The Electronic Toll Collection System Market is projected to grow significantly, reaching a value of US$ 14.36 billion by 2030, up from US$ 5.54 billion in 2022, with an anticipated compound annual growth rate (CAGR) of 12.6% from 2022 to 2030.
The market for Electronic Toll Collection Systems in North America is divided into three main regions: the United States, Canada, and Mexico. Among these, the United States is expected to dominate the market share throughout the forecast period. The US has been a pioneer in adopting electronic toll collection solutions, establishing a comprehensive network of electronic toll collection (ETC) systems across numerous tunnels, bridges, toll plazas, and expressways. Additionally, collaborative efforts among various interstate agencies have led to the successful implementation of efficient ETC systems in the region over the last decade. The high volume of freight transportation by road in the US, compared to its neighbors Canada and Mexico, has significantly contributed to the increased adoption of ETC systems in this area.
According to the Intelligent Transportation Systems Joint Program Office, as of September 2019, all-electronic toll collection systems and hybrid toll plazas that support open road tolling in Florida reported a reduction in crashes by 73% and 45%, respectively, compared to traditional toll plazas. The rise in government initiatives aimed at achieving congestion-free transportation, coupled with the increasing demand for vehicles and production in North America, has further accelerated the adoption of advanced technological solutions, including GPS and GNSS for toll collection and tracking. In June 2022, TransCore was awarded a contract by the Thousand Islands Bridge Authority to develop, construct, and maintain next-generation toll collection systems, replacing outdated technology previously used by TIBA. Such developments are propelling the growth of the electronic toll collection market in North America.
The North American Free Trade Agreement (NAFTA) has facilitated seamless transportation and trade among the US, Canada, and Mexico. The ongoing maintenance and connectivity of road networks have heightened the demand for effective toll collection systems in both Mexico and Canada. Furthermore, the increasing infrastructure needs and the rise in registered vehicles in these countries are expected to drive the demand for ETC systems to manage road congestion effectively. According to the Bureau of Transportation Statistics, total vehicle production in the US, which includes both passenger and commercial vehicles, rose from 8.8 million units in 2020 to 9.1 million units in 2021. Similarly, domestic sales of vehicles increased from 11.5 million units in 2020 to 11.8 million units in 2021. Additionally, there is a growing trend in the road tolling industry towards transitioning from barrier-based electronic toll collection to open road tolling (ORT) or free-flow tolling, particularly in North America, where high traffic congestion at toll roads is a pressing issue.
The Electronic Toll Collection System market is categorized by technology into several segments: RFID, DSRC, GNSS, ANPR, and others. In 2022, the RFID segment captured the largest share of the market. Radio Frequency Identification (RFID) technology is well-established for bi-directional data transfer between vehicles and roadside infrastructure. Key components of RFID technology include RFID tags (often referred to as sticker-tags) with read/write capabilities and RFID readers installed in various locations such as lanes, entrances, or exits, depending on the system's policies and tariffs. Modifications to the road network must also be implemented in the roadside infrastructure. RFID tags are cost-effective, typically priced at or below US$ 1.05, and do not require batteries. The affordability of RFID readers further enhances their appeal. RFID technology supports numerous applications, facilitates easier integration, and reduces both capital and operational costs. At toll booths, RFID readers detect prepaid tags affixed to vehicles' windshields, automatically deducting the appropriate toll amount. Consequently, the electronic toll collection system market is experiencing substantial growth driven by the increasing demand for RFID technology.
In terms of offerings, the Electronic Toll Collection System market is divided into systems and services, with the systems segment holding the largest market share. The solutions within the electronic toll collection system market comprise hardware and software deployed across various infrastructures, including expressways, bridges, tunnels, onboard vehicles, and toll gateways. Hardware components include lane hardware and toll station hardware. Lane hardware typically consists of roadside antenna units, high-speed electric barriers, toll lane controllers, signal lights, traffic lights, multifunction displays for toll collection, surveillance cameras, vehicle detectors, and computer networks. Toll station hardware includes switches, workstations, and ETC toll servers. The ETC systems integrate hardware such as transponders, antenna units, signal receivers, optical sensors, and roadside communication units. For the ETC system to operate effectively, the hardware installed at toll gateways and onboard vehicles must work in unison. This equipment collects data points for software and algorithms to process relevant information, facilitating toll identification and transactions. Based on the collected data, the system can engage with necessary enforcement or alert the appropriate authorities as designed. Additionally, solution providers ensure the availability of onboard vehicle tags at local convenience stores, facilitate new user account registrations, and provide back-office support for the seamless operation of the ETC system. The software component aids in data acquisition and communication, enhancing operational efficiencies for toll collection systems.
Key players in the Electronic Toll Collection System Market include Conduent Business Services, LLC, Efkon GmbH, Kapsch TrafficCom AG, Thales, Toshiba Corporation, TransCore, FAAC S.p.A., Mitsubishi Heavy Industries, LTD, SICE, and P Square Solutions, all of whom are profiled in this market analysis.
The overall size of the Electronic Toll Collection System Market has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data related to the market size. This process also provides an overview and forecast of the market across all segments. Furthermore, multiple primary interviews with industry participants have been conducted to validate the data and gain analytical insights. This includes discussions with industry experts 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 specializing in the Electronic Toll Collection System Market.