Electronic Toll Collection Market 2018
Electronic Toll Collection Market 2018:
Market Synopsis
A toll road, is a private or public roadway for which a fee is charged to pass. Frequently, these toll booths cause traffic delays during rush hours due to toll collection process. This factor has given birth to electronic toll collection system, which swiftly eliminates manual operations by toll payers and receivers. Electronic toll collection uses sophisticated cameras and sensors to capture an image of vehicle’s registration plate and assigns the correct toll. The global electronic toll collection market is expected to steer towards a strong double-digit growth rate in the coming years.
The primary drivers of the upcoming growth include the need to save travel time, cashless travel facility, the need to stop/minimize the traffic congestion and fast toll transaction. The ETC market is expected to continue its quick expansion to meet the surging demand for an improved, safe and secure infrastructure providing a fast, efficient and cost-effective services.
High installation cost, tag maintenance and high dependence on policies are some of the factors limiting the market growth.
GENVICT is a leader among equipment suppliers in ETC industry in China. They had sold more than 5.5 million sets of offshore banking unit (by the end of 2014, around 40% of OBU stock market. The company has introduced multiple intelligent front-mounted ETC electronic tags, of which ETC rear view mirror integrated electronic tag is being jointly tested by many companies.
Electronic Toll Collection Global Market – Overview
The global electronic toll collection market is showing immense growth; mainly due to growing demand for electronic toll collection systems which is majorly driven by the need for providing efficient traffic management and improving toll collection accountability. Technological advancements have played a major role in the development of electronic toll collection market. Steep increase in the adoption of electronic toll collection software and solutions is another major factor driving the growth of electronic toll collection market.
Growing urbanization and population is another major factor driving the growth of Electronic Toll Collection. Also, increasing government initiatives to modify transportation systems is responsible for driving the growth of the market. Also, the government in India is taking up various initiatives for the promotion of electronic toll collection systems in the country. NHAI has rolled out program for electronic toll collection on toll plazas on national highways to be called FASTag, a device that employs Radio Frequency Identification (RFID) technology in order to make toll payments directly from the prepaid account which is linked to it. Moreover, FASTag is said to offer near non-stop movement of vehicles through toll plazas and will also provide convenience of cashless payments.
By product, the automatic vehicle identification sub segment is expected to hold the largest market share of the global electronic toll collection market. This is owing to the increasing implementation of RFID and plate recognition technologies in automatic vehicle identification products. According to a recent study report published by Market Research Future, the global market of Electronic toll collection is booming and expected to gain prominence over the forecast period. The market is projected to demonstrate a spectacular growth by 2023 with a striking CAGR during the anticipated period (2017 – 2023).
Industry News
“Electronic Toll Collection (ETC) is finding new momentum as a way to manage traffic via dynamic toll pricing and address urban congestion issues. At the same time toll revenues will help governments and road operators deploying intelligent transportation systems including through V2X infrastructure. However, ETC remains characterized by a large degree of fragmentation and closed approaches hindering interoperability and widespread adoption,”
Two main ETC technology battles are taking place:
- DSRC versus RFID – At toll gates RFID is well established in the North America, while in Europe DSRC is the standard technology, with Asia showing a mixed situation.
- Short-range (RFID/DSRC) versus wide area (GNSS + Cellular) - Future growth of area and city tolling will favor wide area technologies.
Additionally, video analytics in the form of camera-based Automatic Licensing Plate Recognition (ALPR) remains a key enforcement and revenue collection technology.
ETC ecosystem participants offer a wide range of solutions such as tags and transponders; software services and system integration; and toll system operations including maintenance, payment handling, and revenue assurance. Kapsch Traffic Com, Atlantia, and Transcore offer end-to-end services. Most ETC players such as Q-Free (hardware and software integration) and road operators Sanef (system integration) only cover parts of the value chain.
“Electronic Toll Collection: A Key Business Driver for ITS and V2I” study covers types of ETC (highway, urban, and area tolling), ETC technologies (RFID, DSRC, video, and GNSS/cellular), use cases and benefits, as well as an in-depth review of the main implementations and the ETC ecosystem. ETC revenue forecast per region, type of toll collect, and technology are included.
April 2018 – India road transport ministry has approved that vehicles with valid FASTag will be allowed to travel free, in case, the system is unable to read the tag. NHAI had sent the proposal for ministry’s approval in its bid to bring relief to commuters who have bought the FASTags and recharged them for smooth travel
April 2018 – Kapsch has been awarded a contract to upgrade toll collection equipment on Maryland roads. The base contract includes the replacement of all toll equipment and six years of subsequent operations and maintenance. The contract also includes hardware upgrades at all MDTA bridge and tunnel facilities.
Electronic toll collection Global Market – Competitive Analysis
The market of electronic toll collection appears to be highly competitive. To maintain their market position and to drive the market growth, various dynamic and diversified international organizations, domestic organizations and as well as new entrants form a competitive landscape. Market leaders are innovating continuously and increasingly seeking market expansion through various strategic mergers and acquisitions, innovation, increasing investments in research and development and cost-effective product portfolio. Major players are investing on internal R&D and, most of all, in acquiring other firms.
Key Players
Some of the key players in the market are 3M (U.S.), Xerox Corporation(U.S.), Q-Free (Norway), Cubic Transportation Systems, Inc. (U.S.), Siemens AG (Germany), Thales Group (France), Transurban Limited (Australia), International Road Dynamics, Inc. (Canada), Raytheon Company (U.S.), The Revenue Markets Inc. (U.S.), Schneider Electric SE (France), Toll Collect GmbH (Germany), Perceptics, LLC (U.S.), TransCore (U.S.), Far Eastern Electronic Toll Collection Co., Ltd. (Taiwan), and Xiamen Innov Information Technology Co., Ltd. (China); and software providers such as, VaaaN (India), TransCore, LP (U.S.), and GeoTOLL, Inc. (U.S.).
Electronic toll collection Global Market – Segmentation
The electronic toll collection market can be classified into 5 key segments for the convenience of the report and enhanced understanding;
- Segmentation by Type: Electronic Toll Collection (ETC) and All-Electronic Tolling (AET)
- Segmentation by Product: Automatic Vehicle Identification (AVI), Automatic Vehicle Classification (AVC), and Back Office and Integration, and Violation Enforcement System (VES)
- Segmentation by Technology: Radio-frequency Identification (RFID), Dedicated Short-Range Communication (DSRC), Global Positioning System/Global Navigation Satellite System (GPS/GNSS) and Video Analytics
- Segmentation by Application: Highway and Urban
- Segmentation by Region: North America, Europe, Asia Pacific and Rest of the World.
Electronic toll collection Global Market – Regional Analysis
North America is expected to witness a significant growth and hold the largest market share during the forecast period. U.S and Canada are anticipated to drive the growth of the electronic toll collection market in North America owing to the presence of a large number of established key players such as 3M, Xerox Corporation, and Cubic Transportation Systems, Inc. among others. Also, U.S. is leading the market in North America due to the technological advancements and increasing usage of four wheelers and heavy vehicles is high in the region. Electronic toll collection market in Asia Pacific is expected to grow at a substantial CAGR during 2017 to 2023 owing to growing population and increased urbanization in China, Japan, and India in the region. Whereas, the Europe market for electronic toll collection is expected to grow at a considerable CAGR (2017-2023). Global Electronic Toll Market is expected to grow at a CAGR of double digit %. The Global Electronic Toll Market has grown from USD 4.5Billion Dollar in 2013 and is expected to touch USD 8.5 Billion dollar.