ELECTRONIC TOLL COLLECTION MARKET Size and trends

Electronic Toll Collection Market Size and Trends

The Global Electronic Toll Collection Market is estimated to be valued at USD 10.83 billion in 2025 and is expected to reach USD 17.62 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.3% from 2025 to 2032.

Key Takeaways of the Electronic Toll Collection Market:

• The transponder/tag-based tolling systems segment is expected to lead the market, holding an estimated share of 69.3% in 2025.
• Among technology, the Radio Frequency Identification (RFID) segment is projected to dominate with a share of 57.2% in 2025.
• The hardware segment is estimated to lead the market with a share of 61.6% in 2025.
• North America is expected to dominate the market with an estimated of share of 41.7% in 2025. Asia Pacific, holding a share of 30.3% in 2025, is projected to show the fastest growth over the forecast period.

Market Overview:

The increasing demand for efficient toll collection solutions, coupled with stringent government regulations promoting digital payment methods, is expected to significantly drive the adoption of electronic toll collection systems worldwide. The market is witnessing rapid innovation, with AI integration and Dedicated Short-Range Communications (DSRC) technologies gaining prominence. Developing economies in the Asia Pacific region, particularly India and China, are leading the adoption of new toll collection methods, while North America remains dominant due to its mature infrastructure and ongoing technological advancements.

To learn more about this report, Request sample copy

Key Developments:

• In January 2024, Neology, a global technology company, secured a contract with Humber Bridge Board (U.K.), a highway authority, to provide end-to-end tolling solutions
• In December 2023, Kapsch TrafficCom AG, a transportation solutions provider, won a contract to provide customer service for the e-TOLL system at 100 distribution points across Poland

Top Strategies Followed by Global Electronic Toll Collection Market Players

• Established Players: Major players focus heavily on research and development to drive innovation in product performance and functionality. Major companies like Xerox Transportation Solutions and Kapsch TrafficCom invest over 10% of annual revenues towards R&D. This allows them to introduce advanced technologies like AI-powered automatic vehicle identification and adaptive tolling solutions tailored for each region.
• Strategic partnerships are also important. Xerox Transportation Solutions recently partnered with Continental AG to develop integrated tolling and mobility solutions. Kapsch TrafficCom has a long-standing partnership with Schneider Electric to provide end-to-end intelligent transportation systems. These alliances help the companies strengthen technical expertise, global supply chains and market position.

• Mid-level Players: Mid-sized players are leveraging niche innovations and cost-effective solutions to carve out their space in the electronic toll collection market. Many focus on region-specific solutions, such as urban congestion pricing systems and lightweight RFID-based tolling technologies. Companies like GeoToll and FEIG ELECTRONIC invest in customized, adaptable tolling technologies that cater to emerging economies. These firms also emphasize strategic collaborations with regional transport authorities and infrastructure developers to ensure market penetration. In addition, mid-sized firms increasingly integrate cloud-based and software-as-a-service (SaaS) solutions, allowing flexible and scalable tolling systems that are cost-effective for municipal and state governments.
• Small-scale Players: Small-sized players in the ETC market primarily focus on affordability and localized innovation. These companies offer specialized solutions such as mobile-based toll payments, GPS-based tolling, and simplified RFID-based systems tailored for specific regions or private toll roads. They often collaborate with local governments and transportation agencies to roll out pilot projects that can later be expanded. By emphasizing agility, cost efficiency, and tailored solutions, these smaller firms play a crucial role in expanding electronic toll collection adoption in both developed and emerging markets.

Emerging Startups – Electronic Toll Collection Industry Ecosystem

• Innovative Technologies: Startups like PassTime and GeoToll are developing next-generation smart sensor networks for more advanced toll management. PassTime uses Bluetooth and Wi-Fi signals from smartphones to identify vehicles automatically. GeoToll has created radar and camera-based sensors that can detect vehicle attributes like number of axles from long distances. Their solutions promise improved traffic flows and more accurate billing systems.
• Sustainable Solutions: Greenlots develops software platforms that enable electric vehicle charging during toll transactions to reduce emissions. Another example is Texel which manufactures recycled rubber highway markers integrated with RFID tags for contactless tolling and preservation of natural resources. Its eco-friendly innovations help lower the industry's environmental footprint over time.
• Niche Targets: Many new companies also address market niches through novel applications. Tolt Technologies provides cloud-based tolling services tailored for car-sharing programs and ride-hailing fleets. Similarly, Neucar Toll focuses on toll collection solutions specific to trucking logistics through video analytics and augmented reality