Electronic Toll Collection (ETC) Systems Market - Forecasts from 2022 to 2027

The global electronic toll collection (ETC) systems market is projected to grow at a CAGR of 19.41% to reach the market size of US$10,386.709 million by 2027 from US$3,000.579 million in 2020.

ETC systems are considered the most complex and the latest methods for toll collection.

This allows the vehicles to pass through a toll facility without stopping the driver. It helps in the smooth traffic flow, thereby contributing towards efficient traffic management as well. Hence the electronic toll collection systems are continuing to evolve owing to several benefits these systems offer in comparison to the other toll collection methods. Furthermore, the growing electronic industry and the growing IT industry are propelling the growth of the global electronic toll collection systems market in the forecast period. In addition, the stringent government regulations regarding carbon emission and the increasing government expenditure on infrastructural development are the driving factors to anticipate the market demand for these systems. Moreover, the emerging trend toward all-electronic tolling systems in major developing countries is also expected as a market growth opportunity for vendors and manufacturers over the next five years. However, the slow adoption of the latest technology and reluctance of end-users towards adopting these advanced toll collection systems is expected to restrain the market growth for electronic toll collection systems during the forecast period.

By component, the ETC Systems market is segmented as hardware, software, and services. Hardware held a significant share in 2018 and is anticipated to witness moderate growth over the forecast period on account of increasing demand for automobiles and increasing traffic. The software segment is expected to have the fastest growth in the market, followed by services during the same year. In addition, growing carbon emissions across the globe are expected to propel the market growth opportunities for the software and service segment during the forecast period.

By technology, the ETC Systems market is segmented as barcode-based, RFID-based, ANPR, and others. Barcode-based held a significant share in 2018 and is anticipated to witness moderate growth over the forecast period because of less complexity in the system and lesser cost. The RFID-based segment is expected to have faster growth in the market, followed by ANPR during the same year. In addition, growing awareness regarding carbon emissions further leads to the adoption of automatic toll collection systems, which is expected to anticipate the market growth opportunities for the RFID-based and ANPR-based system types.

By geography, the electronic toll collection (ETC) Systems market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. Europe holds the major market share on account of the early adoption of electronic toll collection systems in countries such as the UK, Germany, and France. Strict regulations regarding carbon emissions and road accidents are driving the demand for electronic toll collection systems in the region. APAC is projected to witness the fastest regional market growth owing to rising investments in smart highways and increasing government efforts to reduce congestion on roads. As the Asia Pacific region is turning increasingly urban, which is a trend being observed in most developing nations. This rapid increase in urbanization is increasing the demand for public and individual transport as well, thus giving rise to its efficient management. This has created a need for the Intelligent Transportation System (ITS), where Electronic Toll Collection (ETC) Systems also play a significant role in effective traffic management and are contributing to the reduction in carbon emissions. Several government policies leading to the development of ETCs as part of the urban infrastructure development are also driving market growth in this region. Furthermore, evolutions in information and communication technology are increasing the prospects of designing Intelligent Transportation Systems (ITS) as per the specific needs of the countries in the APAC region, thus fueling the market growth during the forecast period and beyond.

Key Developments:

• Thales and Siva have partnered to revolutionise the electronic toll system in Guatemala.
• Fideicomiso Ruta Uno has chosen Kapsch in order to provide a toll collection service with TAG devices for the toll stations.

COVID-19 Impact:

The pandemic has slowed down the overall market growth in the last few years owing to the imposed lockdown restrictions. People were not allowed to move outside and there was ban on travel and tourism which has sharply declined the overall market growth. However, the market is all set to grow after the first quarter of 2021 due to the lift from travel bans and lockdown rules and regulations.

The major players profiled in the electronic toll collection (ETC) systems include Atlantia S.p.A., Cubic Corporation, DENSO CORPORATION, EFKON GmbH, Far Eastern Electronic Toll Collection Co., Ltd., G.E.A., International Road Dynamics Inc., Kapsch TrafficCom, Neology, Inc., and Siemens Mobility GmbH among others.

The electronic toll collection (ETC) systems market has been analyzed through the following segments:

• By Component

Hardware

Software

Services

• By Technology

Barcode-based

RFID-based

ANPR

Others

• By Geography

North America

• USA
• Canada
• Mexico

South America

• Brazil
• Argentina
• Others

Europe

• United Kingdom
• Germany
• France
• Spain
• Others

Middle East and Africa

• Saudi Arabia
• UAE
• Others

Asia Pacific

• Japan
• China
• India
• Australia
• Others