A system that has the ability to charge a toll for an established customer's account is known as an Electronic Toll Collection (ETC) system. In addition to identifying registered passing cars and automatically charging them, the system notifies urban and local highway users of impending dangers. Autonomous vehicles can pass through toll facilities without stopping or waiting thanks to the ETC technique. Commuters pay tolls for utilising highways, tunnels, bridges, and flyovers; the ETC is a wireless module that tracks their car registration number to collect the fees.
Global Electronic Toll Collection Market Driving Factors and Challenges
The primary factors driving the electronic toll collection market are the widespread use of these systems due to their use of the newest technological solutions, such as GPS and GNSS toll collection, tracking solutions, and DSRC, as well as the effective use of video analytics to manage traffic in extremely congested areas. The expansion of the electronic toll collection market is accelerated by the growing need for the efficiency and safety of transportation infrastructure, technological advancements in this field such as GPS and GNSS, and government initiatives promoting collection.
The market for electronic toll collection is influenced by factors such as rising investments in toll lanes, new government rules and laws pertaining to the use of these systems and tolling, and the ease and adaptability of cashless payments. The electronic toll collection market is also positively impacted by the high rate of acceptance resulting from efficient solutions for lowering traffic congestion, accidents, and environmental pollution; rapid urbanisation; improvements in transportation infrastructure; and rising consumer use of cutting-edge digital technologies.
There are challenges with standardisation in the electronic toll collection system's implementation. Compatibility problems arise from the disparate standardisation used by different electronic system manufacturers. Various manufacturers create different standard equipment, which causes complications for commuters. Electronic toll systems are growing at an exponential rate, however the market is not expanding because of manufacturer incompatibilities with other technology. The businesses that possess ETC's patent rights end up suing the company to keep it that way. Certain electronic toll collection technologies utilise distinct hardware and systems. For example, readers can be connected to various computer systems, but equipment from one manufacturer cannot read RFID tags from another company. When two tags are fastened to the same car, interference problems could arise. This aspect impedes the expansion of the market for electronic toll collecting.
Impact of COVID-19 on Global Electronic Toll Collection Market
The COVID-19 pandemic caused a sharp decline in the world economy, which had a substantial effect on the logistics and transportation industry. Government-imposed lockdowns across the globe hampered people and vehicle mobility, creating operational difficulties for logistics and transportation companies. The market's growth was hindered by the suspension of government development projects, such as bridges and highways, which decreased the use of automated systems. There were negative consequences to toll collection in Europe, Canada, the United States, and India. While lockdowns were less frequent in Q2 2020, creating a new normal, demand for Electronic Toll Collection (ETC) increased marginally because to its contactless payment functionality, which helps reduce COVID-19. In spite of the epidemic, work on building roads and bridges resumed, increasing the demand for automated toll-collection devices.
Electronic Toll Collection Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; American Traffic Solutions, Conduent Inc., Cubic Corporation, Electronic Transaction Consultants Corporation, Far Eastern Electronic Toll Collection Co Ltd., Kapsch TrafficCom AG, MITSUBISHI HEAVY INDUSTRIES LTD, Perceptics LLC, Raytheon Company, Siemens AG, Star Systems International, Thales Group, Toll Collect GmbH, TOSHIBA CORPORATION, Others.
Global Electronic Toll Collection Market Segmentation:
By Type: Based on the Type, Global Electronic Toll Collection Market is segmented as; Automated Vehicle Classification, Automated Vehicle Identification, Transaction Processing, Violation Enforcement System.
By Technology: Based on the Technology, Global Electronic Toll Collection Market is segmented as; Dedicated Short-range Communication (DSRC), GNSS & GPS, Infrared, Radio-frequency Identification (RFID), Video Analytics.
By Offering: Based on the Offering, Global Electronic Toll Collection Market is segmented as; Hardware, Back Office, Other Services.
By Application: Based on the Application, Global Electronic Toll Collection Market is segmented as; Highways, Urban.
By Region: This research also includes data for North America, Asia-Pacific, Latin America, Middle East & Africa and Europe.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.