Electronic Toll Collection Market Grows Steadily at a CAGR of 9.37%

Introduction

Electronic Toll Collection (ETC) is an automated system designed to collect toll payments without requiring vehicles to stop at toll booths. By leveraging advanced technologies such as RFID (Radio Frequency Identification), DSRC (Dedicated Short-Range Communication), or camera-based systems like Automatic Number Plate Recognition (ANPR), ETC facilitates seamless toll transactions.

ETC systems work by electronically identifying vehicles as they pass through toll points. This identification is linked to a prepaid account or billing system, enabling toll fees to be deducted automatically. This eliminates the need for manual cash handling, reduces traffic congestion, and enhances the efficiency of toll operations.

Market Dynamics

Expansion of highway and urban road infrastructure drives the global market

The growing development of highway and urban road networks globally is driving the adoption of electronic toll collection (ETC) systems. Governments are increasingly investing in infrastructure upgrades and leveraging ETC systems to generate sustainable revenue streams for road maintenance and development. ETC systems contribute not only to financial sustainability but also to more efficient road usage by minimizing traffic congestion and enhancing vehicle flow.

This trend is particularly noticeable in emerging markets, where modernizing transportation systems and addressing urban congestion are top priorities. For example, the U.S. Department of Transportation and various agencies across Asia are significantly investing in expanding road networks, fueling demand for advanced ETC solutions to streamline tolling operations and improve traffic management.

Potential growth in emerging markets creates tremendous opportunities

Emerging economies in regions such as Asia and Latin America offer significant growth prospects for the electronic toll collection (ETC) market. With rapid urbanization and mounting traffic congestion, these regions are prioritizing the modernization of road infrastructure. This shift has spurred demand for advanced toll collection systems that streamline traffic, reduce delays, and provide sustainable revenue sources for road upkeep.

For instance, India’s expansive highway development under initiatives like the Bharatmala Pariyojana project has led to the widespread adoption of RFID-based tolling solutions. These systems help optimize traffic management, cut fuel consumption, and lower emissions, aligning with the country’s goals for sustainable and efficient transportation networks.

Regional Analysis

North America leads the global Electronic Toll Collection (ETC) market, driven by its extensive highway networks, high vehicle ownership, and supportive regulatory frameworks that promote smart transportation solutions.

The United States stands at the forefront, pioneering the use of advanced tolling technologies like Dedicated Short-Range Communication (DSRC) and Radio Frequency Identification (RFID) across its vast toll road systems. According to the U.S. Federal Highway Administration, there has been a notable shift toward All-Electronic Tolling (AET), which eliminates cash toll booths to streamline traffic and minimize delays.

Canada is also advancing its tolling infrastructure to accommodate urban population growth and expanding road networks. Initiatives such as the 407 ETR in Ontario, supported by public-private partnerships, highlight the region’s focus on modernizing toll systems. These collective efforts enhance operational efficiency and reinforce North America's position as the dominant ETC market globally.

Key Highlights

• The global electronic toll collection market size was valued at USD 10.3 billion in 2024 and is projected to grow from USD 11.27 billion in 2025 to reach USD 23.07 billion by 2033, growing at a CAGR of 9.37 % during the forecast period (2025-2033).
• Based on Toll Payment, the global market is divided into prepaid toll payments, post-paid toll payments, and combination payments. The prepaid toll payments segment dominated the market with the largest market revenue.
• Based on Type, the global market is divided into Automatic Vehicle Classification (AVC), Violation Enforcement System (VES), Automatic Vehicle Identification System (AVIS), and others. The Automatic Vehicle Identification System segment dominated the market with the largest market revenue.
• Based on Technology, the global market is divided into Radio Frequency Identification (RFID), Dedicated Short Range Communication (DSRC), Global Navigation Satellite System (GNSS)/GPS, Video Analytics, Cell Phone Tolling, and others. The dedicated short-range communication segment dominated the market and had the largest market revenue.
• Based on End-Users, the global market is divided into highways and urban areas. The highway segment dominated the market with the largest market revenue.
• North America is the highest shareholder in the global market.

Competitive Players

1. Kapsch TrafficCom AG
2. Thales Group
3. TransCore, Cubic Corporation
4. Siemens Mobility
5. Conduent Inc.
6. Neology, Inc.
7. EFKON GmbH
8. Q-Free ASA
9. Raytheon Technologies Corporation
10. Schneider Electric SE
11. Tecsidel S.A.
12. Perceptics LLC
13. TollPlus LLC
14. Mitsubishi Heavy Industries

Recent Developments

• In November 2024, the National Highways Authority of India (NHAI) launched a toll collection system managed by a bank, a first of its kind. This could streamline toll payments by integrating them directly with banking systems, potentially improving transaction efficiency and convenience for users.

Segmentation

1.  By Toll Payment
   1. Prepaid Toll Payments
   2. Post-paid Toll Payments
   3. Combination Payments
2. By Type
   1. Automatic Vehicle Classification (AVC)
   2. Violation Enforcement System (VES)
   3. Automatic Vehicle Identification System (AVIS)
   4. Others
3. By Technology
   1. Radio Frequency Identification (RFID)
   2. Dedicated Short Range Communication (DSRC)
   3. Global Navigation Satellite System (GNSS)/GPS
   4. Video Analytics
   5. Cell Phone Tolling
   6. Others
4. By End-User
   1. Highway
   2. Urban Area