Electronic Toll Collection (ETC) Market Size - By Technology (RFID, DSRC, GPS/GNSS, Video analytics), By Payment Method (Prepaid, Hybrid, Postpaid), By Application (Urban Zones, Highways), Type Regional Analysis & Global Forecast, 2023 - 2032

Electronic Toll Collection (ETC) Market Size

Electronic Toll Collection Market size was valued at USD 7.3 billion in 2022 and is anticipated to register a CAGR of over 12.6% between 2023 and 2032. The increasing government support for Electronic Toll Collection (ETC) in Europe is a significant factor driving market growth. Governments are promoting ETC to enhance traffic flow, reduce congestion, and minimize environmental impacts. Financial incentives, subsidies, and policy initiatives encourage toll operators & vehicle owners to adopt these solutions.

For instance, in August 2023, the Serbian government signed an agreement with Montenegro to introduce an integrated electronic toll collection system between the two countries. Such agreements streamline toll collection processes, reduce cash handling, and enhance overall transportation efficiency, leading to the wide adoption of electronic toll collection systems & propelling electronic toll collection market demand.

The increasing use of advanced technologies for transport applications is a major factor fueling the electronic toll collection market size. As transport systems become more digitized and connected, ETC systems are being integrated with cutting-edge technologies such as RFID, IoT, and AI. These innovations enable seamless, contactless toll collection, enhancing convenience for drivers while optimizing traffic flow & reducing operational costs for toll operators. This alignment with modern transportation trends is boosting the widespread adoption of electronic toll collection solutions, boosting market revenue.

High installation & maintenance costs are a significant challenge in the electronic toll collection market. Implementing these systems involves substantial initial investments in infrastructure, technology, and manpower. Additionally, ongoing maintenance expenses can considerably add to the cost. To address this challenge, governments and toll operators can explore public-private partnerships to share the financial burden. Innovations in technology and streamlined deployment processes can also reduce costs over time, making ETC solutions more affordable and sustainable in the long run.

COVID-19 Impact

COVID-19 had negative impacts on the electronic toll collection market due to travel restrictions and the temporary closure of manufacturing plants. Travel bans reduced traffic volumes, leading to decreased toll collection revenues. Moreover, the pandemic disrupted the supply chain, delaying the production and delivery of ETC equipment. Toll operators faced a financial strain, while ETC system providers grappled with production challenges. However, the crisis also accelerated the need for contactless and automated tolling, driving innovation and adoption of advanced ETC solutions to mitigate future disruptions.

Electronic Toll Collection (ETC) Market Trends

The trend toward contactless payments in the electronic toll collection industry is driven by a growing preference for convenient & hygienic payment methods. RFID, QR codes, and smartphone-based ETC solutions offer travelers a seamless & touch-free way to pay tolls, eliminating the need to handle cash or interact with toll booth personnel. This enhances user convenience while aligning with health & safety considerations, particularly in the wake of the COVID-19 pandemic. As a result, ETC systems incorporating contactless payment options are becoming increasingly popular, contributing to a more efficient and user-friendly tolling experience.

The trend of automated and AI-powered tolling represents a significant shift in the electronic toll collection market. Automation streamlines toll collection processes, reducing the reliance on manual labor and associated costs. AI technologies enable real-time data analysis, allowing for dynamic pricing adjustments based on traffic conditions, time of day, and vehicle types. This enhances operational efficiency and contributes to improved traffic management, reduced congestion & a more responsive tolling system, ultimately delivering a smoother and more cost-effective tolling experience for both toll operators & users.

Electronic Toll Collection (ETC) Market Analysis

The RFID segment accounted for 25% of the electronic toll collection market share in 2022, owing to several key factors. RFID technology offers a contactless & efficient means of toll collection, aligning with the increasing demand for convenient and touch-free payment methods. As governments & toll authorities worldwide focus on enhancing road infrastructure and promoting cashless transactions, RFID's versatility and reliability make it a preferred choice.
 

Furthermore, RFID-based ETC systems enable interoperability, allowing travelers to use a single RFID tag across multiple toll networks, fostering user convenience and streamlining tolling operations. For instance, in July 2023, Korea Expressway Corporation (KEC) launched an electronic toll system on Padma Bridge. The toll will be collected automatically through RFID in one lane on both ends of the bridge. Such innovations are expected to fuel the expansion of RFID technology in the ETC market as it provides seamless, cost-effective, and user-friendly toll collection solutions.
 

The Automatic Vehicle Identification System (AVIS) segment held over 45% of the electronic toll collection market share in 2022. AVIS utilizes advanced technologies, such as RFID, license plate recognition, and IoT sensors, to automatically identify & categorize vehicles passing through toll booths. The segment's growth is attributed to its ability to enhance tolling efficiency, reduce congestion, and optimize toll collection through automation & real-time data analytics. Additionally, AVIS contributes to improved traffic management and provides a seamless, hands-free experience for drivers, aligning with the growing demand for contactless & convenient tolling solutions in modern transportation infrastructure.
 

North America electronic toll collection market recorded more than 35% of revenue share in 2022, led by rapid advancements in technology. The region is at the forefront of adopting cutting-edge tolling solutions such as RFID, AI-powered tolling, and IoT sensors. These technologies streamline toll collection processes, reduce operational costs, and enable dynamic pricing strategies. Moreover, North America's commitment to smart city initiatives and infrastructure modernization aligns with the integration of ETC systems.

As the region continually invests in innovative transportation solutions, it fosters a fertile ground for market expansion, offering enhanced user experiences and traffic management capabilities. For instance, in May 2023, the government of Costa Rica initiated the Digital Marchamo project to create an RFID tag for vehicles, replacing traditional road tax stickers. This RFID tag will serve as proof of paid annual road tax and offer additional features including contactless toll & parking payments, making it a more efficient & convenient solution for both drivers and authorities.

Electronic Toll Collection (ETC) Market Share

Major companies operating in the electronic toll collection market are

• Kapsch TrafficCom
• Xerox Corporation
• Atlantia S p A
• Thales Group
• TransCore
• Q-Free ASA
• Conduent Business Services LLC

These companies are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovative products and garner the maximum market revenue.
 

Electronic Toll Collection (ETC) Industry News

• In May 2023, the King Fahd Causeway Authority (KFCA), a government agency responsible for managing the King Fahd Causeway(a vital transportation link connecting Bahrain and Saudi Arabia) launched new e-payment services to help travelers cross the toll gates of Saudi and Bahraini more efficiently.
   

This electronic toll collection (ETC) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Technology

• RFID
• DSRC
• GPS/GNSS
• Video analytics
• Others

Market, By Type

• Automatic Vehicle Classification (AVC)
• Violation Enforcement System (VES)
• Automatic Vehicle Identification System (AVIS)
• Others (Back office & services)

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