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The electronic toll collection market is estimated to grow at a CAGR of 10.55% between 2022 and 2027. The size of the market is forecast to increase by USD 6,642.5 million. The growth of the market depends on several factors, including rising demand for electronic toll collection systems in road tax collection, convenience for users and operators, and regulatory mandates to install RFID tags.
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.
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The reports categorize the global electronic toll collection market as a part of the global electronic equipment and instruments market within the overall electronics market. The super parent global electronics market includes manufacturers of communications equipment, technology hardware storage and peripherals, electronic equipment and instruments, electronic components, consumer electronics, and industrial electronics products, as well as electronic manufacturing services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rising demand for electronic toll collection systems in road tax collection is notably driving the market growth, although factors such as high capital investment in DSRC and GNSS-based electronic toll collection systems may impede the market growth. 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.
Key Electronic Toll Collection Market Driver
The rising demand for electronic toll collection systems in road tax collection is notably driving market growth. Countries such as India, Indonesia, and Thailand are encouraging the integration of RFID tags into vehicles to facilitate toll payments. These countries are accelerating the deployment of electronic toll system infrastructure to efficiently manage resources and reduce unwanted costs. Some countries are also focusing on improving toll infrastructure.
For example, as of October 2021, more than 39 million Indian vehicle users have adopted FASTag. It allows users to travel on highways through tolls by making payments electronically. As a result, it can increase revenue from toll operations, which can later be used to improve road infrastructure. Therefore, RFID tags have become an important revenue generation tool that is expected to positively impact the growth of the focus market during the forecast period.
Significant Electronic Toll Collection Market Trend
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.
Major Electronic Toll Collection Market Challenge
High capital investment in DSRC and GNSS-based electronic toll collection 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 of electronic toll collection in developing countries.
With the introduction of electronic toll collection 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.
Key Electronic Toll Collection Market Customer Landscape
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 Electronic Toll Collection Market Customer Landscape
Vendors 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 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 4,397.72 million in 2017 and continued to grow until 2021. The highways segment holds the largest market share of the electronic toll collection 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 outbreak of COVID-19 negatively affected the electronic toll collection market in APAC in 2020. However, with the implementation of digitalization in countries such as India and China, the demand for RFID-based electronic toll collection systems increased, which is further expected to propel the growth of the regional electronic toll collection market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Application (Highways and Urban), Technology (RFID-based, DARC, and Others), and Geography (APAC, Europe, North America, South America, and Middle East and Africa).
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 6,642.5 million |
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 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 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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