The electronic toll collection systems market is anticipated to reach US $9.1 billion by 2027 from US$ 5.3 billion in 2018 thereby registering a moderate CAGR growth rate of 6.5% during the forecast period.
The toll collection at roads, tunnels, or expressways among others have proven to be an efficient medium for collecting fees, tax, generating revenue for public-private partnered infrastructure projects or maintenance fees for the state as well as government agencies. The tolls collected are subsequently utilized for various public services such as maintenance of highways, tunnels, bridges, financing future expansion of projects and managing congestion among others some objectives. As a result, the Asia-Pacific region to witness the most attractive growth rate by region in the global electronic toll collection system market. The South America electronic toll collection systems market region is expected to witness a CAGR growth rate of 5.93% in the coming years.
Versatile benefits of ETC systems
The toll collection centers are strategically placed toll plazas or collection units that levied for fulfilling the purpose of tax collection, congestion management or maintenance fees for public infrastructure among other revenue collection techniques. As a result, 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 adoption for the same. However, the past few years have witnessed a surge in congestion at toll plazas due to the increase in the number of vehicles passing through the tolls. As a result, the toll plazas end up attributing to more fuel consumption for cars as well as increase vehicular pollution due to the congestion. For instance, according to a joint study conducted by Transport Corporation of India and IIM (Indian Institute of Management, Calcutta), in 2015 India consumed $14.7 billion worth of additional fuel due to lack of efficiency in freight transportation by road in the country. Moreover, the delays amounted to almost $6.6 billion to the Indian economy. Also, the delays generally caused at the toll gateways also elevates the risk of vehicle accidents and safety to compensate for the loss of time incurred at the congestion. Subsequently, driving the growth for electronic toll collection systems market in the coming years.
Rising demand for effective traffic management at toll plazas due rise in vehicle volume
Unlike developed economies, the developing countries are witnessing rapid urbanization as well as the demand to sustain a growing economy has driven the demand for a robust network of road connecting cities and towns. Subsequently, this has boosted the investment towards the development of highways, bridges, and expressway for improved freight transportation by road. As a result, this has attributed in growing demand for efficient toll collecting systems at emerging economies owing to the surge in a number of registered vehicles. In addition, the low cost of hardware equipment equipped with existing toll centers infrastructure is expected to provide a suitable alternative solution for seamless toll collection for the agencies. Thus, the electronic toll collection systems market is expected to provide numerous profitable opportunities for the market players in the coming years.
In the global electronic toll collection systems market, the services segment owing to their broad scope of utility in management, gathering insights and formulating policies for the future growth of the infrastructure is anticipated to propel the growth of electronic toll collection systems market. Moreover, services such as consulting, training and development is also expected to gain traction, especially among emerging economies due to increasing adoption of the ETC systems and is projected to drive the growth of electronic toll collection systems market. As a result, the services dominated the market segment by offering and accounted for 79.1% in 2017 and is expected to maintain its leading market position in the coming years. The services for electronic toll collection systems market is projected to provide numerous lucrative business opportunities for the market players in the forecast period.
The global electronic toll collection systems market is greatly influenced by the developed economies that lead the market share in the global electronic toll collection systems market owing to early adoption and through a government initiative. As a result, the past decade has witnessed a significant number of state agencies opting for an efficient alternative solution for toll collection process. Also, the effective implementation of ETC systems has enabled a broader scope of application through intelligent transportation services such as congestion management, identifying traffic patterns and gathering actionable insights for the formulation of transportation policies among other applications. For instance, E-ZPass and EETS (European Electronic Toll Service), owing to their early introduction and effective integration have facilitated seamless electronic toll collection processes in the U.S and European Union respectively. The Europe electronic toll collection systems market is expected to grow with a attractive CAGR growth rate of 5.56% from 2019 to 2027.
GLOBAL ELECTRONIC TOLL COLLECTION SYSTEMS – MARKET SEGMENTATION
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