The electronic toll collection market was valued at USD 8.1 billion in 2019, and it is expected to grow at a CAGR of 7.7% from 2020 to 2025 to reach USD 10 billion by 2025.
The electronic toll collection market in APAC is projected to grow at the highest CAGR during the forecast period. Countries such as China, Japan, India, and South Korea are major contributors to the growth of the electronic toll collection market in APAC.
The growth prospective of the electronic toll collection market in APAC is promising with a steady growth rate in the near future.
The COVID-19 pandemic has affected the market in APAC, however, a steady recovery by 2021 is expected with the significant infrastructural investments and government support.
The major restraints for the growth of the market are implementation constraints in emergent nations. Issues related to interoperability and common standards act as major challenges for the growth of the market.
The transponder-/tag-based tolling segment projected to hold a larger share of the electronic toll collection market during the forecast period.
TransCore (US), Q-Free (Norway), and Star Systems International (Hong Kong) are the major companies that offer transponders for electronic tolling systems.
TransCore (US) offers RFID transponders and readers, which are widely used in toll operations across the US. Interoperable multi-protocol transponders provided by the company use existing toll infrastructure, thereby eliminating risky and costly modifications for tolling agencies.
Among applications, the highways segment to grow at a higher CAGR between 2020 and 2025.
The electronic toll collection market is significantly driven by its adoption mainly in developing countries.
Government initiatives to promote faster payments of toll fees through a digital mode and decongest highways would generate immense growth opportunities for the ETC market.
For instance, in December 2019, the National Highways Authority of India initiated electronic toll collection at national highways through FASTag, an RFID tag.
Many interurban toll highways, including Highway 6 (Israel) and Northern Gateway Toll Road (New Zealand), all over the world use DSRC-based ETC systems.
RFID technology to hold the largest share of the electronic toll collection market during the forecast period.
RFID technology utilizes its radio-frequency electromagnetic fields for the identification of objects that carry RFID tags.
This technology is used in electronic identification, tracking, and storing information contained on the tag.
Two-way radio transmitters/receivers called interrogators or readers send a signal to the tag and read its response.
RFID readers scan the tag and then send that information to the database for storing. RFID is a prominent technology used in ETC systems owing to its low operational cost.
North America projected to hold the largest share of the electronic toll collection market in 2025.
North America is expected to continue to lead the electronic toll collection market by capturing the largest market size throughout the forecast period.
The US and Canada are the key countries in North America with most vehicles per person, which is one of the most contributing factors to the growth of the electronic toll collection market.
Additionally, both the countries have the largest networks of interstate and state highways wherein advanced toll collection systems are installed at many locations, and several toll installation projects are in progress for lanes with high traffic.
Leading companies such as TransCore (US), Raytheon (US), and Conduent (US) in the electronic toll collection market have their base in North America while having operations in countries across the world. They contribute significantly to the growth of the electronic toll collection market in the region.
For more information, visit www.researchandmarkets.com