Automatic Tolling System Market to Grow at a CAGR of 5.4% to reach US$ 11,065.6 million from 2021 to 2028

Automatic Tolling System Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Offering (Hardware, and Services) and Type (Unmanned Self-Service Automated Tollbooth Collection Systems, Unmanned Automated Toll Booth Collection Systems, and Unmanned Wireless Automated Toll Booth Collection Systems)

Publication Month : Jun 2021

  • Report Code : TIPRE00023227
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 156
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The automatic tolling system market is expected to grow from US$ 7,678.8 million in 2021 to US$ 11,065.6 million by 2028; it is estimated to grow at a CAGR of 5.4% during 2021–2028.

Digitalization of toll collection can be witnessed across the world. Italy, China, Japan, Australia, the UK, Canada, Mexico, and many more are involved using electronic toll systems. For instance, the Korea Expressway Corporation operates hi-pass system for automatic toll collection on all the national express roads and numerous BTO/BTL roads in South Korea. Similarly, Japan has executed electronic tolling collection system nearly two decades ago. In China, over 100 million drivers are equipped with electronic toll collection devices to pay toll fee automatically on the country’s highways. The electronic toll collection system is serving as a platform for smart road technology. In 2019, approximately 2,500 highways nationwide were under construction to install electronic toll collection machines. As per the Chinese government, the number of drivers in China utilizing electronic toll collection system was anticipated to grow and reach 180 million by 2019 end. Such huge estimation regarding the adoption of electronic tolling collection systems will help enabling the market growth.

Impact of COVID-19 Pandemic on Automatic Tolling System Market

The COVID-19 pandemic has shaken several industries. The tremendous growth in the spread of the virus has urged governments worldwide to impose strict restrictions on vehicles and human’s movement. Due to travel bans, mass lockdowns, and business shutdowns, the pandemic has affected economies and countless industries in various countries. The lockdown imposition has resulted in lesser production of commodities, goods, and services. Manufacturing, automotive, semiconductor & electronics, oil & gas, mining, aviation, and other industries have witnessed a decline in their operations due to the temporary shutdown of activities.

The worldwide lockdown to minimize the transmission of virus has significantly disrupted the supply chain activities. Further, there is a restriction on foreign trades due to the lockdown of international borders, non-operational distribution channels, and various government laws to take precautionary measures for public health and safety.

Automatic tolling systems combine multiple electronic components and devices, such as transponders, cameras, RFID chips, controllers, and processors. Major suppliers of parts and raw materials are from countries such as China and the US, which are among the worst affected countries due to COVID-19. As a result of the pandemic, strict lockdowns are enforced as preventive measures, thereby directly impacting the supply chain of electronic components and devices. Thus, the delay in the supply of raw materials to manufacturers who meet the requirements of tolling system integrators is expected to cause sequential effects in the year 2020. However, in 2021, with the uplifting of lockdowns and vaccination process, the shipment of raw materials has started again. Therefore, this factor is helping in creating a positive scenario in the growth of global automatic tolling system market

Lucrative Regions for Automatic Tolling System Providers

Lucrative Regions for Automatic Tolling System Providers
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Automatic Tolling System Market Insights

Long-term economic and safety benefits

The toll collection centers are strategically placed toll plazas or collection units that are levied for tax collection, congestion management or maintenance fees for public infrastructure. The volume of traffic flow plays a crucial role in determining the location of toll plazas and subsequently requires a robust and effective toll collection solution. Over the past few years, a surge in congestion at toll plazas has been witnessed due to the increase in the number of vehicles crossing through the tolls. As a result, the toll plazas end up attributing to more fuel consumption for cars and high vehicular pollution due to congestion. For instance, according to a joint study conducted by Transport Corporation of India and Indian Institute of Management, Calcutta (IIM-C), India consumed US$ 14.7 billion worth of additional fuel due to lack of efficiency in freight transportation by road in the country in 2015. Moreover, the delays amounted to almost US$ 6.6 billion to the Indian economy.  Also, the delays generally caused at the toll gateways elevates the risk of vehicle accidents and safety to compensate for the loss of time incurred at the congestion.

As a result, an electronic toll collection offers a competent alternative solution to the current manual toll for minimizing the congestion at toll gateways and providing seamless transit transaction without the need of supervision. The electronic toll collection systems operate an account-based system that automatically identifies, classifies, and subsequently charges the vehicle owner as per the agency regulations without the need to stop at the toll plazas. The effective deployment of ETC systems has versatile benefits such as vehicular pollution, congestion management, seamless transit transactions, and intelligent transportation services at expressways. Thus, the long-term benefits associated with the adoption of ETC systems is driving the market penetration of these systems across various emerging economies and is likely to provide profitable business opportunities for the market players during the forecast period.

Offering - Based Market Insights

Based on offering, the automatic tolling system market is segmented into hardware and services. The services segment led the automated tolling system market. With continuous deployment of electronic and automatic tolling system in both developed & developing economies, the scope of services to run tolling system will continue to rise.

Automatic Tolling System Market, by Offering, 2020 and 2028 (%)

Automatic Tolling System Market, by Offering, 2020 and 2028 (%)
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Type-Based Market Insights

Based on type, the automatic tolling system market is segmented into unmanned self-service automated toll booth collection system, unmanned automated toll booth collection system, and unmanned wireless automated toll booth collection system. The unmanned automated toll booth collection system segment led the automated tolling system market.

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Automatic Tolling System Market: Strategic Insights

automatic-tolling-systems-market
Market Size Value inUS$ 7,678.8 Million in 2021
Market Size Value byUS$ 11,065.6 Million by 2028
Growth rateCAGR of 5.4% from 2021-2028
Forecast Period2021-2028
Base Year2021
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The players operating in the automatic tolling system market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:

  • In June 2021, STMicroelectronics has begun delivering the first Stellar SR6 automotive microcontrollers (MCUs) for automotive industry leaders to support the next generation of advanced vehicle electronics to deliver new levels of performance and safety.
  • In May 2021, Indra company has been awarded the contract to supply all the traffic management technology, intelligent transport systems, communications and toll systems for a major new highway in South America, thus expanding its operations further.

The global automatic tolling system market has been segmented as mentioned below:


By Offering

  • Hardware
  • Services

By Type

  • Unmanned Self-Service Automated Tollbooth Collection System
  • Unmanned Automated Toll Booth Collection System
  • Unmanned Wireless Automated Toll Booth Collection System

By Geography

  • North America

    • US
    • Canada
    • Mexico
  • Europe

    • France
    • Germany
    • Italy
    • UK
    • Russia
    • Rest of Europe
  • Asia Pacific (APAC)

    • China
    • India
    • South Korea
    • Japan
    • Australia
    • Rest of APAC
  • Middle East & Africa (MEA)

    • South Africa
    • Saudi Arabia
    • UAE
    • Rest of MEA
  • South America (SAM)

    • Brazil
    • Argentina
    • Rest of SAM

Company Profiles

  • Mitsubishi Heavy Industries Machinery Systems, LTD.
  • Raytheon Technologies Corporation
  • STMicroelectronics N.V.
  • Thales Group
  • Indra Sistemas, S.A.
  • Conduent Business Services, LLC
  • Neology Inc.
  • Feig Electronic
  • Siemens Mobility
  • IBI Group
  • Tecsidel, S.A.
  • Iteris, Inc.
  • TransCore, LP
  • EFKON GmbH
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Offering and Type

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


Which region led the automatic tolling system market in 2020?

Presently, Europe held the largest share of the global automatic tolling system market. The new advanced technologies in toll collection for smoother flow of vehicles are widely adopted in Europe. For instance, Toll4Europe provides European electronic tolling service (EETS) tolling system and offers a range of smart value-added services. The EETS system has linked two main technologies—Global navigation satellite-based system (GNSS) and dedicated short-range communication (DSRC). Further, The Siemens Mobility & Logistics company is implementing GNSS Tolling Solution in countries such as France, Austria, and Slovakia. EFKON GmbH, FEIG ELECTRONIC GmbH, Siemens Mobility GmbH, STMicroelectronics, Thales Group, and Indra Sistemas SA are among the other prominent players of automatic tolling system in Europe.

Which factor is driving growth of the automatic tolling system market?

Digitalization of toll collection can be witnessed across the globe. Italy, China, Japan, Australia, the UK, Canada, Mexico, and many more are involved using electronic toll systems. For instance, the Korea Expressway Corporation operates hi-pass system for automatic toll collection on all the national express roads and numerous BTO/BTL roads in South Korea. Similarly, Japan has executed electronic tolling collection system nearly two decades ago. In September 2020, Singapore has declared about their plans to commence with deploying satellite-based Electronic Road Pricing network that would remove the need of physical gantries. Such developments are boosting digitalization at tolls

Which type led the automatic tolling system market?

The unmanned automated toll booth collection system is leading the global automatic tolling system market. The unmanned automated toll booths generally have no toll gate. These toll systems look more like lanes and are usually marked specifically for drivers with a toll account linked to a toll pass. The drivers with toll passes are able to drive through the marked lane where an RFID reader can read the RFID tag located on the vehicle.

The List of Companies - Automatic Tolling System Market

  1. Conduent Business Services, LLC
  2. Efkon GmbH
  3. Feig Electronic
  4. Mitsubishi Heavy Industries Machinery Systems, Ltd.
  5. Neology, Inc
  6. Raytheon technologies corporation
  7. Siemens mobility
  8. STMicroelectronics
  9. Thales group
  10. Transcore
  11. IBI group
  12. Iteris, Inc
  13. Tecsidel, S.A.
  14. Indra Sistemas

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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