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
Electronic toll collection Market Size, Share & Growth
[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, technological advancements in transportation infrastructure, and increasing government focus on smart transportation infrastructure are among the factors driving the growth of the electronic toll collection industry.
Al/ Gen Al application in electronic toll collection has brought a number of benefits that change the toll collection and management procedures. The improvement of efficiency is considered to be one of the major advantages of the process. This is especially important to motorists as Al-based systems can analyze data in real-time, thereby cutting down on traffic waiting time. These systems can learn as well as upgrade themselves in aspects of traffic flow so that toll lane distribution and congestion reduction can be well managed. Also, Al can increase accuracy and reduce fraud. AI algorithms can identify potentially fraudulent activities, such as unauthorized tag usage or toll evasion. Al is capable of analyzing large data sets in order to arrive at conclusions such as the time of day with high traffic and most travelled routes. With such information, decision makers can accurately determine toll rates, other improvements needed in the toll systems, and ways of managing traffic within the system.
Attractive opportunities in the electronic toll collection market
Electronic Toll Collection Market Forecast to 2029
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Electronic toll collection Market Trends & Dynamics:
Driver: Urgent need to mitigate traffic congestion and reduce road accidents
Higher amount of time spent in processing each vehicle at a conventional mainline toll plaza results in formation of traffic jams on highways. Traffic congestion also results in emission of hazardous vehicular emissions including Green House Gases (GHGs) and Carbon Monoxide (CO) and likely hood of accidents and collisions. ETC systems help managing traffic jams as they ease the tolling systems and minimize the time taken at the toll plazas. Electronic toll collection makes it possible for cars to accustom toll points without needing to slow down hence minimizing traffic hold up on highways, bridges, and other major routes. With ETC systems cars can pass through tolls using the speed limit of the highway without causing traffic jams or accidents and thus safety in the roads is also improved. In operation with ETC systems, toll transactions per hour are dramatically enhanced since high-speed vehicles do not stop over the toll plazas. This is not only helpful in easing traffic flow, but also in the prevention of release of pollutants into the air. ETC is a quicker way of establishing toll charges at various toll gates as compared to the conventional system.
Restraint: Overreliance of ETC on technology and susceptibility to technical failure
Toll operations with little or no public intervention involve the use of sophisticated technology and are prone to technical hitches, which range from basic equipment breakdown, software complications and communication crises. If any one of them fails then there will be problems with the toll collection necessary for both users and the toll operators. This might lead to instances where toll booths are disconnected from the electronic system for some time making drivers to use other means of paying their toll fees or making them delay. Also, the technical problems in toll systems lead to the economic loss of toll operators. Toll operators may for example be denied their revenue by the system if the later is unable to correctly record toll transactions or if it fails. Also, it may be as a result of technical hitches in the toll collection systems which in a bid to affect maximum traffic flow triggers traffic jams in the busy sections. This is because with advancement in technology, ETC systems are at high risk for hacking, data and cyber attacks. Situations like when a security breach occurs can lead to loss of users’ personal data, financial operations, and the general security of toll collection.
Opportunity: Significant focus on minimizing fuel consumption and emissions for economic and environmental gains
Most of the conventional toll plazas which have been in existence with the facility of manual booths lead to vehicle slowing down and formation of queues which in a way, lead to time wastage in terms of idling. This idling results in emissions of hazardous gases including carbon monoxide, hydrocarbons and nitrogen oxides, which in turn choke the environment and negatively impact the health wise well-being of the public. With ETC systems, there is no stopping, vehicles are always on the move, meaning very little standing and thus very little emission from the vehicles. ETC systems bring out the fact that overall travel time is minimized by commuters. Less time on the road is a form of cost savings besides which it is also associated with fewer emissions of pollutants. For the same reasons that the traffic flow is enhanced through the use of ETC, carbon emissions arising from congested traffic that results in car idling are reduced. However, in addition to improve traffic flow, ETC systems tend to promote the use of electronic payment devices including RFID tags or Smartphone applications.
Challenge: Data privacy concerns
The use of ETC systems has without any doubt ensured that traffic congestion and toll payments have become more manageable. However, it also poses numerous privacy issues that should be considered extremely carefully. In toll booths where ETC systems are installed, various details such as license plate numbers, travel itineraries, time of passage etc. are recorded and thereafter stored in databases. Officials or third parties may misuse or manage this data improperly, which could result in tracking people's movements unnecessarily. Worries about the ability to conduct mass surveillance or creating favorable travel histories easily leads to questions about the balance between the rights of the public versus the rights of the individual. Furthermore, the risks such as hacking and data breaches exhibited by these electronic systems increase these privacy concerns significantly. A security breach could compromise information that should not be in the wrong hands such as identity theft or unauthorized access to travel records or even manipulation of the records. With the improvement of technology, it is crucial to have strong cyber security measures in place to protect the rights and identity of those that participate in 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).
Electronic toll collection market Segmentation
By application, highways are expected to grow with the highest CAGR from 2024 to 2029.
The highway segment is expected to witness the highest CAGR of 8.2% during the forecast period. The increasing adoption of ETC systems on the highways is as a result to eliminate traffic jams and enhance movement of vehicles. Electronic tolling system can tackle toll transactions without any physical toll booth hence reduces on traffic jams frustrations at toll plazas. The development of intelligent transportation systems has made many governmental and highway authorities to embrace electronic tolling since it is cheaper than the other tolling systems. For instance, in June 2024, Indian Road ministry initiated a pilot study for a new satellite-based toll collection system utilizing Global Navigation Satellite System (GNSS) technology on two national highways. This pilot aims to modernize toll collection by allowing vehicles equipped with GNSS to pay tolls based on the exact distance traveled rather than fixed rates, thereby eliminating the need for traditional toll booths. ETC aids to decrease operation cost which are entailed in manual collection of tolls like hiring staff for manning tolls and establishing physical structures for toll collection. Also, ETC systems are integrated, thus reducing the chances of revenue loss and delivering accurate figures of toll revenues.
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. Integrated into toll booths, ANPR systems instantly scan and identify vehicle license plates without requiring people’s interaction and integrating the toll process. These technologies employ OCR to read and capture license plates details from vehicles without human intervention. ANPR/ALPR systems are frequently coupled with the ETC systems for the identification of vehicles without the use of transponders. This is very helpful in addressing violations, traffic control, and flexible pricing schemes are applicable. Video tolling also enables cars to run through tollbooths without any hindrances and thereby does not need any form of force. It entails a convenient mode of payment for the drivers while also reducing the occurrence of traffic jams and the cost of constructing structures such as barriers for toll collection.
In 2029, Asia Pacific is projected to hold the highest CAGR of the overall electronic toll collection market.
Electronic Toll Collection Market by Region
To know about the assumptions considered for the study, download the pdf brochure
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), Q-Free (Norway), GeoToll (US), Toll Collect GmbH (Berlin), STAR Systems International (Hong Kong), SICE (Madrid) are some of the key players in the electronic toll collection companies.
Scope of the Electronic toll collection Market Report
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Report Metric |
Details |
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Estimated Market Size
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USD 10.1 billion in 2024 |
| Projected Market Size | USD 14.7 billion by 2029 |
| Market Growth Rate | a CAGR of 7.9% |
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Market Size Availability for Years |
2020–2029 |
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Base Year |
2023 |
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Forecast Period |
2024–2029 |
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Forecast Units |
Value (USD) |
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Segments Covered |
By technology, type, offering, application, and region |
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Geographies Covered |
North America, Europe, Asia Pacific, and RoW |
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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.
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Segment |
Subsegment |
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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 consists of a wide range of support services, which include registration of 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 environment friendly self-charging solutions. This partnership helped Kapsch TrafficCom AG to use Exeger's advanced solar cell capabilities to facilitate reduction in carbon footprint.
- In September 2023, Kapsch TrafficCom extended its production capabilities for contactless toll collection devices by ~30% in its Vienna facility.
- In July 2023, Neology acquired the transportation operations & management solutions (TOMS) business of Schimmick to enhance its capabilities related to the transportation sector.
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 strategies adopted by these players are product launches and developments.
What is the electronic toll collection system?
Electronic Toll Collection or ETC systems are those systems that collect tolls from the vehicle without actually insisting the vehicle to stop. Cars that have a small electronic gadget known as the transponder proceed through lanes on the toll plaza. The transponder interacts with overhead readers which in turn see the vehicle and instantly take the toll from a pre-paid account. This process helps to avoid the toll collection process that hinders the flow of traffic within those tolls or booths hence enhancing the flow of traffic. Such systems employ tags that are fitted on the vehicles, which communicate with overhead antennas or with scanners along the roadsides.
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 major strategies adopted by market players?
The key players have adopted inorganic strategies such as contracts, partnerships, and joint ventures to strengthen their position in the electronic toll collection market.
What are initiatives taken by governments to adopt electronic toll collection systems?
In September 2024, the Indian Ministry of Road Transport and Highways introduced a satellite-based toll collection system, which aims to replace the existing FASTag system. This new system is designed to eliminate long queues at toll plazas by allowing vehicles to be automatically charged as they pass through toll points.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
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
Generating Response ...
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?