Electronic Toll Collection Market size worth over $10 Bn by 2027

Electronic Toll Collection (ETC) Market size is projected to exceed USD 10 billion by 2027, according to a new research report by Global Market Insights Inc.
 

Stringent government regulations and standards regarding fair toll collection will drive the ETC market growth. The need to reduce travel time and carbon emission across the globe has encouraged governments to make heavy investments in electronic toll collection systems. The implementation of digital toll collection systems helps in reducing fuel consumption by up to four milliliter per trip and CO2 emission by around 9.7% compared with manual toll collection. These systems have helped several countries to reduce exhaust emissions made during stoppages at manual booths. For instance, the installation of ETC at expressways helped Thailand to reduce fuel consumption up to 1,262,471 liter and CO2 equivalents of 2,754-ton per year.
 

The ongoing COVID-19 pandemic has resulted in slight decline in electronic toll collection market growth in 2020 due to stringent lockdown imposed by several government authorities globally. The government authorities across the globe reduced their investments in smart transport infrastructure projects in order to focus on public health & safety. The shutdown of manufacturing plants of component & raw material suppliers also impacted the industry growth. However, with relaxation on travel ban and the need for ensuring safety while collecting toll fees post COVID-19, the market is estimated to witness a gradual increase in 2021.
 

Get more details on this report - Request Free Sample PDF
 

Deployment of GPS/GNSS-based toll collection systems to ensure a seamless movement of vehicles will fuel the market revenue

The GPS/GNSS technology segment is anticipated to witness steady growth rate till 2027 led by increasing focus on reducing traffic congestions at toll booths and providing convenience to commuters. GNSS tolling system uses various electronic modules such as LCD, speaker, GPS, wireless adapter, and router to perform specific tasks. The GPS modules track vehicles and the toll fees incurred at predefined points in urban zones and highways. With the growing production of commercial vehicles with vehicle tracking systems, the adoption of GPS technology will boost the electronic toll collection market through 2027.
 

Browse key industry insights spread across 300 pages with 262 market data tables and 28 figures & charts from the report, “Electronic Toll Collection (ETC) Market Size By Technology (RFID, DSRC, GPS/GNSS, Video Analytics), By Type (Automatic Vehicle Classification (AVC), Violation Enforcement System (VES), Automatic Vehicle Identification System (AVIS)), By Payment Method (Prepaid, Hybrid, Postpaid), By Application (Urban Zones, Highways), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021-2027” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/electronic-toll-collection-market
 

Benefit of accurate vehicle classification will augment the demand for AVC in the market

The Automatic Vehicle Classification (AVC) segment in the electronic toll collection market is anticipated to expand at a substantial growth rate up to 2027. AVC is a key element for ensuring correct toll fees at toll plazas and assessing accurate vehicle detection and classification. The durable, rugged, and easy-to-maintain features along with necessary cooling and heating elements enable it to withstand harsh environments. The integration of AVC with ETC system decreases transaction time and increases throughput. It also helps in resisting fraud as toll is collected digitally based on AVC.
 

Adoption of postpaid payment type to have flexibility and convenience in paying toll charges will propel the ETC market expansion

Postpaid method allows users to select any mode of payment including bank transfer, cash, or fleet cards. It requires users to pay a fixed amount in exchange for a number of toll transactions made during the billing period. The flexibility and convenience of paying bill are encouraging users to opt for this payment method. However, the roll out of prepaid touch-and-go card to promote cashless transactions at toll plazas will spur the adoption of prepaid payment method among commuters.
 

Development of transportation infrastructure will provide new electronic toll collection market growth opportunities

The rapid urbanization and growing congestion have resulted in new challenges associated with road safety across the globe. In 2019, the drivers lost around 99 hours or an average of USD 1,377 per person due to traffic congestion in the U.S. In 2019, Boston was among the most congested urban cities in Massachusetts, U.S., where drivers lost an average of 149 hours or USD 2,205 per person. This creates the imperative demand for implementation of modern road management systems to avoid traffic congestion, accidents, and fuel consumption. As the electronic toll collection system is an automated system, it avoids traffic congestion and provides hassle-free toll collection with less man power.
 

Installation of advanced transportation systems to improve road safety will drive the North America market

North America will dominate the electronic toll collection market on account of the increasing demand for improving road safety and reducing accidents. Government authorities in the region are implementing digital toll collection systems across bridges and roads to improve transportation infrastructure.
 

Investment in research & development for introducing innovative ETC systems to enhance product portfolio is a key strategy among market players

Key electronic toll collection market players include Thales Group, Xerox Corporation, Kapsch TrafficCom, EFKON GmbH, TransCore, Conduent Business Services, LLC, FEIG ELECTRONIC GmbH, Q-Free ASA, Atlantia S.p.A., Cubic Corporation, Tecsidel, S.A., Perceptics, LLC, Electronic Transaction Consultants, LLC, Jenoptik AG, Mitsubishi Heavy Industries Machinery Systems, Ltd., Verra Mobility, ARH Inc., Kent- Intelligent Transpotation Systems (India) Pvt. Ltd., QuaLiX, International Road Dynamics Inc, Toshiba Corporation, Siemens AG, and Honeywell International Inc. Companies are investing highly in R&D activities for new product launches to attract a large customer base and expand business operations.