Electronic Toll Collection Systems Market Size, Trends and Growth Analysis by 2027

The global market for electronic toll collection systems is anticipated to expand significantly, reaching approximately US$ 9.1 billion by 2027, up from US$ 5.2 billion in 2017. Tolls are fees imposed by various governmental bodies, including state and central authorities, for the use of transportation infrastructures such as bridges, tunnels, highways, and expressways. Electronic toll collection (ETC) systems facilitate automatic vehicle identification (AVI), vehicle classification (AVC), and the processing of transit transactions in accordance with governmental regulations, all without the need for manual intervention. Additionally, these systems encompass the identification of violators and the enforcement of fines. Consequently, the devices and technologies that enable efficient electronic toll collection are integral to the growth of this market, which is projected to experience a compound annual growth rate (CAGR) of 6.5%.

The ETC systems provide a range of advantages, including effective congestion management, reduced traffic at toll booths, and decreased vehicular congestion on highways. They also offer valuable insights into traffic patterns, enhancing the overall toll collection experience. These benefits have contributed to the popularity of ETC systems in developed nations and have sparked interest in emerging economies. Furthermore, the long-term economic and safety advantages associated with these systems are expected to propel market growth during the forecast period. The integration of advanced technologies and the expansion of application areas for ETC services are also likely to significantly impact the market's development in the years ahead. However, challenges such as the high costs associated with ETC systems and strict budget limitations may hinder market growth in developing regions, particularly in Africa. Additionally, the rise of digital transactions and insufficient existing infrastructure may negatively affect the expansion of electronic toll collection systems. Nevertheless, opportunities for investment in mobile and GPS-based ETC technologies, particularly in the burgeoning Southeast Asian market, are expected to present lucrative prospects for stakeholders in the electronic toll collection systems sector.

Currently, companies in the electronic toll collection systems market provide a combination of hardware and services to their clients, including signal transponders, onboard vehicle devices, cameras, and various support services. These companies also generate insights and reports for relevant agencies, aiding in informed decision-making and policy formulation for infrastructure development. Consequently, the global electronic toll collection systems market is categorized into hardware and services based on offerings. In terms of technology, the market is divided into segments such as Automatic Number Plate Recognition (ANPR), Dedicated Short Range Communication (DSRC), Global Navigation Satellite System (GNSS), and other technologies including video analytics, mobile solutions, and smart cards. Leading players in the electronic toll collection systems market are striving to utilize the data collected from these systems to provide innovative and intelligent transportation services that enhance the travel experience for users.

The condition of road infrastructure is vital for economic growth, as it links key cities, towns, and metropolitan areas for freight transport. Continuous maintenance, expansion, and enhancement of expressways, highways, bridges, and tunnels are essential for ensuring the smooth and uninterrupted movement of goods, which contributes significantly to a country's GDP. However, aligning the growth of road infrastructure with the increasing number of registered vehicles poses challenges for administrators. Consequently, central and state government agencies implement various tolls, fees, and taxes at strategic roadway locations to finance new infrastructure, maintain existing facilities, and manage traffic congestion. This dynamic is expected to create substantial business opportunities within the electronic toll collection systems market in the coming years.

In contrast to developed nations, developing countries are experiencing rapid urbanization, which, coupled with the need to support a growing economy, has heightened the demand for a robust road network connecting cities and towns. This demand has led to increased investments in the development of highways, bridges, and expressways to enhance freight transportation. As a result, there is a growing need for efficient toll collection systems in emerging economies, driven by the rise in registered vehicles. Additionally, the affordability of hardware solutions that can be integrated with existing toll infrastructure presents a viable option for agencies seeking seamless toll collection. The electronic toll collection systems market is projected to achieve a value of US$ 9.1 billion by 2027.