Surging Demand for Effective Toll Management Systems in Emerging Economies to Provide Growth Opportunities for Automatic Tolling System Market
According to our latest market study on “Automatic Tolling System Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by offering and type” the global 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% from 2021 to 2028.
The commercialization of global positioning systems (GPS or GNSS) has substantially broadened its scope of applications in various daily activities. For instance, the use of GPS systems installed onboard vehicles could also be utilized for toll collection purposes, thereby effectively eliminating the need for any tolling infrastructure or system. Moreover, other benefits such as low cost per transaction, maintainability, accessibility to web-based account and no infrastructure required for the integration of new route are among the other advantages that are expected to drive the GPS-based toll collection systems. In addition to use of GPS technology, countries such as India are witnessing a huge adoption of automatic tolling systems. In November 2020, the Indian government declared that FASTags would become compulsory from 2021 beginning. The National Highways Authority of India is working on the project to replace traditional systems with GPS-based tolling systems. As a result of using advanced technology in tolling system, the Indian government has mandated the use of FASTag at National Highways. The RFID-based electronic toll collection system aims to avoid payment of highway toll fees in cash. It is also predicted that execution of GPS-based tolling system is a step further under which toll charge will be deducted based on vehicle’s movement. Such commercialization of advanced tolling systems is making toll collection automatic while reducing traffic congestion and handling increasing motorists, trucks, and cars on highways.
The automatic tolling system market is segmented into offering, type, and geography. Based on offering, the market is further segmented into hardware and services. In 2021, the services segment accounted for a significant share in the global automatic tolling system market. In terms of type, the market is categorized into below unmanned self-service automated tollbooth collection system, unmanned automated toll booth collection system, and unmanned wireless automated toll booth collection system. In 2021, the unmanned automated toll booth collection system segment accounted for a significant share in the global automatic tolling system market. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). In 2021, Europe accounted for a significant share in the global automatic tolling system market.
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.
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; and EFKON GmbH are among the major companies operating in the Automatic tolling system market.
Automatic Tolling System Market to Grow at a CAGR of 5.4% to reach US$ 11,065.6 million from 2021 to 2028
Download Free SampleAutomatic 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)
The report segments the global automatic tolling system market as follows:
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)
- Australia
- China
- India
- Japan
- South Korea
- Rest of APAC
- Middle East & Africa (MEA)
- Saudi Arabia
- UAE
- South Africa
- Rest of MEA
- South America (SAM)
- Brazil
- Argentina
- Rest of SAM