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Electronic Toll Collection (ETC) Market - By Technology (RFID, DSRC, GPS/GNSS, Video Analytics), By Type (Automatic Vehicle Classification, Violation Enforcement System), By Payment Method, By Application & Forecast, 2021-2027

  • Report ID: GMI1615
  • Published Date: May 2021
  • Report Format: PDF

Industry Trends

Electronic Toll Collection Market size exceeded USD 6.5 billion in 2020 and is set to grow at 11% CAGR from 2021 to 2027. Increasing adoption of advanced technologies in transportation sector is likely to drive the ETC industry growth.

The rise in the number of government initiatives to achieve congestion-free transportation is driving the ETC market demand. Traffic congestion can lead to increased fuel consumption & air pollution and can also affect the ability of commuters to estimate travel time. Governments in several countries are promoting the implementation of digital toll collection systems to enable the smooth flow of vehicles.

Electronic Toll Collection Market

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The rapidly increasing vehicle demand and production in developing & developed countries and shifting consumer preferences towards smart vehicles will positively influence the market outlook. According to the German Association of the Automotive Industry (VDA), around 2.9 million cars were registered in Germany in 2020. Similarly, according to China’s National Development and Reform Commission (NDRC), the country expects smart cars with fully or partially autonomous functions to account for nearly 50% of the new vehicles sold in the country by 2025. As more vehicles are produced and sold at an accelerated pace, the need for innovative transportation management solutions is poised to grow through 2027, prompting companies to commercialize advanced toll collection solutions in the market.

The ongoing coronavirus (COVID-19) pandemic negatively impacted the ETC industry in 2020. The travel bans and temporary closure of manufacturing plants have severely impacted the market statistics. The manufacturers in automotive, transportation, construction and semiconductor industries witnessed a significant impact due to shutdowns and the unavailability of labor or raw materials. Also, the restriction on foreign trades and implementation of various government laws to take precautionary measures impacted the market growth. However, with gradual relaxation on imposed lockdowns and resumption of the transportation sector, the industry is expected to witness growth by the second half of 2021.

Integration of RFID into electronic toll systems for improved transparency and smooth exchange of payment information

The RFID technology in the Europe electronic toll collection market is set to register 14% CAGR through 2027. Several European countries are shifting toward innovative tools to increase the efficiency of transport network and achieve their sustainability objectives. For instance, RFID-based mobility monitoring and management systems were adopted by several cities across Italy as of 2018. The positive outlook toward advanced technology will propel the adoption of RFID-based electronic toll collection systems across the region.

The RFID tags are scanned through RFID reader mounted on electronic toll collection system to automate deduction of toll amounts. The system enables easy exchange of payment information between the vehicle owners and toll authorities. This results in reducing manual labor & human errors and increasing transparency in collection of toll charges.

Demand for AVI systems to aid in toll collection and track stolen vehicles will boost the electronic toll collection market revenue

U.S. Electronic Toll Collection Market By Type

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The U.S. Automatic Vehicle Identification Systems (AVIS) market size is projected to expand at a 10% CAGR from 2020 to 2027. The growth has been majorly driven by the rising adoption of intelligent transportation system technologies to identify and track stolen vehicles across the country. According to the Federal Bureau of Investigation (FBI), about USD 6.4 billion was lost in the U.S. to motor vehicle theft in 2019. The implementation of electronic toll collection systems along with AVI technology aids in toll collection as well as automatic identification of vehicles. The technology simplifies access control and vehicle identification process by using secure RFID tags or cards that eliminate the need to manually identify a vehicle.

Prepaid payment type will gain traction in the market due to high demand for fast and cashless transaction in ETC system

The prepaid segment held more than 45% of the electronic toll collection market revenue in 2020. The increased demand for quick and hassle-free transaction process is driving the demand that allows direct payment of toll fees from the prepaid or savings account. The prepaid tag enables automatic deduction of toll charges and allows vehicles to drive through without stopping for transactions. The prepaid card system is integrated with the Toll Management Systems (TMS), enabling toll operators to select vehicle classes and deduct applicable toll fees from the prepaid card. The benefit of fast and cashless transactions will support the adoption of prepaid payment methods in electronic toll collection systems.

Rising urbanization resulting in traffic congestion will fuel the demand for advanced toll collection systems in urban zones

The India electronic toll collection market generated over USD 200 million in 2020. The governments of various countries are investing in developing transport infrastructure for enhancing transportation connectivity. For instance, in December 2020, The World Bank and the Government of India announced a USD 500 million projects to develop green and safe national highway corridors under the Ministry of Road Transport and Highways (MoRTH). Similarly, the Indian government aims to construct 65,000 km of national highways with an investment of USD 741.5 billion by 2022.

The development of transport infrastructure is expected to spur the adoption of electronic toll collection systems to quickly perform monetary transactions at tolls and reduce traffic congestion across highways.

Government initiatives aimed at development of smart mobility in Asia Pacific will offer strong growth opportunities to the industry

Asia Pacific Electronic Toll Collection (ETC) Market By Country

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In 2020, Asia Pacific electronic toll collection market captured around 20% of the global revenue share. Rapid urbanization, a booming economy, and rising disposable income are the factors contributing to the regional market demand. Several countries across the region are embracing advanced technologies. For instance, the Land Transport Authority (LTA) in Singapore has collaborated with Intelligent Transportation Society of Singapore (ITSS) to facilitate ‘Smart Mobility 2030’ strategic plan. Such smart mobility initiatives will encourage the development and adoption of ETC solutions to make road traffic safer and efficient.

Increasing public-private partnerships in the transportation sector and the development of advanced systems are driving the market growth

The competition in the electronic toll collection market is characterized by R&D investments by market players directed toward the development and commercialization of innovative solutions. Conpanies are focusing on securing contracts for deploying small, medium, and large-scale deployment projects for installing their solutions in different countries.

Key players operating in the ETC market include Xerox Corporation, TransCore, Intelligent Transpotation Systems (India) Pvt. Ltd., EFKON GmbH, Honeywell International Inc., Thales Group, Conduent Business Services, LLC, Toshiba Corporation, Mitsubishi Heavy Industries Machinery Systems, Ltd., Verra Mobility, FEIG ELECTRONIC GmbH, International Road Dynamics Inc., Atlantia S.p.A., Tecsidel, S.A., Siemens AG, Cubic Corporation, Kapsch TrafficCom, Perceptics, LLC, Jenoptik AG, ARH Inc., Kent- QuaLiX, Electronic Transaction Consultants, LLC and Q-Free ASA.

This market research report on electronic toll collection (ETC) includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:

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Market, By Technology

  • RFID
  • DSRC
  • Video Analytics
  • Others

Market, By Type

  • Automatic Vehicle Classification (AVC)
  • Violation Enforcement System (VES)
  • Automatic Vehicle Identification System (AVIS)
  • Others

Market, By Payment Method

  • Prepaid
  • Hybrid
  • Postpaid

Market, By Application

  • Urban Zones
  • Highways

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
Authors: Preeti Wadhwani, Saloni Gankar

Frequently Asked Questions (FAQ) :

Electronic toll collection industry share valued at USD 6.5 billion in 2020 and will grow at a CAGR of 11% between 2021 and 2027.

RFID technology will expand at a CAGR of 14% in the Europe market through 2027, given that numerous countries are making a shift towards innovative tools for increasing the efficiency of the transport network.

Automatic vehicle identification systems in the U.S. will record a CAGR of 10% by 2027 with the rising adoption of intelligent transportation system technologies for the identification and tracking of stolen vehicles in the country.

Prepaid payments exceeded 45% of the overall electronic toll collection market revenue in 2020 and will register lucrative growth due to the escalated demand for a quick and hassle-free transaction process.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 20
  • Tables & Figures: 290
  • Countries covered: 17
  • Pages: 300
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