North America Electronic Toll Collection (ETC) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The North America Electronic Toll Collection (ETC) Market is Segmented by Type (Transponder and Other Types), Technology (Radio-frequency Identification (RFID), Dedicated Short-range Communication (DSRC), and Other Technologies), Application Type (Bridges, Roads, and Tunnels), and Geography (United States, Canada, and Rest of North America). The report offers the market size and forecasts in value (USD billion) for all the above segments.

North America Electronic Toll Collection Market Snapshot

North America Electronic Toll Collection Market
Study Period: 2018 - 2026
Base Year: 2020
CAGR: >8 %

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Market Overview

The North America electronic toll collection (ETC) market was valued at USD 3 billion in 2020, and it is expected to reach USD 5 billion in 2026, registering a CAGR of around 8% over the forecast period (2021-2026).

The COVID-19 pandemic has severely impacted several industries across the world, causing an economic slowdown. Many industries took a hit due to countries imposing lockdowns and restrictions to stop the spread of the virus. As economies are recovering slowly, it is expected that the market will grow 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 American region, and adoption of the latest technological solutions, including GPS and 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 people pass a collection point in the form of a plaza or a booth in the case of an open road facility (ORT). In the last few years, advancements in technology have been redefining toll collection systems in the North American region.

The demand for electronic toll collection is growing significantly, as it majorly helps reduce 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 United States 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 to 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 congestion at toll roads.

Scope of the Report

The North America electronic toll collection (ETC) market covers the latest electronic toll collection system demand trends, technological developments, latest government policies, manufacturers’ developments, etc. The study also covers the market share of major electronic toll collection system providers across North America.

The North America electronic toll collection (ETC) market can be segmented on the basis of type, technology, application, and geography. Based on type, the market is segmented into transponder and other types. By technology, the market is segmented into radio-frequency identification (RFID), dedicated short-range communication (DSRC), and other technologies. By application type, the market is segmented into bridges, roads, and tunnels. By geography, the market is segmented into the United States, Canada, and Rest of North America.

Other Types
Radio-frequency Identification (RFID)
Dedicated Short-range Communication (DSRC)
Other Technologies
Application Type
United States
Rest of North America

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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. Owing to the above reasons, governments have transitioned toward electronic toll collection. In the United States, due to advancements in communication technology and contactless 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 the electronic method, offers numerous benefits, such as:

· Limited or no traffic congestion

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

· Vehicle theft detection

· Tracking 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.

ETC Market_trend 1

The United States Led the Electronic Toll Collection Market

The electronic toll collection market in the United States is expected to grow 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, included 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 totaling 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, the Transportation Ministry of Canada introduced the Alberta bill that would enable the use of tolls to finance new bridge and road projects. Further, the Financing Alberta's Strategic Transportation (FAST) Act would allow the government to use tolls to finance new roads and bridges.

Electronic Toll Collection (ETC) Market_Trend1

Competitive Landscape

The North America electronic toll collection 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 over 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), which 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.

Recent Developments

In June 2021, Plenary Infrastructure Group (Plenary) awarded Kapsch Group a project to implement a new toll collection system for the Louisiana Highway (LA-1) for the Louisiana Department of Transportation and Development (LADOTD).

In May 2021, New York’s Metropolitan Transportation Authority awarded contracts totaling almost USD 400 million to three firms to run different aspects of toll system operations at its bridges and tunnels. Conduent was awarded an eight-year USD 246 million contract to design and maintain an upgraded system for its transponder-based toll collection system, known as E-ZPass. Faneuil Inc. got awarded a five-year USD 122 million contract to set up tolling operation centers and maintenance. Transcore LP was awarded a five-year USD 26 million contract to distribute and manage transponders.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Type

      1. 5.1.1 Transponder

      2. 5.1.2 Other Types

    2. 5.2 Technology

      1. 5.2.1 Radio-frequency Identification (RFID)

      2. 5.2.2 Dedicated Short-range Communication (DSRC)

      3. 5.2.3 Other Technologies

    3. 5.3 Application Type

      1. 5.3.1 Bridges

      2. 5.3.2 Roads

      3. 5.3.3 Tunnels

    4. 5.4 Geography

      1. 5.4.1 United States

      2. 5.4.2 Canada

      3. 5.4.3 Rest of North America


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Kapsch Group

      2. 6.2.2 Thales Group

      3. 6.2.3 Toshiba Corporation

      4. 6.2.4 TransCore

      5. 6.2.5 Siemens

      6. 6.2.6 TRMI Systems Integration

      7. 6.2.7 Magnetic AutoControl



**Subject to Availability

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Frequently Asked Questions

The North America Electronic Toll Collection (ETC) Market market is studied from 2018 - 2026.

The North America Electronic Toll Collection (ETC) Market is growing at a CAGR of >8% over the next 5 years.

The North America Electronic Toll Collection (ETC) Market is valued at 3 Billion USD in 2018.

The North America Electronic Toll Collection (ETC) Market is valued at 5 Billion USD in 2026.

Kapsch Group, Thales Group, TransCore, Siemens, TRMI Systems Integration are the major companies operating in North America Electronic Toll Collection (ETC) Market.

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