Electronic Toll Collection Market worth $14.7 billion by 2029

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 according to a new report by MarketsandMarkets™.

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.

The highway segment accounted for the larger share of ~91% of the electronic toll collection market in 2029. Highways are an essential means to go from one location to another quickly and efficiently. Vehicles are driven at high speeds on highways; however, high-speed traffic can also pose certain challenges. Hence, safety is crucial on roads designed and constructed for high-speed travel.

The more real-time information that motorists receive on the current traffic situation, the safer they are while driving. Kapsch TrafficCom's intelligent urban traffic concepts are based on advanced technologies, such as ANPR, DSRC, and GNSS, to ensure calculation of the correct payment of tolls. These technologies have demonstrated efficacy in highway toll collection and ensure high reliability and accuracy.  

Back Office & Other Services segment accounted for the larger share of ~75% of the electronic toll collection market in 2029. The back-office integration and enforcement services include customer services and services related to host and toll plaza systems. Host and plaza systems collect transactional data from all types of lanes, summarize data, generate reports, and download files providing details regarding toll rates, toll schedules, and transponder status lists. Back-office operations involve the management of payments made via generic payment methods, barcoding, online modes, digital payment methods, RFID, etc.

The RFID segment accounted for the largest market share of ~64% in 2029. RFID technology utilizes radio-frequency electromagnetic fields to identify objects that carry RFID tags. This technology is used for electronic identification, tracking, and storing information on a tag. Two-way radio transmitters/receivers, also called interrogators or readers, send a signal to the tag and read its response. RFID readers scan the tag and send the information to the database for storage. RFID is a prominent electronic toll collection technology due to its low operational cost.