Blueweave
Global Electronic Toll Collection Market Report

Global Electronic Toll Collection Market Report

Global Electronic Toll Collection Market, By Technology (Automatic vehicle classification (AVC), Violation enforcement system (VES), Automatic vehicle identification (AVI), Transaction processing), By Mean of Collection (Prepaid , Postpaid, Hybrid) By Application ( Highways and Urban Zones); By Region (North America, Europe, Asia-Pacific, Rest of the world); Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: July 2021
  • Report ID: BWC21414
  • Available Format: PDF
  • Page: 143

Report Overview

The global Electronic Toll Collection market was worth USD 6.23 billion in 2020. According to the study, the market is expected to grow at the CAGR of 11.86% during 2021-2027 (forecast period), earning revenue of around USD 13.86 billion by the end of 2027.

Global Electronic Toll Collection Market- Industry Trends & Forecast Report 2027

The global Electronic Toll Collection market was worth USD 6.23 billion in 2020. According to the study, the market is expected to grow at the CAGR of 11.86% during 2021-2027 (forecast period), earning revenue of around USD 13.86 billion by the end of 2027. Strong government regulations to streamline electronic toll collection, increased adoption of cashless payments, and growing use of new mobility technology are all contributing to the global Electronic Toll Collection market's growth.

                 

Source: BlueWeave Consulting

Global Electronic Toll Collection Market Overview

The electronic toll collection (ETC) system is a high-tech device that collects tolls automatically without the car having to stop. It employs cutting-edge technological solutions like DSRC, GPS, and GNSS toll collection and tracking solutions, and video analytics to effectively manage traffic in congested locations, making toll collection easier.

The global electronic toll collection industry is growing due to an increase in demand for transportation infrastructure that is both safe and efficient. Furthermore, technological developments in this industry, such as the use of GNSS and GPS technology in Japan's electronic toll collecting systems, have compelled governments all over the globe to invest heavily in toll lanes, fueling the expansion of the electronic toll collection market. Furthermore, government backing for the development of new standards and rules for the implementation of these systems and tolling has aided the industry's development.

Global Electronic Toll Collection Market Forecast and Trends

Growth Drivers

Effective solution to reduce traffic congestion, accidents, and environmental pollution fueling the market growth

Effective and appropriate traffic management ensures smooth traffic flow and saves time at toll booths. Escalating traffic on national highways adds to additional congestion at toll plazas, which results in loss of fuel and time. Electronic toll collection uses technologies like RFID-enabled tags to collect tolls directly from prepaid and postpaid accounts. This scheme also simplifies the process of paying at toll points, resulting in less traffic congestion. Consequently, all such factors foster the growth of the global electronic toll collection market.

Currently, governments of various nations face a deteriorating problem of heavy traffic congestion in highways and urban zones. Also, to lighten road crowding, multiple approaches have been proposed, among which electronic toll collection has been reported to be operative in various areas and countries (e.g., Norway (AutoPASS 2017, Singapore (LTA 2017)). Due to the different tolls for different highways and time zones, automobiles are directed to travel through less overcrowded roads with lesser tolls to avoid congestion.

Restraints

Implementation constraints in emerging nations

Prior to installing an electronic toll collection system, telecommunications technology and updated road infrastructure must be in place. The lack of necessary infrastructure and technology in economically developing countries like India has also hampered the spread of electronic toll collection systems. In addition, the lack of communication infrastructure, such as the internet, mobile phone penetration, and computer penetration, insufficient illiteracy, transportation, and electricity restrictions further limit foreign and domestic investment in such nations, inhibiting further development of unconventional transportation systems, like electronic toll collection. Moreover, the outbreak of the pandemic is expected to negatively affect the economies of these nations.

Impact of COVID-19 on Global Electronic Toll Collection Market

The global electronic toll collection market is expected to experience the impact of the coronavirus (COVID-19) pandemic from every direction. Demand may collapse as a result of uncertainties in the global economy and capital markets, just as supply systems in critical locations are disrupted by the pandemic. Besides the threat of infection, governments are also limiting movement - adding to the unpredictable nature of the crisis.

The COVID-19 pandemic is causing extensive concern and economic hardship for consumers, businesses, and communities across the world. The situation is fast-moving with varied-ranging impacts. There’s no one-size-fits-all approach to the current situation. Despite the fact that many businesses have business continuity plans, they aren't sufficient to deal with the fast-moving, unpredictable aspects of a pandemic like COVID-19.

Electronic toll systems use various electronic devices, such as control devices, cameras, transponders, RFID chips, and so on. The COVID-19-induced pandemic has severely affected China and the United States, which are major raw material and component providers. Due to the closure of borders and ensuing nationwide lockdowns imposed by the governments of different countries as preventive measures, the supply chain of electronic components and devices have been directly impacted. Furthermore, strict regulations and guidelines in the transacting countries slowed the supply of raw materials to manufacturers and delayed delivery of products to integrators, causing supply chain disruptions.

Global Electronic Toll Collection Market- By Technology

In terms of technology the global electronic toll collection market is divided into automatic vehicle classification (AVC), violation enforcement system (VES), automatic vehicle identification (AVI), and transaction processing. Among these, the Automatic Vehicle Classification (AVC) segment of the electronic toll collection market was valued at USD 6.23 billion in 2020, and is likely to reach USD 13.65 billion by 2027, projecting a CAGR of 11.86%, during the forecast period. The growth has been primarily driven by the growing adoption of intelligent transportation system technologies to recognize and track stolen vehicles across the world.

 

               

Global Electronic Toll Collection Market- By Means of Collection

In terms of the Means of Collection, the global electronic toll collection market is divided into Hybrid, Prepaid, and Postpaid. The Prepaid segment of the electronic toll collection market was valued at USD billion in 2020, and is likely to reach USD billion by 2027, projecting a CAGR of %, during the forecast period.

The prepaid segment accounted for % of the ETC market revenue in 2020. The increased demand for hassle-free, quick transactions is contributing to the demand for direct payment of toll charges from savings or prepaid accounts. A hybrid lane, as the term itself suggests, is a method that allows both cash as well as electronic payments to be made. This is a cutting-edge electronic tolling system that includes both dedicated electronic tolling and a hybrid end-to-end solution. For a hassle-free and speedy transaction, the system uses a radio-frequency identification reader and features a seamless Commerce Clearing House connection. It comes with a remote monitoring system as well as a weight enforcement system that is simple to maintain and use.

Global Electronic Toll Collection Market- By Region

Based on region, the global Electronic Toll Collection market is segmented into five regions, North America, Europe, the Asia-Pacific, Rest of the world. North America’s electronic toll collection market is estimated to grow from US$ billion in 2020 to US$ billion by 2027, at a CAGR of % over the forecast period.

During the forecast period, North America is expected to continue to lead the ETC market by capturing the largest market share. One of the main reasons for ETC's growth is the high number of personal vehicles in the USA and Canada, which are two of the largest nations in North America. Furthermore, both countries have extensive networks of state and interstate highways with electronic toll collection systems at several locations and certain toll installations on roads with heavy traffic.                   

Competitive Landscape

The global Electronic Toll Collection market is highly fragmented due to the presence of many local and international players in the market. The key players in the market are Analog Devices (US), Texas Instruments (US), Maxim Integrated (US), and STMicroelectronics (Switzerland), Autostrade Per L’italia SPA, Jenoptik, Q-Free ASA, Cubic Corporation, Xerox Corporation, Thales SA, Kapsch Traffic AG, Conduent Inc, Siemens AG, Quarterhill Inc, Raytheon Co,  and other prominent players.

Recent Developments

  • In June 2021, the Jenoptik planned to expand its optics manufacturing capacities in Dresden, Germany due to the rising demand for optics and sensors for the semiconductor industry. The expansion includes 260,000 Square feet of construction of its manufacturing capacities and office complex.

  • In May 2020, The Autostrade Per L’italia launched advanced haptic and sensing technology solutions for richer, immersive user experiences.

Scope of the Report

Attribute

                              Details

Years considered

Historical data- 2017-2020

Base Year- 2020

Forecast- 2021-2027

Facts covered

Revenue in USD Billion[M2] 

Market coverage

North America(U.S., Canada and Mexico), Europe (Germany, United Kingdom, France, and Rest of Europe), Asia-Pacific (China, India, Japan, and Rest of Asia Pacific), Rest of the world (Latin America  , Middle-East and Africa)

Product/ Service segmentation

By Technology, by Mean of Collection, by Application and by region

Key Players

Autostrade Per L’italia SPA, Jenoptik, Q-Free ASA, Cubic Corporation, Xerox Corporation, Thales SA, Kapsch Traffic AG, Conduent Inc, Siemens AG, Quarterhill Inc, Raytheon Co,  and other prominent players.

 

By Technology

  • Automatic vehicle classification (AVC)

  • Violation enforcement system (VES)

  • Automatic vehicle identification (AVI)

  • Transaction processing

By Mean of Collection

  • Prepaid

  • Postpaid

  • Hybrid

By Application

  • Highways

  • Urban Zones

By Region

  • North America

  • Europe

  • Asia-Pacific

  • Rest of the world

1.    Research Framework

1.1. Research Objective

1.2. Product Overview

1.3. Market Segmentation

2.    Research Methodology

2.1. Qualitative Research

2.1.1.   Primary & Secondary Research

2.2. Quantitative Research

2.3. Market Breakdown & Data Triangulation

2.3.1.   Secondary Research

2.3.2.   Primary Research

2.4. Breakdown of Primary Research Respondents, By Region

2.5. Assumption & Limitation

3.    Executive Summary

4.    Global Electronic Toll Collection Market Insights

4.1. Industry Value Chain Analysis

4.2. DROC Analysis

4.2.1.   Growth Drivers

4.2.2.   Challenges

4.2.3.   Opportunities

4.3. Porter’s Five Forces Analysis

4.3.1.   Bargaining Application of Suppliers

4.3.2.   Bargaining Application of Buyers

4.3.3.   Threat of New Entrants

4.3.4.   Threat of Substitutes

4.3.5.   Intensity of Rivalry

5.    Global Electronic Toll Collection Market Overview

5.1. Market Size & Forecast by Value, 2017-2027

5.1.1.   By Value (USD Billion)

5.2. Market Share & Forecast

5.2.1.   By Technology

5.2.1.1.       Automatic vehicle classification (AVC)

5.2.1.2.       Violation enforcement system (VES)

5.2.1.3.       Automatic vehicle identification (AVI)

5.2.1.4.       Transaction processing

5.2.2.   By Mean of Collection

5.2.2.1.       Prepaid

5.2.2.2.       Postpaid

5.2.2.3.       Hybrid

5.2.3.   By Application

5.2.3.1.       Highways

5.2.3.2.       Urban Zones

5.2.4.   By Region

5.2.4.1.       North America

5.2.4.2.       Europe

5.2.4.3.       Asia-Pacific

5.2.4.4.       Rest of the World

6.    North America Electronic Toll Collection Market

6.1. Market Size & Forecast by Value, 2017-2027

6.1.1.   By Value (USD Billion)

6.2. Market Share & Forecast

6.2.1.   By Technology

6.2.2.   By Mean of Collection

6.2.3.   By Application

6.2.4.   By Country

6.2.4.1.     U.S.

6.2.4.2.     Canada

6.2.4.3.     Mexico

7.    Europe Electronic Toll Collection Market

7.1. Market Size & Forecast by Value, 2017-2027

7.1.1.   By Value (USD Billion)

7.2. Market Share & Forecast

7.2.1.   By Technology

7.2.2.   By Mean of Collection

7.2.3.   By Application

7.2.4.   By Country

7.2.4.1.       Germany

7.2.4.2.       UK

7.2.4.3.       France

7.2.4.4.       Rest of EU

7.2.4.5.       Rest of Europe

8.    Asia-Pacific Electronic Toll Collection Market

8.1. Market Size & Forecast by Value, 2017-2027

8.1.1.   By Value (USD Billion)

8.2. Market Share & Forecast

8.2.1.   By Technology

8.2.2.   By Mean of Collection

8.2.3.   By Application

8.2.4.   By Country

8.2.4.1.       China

8.2.4.2.       India

8.2.4.3.       Japan

8.2.4.4.     Rest of Asia Pacific

9.    Rest of the World Electronic Toll Collection Market

9.1. Market Size & Forecast by Value, 2017-2027

9.1.1.   By Value (USD Billion)

9.2. Market Share & Forecast

9.2.1.   By Technology

9.2.2.   By Mean of Collection

9.2.3.   By Application

9.2.4.   By Country

9.2.4.1.       Latin America

9.2.4.2.       Middle East

9.2.4.3.       Africa

9.2.4.4.       Rest of the world

9.2.4.5.          

10.Competitive Landscape

10.1.   List of Key Players and Their Offerings

10.2.   Market Share Analysis, 2020

10.3.   Competitive Benchmarking, By Operating Parameters

11.Impact of Covid-19 on Global Electronic Toll Collection Industry

12.Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, SWOT Analysis, Contact Address, and Strategic Outlook)**

12.1.     Autostrade Per L’italia SPA

12.2.     Jenoptik

12.3.     Q-Free ASA

12.4.     Cubic Corporation

12.5.     Xerox Corporation

12.6.     Thales SA

12.7.     Kapsch Traffic AG

12.8.     Conduent Inc

12.9.     Siemens AG

12.10.  Quarterhill Inc

12.11.  Raytheon Co

12.12.  Other Prominent Players

13.Key Strategic Recommendations

*Financial details of unlisted companies will be available as per data availability in final deliverable

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

 


Market Segmentation

By Technology

  • Automatic vehicle classification (AVC)
  • Violation enforcement system (VES)
  • Automatic vehicle identification (AVI)
  • Transaction processing

By Mean of Collection

  • Prepaid
  • Postpaid
  • Hybrid

By Application

  • Highways
  • Urban Zones

By Region

  • North America
  • Europe
  • Asia-Pacific

 

  • Rest of the world
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Frequently Asked Questions (FAQs):

Ans: The global Electronic Toll Collection market has reached USD 6.2 billion in 2020.
Ans: The global electronic toll collecting industry is growing in response to rising demand for secure and efficient transportation infrastructure. Moreover, technological advancements in this industry, such as the use of GNSS and GPS technology in Japan's digital toll collection system, have forced governments all over the world to invest heavily in toll lanes, leading to the expansion of the electronic toll collection market.
Ans: The key players in the global Electronic Toll Collection market are Autostrade Per L’italia SPA, Jenoptik, Q-Free ASA, Cubic Corporation, Xerox Corporation, Thales SA, Kapsch Traffic AG, Conduent Inc, Siemens AG, Quarterhill Inc, Raytheon Co, and other prominent players.
Ans: Automatic Vehicle Identification System (AVIS) is projected to grow at the highest growth rate during the forecast period. The growth has been primarily driven by the growing adoption of intelligent transportation system technologies to recognize and track stolen vehicles across the world.
Ans: The highways application segment is estimated to hold the highest share in the electronic toll collection market in 2020.
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