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The electronic toll collection market is estimated to increase by USD 6.64 billion and grow at a CAGR of 10.55% between 2022 and 2027. Market expansion relies on several factors, such as the increasing demand for electronic toll collection systems in road tax collection, enhanced convenience for users and operators, and regulatory requirements mandating the installation of RFID tags. Challenges within the market include significant capital investment required for DSRC and GNSS-based systems, risks associated with vehicle RFID tags, and the potential disruption of RFID frequencies.
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This report extensively covers market segmentation by application (highways and urban), technology (RFID-based, DARC, and others), and geography (APAC, Europe, North America, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth of the highways segment will be significant during the forecast period. Highways play a critical part in making our lives simpler. They are necessary for traveling from one point to another swiftly and effectively. However, high-speed traffic poses certain difficulties. Safety is critical on highways designed for high-speed traffic. The more up-to-the-minute information motorists have about the current traffic condition, the safer they will be while driving. On roads, vehicles travel at fast speeds; electronic toll-collecting systems enable vehicle owners to conduct a quick digital transaction without stopping at toll booths. This method has ushered in a new era by making toll collection easier, quicker, and more efficient.
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The highways segment was valued at USD 4.40 billion in 2017 and continued to grow until 2021. The highways segment holds the largest market share of the market in 2022 and is expected to dominate the market during the forecast period, owing to an increase in infrastructural development and improvement in traffic management policies at toll booths on highways.
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APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Emerging economies such as China, India, Indonesia, and Malaysia are witnessing a rise in the adoption of electronic toll collection systems due to rapid digitalization, which increase the demand for electronic toll collection in the region. APAC is expected to exhibit steady growth during the forecast period due to the high adoption volume of RFID tags and regulatory mandates to install RFID tags in vehicles.
The economic growth of most countries in this region has increased investments in infrastructure and industrial developments, thus driving the demand for electronic toll collection systems.
The market is experiencing exponential growth, driven by pressing concerns such as road accidents, environmental impact, and traffic congestion. Technological advancements and the adoption of Intelligent Transportation Systems (ITS) are revolutionizing transportation infrastructure globally. Regulatory bodies like the World Health Organization (WHO) are advocating for solutions to mitigate carbon monoxide emissions and enhance public transportation. ETC systems, utilizing RFID tags and traffic sensors, offer seamless toll transactions while reducing vehicle idling and paper receipts. However, challenges persist, including data privacy concerns and the balance between individual privacy rights and mass surveillance. Despite this, the market continues to thrive, propelled by the need for efficient toll collection methods, which not only alleviate traffic flow but also contribute to emission reductions and lower transportation construction costs, particularly in Toll facilities and Open Road Facilities (ORT). Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market is experiencing robust growth, propelled by the escalating demand for streamlined road tax collection systems. Nations like India, Indonesia, and Thailand are spearheading the adoption of RFID tags in vehicles to streamline toll payments, thereby spurring the deployment of electronic toll system infrastructure. Enhanced toll infrastructure initiatives are underway to optimize resource management and curb unnecessary expenses. For instance, India's FASTag initiative has witnessed over 39 million users since October 2021, facilitating seamless highway travel and bolstering toll revenue. This revenue infusion holds promise for enhancing road infrastructure, underscoring the significance of RFID tags as pivotal revenue-generating tools in driving market expansion amid mounting emphasis on transportation infrastructure and technological advancements.
The growing popularity of RFID-based license plates is the key trend in the market. RFID tags are traditionally placed on windshields so that RFID readers placed at toll booths can look up vehicle identification numbers and pay tolls online. Some RFID tags embedded in license plates are called electronic license plates. These electronic number plates can be used for anti-counterfeit registration and identification of vehicles, traffic management, and access control. The sticker helps the police identify vehicles with suspected stolen or cloned license plates, as the sticker self-destructs when removed.
In March 2018, Honduras and the Cayman Islands introduced RFID-tagged vehicle license plates to identify vehicles and track their movements on highways and other roads. In March 2018, the Philippine Department of Transportation implemented the same system for all its vehicles. Tonnjes is a leading developer of license plates integrated with RFID tags. These developments in Europe, the Philippines, Honduras, and the Cayman Islands are expected to positively impact the focus market growth during the forecast period.
High capital investment in DSRC and GNSS-based systems is the major challenge impeding market growth. One of the main challenges in the global electronic tax payment market is the high capital requirement to install various electronic payment technologies such as DSRC, GNSS, and related onboard equipment. Although the advantages of electronic toll systems are known to end users, their high cost is a major obstacle. Most DSRC and GNSS equipment require large investments, which may limit the growth in developing countries.
With the introduction of the systems comes the need for middleware to manage and transmit data to the destination without redundancy and instability. Understanding the implementation and use and functionality of the technology involves significant hidden costs such as maintenance costs, licensing costs, and user training in implementation, monitoring, and information management. Such factors are expected to hinder the growth of the global electronics collection market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Neology - The company offers electronic toll collection systems with a mobile app that offers a better way to manage the hassles of contactless toll road fee payment as its key offering under the mobility segment. The company also offers open road tolling, electronic toll collection, urbanpaas, park and go, and smart gas.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market is experiencing remarkable growth driven by various factors, including technological advancements, transportation infrastructure enhancements, and the increasing need for efficient traffic management to mitigate traffic congestion and road accidents. Regulatory bodies like the World Health Organization (WHO) emphasize the importance of adopting intelligent transportation systems (ITS) to improve road safety and reduce carbon monoxide emissions. However, challenges such as data privacy concerns and the risk of mass surveillance pose hurdles to widespread adoption. Leading players like Plenary Infrastructure Group, Conduent, and Transcore LP are revolutionizing the market with innovative solutions like RFID technology and DSRC to streamline toll transactions and enhance traffic flow while ensuring individual privacy rights are protected. As demand for environmentally-friendly transportation grows, the ETC market is poised to witness substantial expansion alongside advancements in digital technologies and ETC systems. Gross Domestic Product (GDP), timestamps, toll roads, open road facility (ORT), vehicle theft detection, Plenary Infrastructure Group (Plenary), Faneuil Inc, HOV lanes, radio-frequency identification (RFID), and dedicated short-range communication (DSRC) are integral components of modern infrastructure and transportation systems, ensuring efficiency, security, and economic growth.
Moreover, the market is experiencing robust growth driven by the integration of advanced technologies and increasing demand for efficient transportation systems. With the proliferation of license plate numbers and travel routes, toll operators are leveraging traffic sensors and timestamp data to streamline toll charges and optimize transportation construction costs. The adoption of RFID and DSRC technologies enables seamless vehicle identification and toll collection, reducing vehicle idling and enhancing environmental impact through emission reductions. Key players like Plenary Infrastructure Group and Toshiba Corporation are pioneering innovative solutions such as EZ pass tags, Sunpass, and FasTrack, revolutionizing toll facilities and open road facilities (ORT). Despite challenges like supply chain disruption, the market continues to thrive, driven by the imperative to enhance public transportation and facilitate economic activities efficiently.
Electronic Toll Collection Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.55% |
Market growth 2023-2027 |
USD 6.64 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.02 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABERTIS INFRAESTRUCTURAS SA, Cubic Corp., EFKON GmbH, Electronic Transaction Consultants, LLC, FEIG ELECTRONIC GmbH, G.E.A., International Road Dynamics Inc., Kapsch TrafficCom AG, Mitsubishi Heavy Industries Ltd., Neology Inc., Perceptics Inc., Q Free ASA, Raytheon Technologies Corp., SICE TyS, Siemens AG, Star Systems International Ltd., TECSIDEL S.A, Thales Group, Toshiba Corp., and TransCore |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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