Authored By: Sarah
11 Jul 2024

 Electronic Toll Collection Market Size to grow by USD 6642.5 million between 2023-2027

According to a research report “ Electronic Toll Collection Market” by Application (Highways, Urban) Technology (RFID-based, DARC, Others) Geography (APAC, Europe, North America, South America, Middle East and Africa)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 6642.5 million, at a CAGR of  10.55% during the forecast period. In the realm of transportation infrastructure development, toll and vehicle tax collection play a pivotal role for governments in both developed and emerging economies. With increasing economic activities, there is a pressing need to enhance road infrastructure in developing countries. Regulators in these nations are focusing on optimizing vehicle tax revenue and toll collections. In 2018, the National Transport and Safety Authority of Kenya ordered 3.3 million RFID (Radio Frequency Identification) windshield tags from Tonnjes, marking a significant step towards securing accurate vehicle population estimation and potentially boosting tax revenues. RFID technology is increasingly being adopted in countries like India, Indonesia, and Thailand to facilitate convenient toll payments and improve overall traffic management.

Browse market data tables, figures, and in-depth TOC on “Electronic Toll Collection Market” by Application (Highways, Urban) Technology (RFID-based, DARC, Others) Geography (APAC, Europe, North America, South America, Middle East and Africa) Global Forecast to 2027. Download Free Sample


By Application, the Highways segment is projected to dominate the market size in 2024

RFID technology plays a significant role in the electronic toll collection market, particularly in the RFID-based segment. This segment necessitates RFID tags affixed to vehicles and RFID readers in toll lanes for identification. The RFID toll collection equipment utilizes electromagnetic radiation to read RFID tag information. The adoption of RFID systems in supply chain management, resulting in streamlined operations and cost savings, is driving the growth of this segment. The FASTag system's implementation in RFID-based toll collection is further fueled by the technology's affordability and efficiency. In the cargo and shipping industry, RFID-based electronic toll systems are increasingly popular, leading to a surge in demand for this technology during the forecast period.

By Technology, RFID-based  segment is expected to hold the largest market size for the year 2024

In the realm of transportation infrastructure, highways serve a pivotal role in facilitating efficient and swift mobility between destinations. However, the high-speed nature of highway traffic presents unique challenges, particularly in ensuring safety. Real-time traffic information is crucial for motorists to make informed decisions and maintain optimal road safety. Electronic toll collection systems have revolutionized the toll collection process, allowing vehicle owners to complete digital transactions without halting at toll booths. The highway sector currently dominates the electronic toll collection market, accounting for the largest market share in 2022. This growth is attributed to the ongoing infrastructural development and the implementation of advanced traffic management policies at highway toll booths.

APAC is forecasted to hold the largest market size by region in 2024

In the Asia Pacific (APAC) region, economic growth and digitalization are driving the adoption of electronic toll collection systems. Rapidly expanding economies, such as China, India, Indonesia, and Malaysia, have experienced significant increases in per-capita income and vehicle ownership. Consequently, the number of on-road vehicles has surged, leading to a heightened demand for contactless toll payment solutions. RFID tag adoption is high in APAC, and regulatory mandates further boost market growth. The region is expected to exhibit robust expansion during the forecast period.

The Electronic Toll Collection Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Cubic Corp.
  • EFKON GmbH
  • Electronic Transaction Consultants, LLC
  • G.E.A.
  • International Road Dynamics Inc.
  • Kapsch TrafficCom AG
  • Mitsubishi Heavy Industries Ltd.
  • Neology Inc.
  • Perceptics Inc.
  • Q Free ASA
  • Raytheon Technologies Corp.
  • SICE TyS
  • Siemens AG
  • Star Systems International Ltd.
  • Thales Group
  • Toshiba Corp.
  • TransCore

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Research Analysis Overview

Electronic toll collection is a modern solution to address traffic congestion at toll booths on toll roads. Traditional toll facilities with paper receipts and long queues at toll booths have been replaced by advanced electronic systems using RFID tags or other technologies. These systems allow for seamless toll transactions, reducing vehicle idling and improving traffic flow. However, the implementation of electronic toll collection systems comes with its own set of challenges. Transportation construction costs for toll roads can be high, and toll charges are necessary to recover these costs. Environmental impact is another concern, as toll booths and idling vehicles contribute to increased carbon monoxide emissions. Privacy concerns arise due to the collection of data such as timestamps, travel routes, and license plate numbers. Mass surveillance and data privacy are significant issues that need to be addressed. Technological advancements in toll collection systems include traffic sensors and real-time data analysis to optimize traffic flow and reduce road accidents. Public transportation and carpooling initiatives can also help reduce the number of vehicles on the road, leading to emission reductions and improved traffic flow. As the electronic toll collection market continues to evolve, it is essential to consider the balance between technological advancements, environmental impact, and individual privacy rights.

Market Research Overview

The Electronic Toll Collection (ETC) market is witnessing significant growth due to the adoption of digital technologies such as RFID technology by toll operators like TransCore, Toshiba Corporation, Thales, Siemens, Q-Free, and others. ETC systems using RFID technology enable seamless toll transactions, reducing economic activities disruption caused by traffic congestion at toll booths and toll facilities. RFID technology, which uses radio-frequency identification tags, enables contactless toll transactions. Companies like TransCore LP, Faneuil Inc, Conduent, FasTrack, Sunpass, and E-Z Pass use RFID tags for vehicle identification and toll transactions. ETC systems offer benefits such as vehicle theft detection, real-time traffic flow analysis, and emission reductions. However, the implementation of ETC systems also raises concerns regarding individual privacy rights, mass surveillance, and data privacy. Toll operators collect timestamps, travel routes, and license plate numbers, which can be sensitive information. Technological advancements in ETC systems include traffic sensors, toll transactions, and vehicle idling detection. The adoption of ETC systems has led to the elimination of paper receipts, reducing the environmental impact of toll transactions. However, the high initial investment in transportation infrastructure and technological advancements can lead to increased transportation construction costs. Additionally, toll charges remain a concern for commuters, and road accidents caused by driver distraction while using ETC systems are a safety concern. Overall, the Electronic Toll Collection market is expected to continue growing as transportation infrastructure evolves and digital technologies advance.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

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