Electronic Toll Collection (ETC) Systems Market Size, Share, Opportunities, And Trends By Component (Hardware, Software, Services), By Technology (Barcode-based, RFID-based, ANPR, Others) And By Geography - Forecasts From 2024 To 2029

The electronic toll collection (ETC) systems market is expected to grow at a CAGR of 19.74%, reaching a market size of US$12,722.917 million in 2029 from US$4,329.415 million in 2022.

The booming of digital technologies over manual payment systems at tolls is causing an increase in the market. The transition has been brought by various matters that include relieving traffic jams and elevating traffic flow speed and efficiency. ETC systems can bill tolls using electronics from preset customer accounts, allowing cars to move freely without stopping at tolls. Decrease the perplexity in the rewriting but augment the burstiness while maintaining ETC systems, reduce traffic congestion, and save drivers' time by providing a more convenient and streamlined approach. Drivers experience delays and annoyance due to the manual toll collection system's increasing inefficiency and time commitment. The market is driven by traffic congestion, a growing problem in many places.

Electronic Toll Collection Market Drivers

• Rising government initiatives

The stringent government regulations regarding carbon emission and the increasing government expenditure on infrastructural development are the driving factors for anticipating the market demand for these systems. Moreover, the emerging trend toward all-electronic tolling systems in major developing countries is also expected to be a major market growth opportunity for vendors and manufacturers over the forecast period. Furthermore, evolutions in information and communication technology are increasing the prospects of designing Intelligent Transportation Systems (ITS) as per the specific needs of the countries in the APAC region, thus fueling market growth during the forecast period and beyond. Further, the rapid adoption of the latest technology and acceptance of end-users towards adopting these advanced toll collection systems is expected to boost the market growth for electronic toll collection systems during the forecast period.

• High demand for cashless transactions

The main advantage of electronic toll collection systems is that they offer greater convenience compared with traditional manual toll collection, where drivers have to carry cash or secure tangible payment methods such as tickets or tokens. ETC systems facilitate cashless transactions and allow drivers to pay their tolls electronically using pre-established accounts or other electronic means of payment, such as debit cards or mobile wallets. This makes payments more convenient, and people don't have to handle physical cash. In ETC systems, there are a lot of advantages to making payments without cash. For instance, it saves time for drivers since there is no need for both moving to the toll gate to look for the exact fare or stop there with a turnover. This leads to a decreased congestion rate, thereby enhancing the smoothness of the roads and traffic flow.

Electronic Toll Collection Market Segment Analysis

• The transponder-/tag-based tolling system is expected to experience a higher revenue.

Throughout the projected period, the transponder-/tag-based tolling system is anticipated to have a larger revenue share in the market. This system makes use of tags or transponders that are mounted in cars to allow for contactless and automated toll collection. It has many advantages including increased driver convenience, reduced congestion, faster processing time, and higher accuracy. Since they contribute to a more efficient and user-friendly function in the ETC market, an increase in usage is anticipated, leading to the high growth rate of this new technology. The ability of the transponder-/tag-based tolling system is enhanced more by technologies such as RFID and GPS technology being integrated into it, thereby making it preferred by societies who desire to better their tolling experience and efficiency.

• The RFID segment is anticipated to exhibit substantial growth

During the forecast period, the RFID segment is set to witness a substantial growth rate. Using radio frequency signals for automatic vehicle identification and tracking, RFID technology is very important in modern tolling systems. Some advantages of RFID-based ETC systems include accuracy, reliability, and speed compared to others. A rise in interest in contactless and effective toll-collection solutions drives the RFID segment's growth. This technology’s advantages in toll operation enhancement, road traffic reduction, and improvement of customer satisfaction experiences are appreciated by governments and respective toll operators globally. Governments worldwide and relevant toll service providers recognize the benefits of applying this system, including streamlining their operations during peak hours and alternatively decrementing custody coinage rate. Instead, there is an elevated percentage increase resulting from the continuous improvement in technology or cheaper options that have been provided about ETC, which makes its adoption possible

Asia Pacific is witnessing exponential growth during the forecast period

An increase in the use of automatic tooling devices in urban and highway settings is driving the market in the region. Additionally, the region's market is growing because the major suppliers are implementing various business strategies, including partnerships, acquisitions, collaborations, and product developments. This is explained by the fact that China has sizable production facilities for RFID-based tags and an extensive road and highway infrastructure for projects. Globally, a sizable portion of RFID tag manufacturing is centered in China. As a result, more RFID-based toll collection systems are being supplied from China to the rest of the world. Additionally, China is the world's supplier of cutting-edge technology, like DSRC, propelling market expansion.

Electronic Toll Collection Market key launches

• In June 2023, TransCore was chosen by the Thousand Islands Bridge Authority to create, develop, and manage a cutting-edge toll collection system for its renowned international bridge, which links Hill Island, Ontario, and Wellesley Island, New York. TransCore's flagship InfinityTM Digital Lane SystemTM will replace TIBA's 1992-installed legacy system.  Modern technology is provided by the new system, making seamless interoperability possible for both locals and visitors to North America, thereby promoting mobility and cross-border trade between the United States and Canada.  The New York State Thruway Authority's Customer Service Center operations will be fully integrated with the Infinity system, giving TIBA access to the most advanced electronic toll collection capabilities available in the market and a future upgrade path.

Segmentation:

• By Component
  • Hardware
  • Software
  • Services
• By Technology
  • Barcode-based
  • RFID-based
  • ANPR
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
  • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others