According to the new research report titled “Automatic Tolling System Market Forecast to 2028 - COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 11,065.6 million by 2028, registering a CAGR of 5.4% from 2021 to 2028.
Digitalization of toll collection can be witnessed across the globe. Italy, China, Japan, Australia, the UK, Canada, Mexico, and many more are involved using electronic toll systems. For instance, the Korea Expressway Corporation operates hi-pass system for automatic toll collection on all the national express roads and numerous BTO/BTL roads in South Korea. Similarly, Japan has executed electronic tolling collection system nearly two decades ago. In China, over 100 million drivers are equipped with electronic toll collection devices to pay toll fee automatically on the country’s highways. The electronic toll collection system is serving as a platform for smart road technology. In 2019, approximately 2,500 highways nationwide were under construction to install electronic toll collection machines. As per the Chinese government, the number of drivers in China utilizing electronic toll collection system was anticipated to grow and reach 180 million by 2019 end. Such huge estimation regarding the adoption of electronic tolling collection systems will help enabling the market growth. Also, in June 2018, the Thousand Islands Bridge Authority has chosen TransCore to develop and maintain a next generation toll collection system for international bridge connecting Hill Island, Ontario and Wellesley Island, New York. Moreover, countries such as Vietnam are working to unveil electronic toll collection system within their territories. In August 2020, The Vietnam Infrastructure Development and Finance Investment Joint Stock Company introduced electronic toll collection system on Hanoi-Hai Phong Expressway. In September 2020, Singapore has declared about their plans to commence with deploying satellite-based Electronic Road Pricing network that would remove the need of physical gantries. Such developments are boosting digitalization at tolls.
The automatic tolling system market is segmented into offering, type, and geography. Based on offering, the market is further segmented into hardware and services. In 2021, the services segment accounted for a significant share in the global automatic tolling system market. In terms of type, the market is categorized into below unmanned self-service automated tollbooth collection system, unmanned automated toll booth collection system, and unmanned wireless automated toll booth collection system. In 2021, the unmanned automated toll booth collection system segment accounted for a significant share in the global automatic tolling system market. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). In 2021, Europe accounted for a significant share in the global automatic tolling system market.
Impact of COVID-19 Pandemic on Automatic Tolling System Market
The COVID-19 pandemic has shaken several industries. The tremendous growth in the spread of the virus has urged governments worldwide to impose strict restrictions on vehicles and human’s movement. Due to travel bans, mass lockdowns, and business shutdowns, the pandemic has affected economies and countless industries in various countries. The lockdown imposition has resulted in lesser production of commodities, goods, and services. Manufacturing, automotive, semiconductor & electronics, oil & gas, mining, aviation, and other industries have witnessed a decline in their operations due to the temporary shutdown of activities.
The worldwide lockdown to minimize the transmission of virus has significantly disrupted the supply chain activities. Further, there is a restriction on foreign trades due to the lockdown of international borders, non-operational distribution channels, and various government laws to take precautionary measures for public health and safety.
Automatic tolling systems combine multiple electronic components and devices, such as transponders, cameras, RFID chips, controllers, and processors. Major suppliers of parts and raw materials are from countries such as China and the US, which are among the worst affected countries due to COVID-19. As a result of the pandemic, strict lockdowns are enforced as preventive measures, thereby directly impacting the supply chain of electronic components and devices. Thus, the delay in the supply of raw materials to manufacturers who meet the requirements of tolling system integrators is expected to cause sequential effects in the year 2020. However, in 2021, with the uplifting of lockdowns and vaccination process, the shipment of raw materials has started again. Therefore, this factor is helping in creating a positive scenario in the growth of global automatic tolling system market.
Key Findings of Study:
The new advanced technologies in toll collection for smoother flow of vehicles are widely adopted in Europe. For instance, Toll4Europe provides European electronic tolling service (EETS) tolling system and offers a range of smart value-added services. The EETS system has linked two main technologies-Global navigation satellite-based system (GNSS) and dedicated short-range communication (DSRC). Further, The Siemens Mobility & Logistics company is implementing GNSS Tolling Solution in countries such as France, Austria, and Slovakia. EFKON GmbH, FEIG ELECTRONIC GmbH, Siemens Mobility GmbH, STMicroelectronics, Thales Group, and Indra Sistemas SA are among the other prominent players of automatic tolling system in Europe.
Asia Pacific is likely to exhibit the fastest-growth rate during the forecast period because of many emerging economies such as China, India, Japan, Australia, and South Korea. In this region, governments of several nations are taking initiatives for developing road infrastructure, e.g., National Highways Authority of India (NHAI) has introduced electronic toll collection called FASTag in toll plazas on national highways. From February 2021, FASTag is mandatory for all vehicles. Further, the region is witnessing high adoption of advanced technologies for toll collection. For instance, the satellite-based electronic road pricing (ERP) network has been installed in Singapore in the first half of 2021. According to the Land Transport Authority (LTA), the next generation GNSS ERP network installation project will continue for over 18 months.
North America is also showing a promising market growth due to the increase in state and local spending, along with the growth in federal funding for highways. The external factors such as cyclical growth and dispersal of nonresidential construction activities are also stimulating the demand for the installation of transportation infrastructure, such as airport runways, private roads, and streets. Thus, with the increasing road and transportation construction activities, the development of toll booths is also observed in the region. Therefore, these factors are influencing the growth of the automatic tolling system market in the regions.
