U.S. Electronic Toll Collection Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

U.S. Electronic Toll Collection Market Size

• The U.S. electronic toll collection market size was valued at USD 10.90 billion in 2024 and is expected to reach USD 18.59 billion by 2032, at a CAGR of 6.90% during the forecast period
• The market growth is largely fuelled by the increasing need to reduce traffic congestion, enhance operational efficiency, and minimize fuel consumption through seamless toll collection systems
• The widespread deployment of advanced tolling technologies across major highways, bridges, and urban corridors is further accelerating market growth in the U.S.

U.S. Electronic Toll Collection Market Analysis

• The market is witnessing steady growth due to rising government investments in intelligent transportation systems and the widespread adoption of automatic vehicle identification technologies
• Growing adoption of cashless tolling systems and real-time traffic monitoring platforms is enabling faster throughput at toll booths, improving road safety and user experience
• The hardware segment accounted for the largest market revenue share in 2024, driven by the widespread deployment of physical components such as RFID readers, antennas, sensors, and cameras at toll plazas and gantries
• The reliability and durability of hardware systems in varying environmental conditions make them indispensable for accurate vehicle identification and classification. The demand is further bolstered by infrastructure modernization initiatives across major toll networks in the country

Report Scope and U.S. Electronic Toll Collection Market Segmentation         

U.S. Electronic Toll Collection Market Trends

“Rising Adoption of All-Electronic Tolling (AET) Systems”

• All-Electronic Tolling (AET) systems eliminate the need for physical toll booths, reducing delays and vehicle emissions
• AET provides seamless tolling through transponders or license plate recognition, enhancing the commuter experience
• States are increasingly adopting AET to streamline toll operations and reduce long-term infrastructure maintenance costs
• These systems also support cashless payments, aligning with broader consumer preferences for digital transactions
• For instance, the Massachusetts Turnpike switched entirely to AET in 2016, leading to reduced congestion and faster traffic flow

U.S. Electronic Toll Collection Market Dynamics

Driver

“Advancement in Intelligent Transportation Systems (ITS) and Smart Mobility Initiatives”

• Intelligent Transportation Systems (ITS) enhance toll operations by integrating real-time data and traffic analytics
• Government-backed smart mobility projects are promoting the adoption of automated and electronic toll systems
• ITS supports the interoperability of toll systems across states, improving ease of travel for long-distance drivers
• Integration of ETC with smart city initiatives allows for a unified mobility infrastructure, including parking, tolling, and public transport
• For instance, the U.S. Department of Transportation’s Smart City Challenge accelerated investment in ETC as part of broader urban mobility strategies

Restraint/Challenge

“Data Privacy and Security Concerns Related to Toll Collection Systems”

• ETC systems collect sensitive user data including location, travel history, and payment details, raising privacy issues
• Lack of standardized cybersecurity measures across states increases vulnerability to data breaches
• Public apprehension regarding third-party data sharing undermines trust in ETC systems
• Addressing privacy concerns requires significant investment in secure cloud platforms and regulatory compliance
• For instance, California’s toll system faced public scrutiny over license plate data being accessed by law enforcement without user consent

U.S. Electronic Toll Collection Market Scope

The market is segmented on the basis of offering, solution, technology, toll type, and end use.

• By Offering

On the basis of offering, the U.S. electronic toll collection market is segmented into hardware, software, and service. The hardware segment accounted for the largest market revenue share in 2024, driven by the widespread deployment of physical components such as RFID readers, antennas, sensors, and cameras at toll plazas and gantries. The reliability and durability of hardware systems in varying environmental conditions make them indispensable for accurate vehicle identification and classification. The demand is further bolstered by infrastructure modernization initiatives across major toll networks in the country.

The software segment is expected to witness the fastest growth rate from 2025 to 2032, owing to the increasing adoption of cloud-based toll management systems and real-time data analytics. Advanced software solutions enhance transaction efficiency, fraud detection, and seamless integration with transportation management systems. The rising need for interoperable platforms across state toll agencies is also accelerating the adoption of sophisticated back-end software.

• By Solution

On the basis of solution, the market is segmented into automated vehicle identification (AVI), automated vehicle classification (AVC), transaction management, violation enforcement system, and others. In 2024, the AVI segment held the largest market share due to its critical role in accurately identifying vehicles for seamless toll processing. AVI systems, typically powered by RFID and license plate recognition technologies, are essential in eliminating traffic congestion and ensuring non-stop toll operations.

The violation enforcement system segment is expected to witness the fastest growth rate from 2025 to 2032, driven by growing concerns over toll evasion and traffic law enforcement. These systems enable toll authorities to track violations, issue fines, and enhance compliance with minimal manual intervention.

• By Technology

Based on technology, the U.S. electronic toll collection market is segmented into dedicated short-range communication (DSRC), GNSS/GPS, infrared, radio-frequency identification (RFID), and video analytics. DSRC technology led the market in 2024, supported by its widespread deployment in tolling infrastructure and its capability to deliver low-latency, secure communication between roadside units and on-board equipment.

The GNSS/GPS segment is expected to witness the fastest growth rate from 2025 to 2032, fueled by its adoption in distance-based and dynamic tolling systems. GNSS-based solutions offer scalability and flexibility, making them ideal for long-distance, inter-state toll networks and freight movement.

• By Toll Type

On the basis of toll type, the market is segmented into distance-based, point-based, time-based, and perimeter-based. The point-based tolling segment held the highest revenue share in 2024, as it remains the most widely implemented method on major highways and bridges across the U.S. This model simplifies toll calculation and infrastructure layout, making it cost-effective and easy to maintain.

The distance-based segment is expected to witness the fastest growth rate from 2025 to 2032, due to increasing demand for fair toll pricing based on road usage. This model ensures users pay in proportion to the distance traveled, which is gaining traction in states adopting mobility-as-a-service (MaaS) frameworks.

• By End Use

By end use, the market is bifurcated into highway and urban mobility and transportation. The highway segment led the market in 2024, attributed to high vehicle volumes, long-distance freight corridors, and established toll infrastructure. Toll systems on highways are extensively used for revenue generation and maintenance of road quality.

The urban mobility and transportation segment is expected to witness the fastest growth rate from 2025 to 2032, driven by increasing congestion in cities and the rise of congestion-based tolling solutions. Urban toll systems are being integrated with smart city projects to manage traffic flow, reduce emissions, and promote public transportation.

U.S. Electronic Toll Collection Market Share

The U.S. Electronic Toll Collection industry is primarily led by well-established companies, including:

• 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)

Latest Developments in U.S. Electronic Toll Collection Market

• In March 2023, Cubic Corporation launched a new electronic toll collection (ETC) system designed to improve the efficiency, security, and accuracy of toll operations. This development aims to support transportation agencies with more reliable tolling infrastructure, reduce operational costs, and enhance the overall travel experience for drivers. The system's integration of advanced technology is expected to contribute to the broader adoption of smart mobility solutions in the U.S. market
• In November 2021, SiVA partnered with Thales to modernize Guatemala’s toll collection infrastructure. Through this collaboration, Thales introduced its advanced PITZ technology to upgrade tolling systems, improve transaction speed, and streamline vehicle identification. The initiative is set to transform Guatemala's ETC landscape, delivering a more efficient and user-friendly tolling experience while setting a benchmark for electronic toll systems in emerging markets

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