Automatic Tolling System Market Size, Trends and Growth Analysis by 2027

The global market for automatic tolling systems is projected to expand from US$ 7,678.8 million in 2021 to US$ 11,065.6 million by 2028, reflecting a compound annual growth rate (CAGR) of 5.4% during the period from 2021 to 2028.

Automatic tolling systems represent a crucial advancement in facilitating smooth transportation and mobility across major roadways. Their implementation on high-traffic roads and highways plays a significant role in reducing traffic congestion, enhancing travel times, and boosting safety and efficiency in road transport. These systems utilize various components to execute transactions effectively, with vehicle recognition and account identification being the most critical elements. Vehicle recognition may involve the use of in-road sensors, overhead cameras, vehicle-to-roadside communication, or a combination of these technologies. Meanwhile, the account identification component relies on a relational database that links vehicle IDs to user accounts. The ability of these systems to significantly lower operational costs for transportation departments worldwide has led to an increasing demand in the global market.

Several advantages of automatic tolling systems over traditional tolling methods, such as enhanced traffic flow speed, reduced congestion, and lower accident rates, are driving the growth of the global market. The rising number of vehicles in developing nations like India and China, coupled with a strong emphasis on improving transportation infrastructure, has resulted in a substantial increase in the demand for tolling solutions in these areas. European nations have been at the forefront of adopting automatic tolling technologies, with Norway being the first to implement such a system in 1986 and Italy following suit with a nationwide electronic toll collection system in 1989.

The automatic tolling system market is categorized based on offerings, types, and geographical regions. In terms of offerings, the market is divided into hardware and services, with the services segment holding a larger share of the market in 2020. Regarding types, the market includes unmanned self-service automated toll booth collection systems, unmanned automated toll booth collection systems, and unmanned wireless automatic toll booth collection systems. The Unmanned Automated Toll Booth Collection System accounted for a significant portion of the market in 2020. Geographically, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with Europe holding a substantial share of the global market in 2020.

The COVID-19 pandemic has profoundly impacted numerous industries. The rapid spread of the virus prompted governments worldwide to enforce strict restrictions on vehicle and human movement. Travel bans, widespread lockdowns, and business closures have adversely affected economies and various sectors across the globe. The lockdowns led to a decrease in the production of goods and services, with industries such as manufacturing, automotive, semiconductors, oil and gas, mining, and aviation experiencing significant operational declines due to temporary shutdowns.

The global lockdowns aimed at curbing the virus's spread have severely disrupted supply chain activities. Restrictions on international trade, the closure of borders, and non-operational distribution channels, along with various government regulations for public health and safety, have compounded these challenges.

Automatic tolling systems integrate multiple electronic components and devices, including transponders, cameras, RFID chips, controllers, and processors. Major suppliers of these components are located in countries like China and the United States, both of which have been significantly affected by COVID-19. The pandemic has led to stringent lockdowns that directly impacted the supply chains of electronic components and devices. Consequently, delays in the supply of raw materials to manufacturers catering to tolling system integrators were anticipated in 2020. However, as lockdowns were lifted and vaccination efforts progressed in 2021, the shipment of raw materials resumed, fostering a more favorable environment for the growth of the global automatic tolling system market.

The overall size of the automatic tolling system market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the automatic tolling system market across all segments. Additionally, primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders in the automatic tolling system market.

Key players in the global automatic tolling system market include Raytheon Technologies Corporation, Automated Tooling Systems India Private Limited (ATS India), STMicroelectronics N.V., Thales Group, and Indra Sistemas S.A.