Electronic Toll Collection Market Forecasts to 2028 – Global Analysis By Type (All-Electronic Tolling/Open Road Tolling (AET/ORT), Electronic Toll Collection (ETC)), Product, Technology, Application, and By Geography

Electronic Toll Collection Market Forecasts to 2028 – Global Analysis By Type (All-Electronic Tolling/Open Road Tolling (AET/ORT), Electronic Toll Collection (ETC)), Product, Technology, Application, and By Geography

According to Stratistics MRC, the Global Electronic Toll Collection Market is accounted for $8.05 billion in 2022 and is expected to reach $12.22 billion by 2028 growing at a CAGR of 7.2% during the forecast period. Electronic Toll Collection is a computerized system reduces manual operations by toll payers and receivers. It uses sophisticated cameras and sensors to capture an image of vehicle’s registration plate and allocates the correct toll. Electronic toll booths may operate next to cash lanes so that drivers who do not have a device for receiving a radio signal and automatically transmitting a different signal can pay a cashier or throw coins into a receptacle.

Far Eastern Electronic Toll Collection Company (FETC) achieved the build operate transfer (BOT) project for ITS traffic management; it turns the traditional highway toll collection system into an integrated intelligent electronic toll collection (ETC) system for mobility management. With approximately 1.5 million daily vehicle trips and an average saving of 15 minutes/vehicle trip, the total savings of traffic time is estimated at 22.5 million minutes daily and carbon savings of 572,000 tons of CO2.

Market Dynamics:

Driver:

Technological advancements in transportation infrastructure

Electronic tolling systems include numerous foremost edge technologies, like analytics, mobility, data communications, and smart sensors. Implementing these technologies in new years has enabled enhanced connectivity of devices and sensors, ensuing in better accuracy in toll collection. Development in communication technologies allows connectivity of almost all real-world objects with internet. Furthermore, advanced sensors, radars, high-definition surveillance cameras, and various data processing techniques allow a superior understanding of the traffic’s behavior and outcome in enhanced decision making. The electronic toll collection systems collect data concerning the vehicle count of the day, date, time, and so on from various sources and allocate it with a centralized control centre for best possible decision making. Therefore, technological advancements are liable to be the driving growth of this market.

Restraint:

Low adoption of satellite-based GPS technologies

Every region and country cannot pay for implementing satellite-based GNSS and GPS, that helps in tracking the vehicles location and charge according to the distance they have covered. The need of use of these technologies will guide to incorrect tolling charges in electronic toll collection systems. GPS-based electronic toll collection systems make use of GPS technology for electronic toll charging. GPS is a satellite based navigation system that functions under any type of climatic condition. Vehicle owner should primarily set up interfacing hardware devices in their vehicle that costs superior than other tolling systems. The adoption of satellite based technology is lesser because of the high initial cost and requirement for additional hardware to utilize satellite based electronic toll collection systems.

Opportunity:

Growing adoption of all-electronic tolling systems

All-electronic tolling (AET) systems are set up on roads in developed and developing countries. Observing the profit of AET systems, the implementing price of these systems is greatly higher than that of physical and coin-based tolling systems. The AET system allows free-flow tolling and avoids the requirement of tollbooths at toll plazas. This not only reduces the transportation and labor expenses but also helps in avoiding traffic congestion. Hence with the enlarged adoption of AET systems, transitioning from physical or coin-based machines is a growth opportunity for the market players.

Threat:

Issues related to selection of toll technology

Technology selection openly impacts inter-operability. The choice about the technology that desires to be adopted for collecting tolls is frequently made after considering various factors, such as number of lanes to be told, kind of road infrastructure, targeted variety of vehicles and its volume, and expected scalability of the system. These varying contexts make it extremely challenging to compare the implementation of a tolling solution in one country to another. A point of reference for various technologies that are included in tolling systems for enforce purposes can be made only by allowing for the whole life cost of a system. Governments and local toll authorities should cooperate with each other to create a friendly system throughout the state.

Covid-19 Impact

The pandemic has constrained the expansion of numerous manufacturing verticals and production units. Mainly automotive, construction, transportation industries were badly affected by the pandemic. The manufacturing units were pack up and therefore the disturbance in the supply and chain was intensified during the pandemic. Such factors significantly affected the overall growth of the Electronic Toll Collection industry. Since there has been a vast restraint for movement all over the globe and logistics restriction at the international boundaries, the raw materials were not transported to the industrialized companies and manufacturing processes were affected. Therefore, the Electronic Toll Collection Industry value has drastically affected by the pervasive COVID 19.

The technology segment is expected to be the largest during the forecast period

Technology segment is diversified into Video Analytics-Based ETC Systems, Dedicated Short-Range Communication (DSRC)-Based ETC Systems, Navigation Satellite System/Global Positioning System (GNSS/GPS)-Based ETC Systems, Radio-Frequency Identification (RFID)-Based ETC Systems, Video Analytics, Infrared. RFID-Based ETC Systems is the leading segment. This is due to RFID technology having a wider range of applications, and is easier to integrate, and has low capital and operational costs. The technology helps in saving currency and time with automation procedure that are pushing the market growth. The radio frequency identification (RFID) segment is expected to be the fastest growing segment during the forecast period. The technology makes it easy and simple for car owners and toll authorities to divide payment information. As a result, there is less manual work, and the process is more transparent.

The application segment is expected to have the highest CAGR during the forecast period

The application segmentation is classified into Urban, Highway, and Bridges. The highways application is anticipated to have a higher growth rate during forecast period. Highways play an essential role in making our everyday lives easier. They provide significant means of getting from one location to another promptly and efficiently. Vehicles are driven at a high speed on highways electronic toll collection systems help vehicle owners hold out a convenient digital transaction with no need to stop at tollbooths. This system brought a new mutiny, making the toll collection process simple, faster, and helpful.

Region with highest share:

North America is projected to have largest market share during the forecast period, owing to the substitute of legacy compensation systems along with digital tags. Developments in minimizing component size and the emergence of new technologies such as RFID can rise the demand in this region. Developing countries are expected to enlarge increased rate due to the technology penetration, quick digitization, and increasing implementation of the toll management system. Moreover, the region possesses more personal vehicles than other parts of the world, thus presenting a profitable chance for the overall growth of the Electronic toll collection market. The region has a large network of interstate and state highways that require the need of such electronic toll collection.

Region with highest CAGR:

Asia-Pacific is expected to grow at a highest CAGR during the forecast period. Electronic toll collection system is capable of advanced technologies for the management of traffic and falling traffic at toll plazas. These systems have gained enormous acceptance in developed economies, resulting in mounting demand in developing economies as well. Developing countries are witnessing rapid urbanization, which is growing require for well-connected road network between cities and towns. The market outlook is anticipated to have positively impacted by the rapidly increasing vehicle demand and production, as well as the shift in purchaser preferences regarding smart vehicles.

Key players in the market

Some of the key players profiled in the Market include Siemens AG, 3M, Thales Group, Xiamen Innov Information Technology Co. Ltd, International Road Dynamics (IRD), Cubic Transportation System, Denso Corporation, Raytheon Company, Kapsch Trafficcom AG, Transurban Limited, Conduent Business Services, LLC, Q-Free, Efkon AG, The Revenue Markets Inc., Geotoll, Far Eastern Electronic Toll Collection Co. (FETC), Atlantia SpA.

Key Developments:

In December 2020, Kapsch awarded a contract to implement an electronic toll collection system for the “MRO Paquete Noreste” highways in the country’s northeastern region. This is one of the busiest highway networks in the country. The company will upgrade the current system over a distance of 350 km with twelve plazas and 64 lanes by eliminating cash payments, implementing electronic toll collection, and ensuring safer and faster transit.

In November 2020, Raytheon Technologies developed a system that is well suited for unclogging streets in large metro areas. The Optical Detection Intelligent Network, or ODIN, does the work of a traditional overhead gantry in a more compact package that can mount on existing infrastructure. The congestion management is done with the help of a traditional gantry, camera, and an illuminator for front and rear plates. ODIN rolls all of those together into a single camera and sensor to make it robust.

Type Covered:
• All-Electronic Tolling/Open Road Tolling (AET/ORT)

Product Covered:
• Automated Vehicle Classification (AVC)
• Back Office, Integration, and Violation Enforcement System (VES)
• Automated Vehicle Identification (AVI)

Technology Covered:
• Video Analytics-Based ETC Systems
• Dedicated Short-Range Communication (DSRC)-Based ETC Systems
• Navigation Satellite System/Global Positioning System (GNSS/GPS)-Based ETC Systems
• Radio-Frequency Identification (RFID)-Based ETC Systems
• Video Analytics
• Infrared

Application Covered:
• Urban
• Highway
• Bridges

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements