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Electronic Toll Collection (ETC) Market Size - By Technology, By Type, By Payment Method, By Application, Growth Forecast, 2025 - 2034
Report ID: GMI1615
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Published Date: September 2025
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Report Format: PDF
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Authors: Preeti Wadhwani, Satyam Jaiswal
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Base Year: 2024
Companies covered: 29
Tables & Figures: 160
Countries covered: 22
Pages: 210
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Electronic Toll Collection (ETC) Market
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Electronic Toll Collection Market Size
The global electronic toll collection (ETC) market size was estimated at USD 8.18 billion in 2024. The market is expected to grow from USD 8.91 billion in 2025 to USD 22.5 billion in 2034, at a CAGR of 10.8%, according to latest report published by Global Market Insights Inc.
The increase in urbanization and vehicle ownership has led to excessive traffic congestion, mainly on highways and toll roads and urban areas. Electronic toll collection (ETC) reduces stop-and-go delays at toll booths by automating vehicle payments, increasing the throughput on toll roads, and decreasing delays on toll plazas.
Governments around the world are mandating cashless tolling and standards for interoperability as part of their modernization of transportation infrastructure. For instance, technology advances like E-ZPass in the United States and FASTag in India are changing the nature of adoption significantly faster.
Top company hold 10% market share
Collective market share in 2024 is 33%
Developments in RFID, ANPR, cloud computing, and AI are driving the next generation of ETC systems. These technologies enhance accuracy, mitigate fraud, and lower asset costs to make toll collection more scalable. The emergence of mobile wallets and digital payment platforms improves user convenience.
ETC contributes to sustainability by reducing idling of motor vehicles and the amount of fuel at a toll plaza. This translates into lower carbon emissions and better air quality. With all levels of government and organizations announcing and enacting progressive climate and associated goals, ETC is significant to the case for greener mobility.
In January 2025, TransCore unveiled its upgraded Infinity Digital Lane System on the West Virginia Turnpike, providing the latest generation of electronic toll collection on the highway. Featuring enhanced E-ZPass services, the upgraded system also provides toll-by-plate processing at each of the four plazas, giving drivers without transponders the ability to pay their toll without delays. This is in line with the trend developing throughout the US in moving to cashless and digital tolling solutions, which offer a greater level of drive convenience and allow smarter and sustainable operation of the regional highways.
North America leads in the development of ETC with wide rolling networks of E-ZPass and interoperability in state development driving the early adoption. Tolling has a way to go totally electronic and cashless and toll-by-plate and License plate identification systems are offering further access to drivers without tags. Enhanced digital lane systems and integration into intelligent transport networks drive efficiency.
The Asia Pacific market is the most rapidly expanding ETF market due to accelerated urbanization, vehicles ownership and government sponsored programs such as Fastag in India and digitization of current toll roads in China. Nations are spending money on the implementation of RFID, ANPR, and AI technology in managing traffic and reducing congestion.
Electronic Toll Collection Market Trends
The ETC systems that utilize RFID, NFC, and mobile wallets abolish cash transactions altogether with toll payment, creating a seamless customer experience. It reduces waiting time in queues, and allows for a faster travel time, all the while being much more convenient for the driver. In addition, it improves transparency in the collections of revenue and is aligned with the existing trends for cashless, digital economies throughout the world.
Free-flow tolling systems that utilize a combination of sensors and ANPR technology allow vehicles to automatically pay without ever stopping or slowing down. This application reduces congestion, increases the throughput for the toll plaza and significantly reduces toll collection operating expense. The operations are safer for motorists and allow transportation and traffic to move more efficiently over large distances on urban expressways and inter-urban highways.
ETC is utilized in conjunction with Intelligent Transport Systems (ITS) technology as well as smart city platforms to create dynamic pricing, real-time congestion management, and predictive maintenance. These trends create an efficient planning of traffic management, and travel system, while improving traveller experience, and ensure that toll systems contribute to larger urban mobility and sustainability objectives.
Technology-based electronic toll collection (ETC) solutions provide additional accuracy by minimizing accuracy in vehicle identification and toll collection functions, while providing data analytics for fraud detection, predictive traffic analytics, and optimal toll rates using trend data. In addition to improved accuracy, this trend reduces costs for operators while facilitating smarter, more adaptive tolling systems that respond to real-time traffic.
ETC is a robust contributor to sustainability by reducing fuel waste and emissions from idling vehicles. Governments are adopting ETC under eco-friendly transport policies, while this trend encourages travel without contact and smooth travel experiences through tolling. This trend leads to lower carbon emissions and specifically aligns road operators to address international carbon emissions reductions and climate action more broadly.
In May 2025, the Transport Ministry of Vietnam and Viettel have established ETC systems at 35 more toll stations, for a total of 91 of 116 stations. This last roll-out signifies the end of the second roll-out stage in the project of non-stop toll collection, easing stop-and-go traffic, travel time, and convenience for drivers.
Electronic Toll Collection Market Analysis
Based on technology, the electronic toll collection market is segmented as RFID, DSRC, GPS/GNSS, video analytics, and others. The RFID segment dominated the market, accounting for 46% in 2024 and is expected to grow at a CAGR of over 11.5% through 2034.
Based on type, the electronic toll collection market is bifurcated into automatic vehicle classification (AVC), violation enforcement system (VES), automatic vehicle identification system (AVIS), and others. The violation enforcement system (VES) is expected as the fastest growing segment as governments and highway operators are shifting from traditional toll booths to cashless, open-road systems. The segment is expected to grow at a CAGR of over 12.1% from 2025 to 2034.
Based on payment method, the electronic toll collection market is bifurcated into prepaid, hybrid and postpaid. The prepaid segment held a share of 57.3% in 2024, and it dominates the market as they are cheaper to manage, as they minimize administrative overhead associated with invoicing, debt collection, or violation enforcement, compared to postpaid or hybrid systems.
Based on application, the electronic toll collection market is bifurcated into urban zones and highways. Highway segment held 70.6% and is anticipated to grow at a CAGR of 10.4% between 2025 and 2034.
North America dominated the electronic toll collection (ETC) market with around 40.3% share and generated USD 3,296.3 million in 2024. Extensive highway networks and high vehicle usage in the region create consistent demand for ETC solutions. Operators prioritize automation to reduce congestion, improve safety, and optimize toll revenue.
The electronic toll collection market in US is expected to hold a share of 87.4% in 2024 and experience robust growth from 2025 to 2034.
The electronic toll collection (ETC) market in Europe is expected to grow at a CAGR of 9.3%.
The ETC market in Germany is expected to hold 21% market share in 2024.
The electronic toll collection market in Asia Pacific held a market share of 21.4% in 2024 and is expected to grow at a CAGR of 12.5% from 2025 to 2034 owing to rapid digital transformation and IoT expansion.
The ETC market in China is estimated to hold market revenue of USD 705.4 million in 2024 and is expected to experience strong growth from 2025 to 2034.
The Latin American electronic toll collection (ETC) market is projected to grow at a CAGR of 10.4% from 2025 to 2034. This growth is driven by the need to optimize urban traffic flow, reduce congestion, and enhance public safety through smart infrastructure.
The MEA electronic toll collection market is projected to grow at a CAGR of 9.2% from 2025 to 2034.
Electronic Toll Collection Market Share
Electronic Toll Collection Market Companies
Major players operating in the electronic toll collection (ETC) industry are:
Electronic Toll Collection Industry News
The electronic toll collection (ETC) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) from 2021 to 2034, for the following segments:
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Market, By Technology
Market, By Type
Market, By Payment method
Market, By Application
The above information is provided for the following regions and countries: