Market Trends of North America Electronic Toll Collection (ETC) Industry
This section covers the major market trends shaping the North America Electronic Toll Collection Market according to our research experts:
Technological Advancement of Electronic Toll Collection Systems
The traffic congestion at toll plazas has been increasing with respect to vehicle sales every year. An increase in people's preference to use their own vehicle over public transport is also the reason behind traffic at tolls. An increasing number of vehicles on the roads results in many problems, such as congestion, air pollution, and fuel wastage. Owing to the above reasons, governments have transitioned toward electronic toll collection. In the United States, due to advancements in communication technology and contactless payment platforms, this phenomenon has been clearly evident over the years. Now, this process is being implemented in other countries in the North American region.
Apart from ensuring funds for expansion and maintenance of roads and highways, collection of tolls, especially by the electronic method, offers numerous benefits, such as:
- Limited or no traffic congestion
- Fuel efficiency of vehicles and reduction in exhaust emissions by reducing or eliminating deceleration, acceleration, and waiting time
- Vehicle theft detection
- Tracking over-speeding vehicles and vehicles crossing the signal
In the United States, EZ pass tags have become widely accepted across 17 states. EZ pass tags made by Kapsch TrafficCom are facilitating open road tolling. According to the company, more than 35 million EZ pass devices are in circulation across the country. Sunpass and FasTrack are some other types of toll tags that do not accept EZ passes across various tolls in states like Florida.
The United States Led the Electronic Toll Collection Market
The electronic toll collection market in the United States is expected to grow at a faster pace as various state governments are planning to open new toll roads and highways due to scarcity in funds from the transportation sector and stagnant gasoline tax rates. For instance:
- In June 2021, President Biden's infrastructure plan, which would cost about USD 2 trillion, included USD 50 billion in funds to improve 20,000 miles of streets and highways. The plan proposes a similar approach for 10,000 bridges, backed by USD 40 billion. If implemented, the plan could bring new toll roads and highways across the country.
- In 2020, the Florida Legislature conceived a program to create three new toll roads totaling 330 miles across Florida's hinterlands, the largest toll-road project in the country.
Canada is also planning to upgrade its hardware and software systems in the existing toll facilities. For instance, in 2020, the Transportation Ministry of Canada introduced the Alberta bill that would enable the use of tolls to finance new bridge and road projects. Further, the Financing Alberta's Strategic Transportation (FAST) Act would allow the government to use tolls to finance new roads and bridges.
