Authored By: Sarah
29 Aug 2024

Electronic Toll Collection Market Size to grow by USD 8701 million between 2024-2028

Technavio, a leading provider of market research reports, has released its latest study on Electronic Toll Collection Market. This report offers a comprehensive analysis of the current market trends, emerging opportunities, and key challenges. RFID technology plays a significant role in the electronic toll collection market, enabling contactless transactions at toll plazas through the use of RFID tags affixed to vehicles. These tags, either in the form of windshield stickers or embedded electronic license plates, facilitate the extraction of vehicle identification numbers for toll payments. RFID tags on windshields have been a traditional solution, while electronic license plates, currently in testing phases in Europe and being implemented in the Philippines, offer additional benefits such as tamper-proof registration and identification, traffic management, and access control. These advanced plates, which self-destruct upon removal, enhance security and law enforcement capabilities.

Key Highlights

Growth Projections

The global electronic toll collection market  size is estimated to grow by USD 8701 mn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  12.17% during the forecast period. Rising demand for electronic toll collection systems in road tax collection is driving market growth, with a trend towards growing popularity of rfid-based license plates  However, high capital investment in dsrc and gnss-based electronic toll collection systems  poses a challenge.Key market players include ABERTIS INFRAESTRUCTURAS S.A., Cubic Corp., EFKON GmbH, Electronic Transaction Consultants, LLC, FEIG ELECTRONIC GmbH, G.E.A., Kapsch TrafficCom AG, Mitsubishi Heavy Industries Ltd., Neology Inc., Perceptics Inc., Q Free ASA, Quarterhill Inc., RTX Corp., SICE TyS, Siemens AG, Star Systems International Ltd., TECSIDEL S.A, Thales Group, Toshiba Corp., and TransCore.

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Major Findings

  • The electronic toll collection market is experiencing significant growth due to the increasing demand for efficient and contactless road tax collection systems. These systems offer numerous benefits, including reduced congestion at toll plazas, faster transaction processing, and improved revenue collection for governments. The adoption of RFID technology and the integration of mobile payment options are key trends driving the market forward.

  • The Electronic Toll Collection (ETC) market offers a seamless and convenient solution for both users and operators. By implementing ETC systems, commuters can avoid the hassle of stopping at toll booths and paying cash, while operators can streamline traffic flow and improve revenue collection. This technology utilizes RFID or other contactless payment methods, ensuring quick and efficient transactions. The market for ETC systems continues to grow, as more governments and transportation agencies recognize the benefits of this advanced and user-friendly technology.

  • The electronic toll collection market requires substantial capital investment in advanced technologies such as DSRC (Dedicated Short-Range Communications) and Global Navigation Satellite System (GNSS). DSRC enables real-time communication between vehicles and toll collection systems, ensuring efficient and seamless transactions. Simultaneously, GNSS-based systems utilize satellite technology for accurate location determination, enhancing system reliability and reducing congestion at toll plazas. These investments are crucial for the development and implementation of efficient and technologically advanced electronic toll collection systems.

  • The implementation of Electronic Toll Collection systems using RFID tags in vehicles has gained significant traction in recent years. However, the use of RFID tags is not without risks. These risks include the potential for tag malfunctions due to signal interference, theft or unauthorized use of tags, and privacy concerns related to the collection and use of vehicle location data. It is essential for toll authorities to implement robust security measures and maintain the integrity of the RFID system to mitigate these risks and ensure the smooth functioning of the Electronic Toll Collection market.

Market Research Overview

The global electronics market encompasses a vast array of industries, including communications equipment manufacturers, technology hardware and storage providers, electronic equipment and instrument producers, electronic component suppliers, consumer electronics manufacturers, and electronic manufacturing services. Among these sectors, the electronic components segment is a significant contributor, encompassing the production of connectors, electron tubes, capacitors and resistors, coils and inductors, printed circuit boards (PCBs), transformers, and lighting products. According to Technavio's market analysis, the global electronic components market size is determined by the revenue generated from the sales of associated information and communication technology (ICT) and electronics products, equipment, and components. The market's expansion will be fueled by the escalating demand for Internet of Things (IoT) devices, which are increasingly being deployed across various industries.

The Electronic Toll Collection Market is experiencing significant growth, fueled by the Rising demand for electronic toll collection systems in road tax collection. Businesses are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

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Regional Insights

The Electronic Toll Collection (ETC) market represents a significant growth opportunity for businesses in the transportation sector. This market is driven by the increasing adoption of contactless payment solutions and the need for efficient traffic management. ETC systems enable seamless toll payments, reducing congestion and enhancing road safety. Key players in this market include TransCore, EFAS Concessions, and Kapsch TrafficCom, who leverage advanced technologies like RFID, Bluetooth, and GPS to offer innovative tolling solutions.

Research Analysis Overview

The Electronic Toll Collection (ETC) market is witnessing significant growth due to the increasing need for contactless, cashless, and efficient toll collection systems. The implementation of ETC systems on highways is essential to address environmental pollution caused by long queues of vehicles at toll plazas. Customization, data triangulation, and interoperability are key features of transponder/tag-based ETC systems, enabling seamless toll collection. Regulatory norms and standardization issues are major challenges in the ETC market. Blockchain technology, video analytics, machine learning, and artificial intelligence are being explored to enhance security and improve toll collection efficiency. Advanced technologies like RFID, FASTag, NETC, and digital toll payments are transforming the toll management system. The urban population's growing demand for traffic management and the need to reduce traffic congestion are driving the adoption of ETC systems. Automatic vehicle identification and traffic management are essential for efficient highway construction and contactless operation. The integration of ETC systems with advanced technologies like machine learning and AI can lead to improved toll collection and traffic management. In conclusion, the Electronic Toll Collection market is evolving rapidly, with a focus on customization, interoperability, and cashless payments. The integration of advanced technologies like blockchain, video analytics, and machine learning is expected to revolutionize toll collection and traffic management, making it more efficient and environmentally friendly.

About Technavio                                                                        

Technavio is a global market research company offering comprehensive reports and insights on various industries. Our research helps businesses make informed decisions by providing actionable data and trends. Technavio is based on four simple principles: easy-to-access reports, robust industry coverage, a focus on new and emerging technologies, and competitive pricing. We believe in helping companies and executives become better equipped to make faster, sounder, and more effective decisions. Technavio is one of the most influential market research and advisory firms in the world. We work with business and technology leaders to provide cutting-edge market research and insights to companies. 

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Technavio Research
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Website: www.technavio.com/

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