Market Size of North America Electronic Toll Collection (ETC) Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | > 8.00 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
North America Electronic Toll Collection Market Analysis
The North America Electronic Toll Collection was valued at USD 3.30 Billion in 2021 and is expected to grow up to USD 5.40 Billion by 2027, registering a CAGR of over 8% during the forecast period (2022-2027).
The COVID-19 pandemic has severely impacted several industries across the world, causing an economic slowdown. Many industries took a hit due to countries imposing lockdowns and restrictions to stop the spread of the virus. As economies are recovering slowly, it is expected that the market will grow during the forecast period, 2022-2027.
Factors like the rising number of government initiatives to achieve congestion-free transportation, growing investments in road infrastructure, rapidly increasing vehicle demand and production in the North American region, and adoption of the latest technological solutions, including GPS and GNSS toll collection and tracking solutions, are expected to drive the market forward.
Toll roads provide an alternative method of financing transportation construction costs. Toll facilities include toll roads, tunnels, and bridges. The toll is traditionally due when people pass a collection point in the form of a plaza or a booth in the case of an open road facility (ORT). In the last few years, advancements in technology have been redefining toll collection systems in the North American region.
The demand for electronic toll collection is growing significantly, as it majorly helps reduce traffic at tollbooths by collecting tolls without cash and without requiring the vehicles to stop. Also, various state governments are planning to open new toll roads due to scarcity of funds in the transportation sector and stagnant gasoline tax rates. Most toll facilities in the United States today use an electronic toll collection system as an alternative to paying cash. Many states have implemented open road tolling, which eliminates the need to stop at toll booths.
The continuously growing toll collection technology is helping to automate the toll collection process and avoid long queues at toll booths. Additionally, these technologies not only aid in vehicle theft detection, but they can also track the vehicles crossing the signal and over-speeding vehicles. The trend of shifting from barrier-based ETC to open road tolling (ORT) or fee flow tolling has been gradually growing in the road tolling industry, especially in states facing high traffic congestion at toll roads.
North America Electronic Toll Collection Industry Segmentation
Electronic toll collection (ETC) is a wireless system to automatically collect the usage fee or toll charged to vehicles using toll roads, HOV lanes, toll bridges, and toll tunnels. Vehicles using the system are equipped with an automated radio transponder device. When the vehicle passes a roadside toll reader device, a radio signal from the reader triggers the transponder, which transmits back an identifying number that registers the vehicle's use of the road, and an electronic payment system charges the user the toll.
The North America electronic toll collection (ETC) market can be segmented on the basis of type, technology, application, and geography. Based on type, the market is segmented into the transponder and other types. By technology, the market is segmented into radio-frequency identification (RFID), dedicated short-range communication (DSRC), and other technologies. By application type, the market is segmented into bridges, roads, and tunnels. By geography, the market is segmented into the United States, Canada, and Rest of North America.
The report also covers the market size and forecast for the North America Electronic Toll Collection (ETC) Market across the regions mentioned. For each segment, the market sizing has been done in terms of value (USD billion).
Type | |
Transponder | |
Other Types |
Technology | |
Radio-frequency Identification (RFID) | |
Dedicated Short-range Communication (DSRC) | |
Other Technologies |
Application Type | |
Bridges | |
Roads | |
Tunnels |
Geography | |
United States | |
Canada | |
Rest of North America |
North America Electronic Toll Collection (ETC) Market Size Summary
The North America electronic toll collection market is poised for significant growth, driven by advancements in technology and increasing demand for efficient transportation solutions. The market is experiencing a shift towards electronic systems that facilitate cashless transactions and reduce traffic congestion at toll booths. This transition is supported by government initiatives aimed at enhancing road infrastructure and adopting innovative technologies like GPS and GNSS for toll collection and tracking. The growing preference for personal vehicles over public transport, coupled with the rise in vehicle ownership, has led to increased traffic at toll plazas, further propelling the adoption of electronic toll collection systems. These systems not only streamline the toll collection process but also offer benefits such as improved fuel efficiency, reduced emissions, and enhanced vehicle tracking capabilities.
In the United States, the electronic toll collection market is expected to expand rapidly as state governments plan to introduce new toll roads and highways to address funding shortages in the transportation sector. The implementation of open road tolling and other advanced tolling solutions is becoming more prevalent, with major players like Kapsch Group, Thales Group, and TransCore leading the charge. These companies are continuously innovating to maintain a competitive edge, as evidenced by recent contracts and projects aimed at enhancing toll collection systems across various states. Similarly, Canada is upgrading its toll facilities to support new infrastructure projects, reflecting a broader trend in North America towards modernizing transportation financing methods. The market's growth trajectory is further supported by strategic investments and government policies focused on improving transportation networks and reducing congestion.
North America Electronic Toll Collection (ETC) Market Size - Table of Contents
-
1. MARKET DYNAMICS
-
1.1 Market Drivers
-
1.2 Market Restraints
-
1.3 Porter's Five Forces Analysis
-
1.3.1 Threat of New Entrants
-
1.3.2 Bargaining Power of Buyers/Consumers
-
1.3.3 Bargaining Power of Suppliers
-
1.3.4 Threat of Substitute Products
-
1.3.5 Intensity of Competitive Rivalry
-
-
-
2. MARKET SEGMENTATION
-
2.1 Type
-
2.1.1 Transponder
-
2.1.2 Other Types
-
-
2.2 Technology
-
2.2.1 Radio-frequency Identification (RFID)
-
2.2.2 Dedicated Short-range Communication (DSRC)
-
2.2.3 Other Technologies
-
-
2.3 Application Type
-
2.3.1 Bridges
-
2.3.2 Roads
-
2.3.3 Tunnels
-
-
2.4 Geography
-
2.4.1 United States
-
2.4.2 Canada
-
2.4.3 Rest of North America
-
-
North America Electronic Toll Collection (ETC) Market Size FAQs
What is the current North America Electronic Toll Collection (ETC) Market size?
The North America Electronic Toll Collection (ETC) Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)
Who are the key players in North America Electronic Toll Collection (ETC) Market?
Kapsch Group, Thales Group, TransCore, Siemens and TRMI Systems Integration are the major companies operating in the North America Electronic Toll Collection (ETC) Market.