Electronic Toll Collection System Market Share Report, Size, Trends & Forecast 2030

[Research Report] The electronic toll collection system market size is valued at US$ 5541.91 million in 2022 and is expected to reach US$ 14369.80 million by 2030. The Electronic Toll Collection System market is expected to record a CAGR of 12.6% from 2022 to 2030.

Analyst Perspective:

Over time, tolling systems have improved in intelligence and efficiency. In addition to eliminating the requirement for physical installations on roadways, smart toll collection systems view data as a resource and use it to improve the security and efficiency of cashless tolls. Since tolls can be used to finance both highway building and maintenance, toll collection is a crucial component of highway operations. Electronic toll collection, which uses a variety of detection and payment technologies to make collection effective and time-saving, has supplanted manual collection in a growing number of cases.

Electronic Toll Collection System Market Overview:

Toll collection at roads, tunnels, or expressways has proven to be an efficient solution for collecting fees and taxes, generating revenue for public-private partnered infrastructure projects or maintenance fees for the state and government agencies. The tolls collected are subsequently utilized for various public services such as maintenance of highways, tunnels, and bridges; financing the future expansion of projects; and managing congestion. In addition, the recent surge in the number of registered vehicles has witnessed a significant rise compared to the transportation infrastructure growth, which can result in congestion and generate the demand for electronic toll collection (ETC) systems. The significant increase in congestion has resulted in a demand for robust and efficient approaches to toll collection at gateways, which is driving the need for automated toll collection systems. The solution in the electronic toll collection system market constitutes a set of hardware equipment and software programs forming a cohesive unit that facilitates the automated toll collection process. The ETC system effectively identifies, classifies, and subsequently collects the transit transaction from prepaid user accounts as per system design. Further, the system provides enforcement for toll violators, vehicle registration, back-office support, congestion management, and intelligent transportation-related services, among other services.

The ETC system offers versatile benefits such as congestion management, minimizing traffic at toll plazas, reducing vehicular traffic at highways, and providing actionable insights into traffic patterns, apart from providing a seamless toll collection process. These benefits have increased the system's popularity among developed countries and fueled the system demand among emerging economies. Moreover, the long-term economic and safety benefits are expected to drive the market during the forecast period. The integration of advanced technology and subsequent improvement in the scope of application ETC system services are projected to have a profound influence on market growth in the coming years.

A solution in the electronic toll collection system market can reduce the chances of accidents by aiding traffic. This system helps in-vehicle devices pay tolls automatically and enhances operational efficiency, thereby elevating customer experiences and providing flexibility in transitioning to a new interoperability standard. Rapid urbanization, coupled with the rise in the adoption of smart transportation systems, will give the electronic toll collection system market a commendable boost during the forecast period.

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Electronic Toll Collection System Market: Strategic Insights

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Electronic Toll Collection System Market Driver:

Government Focus on Transportation Infrastructure Drives Electronic Toll Collection System Market Growth

According to Worldometer, the world's population is rising at a pace of roughly 0.88% each year. The rise in the population globally has encouraged government bodies to invest in building efficient infrastructure to handle a growing population and sustain economic growth. The rising focus on rebuilding the aging infrastructure and the inclusion of smart solutions are key factors fueling the adoption of solutions in the electronic toll collection system market in the region. For instance, in June 2023, 107 transportation infrastructure projects were chosen by the European Commission to receive more than US$ 6.30 billion in EU subsidies from the Connecting Europe Facility (CEF). Also, the German government intends to increase road capacity to accommodate the anticipated growth in freight transportation. According to Informare, as of February 2023, Germany's road freight traffic is expected to grow by 34% by 2051, and the federal government of Germany aims to build new roads to accommodate this increase in traffic, stated the transportation minister.

In November 2021, Congress passed the Bipartisan Infrastructure Deal. Under this deal, the government invests in repairing and rebuilding America's roads and bridges, focusing on climate change mitigation, resilience, equity, as well as safety for all users. Also, the government invested US$ 110 billion to transform poor roads and highways in the country in the next five years. Moreover, according to a joint statement by the US President and Canada's Prime Minister, in March 2023, under the Canadian Critical Minerals Infrastructure Fund, ~US$ 1.09 billion (CAD 1.5 billion) will be invested to support clean energy and transportation infrastructure projects. As per the White House fact sheet in September 2022, the US President and Mexican President relaunched the US-Mexico High-Level Economic Dialogue (HLED) in 2021 to advance shared strategic economic and commercial priorities. The HLED provides a platform for the US and Mexico to leverage their solid economic connection to foster investment in building the transportation infrastructure of Mexico.

Thus, the government's focus on transport infrastructure has encouraged roadway construction, efficient digital adoption of solutions, and rebuilding the aging infrastructure. This leads to increased adoption of solutions in the electronic toll collection system market across the globe as it helps lower the risk of revenue leakage, reduce operating costs, and enhance the toll collection system by reducing traffic congestion.

Electronic Toll Collection System Market Segmental Analysis:

Based on the offering, the electronic toll collection system market is segmented into systems and services. The systems segment held the largest share of the electronic toll collection system market. The solutions in the electronic toll collection system market constitute hardware and software installed across different infrastructures over expressways, bridges, tunnels, onboard vehicles, and toll gateways. The hardware equipment includes lane hardware and toll station hardware. Lane hardware mainly consists of roadside antenna units, high-speed electric barriers, toll lane controllers, ETC lane signal lights, lane traffic lights, multifunction displays for toll collection, lane surveillance cameras, vehicle detectors, switches, computer networks, etc. Toll station hardware mainly contains switches, workstations, and ETC toll servers. ETC systems generally consist of hardware equipment such as transponders, antenna units, signal receivers, toll servers, optical sensors, in-road sensors, overhead cameras, roadside communication units, and tag readers. Two aspects of hardware equipment—one installed at the toll gateways and the other one onboard the vehicle—need to work cohesively for the ETC system to function efficiently. This equipment is responsible for gathering input data points for the software and algorithms to work upon to segregate relevant and nonrelevant data, followed by identification and transaction related to toll.

Based on the gathered data, the system can engage with necessary enforcement or alert the appropriate authority as per the system design. Also, the solutions provider ensures the availability of onboard vehicle tags at the local convenience store, registration of new user accounts, and related back-office support for the error-free functioning of the ETC system. The software helps with data acquisition and data communication. It also helps increase operational efficiencies for the toll collection system.

Electronic Toll Collection System Market Regional Analysis:

The North America Electronic Toll Collection System market size was valued at US$ 1956.36 million in 2022 and is projected to reach US$ 5417.54 million by 2030; it is expected to register a CAGR of 13.6% from 2022 to 2030. The North America electronic toll collection system market is segmented into the US, Canada, and Mexico. According to Assemblyman, in February 2019, E-ZPass—the country's leading ETC-based system—had over 35 million signal transponders that managed 21 million accounts for electronic toll collection across 17 states. Further, with the vision of becoming a preeminent toll collection program, the system is the largest interoperable network of ETC systems in the world. It generates a revenue of ~US$ 9.0 billion for the partnered agencies. Factors such as scalability, registration of new vehicles, and maintenance of the existing ETC systems are expected to be the major drivers for the US electronic toll collection market during the forecast period. Also, the use of analytics for reporting and gathering actionable insights into traffic patterns for efficient congestion management and traffic monitoring is expected to provide scope for innovative services that could be integrated through the solutions in the electronic toll collection system market, which could provide lucrative business opportunities for the market players—moreover, increasing smart city initiative gaining widespread adoption across the US. For instance, in 2021, Pikepass of Oklahoma Turnpike Authority became the first solution in the electronic toll collection system market in the US. The system can electronically debit the accounts of the registered car owners without the need to stop, resulting in low congestion near toll plazas.

Electronic Toll Collection System Market Key Player Analysis:

Conduent Business Services, LLC., EFKON GmbH, Kapsch TrafficCom AG, Thales, TOSHIBA CORPORATION, TransCore, FAAC S.p.A., MITSUBISHI HEAVY INDUSTRIES, LTD., SICE, and P Square Solutions are among the key players operating in the electronic toll collection system market.

Electronic Toll Collection Market Report Scope

Electronic Toll Collection System Market Regional Insights

The regional trends and factors influencing the Electronic Toll Collection System Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Electronic Toll Collection System Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Electronic Toll Collection System Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Electronic Toll Collection System Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Electronic Toll Collection System Market are:

1. Conduent Inc
2. Kapsch TrafficCom AG
3. Thales SA
4. Toshiba Infrastructure Systems and Solutions Corp
5. TransCore LP, Magnetic Autocontrol GmbH

Disclaimer: The companies listed above are not ranked in any particular order.

Recent Developments:

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the electronic toll collection system market. A few recent key electronic toll collection system market developments are listed below:

• In April 2023, Kapsch launched the automatic number plate recognition (ANPR) software update. This update automatically recognizes a license plate that is a number plate, depending on the application.
• In February 2022, Guatemalan highway operator SiVA announced the deployment of Thales' Peage Intelligent Transport Zero (PITZ) electronic toll collection system along the country's vital Palin-Escuintla toll road corridor.