Electronic Toll Collection (ETC) Systems Market Size, Share, Opportunities, And Trends By Component (Hardware, Software, Services), By Technology (Barcode-based, RFID-based, ANPR, Others) And By Geography - Forecasts From 2024 To 2029

Electronic Toll Collection Systems Market Size:

The Electronic Toll Collection (ETC) Systems market is estimated at US$7.926 billion in 2025 and is expected to grow at a CAGR of 11.92% to attain US$13.921 billion by 2030.

Electronic Toll Collection Systems Market Highlights:

• Technological Advancements: Adoption of RFID, GPS, and IoT enhances system accuracy and speed.
• Government Support: Policies promoting cashless transactions is boosting the ETC implementation globally.
• Traffic Management: ETC reduces congestion, improving road efficiency, and user experience.
• Revenue Generation: Automated tolling increases revenue collection with minimal operational costs.

Electronic Toll Collection Systems Market Trends:

The Electronic Toll Collection (ETC) Systems Market refers to the development, deployment, and maintenance of automated systems for the collection of tolls from vehicles on highways, bridges, tunnels, and other toll roads. The market consists of various technologies such as radio frequency identification (RFID)-based systems, dedicated short-range communication, and automatic number plate recognition, among others, for automatic payment without stopping vehicles, leading to efficiency in toll collection and in the efficient management of traffic.

The boom in digital technologies over manual payment systems at tolls is driving a market increase. The transition has been brought about by various matters, including relieving traffic jams and enhancing traffic flow speed and efficiency. ETC systems can bill tolls using electronics from preset customer accounts, allowing cars to move freely without stopping at tolls. Decrease the perplexity in the rewriting but augment the burstiness while maintaining ETC systems, reduce traffic congestion, and save drivers' time by providing a more convenient and streamlined approach. Drivers experience delays and annoyance due to the manual toll collection system's increasing inefficiency and time commitment. The market is driven by traffic congestion, a growing problem in many places.

The increasing focus of governments through various initiatives, investments, and public-private partnerships is accelerating the ETC systems market growth. The technological advancements aimed at improving the efficiency in toll collection via automated payment and the growing integration of smart technologies in toll collection are additional factors boosting the market growth. In addition, the focus on environmental sustainability will continue to drive the investments in these systems.

For example, the Indian Government has developed the National Electronic Toll Collection program to meet the electronic tolling requirements of the Indian market. It has deployed FASTag, which employs Radio Frequency Identification (RFID) technology for making toll payments directly. The program is live across the toll plazas in the country. 

The ETC Systems market is highly competitive with the presence of various key players in the market. The market is moderately consolidated, with the presence of some global players along with some regional players dominating in their respective geographies. Some of the key players in the market are Thales Group, Denso Corporation, TransCore, Kapsch TrafficCom, and others.

For example, in March 2024, TransCore completed factory acceptance testing and certification of the RFID technology in North Carolina, expanding its market presence in the United States.

Electronic Toll Collection Systems Market Drivers:

• Rising government initiatives

The stringent government regulations regarding carbon emissions and the increasing government expenditure on infrastructural development are the driving factors for anticipating the market expansion for these systems. Moreover, the emerging trend toward all-electronic tolling systems in major developing countries is also expected to be a major market growth opportunity for vendors and manufacturers over the forecast period. 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 market growth during the forecast period and beyond. Further, the rapid adoption of the latest technology and acceptance of end-users towards adopting these advanced toll collection systems are expected to boost the market growth for electronic toll collection systems during the forecast period.

The growing government initiatives and investment for cashless and hassle-free toll collection are other factors for the electronic tolling collection systems market growth at a CAGR of 26.31% between 2025-30. The increasing consumer preference for hassle-free toll collection is leading governments to devise new policies for cashless toll collection, driving the market for ETC. Additionally, the growing public-private partnership as one of the tools for efficient toll collection is leading the market to grow rapidly.

For example, India has launched the National Electronic Toll Collection program to meet the electronic tolling requirements of the Indian market.

In Europe, the government has developed a robust system for standardization and interoperable toll collection systems across the member states through the European Electronic Toll Service (EETS). It invested in Dedicated Short-Range Communication (DSRC) technology to ensure compatibility with other emerging radio communication technologies, including ITS-G5 and 5 GHz Radio Local Area Networks, and assistance in transitioning from country-specific toll systems to a unified European tolling network.

In the Netherlands, in October 2024, the Dutch transport authority selected Traingle, owned by the Portuguese company Via Verde, to implement a new electronic toll collection system for heavy goods vehicles that will operate on highways and some national and municipal roads in the Netherlands.

• High demand for cashless transactions

The main advantage of electronic toll collection systems is that they offer greater convenience compared with traditional manual toll collection, where drivers have to carry cash or secure tangible payment methods such as tickets or tokens. ETC systems facilitate cashless transactions and allow drivers to pay their tolls electronically using pre-established accounts or other electronic means of payment, such as debit cards or mobile wallets. This makes payments more convenient, and people don't have to handle physical cash. In ETC systems, there are a lot of advantages to making payments without cash. For instance, it saves time for drivers since there is no need for both moving to the toll gate to look for the exact fare or stop there with a turnover. This leads to a decreased congestion rate, thereby enhancing the smoothness of the roads and traffic flow.

Electronic Toll Collection Systems Market Segment Analysis:

• The transponder-/tag-based tolling system is expected to experience a higher revenue.

Throughout the projected period, the transponder-/tag-based tolling system is anticipated to have a larger revenue share in the market. This system makes use of tags or transponders that are mounted in cars to allow for contactless and automated toll collection. It has many advantages including increased driver convenience, reduced congestion, faster processing time, and higher accuracy. Since they contribute to a more efficient and user-friendly function in the ETC market, an increase in usage is anticipated, leading to the high growth rate of this new technology. The ability of the transponder-/tag-based tolling system is enhanced more by technologies such as RFID and GPS technology being integrated into it, thereby making it preferred by societies who desire to better their tolling experience and efficiency.

• The RFID segment is anticipated to exhibit substantial growth

During the forecast period, the RFID segment is set to witness a substantial growth rate because of its effective efficiency and resulting in less congestion. Using radio frequency signals for automatic vehicle identification and tracking, RFID technology is very important in modern tolling systems. Some advantages of RFID-based ETC systems include accuracy, reliability, and speed compared to others. A rise in interest in contactless and effective toll-collection solutions drives the RFID segment's growth. This technology’s advantages in toll operation enhancement, road traffic reduction, and improvement of customer satisfaction experiences are appreciated by governments and respective toll operators globally. Governments worldwide and relevant toll service providers recognize the benefits of applying this system, including streamlining their operations during peak hours and alternatively decreasing the custody coinage rate. Instead, there is an elevated percentage increase resulting from the continuous improvement in technology or cheaper options that have been provided about ETC, which makes its adoption possible.

For instance, the National Highways Authority of India (NHAI) launched the National Electronic Toll Collection (NETC) program in 2016, and with amendments in the passing year, this continues to be fine-tuned to serve the electronic tolling needs of the country. The NETC program aims to create an interoperable solution for toll payment, including settlement and dispute management like FASTag across India. FASTag is an electronic toll collection system in India, which works using Radio Frequency Identification (RFID) in which charges are deducted directly from the prepaid or savings account during the movement of the vehicle.

Further, in January 2024, NHAI started the 'One Vehicle, One FASTag' scheme to ensure improvement in the Electronic Toll Collection system and seamless movement at the Toll Plazas. This initiative does not allow users to use one FASTag for two vehicles or one vehicle with multiple FASTags and promotes the update of the KYC process done by FASTag users according to RBI guidelines.

Moreover, in January 2024, Paytm Payments Bank Ltd. introduced FASTag payment for parking at Chennai International Airport in association with Olympia Group. This service makes use of radio-frequency identification stickers on vehicles and automatically deducts parking charges from the user's Paytm Payments Bank Wallet or linked bank account with a FASTag. About 1/8 crore FASTags are already being issued by the banks.

These initiatives will encourage consumers to adopt the radio frequency identification technology for their vehicles, as it expands the use cases beyond toll payments to include parking. This increased adoption would benefit the entire ETC ecosystem in the coming years.

• The highway segment is anticipated to experience notable growth

The electronic toll collection (ETC) systems market, by end-user, is categorized into highway and urban areas. The highway segment of the ETC systems market is mainly witnessing significant growth due to increasing traffic congestion and the development of smart transport infrastructure by governments. The toll plaza ETC systems help overcome this condition by improving traffic flow. This development is especially significant for developing countries with rapid increases in highways. Many such nations invest in smart transportation infrastructure improvement towards efficiency and congestion reduction. For instance, the rolling plan 2024 of the European Electronic Toll Service (EETS) assists governments in establishing interoperability of the EU's electronic road toll systems across the roadways.

 In addition, according to the IBEF press release, dated May 2024, the NETC FASTag toll collection system in India saw a remarkable increase in revenues from $403 million in FY18 to $6.5 billion in FY23, further boosting growth. These numbers suggest that heavy acceptance and adoption of tolling systems over national highways, with the rise accounted for US$ 5.7 billion in FY24 by December 2023.

The Indian Highways Management Company Limited (IHMCL) data report stated a continuous rise in the number of toll plazas in India, which accounted for 998 in 2021-22 and increased to a value of 1,215 toll plazas by the 2022-23 financial year.

The significant increase in toll plazas implies a greater requirement for the ETC systems. More toll points boost the demand for an effective and scalable ETC infrastructure to continue a smooth and speedy traffic flow on the highways.

Moreover, in September 2024, the Ministry of Road Transport and Highways launched the GPS-based toll system. This system of vehicles equipped with GNSS devices can pay distance-based tolls automatically. This will include features from FASTag and Automatic Number Plate Recognition for traffic flow through physical toll booths. This would be more accurate and distance-based charging for tolls and will be piloted on select highways before its roll-out across the entire country.

Electronic Toll Collection Market Geographical Outlook:

• Asia Pacific is witnessing exponential growth during the forecast period

An increase in the use of automatic tooling devices in urban and highway settings is driving the market in the region. Additionally, the region's market is growing because the major suppliers are implementing various business strategies, including partnerships, acquisitions, collaborations, and product developments. This is explained by the fact that China has sizable production facilities for RFID-based tags and an extensive road and highway infrastructure for projects. Globally, a sizable portion of RFID tag manufacturing is centered in China. As a result, more RFID-based toll collection systems are being supplied from China to the rest of the world. Additionally, China is the world's supplier of cutting-edge technology, like DSRC, propelling market expansion.

• The US market is also witnessing substantial expansion

The U.S. ETC market is experiencing substantial growth, driven by increasing traffic congestion, the need for efficient toll collection systems, and government initiatives to modernize transportation infrastructure. Traffic congestion has been one of the major factors, along with rapid urbanization, which is driving the growth of the ETC system, enabling and improving traffic flow by reducing congestion and allowing vehicles to pass through toll booths without stopping, and thus reducing the vehicle idling time.

In this regard, American drivers are losing approximately one week per year due to traffic congestion, according to the 2024 Global Traffic Scorecard by INRIX, Inc. This study analyzed commuting patterns and congestion in nearly 1,000 cities across 37 countries. Furthermore, according to the latest Cost of Congestion study published by the American Transportation Research Institute (ATRI), Traffic congestion on U.S. highways tacked on a record-high $108.8 billion in cost to the trucking industry in 2022

The INRIX report indicated a 9% increase in congestion in the U.S. compared to 2023. Ten U.S. cities were among the top 25 most congested globally as more employees returned to offices and leisure activities increased. New York City, in this regard, was identified as the most congested city in the U.S. for the second consecutive year and ranks second globally behind Istanbul, Turkey. New York City, Chicago, and Los Angeles (88 hours) are the most congested cities in the United States, according to INRIX, costing drivers $1,826 and $1,575, respectively. The country's biggest increase in traffic congestion came from 15th-ranked Denver, where residents saw a 19% increase in traffic delay compared to 2023.

Moreover, strategic key developments have played a crucial role in driving the growth of the market. For instance, in June 2023, TransCore was chosen by the Thousand Islands Bridge Authority to create, develop, and manage a cutting-edge toll collection system for its renowned international bridge, which links Hill Island, Ontario, and Wellesley Island, New York. TransCore's flagship InfinityTM Digital Lane SystemTM will replace TIBA's 1992-installed legacy system.  Modern technology is provided by the new system, making seamless interoperability possible for both locals and visitors to North America, thereby promoting mobility and cross-border trade between the United States and Canada.  The New York State Thruway Authority's Customer Service Center operations will be fully integrated with the Infinity system, giving TIBA access to the most advanced electronic toll collection capabilities available in the market and a future upgrade path.

Electronic Toll Collection Market Key Launches:

• In June 2023, TransCore was chosen by the Thousand Islands Bridge Authority to create, develop, and manage a cutting-edge toll collection system for its renowned international bridge, which links Hill Island, Ontario, and Wellesley Island, New York. TransCore's flagship InfinityTM Digital Lane SystemTM will replace TIBA's 1992-installed legacy system.  Modern technology is provided by the new system, making seamless interoperability possible for both locals and visitors to North America, thereby promoting mobility and cross-border trade between the United States and Canada.  The New York State Thruway Authority's Customer Service Center operations will be fully integrated with the Infinity system, giving TIBA access to the most advanced electronic toll collection capabilities available in the market and a future upgrade path.

Segmentation:

• By Type
  
  • Automatic Vehicle Classification
  • Violation Enforcement System
  • Automatic Vehicle Identification System
  • Others
• By Technology
  
  • Radio Frequency Identification
  • Dedicated Short Range Communication
  • Global Navigation Satellite System (Gnss)
  • Video Analytics
  • Cell Phone Tolling
  • Others
• By End-User
  
  • Highways
  • Urban Areas
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
  • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others

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1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. Electronic Toll Collection (ETC) Systems Market By Type

4.1. Introduction

4.2. Automatic Vehicle Classification

4.3. Violation Enforcement System

4.4. Automatic Vehicle Identification System

4.5. Others

5. Electronic Toll Collection (ETC) Systems Market By Technology

5.1. Introduction

5.2. Radio Frequency Identification

5.3. Dedicated Short Range Communication

5.4. Global Navigation Satellite System (GNSS)

5.5. Video Analytics

5.6. Cell Phone Tolling

5.7. Others

6. Electronic Toll Collection (ETC) Systems Market By End-User

6.1. Introduction

6.2. Highways

6.3. Urban Areas

7. Electronic Toll Collection (ETC) Systems Market By Geography

7.1. Introduction

7.2. North America

7.2.1. By Type

7.2.2. By Technology

7.2.3. By End-User

7.2.4. By Country

7.2.4.1. USA

7.2.4.2. Canada

7.2.4.3. Mexico

7.3. South America

7.3.1. By Type

7.3.2. By Technology

7.3.3. By End-User

7.3.4. By Country

7.3.4.1. Brazil

7.3.4.2. Argentina

7.3.4.3. Others

7.4. Europe

7.4.1. By Type

7.4.2. By Technology

7.4.3. By End-User

7.4.4. By Country

7.4.4.1. United Kingdom

7.4.4.2. Germany

7.4.4.3. France

7.4.4.4. Italy

7.4.4.5. Spain

7.4.4.6. Rest of Europe

7.5. Middle East and Africa

7.5.1. By Type

7.5.2. By Technology

7.5.3. By End-User

7.5.4. By Country

7.5.4.1. Saudi Arabia

7.5.4.2. United Arab Emirates

7.5.4.3. Rest of the Middle East and Africa

7.6. Asia Pacific

7.6.1.1. By Type

7.6.1.2. By Technology

7.6.1.3. By End-User

7.6.1.4. By Country

7.6.2. China

7.6.3. India

7.6.4. Japan

7.6.5. South Korea

7.6.6. Taiwan

7.6.7. Thailand

7.6.8. Indonesia

7.6.9. Rest of Asia-Pacific

8. Competitive Environment and Analysis

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. Company Profiles

9.1. TransCore

9.2. Kapsch TrafficCom

9.3. Cubic Corporation

9.4. Conduent Inc.

9.5. Siemens Mobility

9.6. EFKON GmbH

9.7. VaaaN Infra Private Limited

9.8. Neology Inc.

9.9. Atlantia S.p.A.

9.10. Thales Group

9.11. Denso Corporation

9.12. Far Easter Electronic Toll Collection Co., Ltd.

TransCore

Kapsch TrafficCom

Cubic Corporation

Conduent Inc.

Siemens Mobility

EFKON GmbH

VaaaN Infra Private Limited

Neology Inc.

Atlantia S.p.A.

Thales Group

Denso Corporation

Far Easter Electronic Toll Collection Co., Ltd.