Electronic Toll Collection Market by Technology (RFID and DSRC), Offering (Hardware and Back Office), Application (Highways and Urban Areas), Type (Transponders/Tag-Based Tolling Systems) and Region - Global Forecast to 2029
[229 Pages Report] The global electronic toll collection market was valued at USD 10.1 billion in 2024 and is projected to reach USD 14.7 billion by 2029, it is expected to register a CAGR of 7.9% during the forecast period. Urgent need to mitigate traffic congestion and reduce road accidents and Technological advancements in transportation infrastructure are among the factors driving the growth of the electronic toll collection market.
Electronic Toll Collection Market Forecast to 2029
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Market Dynamics:
Driver: Urgent need to mitigate traffic congestion and reduce road accidents
Relatively high processing time per vehicle at a traditional mainline toll plaza often leads to traffic jams on highways. Traffic congestion further leads to the release of harmful vehicular emissions (such as greenhouse gases (GHGs) and carbon monoxide (CO)) and the potential for accidents and collisions. ETC systems contribute to the reduction of traffic congestion by streamlining toll collection processes and minimizing delays at toll plazas. By automating toll collection through ETC systems, vehicles can pass through toll points more efficiently, reducing congestion and improving traffic flow on highways, bridges, and other major roadways. Manual toll collection processes often require motorists to slow down or stop abruptly, increasing the risk of rear-end collisions and other accidents, especially on high-speed roadways. However, with ETC systems, vehicles can pass through toll points at highway speeds without the need for manual intervention, reducing the likelihood of accidents and enhancing overall roadway safety. According to the World Health Organization (WHO) report published in December 2023, ~1.2 million people die every year as a result of road traffic crashes, while these crashes cost countries 3% of their gross domestic product (GDP). This drives governments worldwide to modernize transportation infrastructure, which includes the deployment of ETC systems to improve road safety.
ETC provides several other benefits over traditional toll plazas. With the deployment of ETC systems, the toll transaction rate is greatly increased as vehicles no longer need to stop at the toll plaza. This not only reduces traffic congestion but also minimizes the emission of air pollutants. ETC is a much faster and more efficient mode for collecting toll charges at toll gates. An ETC lane can offer a vehicle flow rate that is four times faster than that of the manual toll collection lane. Thus, a tollbooth wherein an ETC system is installed can accommodate the increasing traffic without additional lanes. By leveraging data from ETC transactions and traffic sensors, transportation authorities can identify congestion hotspots, implement proactive traffic management strategies, and respond more effectively to accidents or emergencies on the roadways.
Many countries are adopting intelligent transportation systems (ITS), which drives the demand for ETC systems. This is because ETC systems provide drivers with the flexibility to pay toll fees using cards, eliminating the need for carrying cash.
Restraint: Overreliance of ETC on technology and susceptibility to technical failure
Electronic toll collection systems heavily rely on technology for their operation and are susceptible to technical failures, such as hardware malfunctions, software glitches, or communication breakdowns. If any part of the system fails, it can lead to disruptions in toll collection, causing inconvenience to users and potential revenue loss for toll operators. This might result in toll booths being temporarily unable to process electronic transactions, forcing drivers to use alternative payment methods or causing delays. Also, technical breakdowns can result in financial losses for toll operators. If the system is unable to accurately record toll transactions or if it malfunctions, toll operators may lose revenue. Additionally, fixing technical issues and restoring normal operations incur additional costs.
In addition, inefficient toll collection due to technical problems can contribute to traffic congestion, especially in areas with high traffic volumes. Delays in toll processing can lead to queues at toll booths, affecting the flow of traffic. With the increasing prevalence of cyber threats, electronic toll collection systems are vulnerable to hacking, data breaches, and cyberattacks. A security breach can compromise user data, financial transactions, and the overall integrity of the toll collection process.
Opportunity: Significant focus on minimizing fuel consumption and emissions for economic and environmental gains
Traditional toll plazas that use manual booths cause vehicles to stop and queue, resulting in significant idling time. This idling leads to higher emissions of harmful pollutants, such as carbon monoxide, hydrocarbons, and nitrogen oxides, which worsen air quality, affecting public health. Using ETC systems eliminates the need for stopping, allowing vehicles to flow smoothly through toll lanes, drastically reducing idling and associated emissions. Studies have shown that ETC systems can reduce harmful emissions by up to 50% compared to manual plazas.
Furthermore, the efficiency of ETC systems leads to a reduction in overall travel time for commuters. Reduced travel time not only translates to economic benefits but also means that vehicles spend less time on the road, emitting fewer pollutants. The streamlined traffic flow facilitated by ETC helps minimize congestion and, consequently, decreases the carbon footprint associated with extended periods of vehicle idling. In addition to optimize traffic flow, ETC systems often encourage the use of electronic payment methods, such as RFID tags or mobile applications. The reduction in the use of cash transactions at toll booths not only enhances transaction speed but also reduces the reliance on paper, cutting down on the environmental impact of producing, transporting, and disposing of paper receipts.
Beyond direct emission reductions, ETC systems offer indirect environmental benefits by encouraging eco-friendly transportation choices. For example, smoother traffic flow and faster travel times can make public transportation more appealing, leading to a shift away from individual vehicle use and associated emissions. Additionally, ETC systems can facilitate carpooling programs, further reducing the environmental footprint of transportation.
The decreased congestion with the use of ETC systems on busy roadways and highways, along with the reduction of fuel and time consumption, leads to decrease in emission of harmful gases such as carbon monoxide. All of these benefits tend to pave the way for driving the growth of the electronic toll collection market.
Challenge: Data privacy concerns
The implementation of electronic toll collection (ETC) systems has undeniably brought about efficiency and convenience in managing traffic flow and toll payment. However, it also raises significant privacy concerns that warrant careful consideration. As vehicles pass through toll booths equipped with ETC systems, important details such as license plate numbers, travel routes, and timestamps are captured and stored in databases. Authorities and third-party entities could misuse or mishandle this data, leading to unwarranted monitoring of individuals' movements. Concerns about the potential for mass surveillance or the creation of detailed travel histories raise questions about the balance between public interest and individual privacy rights.
Moreover, the vulnerability of electronic systems to hacking and data breaches amplifies these privacy concerns. A security breach could expose sensitive information to malicious actors, leading to identity theft, unauthorized access, or even the manipulation of travel records. As technology evolves, ensuring robust cybersecurity measures becomes important for safeguarding the privacy of individuals using ETC systems.
Electronic toll collection market Ecosystem
Prominent companies in this market include well-established, financially stable providers of electronic toll collection systems. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Kapsch TrafficCom AG (Austria), Conduent, Inc. (US), TransCore (US), Thales (France), Cubic Corporation (US), Infineon Technologies AG (Germany), Siemens (Germany), EFKON GmbH (Austria), Neology, Inc. (US), FEIG ELECTRONIC (Germany).
By application, urban areas is expected to grow with the highest CAGR from 2024 to 2029.
The market for urban areas is expected to grow at a CAGR of 5.1% during the forecast period. ETC eliminates the need to stop, improves traffic flow, and reduces congestion, especially during peak hours. All these benefits make it attractive for urban authorities seeking to manage growing traffic volumes effectively. Also, ETC offers a scalable and adaptable solution, accommodating increasing traffic volumes without adding physical infrastructure. It also facilitates smoother commutes, contributing to improved quality of life in urban areas.
By offering, hardware segment is expected to grow with the highest CAGR in 2029.
The hardware segment is expected to grow at a CAGR of 7.0% during the forecast period. Electronic Toll collection (ETC) hardware systems have shown to increase revenue collection by reducing leakage and improving accuracy in toll transactions. This makes them an attractive option for toll operators and government agencies looking to maximize toll revenue. The support and mandates from government authorities to implement ETC systems can significantly boost their adoption. Governments may also promote the use of electronic toll collection to improve overall transportation efficiency and reduce traffic congestion.
By technology, the other technologies segment is expected to grow with the highest CAGR from 2024 to 2029.
The other technologies segment is expected to witness the highest CAGR of 12.4% during the forecast period. ANPR systems automatically capture and recognize license plate information, eliminating the need for manual intervention and expediting toll transactions. The accuracy and reliability offered ANPR contribute significantly to the rising adoption of electronic toll collection systems. ANPR technology provides a reliable means of vehicle identification, minimizing the risk of errors associated with manual data entry. Also, with growing interest in implementing dynamic toll pricing based on factors like time of day, traffic volume, and vehicle type, AVC becomes crucial for accurately differentiating vehicles and applying appropriate fees. This allows for fairer pricing and optimized traffic management.
In 2029, Asia Pacific is projected to hold the highest CAGR of the overall electronic toll collection market.
Electronic Toll Collection Market by Region
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In 2029, The electronic toll collection market in Asia Pacific is expected to grow at the highest CAGR. The region benefits from a large population, a vast road infrastructure base, and a favorable regulatory environment. Factors providing growth opportunities to the electronic toll collection market in this region include government initiatives to introduce and promote the use of electronic toll collection systems, rapid urbanization demanding improved road networks/infrastructure, and high adoption rate of electronic toll systems in developing nations such as India, South Korea, Australia, and Malaysia. On account of increasing traffic congestion in India, FASTag, an electronic toll collection system based on RFID technology, was implemented by the National Highways Authority of India (NHAI).
Key Market Players
Kapsch TrafficCom AG (Austria), Conduent, Inc. (US), TransCore (US), Thales (France), Cubic Corporation (US), Infineon Technologies AG (Germany), Siemens (Germany), EFKON GmbH (Austria), Neology, Inc. (US), FEIG ELECTRONIC (Germany) are some of the key players in the electronic toll collection companies.
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Report Metric |
Details |
Market Size Availability for Years |
2020–2029 |
Base Year |
2023 |
Forecast Period |
2024–2029 |
Forecast Units |
Value (USD) |
Segments Covered |
By technology, type, offering, application, and region |
Geographies Covered |
North America, Europe, Asia Pacific, and RoW |
Companies Covered |
Kapsch TrafficCom AG (Austria); Conduent, Inc. (US); TransCore (US); Thales (France); Cubic Corporation (US); Infineon Technologies AG (Germany); Siemens (Germany); EFKON GmbH (Austria); Neology, Inc. (US); FEIG ELECTRONIC (Germany); are some of the key players in the electronic toll collection market. |
Electronic Toll Collection Market Highlights
This research report categorizes the electronic toll collection market based on technology, type, offering, application, and region.
Segment |
Subsegment |
By Toll Payment Methods |
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By Type |
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By Technology |
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By Offering |
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By Application |
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By Region |
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Recent Developments
- In January 2024, Neology entered into a contract with Humber Bridge Board (HBB) (UK), the board responsible for managing and maintaining the Humber Bridge. According to the contract, Neoloy is expected to provide end-to-end tolling capability-roadside systems, back-office solutions, website, and mobile app solutions to the HBB.
- In December 2023, Kapsch TrafficCom AG received a contract to provide customer service for the e-TOLL system at 100 distribution points across Poland. The contract included a wide range of support services, including registering customer data, providing information, accepting payments, charging user accounts, and providing on-board equipment.
- In November 2023, Kapsch TrafficCom AG partnered with Exeger Operations AB (Sweden) to develop a revolutionary solar cell technology called Powerfoyle for self-charging, environmentally friendly communications solutions. This partnership enabled Kapsch TrafficCom AG to leverage Exeger’s patented solar cell technology— Powerfoyle—to support the sustainable mobility ecosystem.
- In October 2023, Kapsch TrafficCom AG received a contract to provide customer service for the e-TOLL system at 100 distribution points across Poland. The contract included a wide range of support services, including registering customer data, providing information, accepting payments, charging user accounts, and providing on-board equipment.
- In September 2023, Kapsch TrafficCom AG expanded its production capacities in Vienna, which will lead to a 30% increase in production.
Frequently Asked Questions (FAQs):
Which are the major companies in the electronic toll collection market? What are their major strategies to strengthen their market presence?
The major companies in the electronic toll collection market are – Kapsch TrafficCom AG (Austria), Conduent, Inc. (US), TransCore (US), Thales (France), Cubic Corporation (US), Infineon Technologies AG (Germany), Siemens (Germany), EFKON GmbH (Austria), Neology, Inc. (US), FEIG ELECTRONIC (Germany) and the major strategies adopted by these players are product launches and developments.
What is the electronic toll collection system?
An Electronic Toll Collection (ETC) system is a technology-driven solution that automates the process of collecting tolls on highways, bridges, and tunnels. The traditional toll collection involves manual cash transactions or ticket-based systems, which can lead to traffic congestion and delays.
Who are the winners in the global electronic toll collection market?
Companies such as Kapsch TrafficCom AG (Austria), Conduent, Inc. (US), TransCore (US), Thales (France), Cubic Corporation (US fall under the winner’s category. These companies cater to the requirements of their customers by providing electronic toll collection systems. Moreover, these companies are highly adopting inorganic growth strategies to strengthen their global market position and customer base.
What are the drivers and opportunities for the electronic toll collection market?
High convenience due to automated payment options is the driver, and Significant focus on minimizing fuel consumption and emissions for economic and environmental gains is the opportunity in the electronic toll collection market.
What are the restraints and challenges for the electronic toll collection market?
ETC implementation constraints in developing countries and Data privacy concerns are the restraints and challenges in the electronic toll collection market.
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The study involved four major activities in estimating the size of the electronic toll collection market. Exhaustive secondary research has been carried out to collect information on the market, the peer markets, and the parent market. Both top-down and bottom-up approaches have been employed to estimate the total market size. Market breakdown and data triangulation methods have also been used to estimate the market for segments and subsegments.
Secondary Research
Revenues of companies offering electronic toll collection systems have been obtained from the secondary data available through paid and unpaid sources. The revenues have also been derived by analyzing the product portfolio of key companies, and these companies have been rated according to the performance and quality of their products.
In the secondary research process, various sources have been referred to for identifying and collecting information for this study on the electronic toll collection market. Secondary sources considered for this research study include government sources, corporate filings, and trade, business, and professional associations. Secondary data has been collected and analyzed to arrive at the overall market size, which has been further validated through primary research.
Secondary research has been mainly used to obtain key information about the supply chain of electronic toll collection systems to identify key players based on their products and prevailing industry trends in the electronic toll collection market by offering, type, panel size, location, vertical, and region. Secondary research also helped obtain market information- and technology-oriented key developments undertaken by market players to expand their presence and increase their market share.
Primary Research
Extensive primary research has been conducted after understanding and analyzing the current scenario of the electronic toll collection market through secondary research. Several primary interviews have been conducted with the key opinion leaders from the demand and supply sides across four main regions—North America, Europe, Asia Pacific, and the Rest of Europe. Approximately 25% of the primary interviews were conducted with the demand-side respondents, while approximately 75% were conducted with the supply-side respondents. The primary data has been collected through questionnaires, emails, and telephone interviews.
After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from our primary. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report. The breakdown of primary respondents is as follows:
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The bottom-up procedure has been employed to arrive at the overall size of the electronic toll collection market.
- Identifying applications wherein electronic toll collection systems are deployed or are expected to use
- Analyzing major providers of electronic toll collections and original equipment manufacturers (OEMs), as well as studying their portfolios and understanding different technologies used
- Analyzing the average selling price of electronic toll collection systems powered by different technologies
- Arriving at the market estimates by analyzing the revenue of companies and then combining these figures to arrive at the market size
- Studying various paid and unpaid sources, such as annual reports, press releases, white papers, and databases, to gather the required information
- Tracking the ongoing developments and identifying the upcoming developments in the market that include investments, research and development activities, product launches, contracts, collaborations, and partnerships undertaken, and forecasting the market size based on these developments
- Carrying out multiple discussions with the key opinion leaders to understand the installation of electronic toll collection systems and the sales of related raw materials and products to analyze the break-up of the scope of work carried out by the key companies manufacturing panels
- Verifying and cross-checking the estimate at every level through discussions with key opinion leaders, such as chief executives (CXOs), directors, and operation managers, and finally with the domain experts in MarketsandMarkets.
The top-down approach has been used to estimate and validate the total size of the electronic toll collection market.
- Focusing on top-line investments and expenditures being made in the ecosystems of various applications
- Calculating the market size, considering revenues from major players through the cost of electronic toll collection systems
- Segmenting each application of the electronic toll collection system in each region and deriving the global market size based on the region
- Acquiring and analyzing information related to revenues generated by players through their crucial product offerings
- Conducting multiple on-field discussions with key opinion leaders involved in developing various electronic toll collection solutions
- Estimating the geographic split using secondary sources based on various factors, such as the number of players in a specific country and region and the types of components, levels of services offered, and types of software implemented
Data Triangulation
After arriving at the overall market size-using the market size estimation processes as explained above-the market has been split into several segments and subsegments. To complete the entire market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from the demand and supply sides in the electronic toll collection market.
Market Definition
The electronic toll collection (ETC) system automates the process of collecting tolls on roads, bridges, tunnels, etc. The system eliminates the need for drivers to stop and pay tolls manually by using cash or tokens, thereby reducing traffic congestion and improving the efficiency of toll collection.
In an ETC system, vehicles equipped with electronic transponders or tags are able to pass through toll booths or designated lanes without stopping. These transponders communicate with overhead gantries or roadside equipment, allowing tolls to be automatically deducted from a prepaid account linked to the transponder. Alternatively, some ETC systems utilize license plate recognition technology to identify vehicles and calculate the toll amount accordingly.
The benefits of an ETC system include reduced travel times, increased convenience for drivers, improved traffic flow, and lower operational costs for toll authorities. Additionally, ETC systems can support dynamic toll pricing strategies, where toll rates vary based on factors such as time of day, level of congestion, or vehicle type, helping to manage traffic demand more effectively. Overall, the ETC system plays a crucial role in modern transportation infrastructure by streamlining toll collection processes and enhancing the overall driving experience.
Key Stakeholders
- Original device manufacturers (ODMs)
- System integrators
- Software providers
- Raw material and manufacturing equipment suppliers
- Electronic toll collection system manufacturers
- Government departments such as municipal corporations, transport agencies, highway authorities, and road construction corporations
- Research organizations
- Technology standards organizations, forums, alliances, and associations
- End users
- Technical universities
- Government/private research institutes
- Market research and consulting firms
Report Objectives
- To describe and forecast the size of the electronic toll collection market, by type, technology, offering, application, and region, in terms of value
- To describe and forecast the market size of various segments across four key regions—North America, Europe, Asia Pacific, and Rest of the World (RoW), in terms of value
- To describe the payment methods through which the toll can be paid electronically
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the electronic toll collection market
- To analyze the electronic toll collection value chain and ecosystem, along with the average selling price of electronic toll collection systems
- To strategically analyze the regulatory landscape, tariff, standards, patents, Porter’s five forces, import and export scenarios, trade values, and case studies pertaining to the market under study
- To strategically analyze micromarkets1 with regard to individual growth trends, prospects, and contributions to the overall market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments
- To provide details of the competitive landscape for market leaders
- To analyze strategies such as joint ventures, product launches, contracts, collaborations, acquisitions, partnerships, and expansions adopted by players in the electronic toll collection market
- To profile key players in the electronic toll collection market and comprehensively analyze their market ranking based on their revenue, market share, and core competencies2
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players based on various blocks of the supply chain
Growth opportunities and latent adjacency in Electronic Toll Collection Market
very nice study for Electronic Toll Collection (ETC) system.
I am looking for a section of this report that specifies what % of toll roads by country/region are using electronic tolling. As an example for the India and Australia, I would like to know how many toll transactions are processed a year (in any form) and how many of those are processed through electronic tolling. Is that included within this report?
I am a technology provider for ETC in the Europe region. I am interested in your overview of the international ETC market and what market trends you have identified. Does your report include information specific to top regional countries in each region such as UK, Germany, France, Italy,US, Canada, China, India, Australia, Japan, Middle Eastern countries etc.?
I am a consultant working on RFID technology. Could your report help me in analyzing the newest RFID based toll collection solutions currently used? Is there a solution that can be made to secure encryption / decryption on the servers of the relevant authority without the need to install an encryption key to the RFID reader with the software and network infrastructure to be produced within the scope of the project?
I am looking for latest e-toll market report that informs about market dynamics, company profiles and shares, tecnological trends etc. Does the report provide infromation about countrywise ETC projects, entities involved, cost of project and other related information?
More Information is required on Global Electronic Toll Collection systems
We are the biggest back office service providers in the Central Europe. Looking forward to information about the competitive landscape of the major players in the back-office segment of the ETC. Could you provide market share/ranking of such companies globally? Also, could you share the list of contracts of these companies for last 2-3 years?