North America Electronic Toll Collection System Market Trends and Analysis by 2030

The North America electronic toll collection system market size was valued at US$ 1.95 billion in 2022 and is expected to reach US$ 5.21 billion by 2030; it is estimated to record a CAGR of 13.1% from 2022 to 2030.

Analyst Perspective:

The US is one of the first countries to integrate electronic toll collection systems. The country has a significant network of ETC-based systems across various tunnels, bridges, toll gateways, and expressways. Further, a collaborative effort of various inter-state agencies facilitated the implementation of an efficient ETC system across the country in the past decade. The presence of well-established freight transportation by road in the US compared to Canada and Mexico has significantly influenced the adoption of ETC-based systems in the country. In addition, the consistent maintenance and connectivity through roads have raised the demand for a robust toll system across Mexico and Canada. Also, owing to the growing infrastructure demand and surge in the number of registered vehicles in the USy, the demand for the ETC system is likely to rise to efficiently handle road congestion. All these factors are contributing to the North America electronic toll collection system market growth.

North America 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 ETC systems. The significant increase in congestion has resulted in a demand for robust and efficient toll collection solutions at gateways, which is driving the need for automated toll collection systems. The electronic toll collection systems constitute 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.

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North America Electronic Toll Collection System Market: Strategic Insights

Market Size Value in	US$ 1.95 billion in 2022
Market Size Value by	US$ 5.21 billion by 2030
Growth rate	CAGR of 13.1% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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North America Electronic Toll Collection System Market Driver:

Government Focus on Transportation Infrastructure Drives North America Electronic Toll Collection System Market

According to the US Census Bureau, the US resident population increased by 0.4% in 2022 compared to 2021. There is a rise in the population in North America, which 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 is a key factor fueling the adoption of electronic toll collection systems in the region. 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. Per The White House fact sheet in September 2022, the Presidents of the US and Mexico 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 strong economic connection to foster investment in building the transportation infrastructure of Mexico.

Thus, the government’s focus on transportation infrastructure fuels roadway construction, efficient digital adoption of solutions, and rebuilding the aging infrastructure. This leads to increased adoption of electronic toll collection systems across North America as it helps lower the risk of revenue leakage, reduce operating costs, and enhance the toll collection system by reducing traffic congestion, which drives the growth of the North America electronic toll collection system market growth.

The North America electronic toll collection system market is segmented on the basis of offering, technology, application, and geography. Based on offering, the North America electronic toll collection system market is bifurcated into systems and services. By technology, the North America electronic toll collection system market is segmented into DSRC, ANPR, GNSS, and others. In terms of application, the North America electronic toll collection system market is bifurcated into highways and urban zones. By geography, the North America electronic toll collection system market is segmented into the US, Canada, and Mexico.

North America Electronic Toll Collection System Market Segmental Analysis:

Based on offering, the North America electronic toll collection system market is bifurcated into systems and services. The systems segment held a larger share in the North America electronic toll collection system market in 2022. The electronic toll collection system constitutes 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. This will lead to the growth of the North America electronic toll collection system market during the forecast period.

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North America Electronic Toll Collection System Market Regional Analysis:

The North America North America electronic toll collection system market is segmented into the US, Canada, and Mexico. The US held the largest share of the North America electronic toll collection system market in 2022. The rise in consistent, collaborative efforts of interstate agencies, as well as support in the past decade, resulted in a significant network of ETC-based toll centers across the country. 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, intending to become a prominent toll-collection program, E-ZPass is considered to be 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 system 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 can be integrated through the electronic toll collection system and provide lucrative business opportunities for the market players. Moreover, due to the increasing smart city initiatives, the adoption of electronic toll collection systems is growing rapidly across the US. For instance, in 2021, Pikepass of Oklahoma Turnpike Authority became the first electronic toll collection system 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.

North America Electronic Toll Collection System Market Key Player Analysis:

The North America electronic toll collection system market consists of players such as Conduent Inc, Kapsch TrafficCom AG, Thales SA, Toshiba Infrastructure Systems and Solutions Corp, TransCore LP, Magnetic Autocontrol GmbH, The Revenue Markets Inc, Sociedad Iberica de Construcciones Electricas SA, P Square Solutions LLC, Verra Mobility Corp, and Mitsubishi Heavy Industries Ltd.

North America Electronic Toll Collection System Market Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the North America electronic toll collection system market. A few recent key North America 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, i.e., a number plate, depending on the application.
• In 2023, Verra Mobility partnered with Telepass to provide seamless toll payment solutions for short-term rental cars in Italy. This collaboration expanded Verra Mobility's European presence, offering interoperable toll payments across multiple countries, simplifying cross-border travel, and enhancing the smart mobility experience.