Chicago, June 04, 2024 (GLOBE NEWSWIRE) -- The global electronic toll collection market was valued at USD 10.1 billion in 2024 and is projected to reach USD 14.7 billion by 2029; it is expected to register a CAGR of 7.9% during the forecast period. The rise in demand for electronic toll collection systems is attributed to the Urgent need to mitigate traffic congestion and reduce road accidents, strong government support through funding and investment in deployment of advanced tolling solutions, and high convenience due to automated payment options.
To know about the assumptions considered for the study
Major Electronic Toll Collection Companies include:
- Kapsch TrafficCom AG (Austria),
- Conduent, Inc. (US),
- TransCore (US),
- Thales (France),
- Cubic Corporation (US),
- Infineon Technologies AG (Germany),
- Siemens (Germany),
- EFKON GmbH (Austria),
- Neology, Inc. (US),
- FEIG ELECTRONIC (Germany).
Electronic Toll Collection Market Dynamics
Driver: Urgent need to mitigate traffic congestion and reduce road accidents
Relatively high processing time per vehicle at a traditional mainline toll plaza often leads to traffic jams on highways. Traffic congestion further leads to the release of harmful vehicular emissions (such as greenhouse gases (GHGs) and carbon monoxide (CO)) and the potential for accidents and collisions. ETC systems contribute to the reduction of traffic congestion by streamlining toll collection processes and minimizing delays at toll plazas. By automating toll collection through ETC systems, vehicles can pass through toll points more efficiently, reducing congestion and improving traffic flow on highways, bridges, and other major roadways. Manual toll collection processes often require motorists to slow down or stop abruptly, increasing the risk of rear-end collisions and other accidents, especially on high-speed roadways. However, with ETC systems, vehicles can pass through toll points at highway speeds without the need for manual intervention, reducing the likelihood of accidents and enhancing overall roadway safety.
Restraint: Overreliance of ETC on technology and susceptibility to technical failure
Electronic toll collection systems heavily rely on technology for their operation and are susceptible to technical failures, such as hardware malfunctions, software glitches, or communication breakdowns. If any part of the system fails, it can lead to disruptions in toll collection, causing inconvenience to users and potential revenue loss for toll operators. This might result in toll booths being temporarily unable to process electronic transactions, forcing drivers to use alternative payment methods or causing delays. Also, technical breakdowns can result in financial losses for toll operators. If the system is unable to accurately record toll transactions or if it malfunctions, toll operators may lose revenue. Additionally, fixing technical issues and restoring normal operations incur additional costs.
Opportunity: Significant focus on minimizing fuel consumption and emissions for economic and environmental gains
Traditional toll plazas that use manual booths cause vehicles to stop and queue, resulting in significant idling time. This idling leads to higher emissions of harmful pollutants, such as carbon monoxide, hydrocarbons, and nitrogen oxides, which worsen air quality, affecting public health. Using ETC systems eliminates the need for stopping, allowing vehicles to flow smoothly through toll lanes, drastically reducing idling and associated emissions. Studies have shown that ETC systems can reduce harmful emissions by up to 50% compared to manual plazas.
Challenge: Data privacy concerns
The implementation of electronic toll collection (ETC) systems has undeniably brought about efficiency and convenience in managing traffic flow and toll payment. However, it also raises significant privacy concerns that warrant careful consideration. As vehicles pass through toll booths equipped with ETC systems, important details such as license plate numbers, travel routes, and timestamps are captured and stored in databases. Authorities and third-party entities could misuse or mishandle this data, leading to unwarranted monitoring of individuals' movements. Concerns about the potential for mass surveillance or the creation of detailed travel histories raise questions about the balance between public interest and individual privacy rights.
