[165 Pages Report]The electronic toll collection market is projected to reach USD 10.0 billion by 2025 from USD 6.9 billion in 2020; it is expected to grow at a CAGR of 7.7% during the forecast period. Major drivers for the growth of the market are ETC as an effective solution to reduce traffic congestion, accidents, and environmental pollution; strong government support to accelerate electronic toll collection; greater convenience and flexibility of cashless payments; and increased use of advanced technologies in transportation infrastructure.
The world is facing an economic crisis caused by COVID-19 pandemic. The pandemic has severely affected various industries such as automotive, construction, transportation, semiconductor, etc. Manufacturing units are hampered due to shutdowns and the availability of labor or raw materials. This has resulted in a huge gap between supply and demand. Further, there is a restriction on foreign trades due to the lockdown of international borders, non-operational distribution channels, and various government laws to take precautionary measures for public health and safety.
Electronic tolling systems are a combination of several electronic components and devices, such as transponders, cameras, RFID chips, controllers, and processors. Major suppliers of components and raw materials are originated from countries such as China and the US, which are among the worst affected countries due to COVID-19. As a result, borders are sealed, and strict lockdowns are enforced as preventive measures, thereby having a direct impact on the supply chain of electronic components and devices. Anticipated delay in supply of raw materials to manufacturers who meet the requirements of tolling system integrators, as well as delay in delivery of products to integrators due to stringent regulations and guidelines formulated in the transacting countries are expected to cause sequential effects for a longer period in 2020, leading to supply chain disruptions.
The ETC market is mainly driven by the initiatives undertaken by different governments to achieve congestion-free or speedy freight transportation on highways and urban areas. To encourage consumption of ETC services, countries are carrying out concessional schemes for drivers. The significant growth of the ETC market is primarily driven by the government initiatives in developing countries for the implementation of ETC systems on highways. Such initiatives aim to enable the smooth flow of vehicles and solve the problem of queues at toll plazas by collecting toll charges electronically.
Road infrastructure and telecommunication technology are among the basic elements that need to be on top for the installation of an ETC system. Economically developing countries lack suitable infrastructure, along with the absence of required technology, affecting the penetration of ETC systems in these markets. Poor communications infrastructure such as lack of mobile penetration, internet, and computer; inadequate transportation; illiteracy; limitations on electricity supply; and shortage of other key resources are some of the factors that restrict domestic and foreign investments in such countries, which further obstructing the growth of advanced transportation systems, such as ETC, in such countries. Additionally, the outbreak of the COVID-19 pandemic is also expected to have a considerable negative impact on the economic conditions of these countries.
ETC systems are not easy to deploy by a single stakeholder; it requires the collaboration of multiple entities, including telecom operators, infrastructure providers, manufacturers, service providers, public sector, and user groups. Thus, the public–private partnership (PPP) model can be a key to the successful implementation of the integrated ETC system.
In November 2019, new tolls on an 8-mile stretch of Interstate 395 in Northern Virginia, US, initiated operations adding to the state’s growing network of toll lanes. The 3 new reversible high-occupancy toll (HOT) lanes, which replaced the 2 high-occupancy-vehicle (HOV) lanes, are the result of a PPP between Virginia and Transurban (Australia), a road operator company that manages and develops urban toll road networks. Transurban (Australia) is expected to manage and operate the new toll lanes. Such developments in the US are observed as some of the latest additions to the growing trend in the country for PPP, creating growth opportunities for the ETC market.
Current issues for implementing ETC systems are related to interoperability and technology selection. Although some toll facilities at certain locations are currently interoperable (that is, one tag can be used at all toll facilities), there is a lack of interoperability standards with other states and with toll facilities at border crossings of the states or countries. The need for interoperability between border crossings and toll roads will continue to increase, especially for the toll roads that are built near the border. Further, technology selection directly impacts interoperability.
The electronic toll collection market for highways is significantly driven by its adoption, mainly in developing countries. Strong government initiatives are likely to add electronic toll collection options at existing toll plazas on highways, which is expected to create tremendous growth opportunities for the ETC market for highway applications. ETC systems play a crucial role in collecting a toll on highways, tunnels, and bridges. Conventional or manual toll collection has been transitioning to all-electronic tolling (AET) and high-tech transportation systems. Highways often have high-speed traffic, and traffic congestion may lead to fatal accidents and emission of toxic gases. To ensure safety and maintain the free flow of traffic, governments across the world focus of implementing electronic toll collection systems on highways.
Transponders have been widely used for vehicle identification in different countries. Transponders or tags are mounted on vehicles to communicate with the roadside equipment and carry out toll payment transaction without the need to stop a car. Transponders consist of basic information, including the identification number, toll facility, and vehicle type, among others. The vehicle identification number is linked to the customer’s account from which the appropriate toll is automatically deducted, or the customer is billed. The use of transponder-based tolling systems has ensured lower emissions from vehicles.
North America is expected to continue to lead the electronic toll collection market by capturing the largest market size throughout the forecast period. The US and Canada are the key countries in North America with most vehicles per person, which is one of the most contributing factors to the growth of the electronic toll collection market. Additionally, both the countries have the largest networks of interstate and state highways wherein advanced toll collection systems are installed at many locations, and several toll installation projects are in progress for lanes with high traffic. Leading companies such as TransCore (US), Raytheon (US), and Conduent (US) in the electronic toll collection market have their base in North America while having operations in countries across the world. They contribute significantly to the growth of the electronic toll collection market in the region.
APAC is expected to witness a considerable growth rate during the forecast period. Factors providing growth opportunities to the electronic toll collection market in this region include strong government initiatives to introduce and promote the use of electronic toll collection systems, rapid urbanization demanding improved road networks, and high adoption rate of electronic toll systems in developing nations such as India, South Korea, Australia, and Malaysia. Developed countries in the region such as China and Japan have been significantly contributing to the market growth as they had electronic toll systems installed on existing and newly developed highway infrastructures.
Kapsch TrafficCom (Austria), Conduent Business Services, LLC (US), EFKON GmbH (Austria), TransCore (US), Thales Group (France), Raytheon Technologies Corporation (US), Cubic Corporation (US), Siemens (Germany), Neology, Inc. (US), and VINCI (France) are a few major players in the electronic toll collection market.
Report Metric |
Details |
Market size available for years |
2017–2025 |
Base year considered |
2019 |
Forecast period |
2020–2025 |
Forecast units |
Value (USD) Billion/million |
Segments covered |
Type, technology, offering, and application |
Regions covered |
North America, Europe, APAC, and RoW |
Companies covered |
Kapsch TrafficCom (Austria), Conduent Business Services, LLC (US), EFKON GmbH (Austria), TransCore (US), Thales Group (France), Raytheon Technologies Corporation (US), Cubic Corporation (US), Siemens (Germany), Neology, Inc. (US), VINCI (France), and Feig Electronic GmbH (Germany) are a few major players in the electronic toll collection market. |
In this report, the electronic toll collection market has been segmented into the following categories:
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 TafficComf, Conduent, EFKON, TransCore, and Thales Group. The major strategies adopted by these players are agreements and acquisitions.
Which is the potential market for electronic toll collection in terms of region?
APAC is the fastest-growing market for electronic toll collection. APAC is a manufacturing—intensive region with the presence of a large number of companies across various sectors. Governments in the region aim to introduce and promote use of electronic toll collection systems through different initiatives. Rapid urbanization demands improved road networks, which creates opportunities for advanced transportation systems including electronic toll collection. Developing countries in the region such as India, South Korea, Australia, and Malaysia has observed high adoption rate of electronic toll systems. China and Japan have been significantly contributing to the market growth as they had electronic toll systems installed on existing and newly developed highway infrastructures.
Which applications are expected to drive the growth of the market in the next 5 years?
Highways and urban areas are the application fields of electronic toll collection system. Market for highways is expected to have largest market share in 2025 with a significant growth rate between 2020 and 2025. The electronic toll collection market for highways is significantly driven by its adoption, mainly in developing countries. Strong government initiatives are likely to add electronic toll collection options at existing toll plazas on highways, which is expected to create tremendous growth opportunities for the ETC market for highway applications.
What are the opportunities for new market entrants?
The overall impact of COVID-19 on application modernization market is expected to be optimistic due to rise is demand for remote working, and enhanced customer experience .
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The study involved 4 major activities for estimating the current size of the electronic toll collection market. Exhaustive secondary research was carried out to collect information on the market, peer markets, and the parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation procedures were used to estimate the size of segments and subsegments of the market.
Secondary sources referred to for this research study included corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers, electronic toll collection-related journals; directories; and databases. The secondary data was collected and analyzed to arrive at the overall market size estimations, which was further validated through the primary research.
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information relevant to this report. Extensive primary research was conducted after understanding and analyzing the electronic toll collection market through secondary research. Several primary interviews were conducted with the key opinion leaders from both demand and supply side across 4 regions: North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW). RoW comprises the Middle East and Africa and South America. Approximately 25% of the primary interviews were conducted with the demand side, while approximately 75% with the supply side. This primary data was collected mainly through telephonic interviews, which accounted for approximately 80% of the total primary interviews. Besides, questionnaires and emails were also used to collect the data.
Both top-down and bottom-up approaches were implemented to estimate and validate the total size of the electronic toll collection market. These methods were also used extensively to estimate the size of the markets based on various segments. The research methodology used to estimate the market size included the following steps:
After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and subsegments. Data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for each market segment and subsegment. The data was triangulated by studying various factors and trends from demand and supply sides across different end users.
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for this report:
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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?
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?