method, application, and region.

In terms of technology, the GPS/GNSS segment is likely to hold significant market revenue share by 2032 driven by surging prominence in toll collection and transportation management. GPS/GNSS technology offers precise distance-based toll pricing as toll fees are calculated based on actual distance traveled with fairness and cost savings for users. Increasing usefulness for cross-border travel and the surging support from government bodies worldwide will also define the segment expansion. For instance, in March 2023, the Road Transport and Highways Ministry of India announced replacing toll tax plazas by GPS-based system in the country by September.

On the basis of payment method, the ETC industry value from the prepaid segment is expected to expand up to 2032. Prepaid electronic toll collection helps to streamline the toll payment process whilst reducing the wait times at toll booths for allowing users to pre-fund their toll payments. This mode of ETC payment also helps users to drive through without stopping in order to limit the traffic congestion. Limited need for cash payments for making transactions faster and secure along with the minimized risk of toll booth errors and discrepancies are other factors driving the segment growth.

Regionally, the electronic toll collection market size in Asia Pacific is projected to accrue notable traction through 2032 due to the surging popularity of EVs along with the need for enhanced features to support charging and billing. With the influx of smart cities initiatives to improve traffic flow, and reduce emissions, ETC systems have gained ground for enhancing the quality of urban life via advanced transportation solutions. The rising emphasis on addressing traffic congestion as well as improving the transportation infrastructure will add to the regional industry expansion.