Electronic Toll Collection Market projected to grow at a CAGR of 7.7% from 2020 to 2025

The global electronic toll collection (ETC) market is estimated to be USD 10.0 billion by 2025 (forecast year) from USD 6.9 billion in 2020 (estimated year), at a CAGR of 7.7% between 2020 to 2025.
The growth of the ETC market is primarily attributed to the role of ETC system as an effective solution to reduce traffic congestion, accidents, and environmental pollution; strong government support to accelerate electronic toll collection, greater convenience and flexibility of cashless payments, and increased use of advanced technologies in transportation infrastructure. Also, factors such as growing utilization of blockchain technology in toll collection systems, rising number of public-private partnership agreements in the transportation sector, and increasing transition to All Electronic Tolling (AET) systems from manual or coin-based tolling systems are expected to create growth opportunities for the market.

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ETC market for back office and other services expected to hold larger market share during the forecast period

For successful toll operations, efficient back office, enforcement systems, and inter-operator settlement play a crucial role in guaranteeing toll payments. The back office integration and enforcement services include customer services and services related to host and toll plaza systems. Host and plaza systems mainly perform functions such as the collection of transactional data from all types of lanes, data summarization and report generation, and downloading of files such as toll rates, toll schedules, and transponder status list. Customer service centers are engaged in processing audio video interleave (AVI) and video tolling transactions, matching transactions with account holders, managing accounts by debiting the correct toll amount, generating a valid tag list, and providing customer support, among many others. Further, violation processing centers are built to process the images of the license plates, identify violators, and mail notices. Moreover, back office services include account management, inquiry handling, billing, legal support, providing payment gateways, and enforcement of operations.

GNSS/GPS technology segment of the electronic toll collection market is expected to grow at the highest CAGR during the forecast period

GNSS/GPS-based ETC systems use GNSS technology for electronic toll charging. GNSS includes 3 main satellite technologies: GPS, GLONASS, and Galileo. GPS is a satellite-based navigation system that can operate under any climatic condition. GPS is used in the identification of road segments. Drivers have first to install interfacing hardware devices in their vehicles and apply for a postpaid/prepaid card. When a vehicle crosses the toll area, the interfacing hardware checks the current position of the vehicle by coordinating with the GPS. This interfacing hardware device, then, sets up the wireless communication channel through the global system for mobile communications (GSM) module. Then, it sends the transaction messages to the control system by using the GSM module of the mobile network. After checking with the control system, it stores the toll data and sends the transaction information to the interfacing hardware device. Finally, this device receives and displays the result of the transaction. Companies such as Kapsch TrafficCom AG (Austria), Siemens (AG), Thales (France) offer satellite-based ETC Systems

Among applications, the highways segment to hold dominant market share throughout the forecast period

ETC systems have been playing a crucial role in collecting a toll on highways, tunnels, and bridges wherein conventional or manual toll collection has been transitioning to all-electronic tolling (AET) and high-tech transportation systems. The electronic toll collection market is significantly driven by its adoption mainly in developing countries. Government initiatives to promote faster payments of toll fees through a digital mode and decongest highways would generate immense growth opportunities for the ETC market. For instance, in December 2019, the National Highways Authority of India initiated electronic toll collection at national highways through FASTag, an RFID tag. Many interurban toll highways, including Highway 6 (Israel) and Northern Gateway Toll Road (New Zealand), all over the world use DSRC-based ETC systems. These systems are also widely used in Europe, especially for the nationwide truck tolling in Austria, the Czech Republic, and Poland, as well as on the Portuguese SCUT (Sem Custo para os UTilizadores, which means “no cost to users”) roads.

APAC is projected to grow at the highest CAGR during the forecast period

APAC is one of the most important high potential markets for ETC systems. For most countries in the region, APAC is in the early stage of adopting ETC solutions. Rapid urbanization and industrialization and strong government support for infrastructural developments have led to the increasing adoption of ETC systems in the region. The increasing urban population has given rise to more traffic congestion, which has surged the number of accidents and deteriorated the environment. The deployment of ETC systems prevent accidents and improves the environment in this region by reducing air pollution.
China, Japan, Australia, South Korea, and India have installed ETC solutions at many toll plazas. In short, the implementation of ETC systems in these countries has helped in better traffic management; reduce the cost of delays and fuel consumption, which has cut down the nations GDP loss; and improved revenue accountability.

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The report profiles key players, including Kapsch TrafficCom (Austria), Conduent, Inc. (US), Efkon GmbH (Germany), TransCore (US), Thales Group (France). Raytheon Technology Corporation (US), Cubic Corporation (US), Siemens AG (Germany), Neology Inc. (US), and Feig Electronics (Germany). Contracts and product launches are among a few major strategies adopted by market players to grow in the electronic toll collection market.

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This release was published on openPR.