The worldwide demand for Electronic Toll Collection Systems, in terms of value, is estimated to be around USD 12.46 billion in 2023. The global electronic toll collection market predicts the overall demand to rise at 10.6% CAGR from 2023 to 2033. By the end of this projected period, the net valuation of the market is expected to reach USD 34.26 billion.
| Report Attributes or Data Points | Details |
|---|---|
| Global Electronic Toll Collection Market Size in 2022 | USD 11.43 billion |
| Estimated Global Market Size in 2023 | USD 12.46 billion |
| Forecasted Global Market Size by 2033 | USD 34.26 billion |
| Projected CAGR from 2023 to 2033 | 10.6% CAGR |
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The market was valued at USD 11.43 billion in 2022. The market is further expected to grow and reach USD 34.26 billion by 2033. The growth of the market is attributed to the rising investments in road and highway infrastructure and the increasing level of automated services.
| Historical Market Valuation, 2022 | USD 11.43 billion |
|---|
Electronic Toll Collection Market Challenges and Opportunities
The primary drivers of the upcoming growth comprise the need to save travel time, cashless travel facilities, the need to minimize traffic congestion, and fast toll transactions.
The electronic toll collection market is also expected to continue its rapid expansion to meet the surging demand for improved, safe, and secure infrastructure. The electronic toll collection market provides fast, efficient, and cost-effective services. They have easy-to-operate buttons with a user-friendly design.
They are also beneficial for traffic agencies and companies, as these systems eliminate the need for multiple toll plazas, acting as a cost-saving factor for road operator agencies. Electronic toll collection systems positively impact the environment, as they reduce the amount of exhaust emitted from vehicles at manual toll booths.
The ETC ecosystem participants offer a wide range of solutions, such as software services system integration and toll system operations, including maintenance, payment handling, and revenue assurance. It is the future solution to alleviating traffic congestion problems.
Users may get real-time traffic updates, and route optimization is an emerging trend in the market after the integration of ETC systems with car telematics and navigation systems.
Interoperable ETC systems have made the management of toll roads and highways easier by utilizing a single transponder or account for various toll highways and bridges. However, factors like high installation costs and a high dependence on government approvals are somewhat hindering this market's growth.
| Countries | CAGR (2023 to 2033) |
|---|---|
| United States | 11% |
| Germany | 8% |
| United Kingdom | 7.5% |
| China | 9.5% |
| India | 12.2% |
Due to the early implementation of the latest technology-based ETC and rising investments in contemporary roads, the United States leads the global market. Numerous states intend to build new toll roads and highways, which might lead the United States electronic toll collection market size to expand through 2033.
To take one example, the Florida Legislature developed a plan in 2020 to build three new toll roads across Florida's hinterlands. The plan was to construct a road that would total 330 miles, making it the longest toll-road project in the nation.
Over the projected years, the United States could grow at an annual average growth rate of 11% in the adoption of electronic toll collection systems. Several significant companies, including Kapsch, Thales, TransCore, and Siemens, dominate the digital toll collection market in the region.
The software systems in the current toll facilities could also be upgraded by Canada, further strengthening the North American electronic toll collection (ETC) market.
Over the projected years, electronic toll collection market analysis in Germany is expected to progress at an 8% growth rate per year. It is anticipated that the ETC market in Germany may maintain its rising trend by investing more in research and development of electronic tolling technology.
Also, the growth of the global electronic payment system for transportation on roads is spreading more widely, which is driving the growth of Germany.
Due to the accelerated use of contemporary technologies in the road and transportation sector, the United Kingdom market is expected to grow at 7.5% CAGR.
Likewise, the functionality and user interface of ETC systems in the United Kingdom are being improved through technological developments, including the usage of mobile-based apps. Moreover, the ETC market in the United Kingdom is being driven by effective electronic toll collection system advantages of traffic management and environmental sustainability.
China leads Asia in terms of revenue from production on management of toll roads and highways, and it is expected to expand at a 9.5% CAGR through 2033. China is expected to develop at an alarming rate with its fast urbanization, huge road network, and government measures to modernize the country's transportation system.
The ETC systems industry in China is also growing as a result of the increased import of its electronic tolling technology by emerging nations of Asia. Furthermore, the existing huge toll road networks and the emphasis on the growth of GPS trackers are important factors driving the regional market expansion.
The advantages of ETC systems, such as enhanced traffic flow, decreased fuel usage, and fewer emissions, are also being recognized by transportation authorities in India. It has increased the automated tolling systems industry and the modernization of current toll infrastructure in the country, ultimately driving the regional ETC market.
Government initiatives regarding the installation of electronic toll-collecting systems are expected to present profitable potential for ETC market advancement in India. The Indian government estimates that toll revenue in the country could increase in the following three years to reach around USD 1.8 billion yearly.
The table below gives an overview of the global ETC industry forecast based on CAGRs of different regional markets. The present market scenario represents a strong presence of ETC systems in the USA, Germany, and the United Kingdom in North America and Europe. Meanwhile, emerging countries like China and India are expected to drive the Asia market with the rapid development of contactless payment for tolls.
Spending towards transponders can be increased as these show high sales potential for vehicle identification in different countries. The use of transponder-based tolling systems has ensured lower emissions from vehicles, which will increase the inclination of governments toward electronic toll collection projects.
Different subsystems are useful by integrating the back-office and payment system and VES to reduce unpaid tolls by vehicle imaging. Undoubtedly, ETC systems have been installed majorly on highways, but installation in urban areas and on bridges also has a bright opportunity.
| Attributes | Details |
|---|---|
| Top Product Type | Transponders |
| Market Share in 2023 | 16.9% |
Since RFID-based toll systems are the most widely deployed ETC technology, it dominates the market with 28.7% of the overall market share in 2023. The transponder devices used for this system can read speeds up to 290 km/h from a distance of nearly 72 meters. The use of global positioning system (GPS) technology is witnessing remarkable growth for its higher capabilities these years.
| Attributes | Details |
|---|---|
| Top Technology Type | Radio-Frequency Identification (RFID) |
| Market Share in 2023 | 28.7% |
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Electronic toll collection system providers are prioritizing user-friendly design with the incorporation of the latest technology for better adoption of products.
The overall market is fairly consolidated, as a few market layers hold a sizable portion of the global market. Key players focus on contactless payment for tolls, which is convenient, lessens traffic, improves overall road safety, and is anticipated to provide government support.
Recent Developments in the Electronic Toll Collection Market
| Attributes | Details |
|---|---|
| Forecast period | 2023 to 2033 |
| Historical data available for | 2018 to 2022 |
| Market Analysis | USD million or billion for Value |
| By Product | Transponders, Antennae, Communication systems, Treadles, Inductive loops, Scanning devices, Weigh-in-motion devices, Cameras and film storage devices |
| By Technology | Radio-Frequency Identification (RFID), Dedicated Short-Range Communications (DSRC), Video Analytics, Global Navigation Satellite System (GNSS), Global Positioning System (GPS) |
| By Application | Highway, Urban, Bridges |
| By Region |
North America; Latin America; Asia Pacific; Japan; Western Europe; Eastern Europe; Middle East & Africa |
| Key Players | Honeywell International, Inc; Transurban Inc.; Transtoll Pty Ltd.; Transcore Holdings, Inc.; Toll Collect GmbH; TRMI Systems Integration; Sensor Dynamics; Xerox Corporation; 3M Inc.; Connect East; EFKON Inc.; SAIC Inc.; DENSO Inc.; Q-Free Inc.; Mitsubishi Heavy Industries, Ltd.; Perceptics Inc.; Thales Group Inc.; Kapsch TrafficCom AG |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The demand for electronic toll collection systems to follow 10.6% CAGR through 2033.
The global market is predicted to be valued at USD 12.46 billion in 2023.
The sales of transponders currently account for 16.9% of the global revenue share.
The electronic toll collection market in China is likely to rise at a 9.5% CAGR through 2033.
India's market is predicted to witness a CAGR of 12.2% through 2033.
| Market Estimated Size in 2023 | USD 1,656.7 million |
|---|---|
| Projected Market Size in 2033 | USD 2,500.5 million |
| Value-based CAGR from 2023 to 2033 | 4.2% |
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Electronic Toll Collection Market
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