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Electronic Toll Collection Market Growing Massively: Expected to Reach USD 13.65 Billion by 2027

Fast NewsElectronic Toll Collection Market Growing Massively: Expected to Reach USD 13.65 Billion by 2027

A recent investigation carried out by the strategic consulting and market research firm, BlueWeave Consulting, unveiled that the worldwide market for Electronic Toll Collection (ETC) attained a value of USD 6.23 billion in the year 2020. As outlined in the study, this market is projected to exhibit a Compound Annual Growth Rate (CAGR) of 11.86% during the forecast period of 2021 to 2027, accumulating revenues of approximately USD 13.65 billion.

Factors Driving Growth

The augmentation of the electronic toll collection market is significantly fueled by its effectiveness in mitigating traffic congestion, accidents, and environmental pollution. The implementation of efficient traffic management systems ensures seamless traffic flow, saving time for commuters at toll plazas. The surge in traffic on national highways contributes to congestion at toll booths, leading to increased fuel consumption and time wastage. Electronic toll collection leverages technologies like RFID-enabled tags to directly collect toll fees from both prepaid and postpaid accounts. This streamlined approach not only simplifies the toll payment process but also alleviates traffic congestion. Consequently, these factors collectively bolster the expansion of the global electronic toll collection market.

Presently, numerous governments worldwide confront the challenge of severe traffic congestion on highways and in urban areas. To address this issue and alleviate road congestion, various strategies have been proposed. Electronic toll collection has emerged as an effective solution in different regions and countries such as Norway (AutoPASS 2017) and Singapore (LTA 2017). By implementing variable toll rates based on different highways and time periods, vehicles are directed toward less crowded routes with lower toll fees, effectively reducing congestion.

Challenges

The implementation of electronic toll collection systems faces hurdles in emerging nations. The establishment of such systems necessitates robust telecommunications technology and modernized road infrastructure. Economically developing countries like India face obstacles due to inadequate infrastructure and technology. Factors like limited communication infrastructure (internet access, mobile penetration, and computer usage), low literacy rates, transportation constraints, and electrical limitations further hinder both foreign and domestic investment in unconventional transportation systems such as electronic toll collection. Additionally, the impact of the pandemic is anticipated to adversely affect the economies of these nations.

sample copy of the report :https://www.blueweaveconsulting.com/report/global-electronic-toll-collection-market-report/report-sample

Impact of COVID-19 on the Global Electronic Toll Collection Market

The global electronic toll collection market is poised to feel the impact of the COVID-19 pandemic on multiple fronts. Uncertainties in the global economy and capital markets could lead to a decline in demand, while disruptions in critical supply chains could impact the availability of essential components. Governments’ restrictions on movement add to the unpredictable nature of the crisis, compounded by the threat of infection.

The COVID-19 pandemic has triggered widespread concern and economic challenges across the globe, affecting consumers, businesses, and communities. The situation’s rapidly evolving nature defies a one-size-fits-all approach, revealing the limitations of many business continuity plans in addressing the dynamic aspects of a pandemic like COVID-19.

Electronic toll systems employ various electronic devices such as control mechanisms, cameras, transponders, and RFID chips. The pandemic has particularly impacted major raw material and component suppliers like China and the United States. Border closures and nationwide lockdowns have disrupted supply chains and hindered the flow of electronic components and devices. Stringent regulations in various countries have impeded the supply of raw materials and delayed product deliveries, causing disruptions in the supply chain.

Global Electronic Toll Collection Market – Technology Perspective

Regarding technology, the global electronic toll collection market is categorized into Automatic Vehicle Classification (AVC), Violation Enforcement System (VES), Automatic Vehicle Identification (AVI), and Transaction Processing. Among these segments, the Automatic Vehicle Classification (AVC) category within the electronic toll collection market achieved a value of USD 6.23 billion in 2020 and is projected to reach USD 13.65 billion by 2027, exhibiting a CAGR of 11.86% during the forecast period. This growth is primarily attributed to the increased adoption of intelligent transportation systems for vehicle recognition and tracking, especially for stolen vehicles worldwide.

The global Electronic Toll Collection market is projected to hit USD billion by the end of 2027. The advantages of ETC in reducing accidents, traffic congestion, and pollution, coupled with robust government policies promoting electronic toll collection, wider acceptance of cashless payments, and growing utilization of innovative mobility technologies, collectively contribute to the expansion of this market.

Global Electronic Toll Collection Market – Regional Outlook

Geographically, the global Electronic Toll Collection market is divided into five regions: North America, Europe, Asia-Pacific, and the Rest of the World. North America’s electronic toll collection market is estimated to escalate from USD billion in 2020 to USD billion by 2027, exhibiting a CAGR of % throughout the forecast period.

During the projected timeframe, North America is projected to maintain its lead in the ETC market, securing the largest market share. This growth can be attributed to the substantial number of private vehicles in the United States and Canada, both of which are among the largest countries in North America. Moreover, these countries boast extensive networks of state and interstate highways, equipped with electronic toll collection systems at multiple locations, including heavily-trafficked routes.

Competitive Landscape

The global Electronic Toll Collection market is characterized by a high degree of fragmentation, attributable to the presence of numerous local and international players in the market. Key players in this industry include Analog Devices (US), Texas Instruments (US), Maxim Integrated (US), and STMicroelectronics (Switzerland), alongside prominent players such as Autostrade Per L’italia SPA, Jenoptik, Q-Free ASA, Cubic Corporation, Xerox Corporation, Thales SA, Kapsch Traffic AG, Conduent Inc, Siemens AG, Quarterhill Inc, Raytheon Co, and others

Recent Developments

    • In June 2021, the Jenoptik planned to expand its optics manufacturing capacities in Dresden, Germany due to the rising demand for optics and sensors for the semiconductor industry. The expansion includes 260,000 Square feet of construction of its manufacturing capacities and office complex.
    • In May 2020,The Autostrade Per L’italia launched advanced haptic and sensing technology solutions for richer, immersive user experiences.

Scope of the Report

Attribute

Details

Years considered

Historical data- 2017-2020

Base Year- 2020

Forecast- 2021-2027

Facts covered

Revenue in USD Billion

Market coverage

North America(U.S., Canada and Mexico), Europe (Germany, United Kingdom, France, and Rest of Europe), Asia-Pacific (China, India, Japan, and Rest of Asia Pacific), Rest of the world (Latin America , Middle-East and Africa)

Product/ Service segmentation

By Technology, by Mean of Collection, by Application and by region

Key Players

Autostrade Per L’italia SPA, Jenoptik, Q-Free ASA, Cubic Corporation, Xerox Corporation, Thales SA, Kapsch Traffic AG, Conduent Inc, Siemens AG, Quarterhill Inc, Raytheon Co, and other prominent players.

  • Enquire Here for, Report Enquiry, Discount and Customization: https://www.blueweaveconsulting.com/report/global-electronic-toll-collection-market-report/enquire-before-purchase

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