U.S. Electronic Toll Collection Market, By Offering (Hardware, Software, 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 & Transportation) Industry Trends and Forecast to 2028
Market Analysis and Insights: U.S. Electronic Toll Collection Market
U.S. electronic toll collection market is expected to gain market growth in the forecast period of 2021 to 2028. Data Bridge Market Research analyses that the market is growing with the CAGR of 9.9% in the forecast period of 2021 to 2028 and expected to reach USD 4,278.50 million by 2028. Increasing growth in digitalization and use of cashless payments has boosted the market. Electronic tags that incorporate RFID technology are being used widely as these tags deduct the amount from the account linked.
Electronic toll collection uses vehicle-to-toll plaza communication technologies that allow electronic payment of toll. The system enables monetary transaction between a vehicle passing through a toll plaza and the toll collection agency. Electronic toll collection is replacing the manual toll collection and making the passage of vehicles much faster thus reducing traffic congestion and enabling smooth flow of traffic. Electronic toll collection can work on several principals such as incorporating GPS systems or by attaching tag to the car. The GPS system tracks the distance travelled by the vehicles and deducts the amount as per the distance. The tag based system incorporates placing of tags on the vehicle through which the toll amount can be deducted at the toll plaza where receivers or antennas are placed. All these systems reduce the transit time and make the transaction cashless.
The major factors driving the growth of the U.S. electronic toll collection market are raising investments in building road infrastructure and electronic toll collection and high benefits offered by electronic toll collection. Technical complications associated with electronic toll collection are the major restraint for the U.S. electronic toll collection market.
This electronic toll collection market report provides details of market share, new developments, and product pipeline analysis, impact of domestic and localised market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, product approvals, strategic decisions, product launches, geographical expansions, and technological innovations in the market. To understand the analysis and the market scenario contact us for an Analyst Brief, our team will help you create a revenue impact solution to achieve your desired goal.
U.S. Electronic Toll Collection Market Scope and Market Size
Electronic toll collection market is segmented on the basis of offering, solution, technology, toll type and end use. The growth among segments helps you analyse niche pockets of growth and strategies to approach the market and determine your core application areas and the difference in your target markets.
- On the basis of offering, the U.S. electronic toll collection market has been segmented into hardware, software and service. In 2021, hardware segment is dominating in the U.S. electronic toll collection market as hardware is the essential component of the toll collection systems such as cameras, RFID scanners and other equipment that are installed at toll collection system for scanning purposes. Without hardware installation, toll collection system will not work making hardware more dominant in offering segment.
- On the basis of solution, the U.S. electronic toll collection market has been segmented into automated vehicle identification (AVI), automated vehicle classification (AVC), transaction management, violation enforcement system and others. In 2021, automatic vehicle identification (AVI) segment is dominating in the U.S. electronic toll collection market as automatic vehicle identification refers to various components and process that allow vehicle identification for the purpose of charging the toll to the customer and provides data for traffic management. The low capacity for electrical interference and easy serviceability of the technology makes it more dominant in this segment.
- On the basis of technology, the U.S. electronic toll collection market has been segmented into dedicated short range communication (DSRC), GNSS/GPS, infrared, radio-frequency identification (RFID) and video analytics. In 2021, radio-frequency identification (RFID) segment is dominating in the U.S. electronic toll collection market as RFID tags offer benefits such as non-touch identification, long lasting communication and working in harsh environments and also can read hundreds of tags at a time. The operational cost of RFID is low as compared to other technology in the segment which makes RFID more dominant than any other technology in this segment.
- On the basis of toll type, the U.S. electronic toll collection market has been segmented into distance-based, point-based, time-based and perimeter-based. In 2021, distance-based segment is dominating in the U.S. electronic toll collection market as in the distance-based road user fees, private passenger vehicles charge a fee for road use that depends on number of miles driven by the passenger. The distance-based toll charges are widely accepted by the people who are frequent travelers and make it more dominant in this segment.
- On the basis of end use, U.S. electronic toll collection market has been segmented into highway and urban mobility & transportation. In 2021, highway segment is dominating in the U.S. electronic toll collection market as highways are the long length roads connecting different states and cities on which vehicle runs at high speeds. These roads need to have better infrastructure which should be borne primarily by highway users through imposition of fees in the form of toll and thus electronic toll collection are used for those road infrastructure. This makes highway the most dominant in this segment.
Increasing Growth in Digitalization and Use of Cashless Payments
Electronic Toll Collection market also provides you with detailed market analysis for every country growth in installed base of different kind of products, impact of technology using life line curves and changes regulatory scenarios and their impact on the electronic toll collection market. The data is available for historic year 2019.
Competitive Landscape and Electronic Toll Collection Market Share Analysis
Electronic toll collection 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, company strengths and weaknesses, product launch, clinical trials pipelines, brand analysis, product approvals, patents, product width and breadth, application dominance, technology lifeline curve. The above data points provided are only related to the companies’ focus related to electronic toll collection market.
Some of the major players operating in the U.S. electronic toll collection market are Cubic Corporation, The Revenue Markets Inc., GeoToll, Raytheon Company (a subsidiary of Raytheon Technologies Corporation), Thales Group, Siemens, MITSUBISHI HEAVY INDUSTRIES MACHINERY SYSTEMS, LTD. (a subsidiary of MITSUBISHI HEAVY INDUSTRIES, LTD.), Toshiba Infrastructure Systems & Solutions Corporation, International Road Dynamics Inc. (a subsidiary of Quarterhill Inc.), Perceptics, LLC among other domestic players. DBMR analysts understand competitive strengths and provide competitive analysis for each competitor separately.
Many product developments are also initiated by the companies worldwide which are also accelerating the growth of electronic toll collection market.
- In March 2016, MITSUBISHI HEAVY INDUSTRIES MACHINERY SYSTEMS, LTD. (a subsidiary of MITSUBISHI HEAVY INDUSTRIES, LTD.) was awarded with a contract of USD 556.00 million for Electronic Road Pricing (ERP) system project by Land Transport Authority of Singapore. The company provided with its intelligent transport systems and Electronic Road Pricing (ERP) system for the infrastructure. The new contract increased the geographical presence of the company.
Partnership, joint ventures and other strategies enhances the company market share with increased coverage and presence. It also provides the benefit for organisation to improve their offering for electronic toll collection market through expanded product range.