Electronic Toll Collection System Market is expected to reach US$ 10,604.7 Million by 2028
Increase in Demand for Interoperable Electronic Tolling Systems: Growth Opportunities for Electronic Toll Collection System Market During 2021–2028
According to our latest market study on “Electronic Toll Collection System Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Offering, Technology, and Application,” the market was valued at US$ 5,266.4 million in 2021 and is projected to reach US$ 10,604.7 million by 2028; it is expected to grow at a CAGR of 10.5% from 2021 to 2028.
The toll collection systems projects constitute a public-private partnership model where government agencies or state bodies usually decide the toll pricing. Also, the objective of toll collection has a profound influence over the vehicle classification and dynamic pricing for different categories of frequent travelers. However, state and central government agencies' joint efforts for initiating a streamlined transit transaction process across toll gateways, plazas, parking systems, and traffic management have gained traction in the past few years. Moreover, through collaborative efforts among different state bodies to participate in joint toll collection systems that are accepted by larger government agencies and offering simplified toll collection for different users will going to drive the market growth. This electronic toll collection system operates on a pre-paid account-based system that various state agencies adopt for a seamless array of fright fees, tolls, and fines across the globe. For instance, North America-based E-ZPass is an interagency group-based electronic toll collection system that is interoperable across 17 different states in the US. Moreover, the company boasts of being the largest successful interoperable toll collection system in the world, with more than 20 million active accounts that utilize 34 million toll-based tags that amount to US$ 9 billion in revenue generation for partnered state agencies.
Continuous technological advancements and automation are allowing manufacturing companies to achieve greater productivity and profitability. Conduent, Inc.; Kapsch; Thales Group; Mitsubishi Heavy Industries Machinery Systems, Ltd.; and Neology are among the key companies in the electronic toll collection system market. The major stakeholders in the electronic toll collection system market include hardware & component providers, electronic toll collection system manufacturers, system/technology integrators, government agencies & regulatory bodies, and end users. Due to the rise in the number of vehicles and issues like traffic congestion, the demand for electronic toll collection systems is also rising.
The electronic toll collection system systems operate an account-based system that automatically identifies, classifies, and subsequently charges the vehicle owner as per the agency regulations without stopping at the toll plazas. As per the data published by Japan’s Ministry of Land, Infrastructure, Transport, and Tourism (MILT), the effective adoption of ETC systems eliminated the traffic congestion at their expressway by almost one-third and lowered their carbon dioxide emissions down to 0.21 million tons per year. The effective deployment of ETC systems has versatile benefits such as reducing congestion and vehicular pollution, seamless transit transactions, and intelligent transportation services at expressways. Thus, the long-term benefits of adopting ETC systems are expected to drive the demand for these systems across various emerging economies and provide profitable business opportunities for the market players during the forecast period.
The electronic toll collection system market is segmented based on offering, technology, application, and geography. Based on offering, the market is segmented into hardware equipment and service. In 2020, the services segment led the electronic toll collection system market and accounted for a larger market share. Based on technology, the market is segmented into ANPR, GNSS, DSRC, and others. In 2020, the DSRC segment led the electronic toll collection system market and accounted for the largest market share. Based on application, the market is segmented into highways and urban zones. In 2020, the highways segment led the electronic toll collection system market and accounted for a larger market share. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, North America accounted for a significant share in the global market.
Impact of COVID-19 Pandemic on Electronic Toll Collection System Market
According to the latest situation report from the World Health Organization (WHO), the US, Spain, Italy, France, Germany, the UK, Russia, Turkey, Brazil, Iran, and China are among the worst-affected countries due to the COVID-19 pandemic. The COVID-19 outbreak has negatively affected the overall growth rate of the global electronic toll collection system market in 2020. This can be attributed to the decline in revenue of companies operating in the market, owing to supply and demand disruptions across the value chain. However, in 2021, with the relaxation of lockdown restrictions and the beginning of the vaccination process, the shipment of raw materials has started again. Many countries and toll collecting companies have adopted digital transformation to effectively run their business in these challenging times. Electronic toll collection system providers are also focusing on bringing new solutions, partnerships, and collaborations to overcome the COVID-19 outbreak. Therefore, this factor is helping in creating a positive scenario in the growth of the global electronic toll collection system market.
The key players operating in the global electronic toll collection system market include Continuum Electroproducts LLP; Conduent, Inc.; Efkon GmbH; Kapsch Trafficcom AG; Mitsubishi Heavy Industries Machinery Systems, LTD.; Neology; Qualix Information System; Skytoll; Siemens AG; and Thales Group.
Electronic Toll Collection System Market - by Geography, 2020 and 2028 (%)
Report : Electronic Toll Collection System Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Offering (Hardware Equipment and Service), Technology (ANPR, GNSS, DSRC, and Others), and Application (Highways and Urban Zones)
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