U.S. Electronic Toll Collection Market – Industry Trends and Forecast to 2031

U.S. Electronic Toll Collection Market Analysis and Size

The Electronic Toll Collection (ETC) market is experiencing significant growth, driven by factors such as increasing traffic congestion, the need for efficient toll collection systems, and government initiatives to modernize transportation infrastructure. ETC systems offer benefits such as reduced traffic congestion, improved air quality, and enhanced convenience for drivers. In addition, partnerships and collaborations between ETC providers and transportation agencies are helping to drive market growth and improve the efficiency of electronic toll systems. The ETC market is expected to continue growing as transportation agencies seek to implement more advanced and efficient toll collection systems to meet the demands of a growing population and increasing traffic congestion.

The U.S. electronic toll collection market size was valued at USD 10.20 billion in 2023 and is projected to reach USD 17.40 billion by 2031, with a CAGR of 6.9% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

Electronic Toll Collection (ETC) is a technology that enables vehicles to pay tolls electronically without the need to stop at toll booths. ETC systems use a combination of technologies, such as RFID (Radio Frequency Identification), GPS (Global Positioning System), and DSRC (Dedicated Short-Range Communications), to identify vehicles and automatically deduct toll fees from a pre-paid account or through a billing process.

Electronic Toll Collection Market Dynamics

Drivers

• Increasing Traffic Congestion           

The rapid urbanization and population growth in many urban areas across the U.S. have led to increasing traffic congestion on highways and toll roads. This congestion not only causes delays for drivers but also contributes to air pollution and environmental degradation. As a result, there is a growing demand for solutions that can help alleviate congestion and improve traffic flow. ETC systems have emerged as a key technology to address these issues. ETC systems improve traffic flow and reduce congestion by enabling vehicles to pass through toll booths without stopping, thus reducing the time vehicles spend idling in traffic, driving the market growth.   

• Government Initiatives for ETC

Governments at the federal, state, and local levels in the U.S. are increasingly recognizing the benefits of electronic toll collection systems in modernizing transportation infrastructure and improving road safety. Numerous governments have initiated programs to encourage the uptake of ETC systems. These initiatives include providing incentives for toll road operators to adopt electronic toll collection systems, allocating funds for the installation of ETC infrastructure, and requiring the use of these systems on specific highways and toll roads. These initiatives are aimed at reducing traffic congestion, improving traffic flow, enhancing road safety, and promoting the use of environmentally friendly transportation options. As government support for ETC systems continues to grow, the adoption of these systems is expected to increase significantly across the country, driving market growth.

Opportunities

• Enhanced Convenience for Drivers 

ETC systems offer a high level of convenience to drivers by eliminating the need to stop and pay tolls manually, leading to significant time savings and an improved travel experience. With ETC systems, drivers can pass through toll booths at highway speeds, reducing congestion and streamlining the toll payment process. This convenience factor is a key driver for the adoption of ETC systems, as it enhances the overall efficiency of travel and reduces the hassle associated with traditional toll payment methods. As drivers increasingly seek ways to make their travel experience more convenient, the demand for these systems is expected to continue to grow.       

• Environmental Benefits of ETC   

ETC systems help reduce vehicle emissions and improve air quality by reducing the waiting time at toll booths. This is particularly important in urban areas where air pollution is a major concern. As governments and communities increasingly focus on reducing their environmental impact and promoting sustainability, the environmental benefits of ETC systems are becoming a key driver for their adoption. Opting for ETC systems allows toll road operators and transportation agencies to enhance toll collection efficiency while also fostering a cleaner and healthier environment for everyone, creating new opportunities for market growth.

Restraints/Challenges

• High Initial Costs of ETC Systems      

Transportation agencies and toll road operators must invest in the necessary infrastructure, such as toll booths equipped with ETC technology, and the technology itself, including RFID readers and transponders for vehicles. These costs can be significant, especially for smaller transportation agencies or those operating on a tight budget. As a result, the upfront investment required for ETC systems can act as a barrier to adoption, preventing some agencies from implementing these systems despite their potential long-term benefits in terms of efficiency and revenue generation, challenging the market growth.      

• Privacy and Security Concerns       

There are concerns among drivers and privacy advocates regarding the collection and storage of personal data, such as vehicle identification information and travel patterns, by ETC systems. These concerns can hinder the widespread adoption of ETC systems, as drivers may be reluctant to use a technology that they perceive as invasive or insecure. Privacy and security concerns are significant challenges for the market.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact data bridge market research for an analyst brief, our team will help you take an informed market decision to achieve market growth.

Recent Development

• In March 2023, Cubic Corporation unveiled its latest Electronic Toll Collection (ETC) system, aimed at enhancing the efficiency, accuracy, and security of toll collection for transportation agencies
• In November 2021, SiVA selected Thales as its partner to revamp the toll collection system in Guatemala. This collaboration will utilize Thales's renowned PITZ technology to introduce substantial advancements and enhancements to Guatemala's toll collection process, ultimately improving efficiency and user experience in the electronic toll collection sector

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

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Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

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Electronic Toll Collection Market Scope

The market  is segmented on the basis of offering, solution, technology, toll type, and end use. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Offering

• Software
• Hardware
• Service

Solution

• Automated Vehicle Identification (AVI)
• Automated Vehicle Classification (AVC)
• Transaction Management
• Violation Enforcement System
• Others

Technology

• Dedicated Short Range Communication (DSRC)
• GNSS/GPS
• Infrared
• Radio-Frequency Identification (RFID)
• Video Analytics

Toll Type

• Distance-Based
• Point-Based
• Time-Based
• Perimeter-Based

End Use

• Highway
• Urban Mobility and Transportation

Competitive Landscape and Electronic Toll Collection  Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

• Cubic Corporation (U.S.)
• The Revenue Markets Inc. (U.S.)
• GeoToll (U.S.)
• Raytheon Company (U.S.)
• Thales Group (France)
• Siemens (Germany)
• MITSUBISHI HEAVY INDUSTRIES MACHINERY SYSTEMS, LTD. (Japan)
• Toshiba Infrastructure Systems & Solutions Corporation (Japan)
• International Road Dynamics Inc. (Canada)
• Perceptics, LLC (U.S.)
• Kapsch TrafficCom AG (Austria)
• TransCore (U.S.)
• Neology, Inc. (U.S.)
• Q-Free ASA (Norway)
• SICE, S.A. (Spain)

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