Summary

The North America Electronic Toll Collection (ETC) Market is valued at USD 3 Billion in 2020 and is expected to reach USD 5 Billion in 2026. The market is poised to register a CAGR around 8% over the forecast period (2021-2026).

The COVID-19 pandemic has caused a severe impact on several industries across the world causing an economic slowdown. Many industries took a hit due to countries imposing lockdowns and restrictions to stop the spreading of the virus. As economies are recovering slowly, it is expected that the market is expected to grow positively during the forecast period 2021-2026.

Factors like the rising number of government initiatives to achieve congestion-free transportation, growing investments in road infrastructure, rapidly increasing vehicle demand and production in the North America region, and adoption of the latest technological solutions including GPS & GNSS toll collection and tracking solutions are expected to drive the market forward.

Toll roads provide an alternative method of financing transportation construction costs. Toll facilities include toll roads, tunnels, and bridges. The toll is traditionally due when the people passes a collection point in the form of a plaza or a booth in the case of an open road facility (ORT). Advances in technology in the last few years are redefining the toll collection systems in the North America region.

The demand for electronic toll collection is growing significantly, as it majorly helps in reducing traffic at tollbooths by collecting tolls without cash and without requiring the vehicles to stop. Also, various state governments are planning to open new toll roads due to scarcity in funds in the transportation sector and stagnant gasoline tax rates. Most toll facilities in the US today use an electronic toll collection system as an alternative to paying cash. Many states have implemented open road tolling which eliminates the need to stop at toll booths.

The continuously growing toll collection technology is helping automate the toll collection process and avoid long queues at toll booths. Additionally, these technologies not only aid in vehicle theft detection, but they can also track the vehicles crossing the signal and over speeding vehicles.The trend of shifting from barrier based ETC to open road tolling (ORT) or fee flow tolling, has been gradually growing in the road tolling industry, especially in states facing high traffic congestions at toll roads.

Key Market Trends

Technological Advancement of Electronic Toll Collection Systems

The traffic congestion at toll plazas has been increasing with respect to vehicle sales every year. Increase in people's preference to use their own vehicle over public transport is also the reason behind traffic at tolls. An increasing number of vehicles on the roads results in many problems, such as congestion, air pollution, and fuel wastage, etc. Owing to the above reasons, governments have transitioned towards electronic toll collection. Particularly in the United States, due to advancements in communication technology and contact-less payment platforms, this phenomenon has been clearly evident over the years. Now, this process is being implemented in other countries in the North American region.

Apart from ensuring funds for expansion and maintenance of roads and highways, collection of tolls, especially by electronic methods, offers numerous benefits, such as:

· Limited or no traffic congestion

· Fuel efficiency of vehicles and aids in reducing exhaust emissions, by reducing or eliminating deceleration, acceleration, and waiting time

· Vehicle theft detection

· Tracking the over speeding vehicles and vehicles crossing the signal

In the United States, EZ pass tags have become widely accepted across 17 states. EZ pass tags made by Kapsch TrafficCom are facilitating open road tolling. According to the company, more than 35 million EZ pass devices are in circulation across the Country. Sunpass and FasTrack are some other types of toll tags that do not accept EZ pass across various tolls in states, like Florida.

United States Led the Electronic Toll Collection System Market

Vehicle toll collection market in the United States is expected to increase at a faster pace as various state governments are planning to open new toll roads and highways, due to scarcity in funds from the transportation sector and stagnant gasoline tax rates. For instance,

- In June 2021, President Biden’s infrastructure plan, which would cost about USD 2 trillion, includes a USD 50 billion fund to improve 20,000 miles of streets and highways. The plan proposes a similar approach for 10,000 bridges, backed by USD 40 billion. If implemented the plan could bring new toll roads and highways across the country.
- In 2020, the Florida Legislature conceived a program to create three new toll roads totalling 330 miles across Florida’s hinterlands, the largest toll-road project in the country.

Canada is also planning to upgrade its hardware and software systems in the existing toll facilities. For instance in 2020, Transportation Ministry of Canada introduced Alberta bill that would enable the use of tolls to finance new bridge and road projects. By which the Financing Alberta's Strategic Transportation (FAST) Act, would allow the government to use tolls to finance new roads and bridges.

Competitive Landscape

The North America Electronic Toll Collection System market is led by few major players such as Kapsch Group, Thales Group, Toshiba Corporation, TransCore, Siemens, TRMI Systems Integration, Magnetic AutoControl, etc.

The companies are launching more advanced products to have an edge in the market over the market competitors. For instance,

- In November 2020, Kapsch announced that it developed an all-new -electronic tolling (AET) system for the New York State Thruway Authority (NYSTA) n is now fully operational and in revenue service.
- In July 2020, TransCore delivered a program that advances tolling capabilities in California by leveraging real-time occupancy meters to enhance enforcement, alleviate congestion, and provide solo drivers with clean-air discounts when applicable.

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Table of Contents

1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Market Driver
4.2 Market Restraint
4.3 Porters Five Force's Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry

5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Transponder
5.1.2 Others
5.2 By Technology
5.2.1 Radio-Frequency Identification (RFID)
5.2.2 Dedicated Short-Range Communication (DSRC)
5.2.3 Others
5.3 By Application Type
5.3.1 Bridges
5.3.2 Roads
5.3.3 Tunnels
5.4 By Country
5.4.1 United States
5.4.2 Canada
5.4.3 Rest of North America

6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Kapsch Group
6.2.2 Thales Group
6.2.3 Toshiba Corporation
6.2.4 TransCore
6.2.5 Siemens
6.2.6 TRMI Systems Integration
6.2.7 Magnetic AutoControl

7 MARKET OPPORTUNITIES AND FUTURE TRENDS