Electronic Toll Collection (ETC) Market Size - By Technology, By Type, By Payment Method, By Application, Analysis, Share, Growth Forecast, 2024 - 2032

Electronic Toll Collection Market Size

The global electronic toll collection market size was valued at USD 7.5 billion in 2023 and is projected to grow at a CAGR of 11.9% between 2024 and 2032. European governments are increasingly backing Electronic Toll Collection (ETC) systems, significantly fueling the market's expansion. By promoting ETC, governments aim to improve traffic flow, alleviate congestion, and lessen environmental repercussions. To further this agenda, they're offering financial incentives, subsidies, and policy measures, motivating both toll operators and vehicle owners to embrace these systems.
 

For instance, in August 2023 agreement pact aims to roll out a unified electronic toll collection system across Serbian and Montenegrin governments. Such collaborations not only simplify the toll collection process and diminish cash transactions but also boost overall transportation efficiency. This, in turn, accelerates the adoption of electronic toll systems, driving the market's growth in the region.

Moreover, the rising integration of advanced technologies in transportation is significantly propelling the electronic toll collection market. With transportation systems becoming increasingly digital and interconnected, ETC systems are now merging with state-of-the-art technologies like RFID, IoT, and AI. These advancements facilitate smooth, contactless toll payments, making it more convenient for drivers. Simultaneously, they optimize traffic flow and cut down operational costs for toll operators. This synergy with contemporary transportation trends is amplifying the adoption of electronic toll solutions, further fueling market growth.
 

Electronic Toll Collection Market Trends

As contactless payments gain traction in the electronic toll collection industry, it's largely due to a rising demand for convenient and hygienic payment options. Technologies like RFID, QR codes, and smartphone-based solutions allow travelers to pay tolls seamlessly and without touch. This means no cash handling or toll booth interactions, boosting user convenience and addressing health and safety concerns, especially post-COVID-19. Consequently, ETC systems with contactless payment features are on the rise, making tolling more efficient and user-friendly.
 

Automated and AI-driven tolling is reshaping the electronic toll collection landscape. Automation simplifies toll collection, cutting down on manual labor and its costs. With AI, real-time data analysis becomes possible, enabling price adjustments based on traffic, time, and vehicle type. This not only boosts operational efficiency but also aids in better traffic management, less congestion, and a more agile tolling system, ensuring a smoother experience for both operators and users.
 

One of the main challenges in the Electronic Toll Collection (ETC) market is the high costs of installation and maintenance. Setting up these systems demands hefty initial investments in infrastructure, technology, and personnel. Plus, the ongoing maintenance can further inflate these costs. To tackle this, governments and toll operators might consider public-private partnerships to ease the financial load. Moreover, advancements in technology and more efficient deployment methods could help in reducing costs, making ETC solutions not just affordable but also sustainable in the future.
 

Electronic Toll Collection Market Analysis

Based on technology, the market is segmented into RFID, DSRC, GPS/GNSS, Video Analytics. In 2023, the RFID segment accounted for over 29% of the market share and is expected to exceed USD 6.8 billion by 2032, RFID technology provides a quick and contactless way to collect tolls, meeting the rising demand for easy and touch-free payment options. With a global push from governments and toll authorities to improve road infrastructure and encourage cashless payments, RFID stands out for its adaptability and trustworthiness.
 

Additionally, RFID-based electronic toll collection (ETC) systems allow travelers to use one RFID tag across various toll networks, enhancing convenience and simplifying toll operations. For instance, in July 2023, the Korea Expressway Corporation (KEC) introduced an electronic toll system on Padma Bridge, where RFID will automatically collect tolls in one lane at both ends. Such advancements are likely to drive the growth of RFID technology in the ETC market, as it offers smooth, cost-effective, and user-friendly toll collection methods.
 

Based on the subsystem, the electronic toll collection market is divided into Automatic Vehicle Classification (AVC), Violation Enforcement System (VES), Automatic Vehicle Identification System (AVIS). The agreed Automatic Vehicle Identification System (AVIS) segment held around 45% of the market share in 2023 due to several key factors, AVIS employs cutting-edge technologies like RFID, license plate recognition, and IoT sensors to automatically recognize and classify vehicles at toll booths.
 

The segment's expansion is driven by its capacity to boost tolling efficiency, alleviate congestion, and streamline toll collection via automation and real-time data analysis. Furthermore, AVIS plays a pivotal role in enhancing traffic management and offers drivers a smooth, hands-free experience. This aligns perfectly with the rising demand for contactless and convenient tolling solutions in today's transportation landscape.
 

The U.S. region accounted for an electronic toll collection market share of over 69% in 2023 and is expected to exceed USD 6.3 billion by 2032, the region is leading way in adopting advanced tolling technologies, including RFID, AI-driven tolling, and IoT sensors. These innovations not only simplify toll collection but also cut operational costs and support flexible pricing models.
 

Furthermore, the region's dedication to smart city projects and updating its infrastructure complements the adoption of Electronic Toll Collection (ETC) systems. With ongoing investments in forward-thinking transportation solutions, the region is creating a robust environment for market growth, enhancing user experiences and improving traffic management.
 

European governments have implemented stringent environmental regulations, such as congestion charges and low-emission zones, which require ETC systems to help reduce pollution in urban areas. Additionally, the continent has a well-connected highway network, particularly in countries like Germany, France, and Italy, where road travel between countries is frequent. Cross-border cooperation on tolling standards, such as the European Electronic Toll Service (EETS), facilitates interoperability between nations, promoting the seamless movement of vehicles across borders.
 

Rapid urbanization, rising disposable income, and increasing vehicle ownership, particularly in populous countries such as China and India. To combat growing traffic congestion and pollution, many governments in this region have turned to ETC systems to improve toll collection efficiency and reduce vehicle idling times at toll booths. For instance, China’s aggressive expansion of its road network includes ETC integration as part of its smart transportation development. India has also mandated the use of FASTag (an RFID-based toll collection system) to streamline toll payments and reduce wait times on highways.
 

Electronic Toll Collection Market Share

Siemens AG and Mitsubishi Heavy Industries Ltd collectively held a substantial market share of over 11% in the electronic toll collection (ETC) industry in 2023. Siemens, a German conglomerate, has a strong foothold in industries like energy, healthcare, automation, and transportation, driven by its focus on digitalization, sustainability, and smart infrastructure. Its commitment to R&D and technological advancements, such as digital twin technology and smart grid solutions, has positioned it as a leader in the global industrial landscape.
 

MHI’s technological expertise and commitment to energy-efficient, low-emission solutions, especially in power generation, align well with global demands for cleaner energy. Both companies have established global supply chains, strategic partnerships, and strong customer bases, enabling them to influence and lead within their respective markets.
 

Electronic Toll Collection Market Companies

Major players operating in the electronic toll collection (ETC) industry are:

• Atlantia S.p.A.
• Cubic Corporation
• Electronic Transaction Consultants, LLC.
• Kapsch TrafficCom
• Mitsubishi Heavy Industries Machinery Systems Ltd
• Siemens AG
• Toshiba
• T-Systems
• Verra Mobility
   

Electronic Toll Collection Industry News

• In June 2024, India’s Ministry of Road Transport & Highways (MoRTH) plans to shift to a GNSS-based electronic toll collection (ETC) system and issued a global EOI, due by July 22. Currently, over 98% of toll payments use FASTag RFID technology, managed by NHAI, which oversees 1,200 toll plazas nationwide.
   
• In Sept 2024, Taiwan’s Far Eastern Electronic Toll Collection Co (FETC) successfully exported its AI-based electronic toll collection (ETC) system to Thailand, enhancing traffic flow on the M9 expressway by 1.8 times. Through its subsidiary, FETC International Thailand, FETC also secured contracts for the M6 and M81 expressways, winning recognition for smart mobility innovation.
   

The electronic toll collection (ETC) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2032, for the following segments:

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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 is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa