Global Electronic Toll Collection Market Overview
The key drivers impacting the electronic toll collection market are the rise in government initiatives to achieve congestion-free transportation. The governments in several countries are promoting the implementation of digital toll collection systems to enable the smooth flow of vehicles. For example, the National Highways Authority of India (NHAI) focus is switching to ETC (100%) and mandatory implementation of FASTag, across national highways to make Indian highways modern and efficient and to monitor the movement of every vehicle on the highways. Moreover, the growing use of advanced digital technologies in transportation infrastructure contributes to electronic toll collection market demand in the later years. Whereas with regards to volume, the market was calculated XX Units in 2020 and foreseen to grow with a CAGR of XX% during 2021-2027.
According to Value Market Research, the global electronic toll collection market size was valued at about USD 7 billion in 2020 and is estimated to grow at a CAGR of around 8% during the forecast period 2021 to 2027.
The rapidly increasing vehicle demand and production in developing & developed countries and shifting consumer preferences towards smart vehicles will likely augment the need for electronic toll collection in the forecast period. However, deployment in underdeveloped countries hampers the market in the long run. In addition, high installation and maintenance costs impede market growth. Nevertheless, the market trends, such as the growing utilization of blockchain technology in toll collection systems, increasing number of public-private partnership agreements in the transportation sector, might provide massive market opportunities to the market's key players.
The electronic toll collection market is widespread, with many local and international players. The market leaders follow diverse strategies to strengthen their market, such as amalgamation, extending product portfolio, acquisitions, contracts, product upgrades to raise their market share globally. The key players in the report are TransCore, Xerox Corporation, Intelligent Transportation Systems (India) Pvt. Ltd., Honeywell International Inc., EFKON GmbH, Thales Group, Toshiba Corporation, Conduent Business Services, LLC, Verra Mobility, Mitsubishi Heavy Industries Machinery Systems Ltd., International Road Dynamics Inc., FEIG ELECTRONIC GmbH, Tecsidel, S.A., Atlantia S.p.A., Siemens AG, ARH Inc., Cubic Corporation, Kapsch TrafficCom, Jenoptik AG, Perceptics, LLC, Electronic Transaction Consultants, LLC, Kent- QuaLiX, and Q-Free ASA.
In this research report, the electronic toll collection market is segmented by technology, type, payment method, application, and region.
Analysis by Technology:
By technology type, the report is segmented into RFID, DSRC, GPS/GNSS, Video Analytics, and Others. The RFID segment dominates the technology type segment with the highest share in 2020. It is due to the growing adoption of RFID-based mobility monitoring and management systems which enables easy exchange of payment information between the toll authorities and vehicle owners. Moreover, the RFID-based systems can reduce manual labor & human errors and escalate the transparency in the collection of toll charges, thus contributes to the segment's growth in the forecast period.
Analysis by Type:
By type, the report is segmented into automatic vehicle classification (AVC), violation enforcement system (VES), automatic vehicle identification system (AVIS), and others. The Automatic Vehicle Identification System segment dominates the type segment with the highest share in 2020. It is due to the demand for AVI systems to assist in toll collection and track stolen vehicles. Moreover, the growing adoption of intelligent transportation system technologies across several countries is contributing to the automatic vehicle identification system (AVIS) segment's growth in the forecast period.
Analysis by Payment Method:
By payment method, the report is divided into prepaid, hybrid, and postpaid. The prepaid segment dominates the payment method segment, with the largest market share in 2020. It is due to the high demand for fast and cashless transactions in the ETC system. Moreover, increased demand for quick and hassle-free transaction process contributes to the growth of the prepaid segment growth in the forecast period.
Analysis by Application
By application, the report is segmented into urban zones and highways. The highway segment dominates with the highest market share in 2020. It is due to the vast adoption, mostly in developing nations, as ETC systems play a prominent role in collecting a toll on tunnels, highways, and bridges. Moreover, strong government initiatives might add electronic toll collection options at existing toll plazas on highways to ensure passenger safety and to sustain the free flow of traffic, which is contributing to the market demand at highways in the coming years.
Analysis by Region:
In the regional outlook of the global electronic toll collection market, the North America region dominates with the largest market share of 42% in 2020. It is due to the presence of the largest networks of interstate and intrastate highways wherein modernized toll collection systems are installed at many locations across U.S. and Canada. Also, several toll installation projects are in progress for lanes with high traffic, and the presence of key players such as TransCore, Raytheon, and Conduent in the electronic toll collection is contributing to the tremendous market growth across North America.
Market Segmentation covered in the Report:
- Video Analytics
By Payment Method
- Automatic Vehicle Classification (AVC)
- Violation Enforcement System (VES)
- Automatic Vehicle Identification System (AVIS)
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.