North America Electronic Toll Collection (ETC) Market Size

North America Electronic Toll Collection Market Analysis

The North America Electronic Toll Collection was valued at USD 3.30 Billion in 2021 and is expected to grow up to USD 5.40 Billion by 2027, registering a CAGR of over 8% during the forecast period (2022-2027).

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, 2022-2027.

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 of 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.