Electronic Toll Collection Market Outlook : Projected to Exceed USD 17.62 Billion by 2032 with a 7.2% CAGR

The Global Electronic Toll Collection Market is estimated to be valued at USD 10.83 Bn in 2025 and is expected to reach USD 17.62 Bn by 2032.

BURLINGAME, CA, UNITED STATES, November 24, 2025 /EINPresswire.com/ -- The Global Electronic Toll Collection Market is estimated to be valued at USD 10.83 Bn in 2025 and is expected to reach USD 17.62 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of7.2% from 2025 to 2032. Growing demand for efficient toll collection systems, along with strict government mandates supporting digital payment adoption, is expected to accelerate the global shift toward electronic toll collection solutions. The electronic toll collection market is also evolving rapidly, driven by advancements such as AI-powered technologies and the increasing use of Dedicated Short-Range Communications (DSRC), which are enhancing system accuracy, speed, and overall operational efficiency.

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Global Electronic Toll Collection Market Key Takeaways

Demand remains especially high for transponder/tag-based tolling systems, with the target segment expected to account for a 69.3% market share in 2025.

In terms of offering, hardware segment is slated to account for 61.6% of the global electronic toll collection market share in 2025.

Based on technology, the radio frequency identification (RFID) segment is expected to dominate the market with a share of 57.2% in 2025.

North America is projected to dominate the global market with an estimated share of 41.7% in 2025.

Asia Pacific, with an estimated share of 30.3% in 2025, is poised to emerge as the fastest-growing electronic toll collection market during the forecast period.

Rising Traffic Congestion & Urbanization Fueling Market Growth

Coherent Market Insights’ latest electronic toll collection market analysis highlights major factors driving industry growth. Rising urbanization and increasing traffic congestion are among the most prominent growth drivers.

Rapid urbanization and increasing vehicle ownership are contributing to excessive traffic congestion, especially on highways and toll roads. For instance, TomTom Traffic Index indicates that Mexico City has a congestion rate of 52%.

This surge in traffic congestion is expected to drive demand for electronic toll collection systems during the forthcoming period. ETC systems allow drivers to pay tolls automatically without stopping at booths. As a result, they help to reduce congestion, enhance efficiency, and improve convenience.

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High Costs and Data Security Concerns Limiting Market Growth

Despite the positive global electronic toll collection market outlook, certain factors may slow down market growth to some extent during the forecast period. These include high initial costs and data privacy concerns.

Setting up ETC infrastructure, such as RFID readers, DSRC roadside units, cameras, and back-office systems, requires a large capital investment. These costs can limit adoption of ETC systems, especially in developing regions and among smaller toll operators.

ETC systems also collect and keep sensitive information, like vehicle IDs, travel times, and routes. This can cause worries about privacy and misuse, because cyber-attacks or data leaks could put user data or the system at risk.

Government Initiatives and Infrastructure Investments Creating Growth Avenues

Governments across the world are upgrading highways with RFID, ANPR, DSRC, and GNSS-based tolling systems. They are increasingly investing in smart transportation infrastructure to modernize road networks. Such intelligent transport system (ITS) initiatives are expected to open revenue streams for electronic toll collection system manufacturers during the forecast period.

Many nations are pushing for all-electronic tolling (AET) to replace traditional toll booths. For instance, the Indian Ministry of Road Transport & Highways (MoRTH) recently authorized a GNSS-based toll collection system using on-board units (OBUs). As a result, the future of electronic toll collection industry looks bright.

Emerging Electronic Toll Collection Market Trends

There is a rising interest in cashless and contactless toll payment systems, thanks to broader fintech adoption. This shift towards contactless tolling is expected to drive demand for electronic toll collection systems during the forthcoming period. In response, top electronic toll collection companies are launching contactless systems. For example, Conduent recently launched a new contactless payment system on the Venice transportation network system.

Advancements like multi-lane free-flow (MLFF), GNSS-based tolling, IoT integration, and cloud-based toll management are directly shaping the market. There is a rising interest in using RFID, DSRC, GNSS/GPS, and mobile-based tolling due to their various benefits.

Rising adoption of connected and autonomous vehicles is expected to boost electronic toll collection market value during the forthcoming period. These vehicles rely heavily on real-time communication, automated payments, and seamless mobility. As connected and autonomous vehicles become more common, toll systems will need to be smarter and fully digital, which will increase demand for advanced electronic toll collection technologies.

Innovative technologies like AI, ML, blockchain, and IoT are making their way into the electronic toll collection systems. These advanced technologies enhance accuracy, improve vehicle identification, reduce congestion, and strengthen data security.

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Competitor Insights

Key companies in the electronic toll collection market report include:

Conduent, Inc. (US)
Kapsch TrafficCom AG (Austria)
TransCore (US)
Siemens AG (Germany)
Cubic Corporation (US)
Infineon Technologies AG (Germany)
Thales Group (France)
EFKON GmbH (Austria)
Q-Free ASA (Norway)
Neology, Inc. (US)
FEIG ELECTRONIC (Germany)
GeoToll (US)
Toll Collect GmbH (Germany)
SICE (Spain)
STAR Systems International (Hong Kong)

Key Developments

In October 2025, Conduent Incorporated was awarded a contract by the Richmond Metropolitan Transportation Authority (RMTA) to set up a Pay-by-Plate toll collection system. This system will help RMTA switch to fully electronic tolling on all its roads.

In July 2025, Kapsch TrafficCom announced the debut of its “next-generation” V2X tolling solution for North America. The new system is designed to work with both V2X technology and traditional tolling methods, making it easier for agencies to upgrade.

In July 2024, Conduent launched a new contactless payment system on the Venice transportation network system managed by Azienda Veneziana della Mobilita. The new system lets passengers pay their fares using contactless bank cards or mobile wallets, making travel faster and easier.

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