Increasing Demand for Interoperable Electronic Tolling Systems to Fuel Electronic Toll Collection System Market Growth During Forecast Period

The toll collection systems projects involve a public-private partnership model where government agencies or state bodies usually decide the toll pricing. The objective of toll collection profoundly influences vehicle classification and dynamic pricing for multiple categories of frequent travelers. Thus effectively restricting the interoperability of toll-collection processes across different states, administrative regions, or provinces within the country. However, the recent joint efforts by state and central government agencies to initiate a streamlined transit transaction process across toll gateways, plazas, parking systems, and traffic management in North America have gained traction in the past few years. Also, there is an increase in collaborative efforts among different state bodies to participate in joint toll collection systems (accepted by more government agencies) and offer simplified toll collection for different users. This solution in the electronic toll collection system market operates on a pre-paid account-based system, which various state agencies adopt for a seamless array of freight fees, tolls, and fines across the region. For instance, in July 2023, the Avanci aftermarket and electronic toll collection leader Axxès inked a license agreement. Axxès, the licensee, will gain efficient and transparent access to patented wireless technology that will enable innovation in Europe’s interoperable toll collection market. To cite another instance, E-ZPass is an interagency group-based electronic toll collection system in North America that is interoperable across 17 states in the US. Further, the system has the world’s largest and most successful interoperable-based toll collection system, with over 20 million active accounts that utilize 34 million toll-based tags that amount to US$ 9 billion in revenue generation for partnered state agencies.

The data generated via electronic toll collection transponders and RFID tags can provide meaningful insights into the traffic patterns and congestion at various expressways and highways. Also, those insights can be used for improving congestion, traffic management, and other intelligent transportation services. An exhaustive interoperable toll collection system has applications across parking fee payments at airports, malls, bus stations, and intelligent transportation services, among other innovative services. Thus, the demand for interoperable and robust electronic toll collection by the government, as well as state agencies, is fueling the demand for electronic toll collection systems in North America.

Electronic Toll Collection System Market: Industry Overview

The electronic toll collection system market is segmented on the basis of offering, technology, application, and geography. Based on the offering, the electronic toll collection system market is segmented into systems and services. By technology, the electronic toll collection system market is segmented into ANPR, RFID, GNSS, DSRC, and others. Based on application, the electronic toll collection system market is categorized into urban zones and highways. The electronic toll collection system market, based on geography, is categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

In 2022, North America led the global electronic toll collection system market with a substantial revenue share, followed by Europe and Asia Pacific. The market in North America is segmented into the US, Canada, and Mexico. The US is one of the first countries to integrate electronic toll collection systems and boasts a significant network of ETC-based systems across various tunnels, bridges, toll gateways, and expressways. Moreover, a collaborative effort of various inter-state agencies facilitated the implementation of an efficient ETC system across the country in the past decade. The significant freight transportation by road in the US compared to Canada and Mexico has also greatly influenced the adoption of ETC-based systems in the country. According to the Intelligent Transportation Systems Joint Program Office, in September 2019, in Florida, all-ETC systems and Hybrid Toll Plazas that support open road tolling experienced 73 to 45% fewer crashes than Traditional Toll Plazas, respectively.

In June 2022, TransCore was awarded a contract by the Thousand Islands Bridge Authority to develop, construct, and maintain next-generation toll collection systems. Its international bridge connected Wellesley Island with Hill Island in New York. TransCore replaced the previous technology used by TIBA. Thus, such instances are driving the North America electronic toll collection market.

Electronic Toll Collection System Market: Competitive Landscape and Key Developments

Conduent Business Services, LLC., Efkon GmbH, Kapsch TrafficCom AG, Thales, Toshiba Corporation, TransCore, FAAC S.p.A., Mitsubishi Heavy Industries Ltd, SICE, and P Square Solutions are among the leading market players profiled in the electronic toll collection system market report. Several other essential market players were analyzed for a holistic view of the market and its ecosystem. The report provides detailed market insights, which help the key players strategize their market growth. A few developments are mentioned below:

• In September 2023, Kapsch Group announced that Kapsch TrafficCom is ramping up its production capacities for onboard units (OBUs) at its Vienna facility. The expansion, representing an increase of more than 30%, will result in the production of approximately 2 million OBUs annually. A total investment of USD 1.3 million has been committed to the facility expansion.
• In April 2021, Conduent Transportation announced new digital payment solutions, using real-time payments over the RTP network, for the transportation sector. The solutions will make billing and paying tolls faster, easier, and more secure for transportation agencies and toll road users. The new digital solutions, the first-of-their-kind in the transportation industry, could later expand payment options for bus and rail transit operators, parking authorities, and other public sector uses, such as traffic fines.