Vehicle Tolling System Market Size - By System, By Technology, By Tolling Method, By Payment Method, By Application, By End-User, Growth Forecast, 2024 – 2032

Vehicle Tolling System Market Size

The global vehicle tolling system market size was valued at USD 12.8 billion in 2023 and is estimated to register a CAGR of 11.2% between 2024 and 2032. The increasing need for efficient traffic management and the rise in road infrastructure development accelerates the demand for advanced tolling solutions. This complexity spurs demand for vehicle tolling system providers who offer integrated and comprehensive traffic management services. They utilize advanced technologies and strategic oversight to streamline operations, ensure compliance with regional regulations, and enhance overall efficiency.

As a result, governments and private operators are increasingly turning to advanced vehicle tolling system providers to navigate the challenges of urban congestion and optimize their road infrastructure performance. For instance, in June 2024, Indian Highways Management Co. Ltd (IHMCL) called for Expressions of Interest (EOI) to develop and implement a Global Navigation Satellite System (GNSS)-based electronic toll collection system. This strategic move is aimed at enhancing tolling efficiency and transparency for National Highway users in India.
 

In addition, the continuous expansion of toll roads and the increasing adoption of electronic toll collection systems such as FASTag are driving the growth of toll revenue. This trend reflects the need for efficient tolling solutions to manage growing traffic volumes and optimize revenue collection, particularly in emerging economies with rapidly expanding road networks.
 

As per data released by the National Highways Authority of India (NHAI), toll collection revenue on national highways across India was valued at more than 648 billion Indian rupees in the financial year 2023-24. This increase is attributed to the expanding length of roads under tolling and the introduction of FASTag which highlights the direct correlation between infrastructure development, digital tolling systems, and the rise in toll revenue, underscoring the importance of adopting advanced tolling technologies in growing markets.
 

Vehicle Tolling System Market Trends

The emergence of technologies such as artificial intelligence, data analytics, and cloud computing are transforming the vehicle tolling industry. The tolling system providers leverage these advancements to offer data-driven insights and optimize traffic flow performance. Governments and private operators are shifting towards efficient and streamlined tolling systems to enhance productivity and reduce congestion.
 

For instance, in January 2024, a joint venture between Kapsch TrafficCom and the Swiss company LOSTnFOUND AG was awarded a contract by the Swiss Federal Office for Customs and Border Security (BAZG) to supply hardware and services for the national truck tolling system. This project includes the delivery of GNSS-capable on-board units for vehicles subject to toll collection, the recording of GPS data registered by the units, their transmission to the federal office responsible for toll collection, as well as customer service.
 

Moreover, transportation authorities are increasingly focusing on optimizing their road infrastructure and outsourcing their tolling operations to specialized providers. To fulfill these requirements, companies are focused on developing strategies to mitigate risks, including implementing real-time monitoring systems, improving data security, and enhancing system reliability.
 

An emerging opportunity in the vehicle tolling system market lies in the integration of blockchain technology to enhance toll transaction transparency and security. As governments and toll operators look for more reliable and tamper-proof systems, blockchain can offer decentralized transaction validation, ensuring that toll payments are accurately recorded and reducing fraud risks. Additionally, this technology can streamline cross-border toll collection for international freight, providing seamless payment across different jurisdictions.
 

The vehicle tolling system market faces numerous challenges such as interoperability issues between different tolling systems and privacy concerns related to vehicle tracking. The collection and use of vehicle data raises privacy concerns among users, potentially leading to resistance in adoption. Additionally, interoperability issues between different tolling systems across regions or countries can also hinder market growth, as it can lead to inconvenience for users and complicated revenue collection processes.
 

Vehicle Tolling System Market Analysis

Based on system, the market is divided into automatic vehicle classification, violation enforcement system, automatics vehicle identification, and others. In 2023, the automatic vehicle classification was valued at over USD 3 billion. There has been a constant increase in demand for greater efficiency and accuracy in vehicle identification at toll points, which can be achieved by integrating advanced technologies. These technologies provide seamless identification and enhance the ability to process vehicles quickly, manage traffic flow, and predict congestion.
 

Organizations are constantly focused on multiple ways to reduce operational costs and improve user experience. AVI providers offer cost-effective solutions by leveraging advanced sensors, optimizing processes, and enhancing resource utilization. Further, increased urbanization and the need for efficient traffic management have led to tolling systems becoming more complex. As a result, transportation authorities are increasingly shifting towards advanced AVI providers to manage their tolling operations, which require sophisticated identification solutions.
 

Based on technology, the vehicle tolling system market is categorized into RFID, DSRC, GNSS/GPS, video analytics/CCTV-based systems, and others. The RFID segment is anticipated to register a CAGR of over 12% from 2024 to 2032. The segment growth is driven by the demand for faster, more efficient toll collection methods that reduce traffic congestion and improve overall transportation efficiency.
 

As governments and private toll operators aim to minimize bottlenecks at toll plazas, RFID technology offers a reliable solution by enabling contactless toll payments, where vehicles equipped with RFID tags are automatically identified and charged without stopping. This not only improves traffic flow but also reduces emissions from idling vehicles, aligning with environmental goals.
 

North America dominated the global vehicle tolling system market with a major share of over 40% in 2023. The U.S. government has made substantial investments to enhance road infrastructure and tolling system capabilities. These investments give it a competitive advantage in traffic management by ensuring efficient transportation and revenue collection facilities.
 

The growing focus on reducing urban congestion and implementing smart city solutions in the region has amplified the demand for efficient tolling solutions. Further, country’s advanced technological infrastructure provides a natural advantage for implementing cutting-edge tolling systems. There is a strong focus on innovation within the nation's transportation sector, driving the adoption of advanced vehicle tolling system.
 

Additionally, European nations have a long history of implementing tolling systems, leading to a dense network of interconnected road pricing solutions. EU regulations and cross-border agreements have facilitated seamless movement of vehicles across national borders, driving the need for interoperable tolling systems. Europe's central location and high volume of international traffic make it a key market for advanced vehicle tolling systems.
 

Asia Pacific region has experienced substantial economic growth and rapid urbanization, which has fueled demand for advanced traffic management and tolling solutions. High growth in vehicle ownership and expanding road networks in countries such as China, India, and Japan drive the need for sophisticated tolling and revenue collection solutions. Moreover, significant investments in transportation infrastructure support the growth of the vehicle tolling systems market in Asia Pacific. As a result, the rapid development of smart cities is creating opportunities for innovative tolling solutions integrated with broader urban management systems.
 

Vehicle Tolling System Market Share

Siemens AG, AECOM, and Toshiba hold a significant market share of over 15% in vehicle tolling system industry. The major players are focusing on leveraging advanced technologies and strategic partnerships to enhance their service offerings. They are investing heavily in digital solutions to improve system reliability, data analytics, and automation. By integrating these technologies, they aim to provide more efficient and reliable services, ensuring end-to-end tolling management. These companies are also expanding their global reach through acquisitions and partnerships, enabling them to offer comprehensive tolling solutions across multiple regions and countries.
 

Additionally, these key players such as Siemens and Kapsch are prioritizing sustainability and resilience in their operations. They are adopting green technologies, such as solar-powered tolling equipment and implementing congestion pricing models to reduce emissions. The focus on sustainability helps them meet regulatory requirements and appeals to environmentally conscious governments and users. In terms of resilience, they are developing more agile and flexible tolling strategies to mitigate risks and handle disruptions, ensuring continuity and reliability for their clients. This approach helps them maintain a competitive edge in the evolving transportation landscape.
 

Vehicle Tolling System Market Companies

• AECOM
• Conduent
• Cubic Corporation
• Kapsch TrafficCom
• Mitsubishi Heavy Industries
• Perceptics
• Siemens
• Toshiba
• TransCore
• Verra Mobility
   

Vehicle Tolling System Industry News

• In September 2024, SkyToll, in collaboration with its sister company TollNet, secured a major contract to develop and implement a state-of-the-art Electronic Toll System (ETS) across Croatia’s highways. This initiative aims to significantly improve tolling efficiency, reduce manual interventions, and provide a faster, more seamless experience for highway users. The ETS will also contribute to enhanced traffic management and reduced congestion on Croatian roadways.
   
• In April 2024, Ohio Turnpike implemented a toll collection system. The new system incorporates Open Road Tolling (ORT)which allows vehicles to pass through tolling points without stopping, promoting seamless traffic flow. The project includes the removal of all toll gates in E-ZPass lanes at both entry and exit points, drastically reducing congestion and enhancing overall driver convenience.
   

The vehicle tolling system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2032, for the following segments:

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Market, By System

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

Market, By Technology

• Radio-Frequency Identification (RFID)
• Dedicated Short-Range Communication (DSRC)
• Global Navigation Satellite System (GNSS)/GPS
• Video analytics/CCTV-based systems
• Others

Market, By Tolling Method

• Electronic Toll Collection (ETC)
• Manual toll collection
• Automatic toll collection

Market, By Payment Method

• Prepaid
• Hybrid
• Postpaid

Market, By Application

• Highway tolling
• Urban tolling

Market, By End User

• Government agencies
• Private-owned

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
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia