How Has the Electronic Toll Collection Market Size Evolved in Recent Years?
The electronic toll collection market has seen considerable growth due to a variety of factors.
• In recent years, the electronic toll collection market has seen robust growth. Its value is expected to increase from $8.71 billion in 2024 to $9.55 billion in 2025, registering a compound annual growth rate (CAGR) of 9.7%.
The upward trend observed in the historic period can be attributed to factors such as the growing need for efficient traffic management, broader adoption of digital technologies, efforts to improve the speed and efficiency of traffic flow, increased demand for effective toll-collection solutions, and heightened usage of cutting-edge technologies in the transportation sector.
What Are The Predictions for The Electronic Toll Collection Market in the Coming Years?
The electronic toll collection market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for electronic toll collection is anticipated to witness robust expansion in the upcoming years, escalating to $13.8 billion in 2029 with a CAGR of 9.6%.
The growth prospects for the forecast period are tied to factors such as increased traffic on freeways, growing preference for video analytics, surging acceptance of digital toll payments due to increased investments in highway construction, growing need for touchless operations at toll points, and increasing consciousness about road accidents and traffic. The prevalent trends projected in the forecast period encompass the integration of cutting-edge technologies, a shift towards all-electronic tolling (AET), harmonization and standardization, the utilization of mobile-centric solutions and an emphasized attention to user experience and customer service.
Which Drivers Are Accelerating Growth In The Electronic Toll Collection Market?
The electronic toll collection market is predicted to expand due to the rising highway traffic. The construct of highway traffic refers to the volume of vehicles using the road systems, which often fluctuates due to congestion, the amount of traffic, and transportation needs. The increase in highway traffic can be attributed to inefficient city planning, expansion of roadways, and the creation of phantom traffic jams. Traditional toll booths tend to cause delays, especially during rush hours, leading to further congestion and extended travel times. With electronic toll collection, vehicles no longer need to halt or slow down at these booths, enabling trouble-free transitions through toll points. It hence decreases travel times for commuters and also facilitates higher traffic volumes on highways without substantial delays. For instance, as reported by gov.UK, a UK government website, in May 2024, traffic involving cars and taxis in Great Britain witnessed an increase of 3.0% in 2023 relative to 2022, amounting to a total of 251.3 billion vehicle miles. Consequently, the upward trend in highway traffic is spearheading the expansion of the electronic toll collection market.
What Are The Core Segments Of The Global Electronic Toll Collection Market?
The electronic toll collection market covered in this report is segmented –
1) By Type: Automatic Vehicle Classification (AVC), Violation Enforcement System (VES), Automatic Vehicle Identification System (AVIS), Other Types
2) By Payment Method: Prepaid, Hybrid, Postpaid
3) By Technology: Radio Frequency Identification (RFID), Dedicated Short Range Communication (DSRC), Global Navigation Satellite System (GNSS) Or GPS, Video Analytics, Cell Phone Tolling, Other Technologies
4) By End-user: Highway, Urban Area
Subsegments:
1) By Automatic Vehicle Classification (Avc): Lane-Based Avc Systems, Non-Intrusive Avc Solutions, Weighted Classification Systems, Vehicle Axle Counting Systems, Vehicle Length And Height Detection Systems, Dynamic Classification Systems
2) By Violation Enforcement System (Ves): Automatic Number Plate Recognition (Anpr) Systems, Ticketing and Fines Management Systems, Cameras and Imaging Solutions For Violation Detection, Video Analytics For Toll Violation, Violation Detection for Hov Lanes, Crossing And Speed Limit Violation Detection Systems
3) By Automatic Vehicle Identification System (Avis): Rfid-Based Avis, Infrared And Optical Avis, Bluetooth-Based Vehicle Identification, Mobile App-Based Avis Solutions, Near-Field Communication (Nfc) for Vehicle Identification, License Plate Recognition (Lpr) Systems
4) By Other Types: Multi-Lane Free Flow (Mlff) Systems, Dedicated Short Range Communication (Dsrc) Systems, Gps and Satellite-Based Toll Collection Systems, Hybrid Tolling Systems, Smartphone And Mobile Payment Solutions For Tolling
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How Are Emerging Trends Reshaping The Dynamics Of The Electronic Toll Collection Market?
Principal players in the electronic toll collection market are concentrating on creating innovative solutions like 'One Vehicle and One FASTag', intending to enhance the effectiveness of the electronic toll collection system. In January 2024, the 'One Vehicle, One FASTag' push was commenced by the National Highways Authority of India (NHAI), a domestic agency of the Ministry of Road Transport and Highways in India. This was designed to foster uninterrupted traffic flow at toll booths while discouraging the practice of using a single FASTag for multiple cars or associating multiple FASTags with one vehicle. NHAI counsels FASTag users to undergo the 'Know Your Customer' (KYC) procedure with their latest FASTag and align it with Reserve Bank of India's regulations. The 'One Vehicle, One FASTag' initiative is projected to optimize toll operations and offer effortless and pleasant journeys for users of national highways.
Who Are the Key Players In The Electronic Toll Collection Market?
Major companies operating in the electronic toll collection market are:
• Raytheon Technologies Corporation
• Mitsubishi Heavy Industries Ltd.
• Thales Group
• Infineon Technologies AG
• Siemens Mobility
• Ferrovial S.E.
• Xerox Holdings Corporation
• Conduent Inc.
• TransCore
• Cubic Corporation
• SKIDATA GmbH
• VITRONIC
• Kapsch TrafficCom
• IBI Group Inc.
• Neology Inc.
• Sensys Gatso Group
• Q-Free ASA
• Autostrade per l'Italia S.p.A.
• EFKON AG
• Star Systems International Ltd.
• Far Eastern Electronic Toll Collection Co. Ltd.
• Ingenico
• Perceptics LLC
• TagMaster
• GeoToll Inc.
• Watchdata Technologies
• Korea Smart Card Co. Ltd.
• Electronic Transaction Consultants LLC
What Are The Regional Insights Into The Electronic Toll Collection Market?
North America was the largest region in the electronic toll collection market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electronic toll collection market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
