Electronic Toll Collection Market

Market Definition

Electronic toll collection involves the automatic payment of tolls using wireless communication between vehicles and roadside infrastructure, allowing vehicles to pass through toll gates without stopping. This reduces congestion and improves environmental conditions. The market encompasses the development, deployment, and integration of automated tolling systems across highways, urban roads, and transportation networks.

Electronic Toll Collection Market Overview

The global electronic toll collection market size was valued at USD 10.32 billion in 2024 and is projected to grow from USD 11.16 billion in 2025 to USD 20.70 billion by 2032, exhibiting a CAGR of 9.23% during the forecast period. This growth is attributed to the increasing deployment of intelligent transportation systems aimed at enhancing traffic management and reducing congestion. 

The rising adoption of contactless payment methods, radio-frequency identification-based tolling, and satellite-based electronic toll collection solutions is fueling market expansion across major transportation corridors.

Major companies operating in the electronic toll collection industry are Kapsch TrafficCom AG, Thales, Conduent Incorporated., EFKON GmbH, TransCore, FEIG ELECTRONICS Inc., TOSHIBA CORPORATION, The Revenue Markets Inc., MITSUBISHI HEAVY INDUSTRIES, LTD., International Road Dynamics Inc., STAR Systems International, Neology, Inc., Siemens, KENT ITS, and Watchdata.

Growing emphasis on reducing vehicle idling times, minimizing greenhouse gas emissions, and improving fuel efficiency is accelerating the demand for automated tolling systems. Additionally, advancements in vehicle detection technologies, integration of artificial intelligence (AI) and real-time data analytics, and supportive government initiatives promoting smart mobility infrastructure are contributing to the market's robust growth trajectory.

• In May 2025, Q-Free secured a three-year, multi-million-euro contract with Via Verde Portugal to supply 2.4 million dedicated short-range communication transponders. These devices support the world’s first integrated, multilane free-flow electronic toll collection system in Portugal and enable interoperable tolling and payment services across Portugal, Spain, and France. The contract reinforces Q-Free’s longstanding partnership with Via Verde and its leadership in Southern Europe’s tolling market.

Key Highlights

1. The electronic toll collection industry size was valued at USD 10.32 billion in 2024.
2. The market is projected to grow at a CAGR of 9.23% from 2025 to 2032.
3. North America held a market share of 36.55% in 2024, valued at USD 3.77 billion.
4. The hardware segment garnered USD 5.92 billion in revenue in 2024.
5. The radio-frequency identification (RFID) segment is expected to reach USD 8.53 billion by 2032.
6. The urban toll roads segment is anticipated to witness the fastest CAGR of 10.98% over the forecast period
7. Asia Pacific is anticipated to grow at a CAGR of 10.57% through the projection period.

Market Driver

Surging Traffic Congestion and Need for Efficient Traffic Flow

The growth of the electronic toll collection market is propelled by surging traffic congestion and the increasing need for efficient traffic flow across expanding transportation networks. Rapid urbanization, rising vehicle ownership, and growing freight transportation volumes are placing significant strain on existing roadway infrastructure, resulting in frequent delays and extended travel times.

• For instance, in June 2025, according to the Council on Energy, Environment and Water, India’s vehicle stock is expected to more than double from 226 million in 2023 to 494 million by 2050. Vehicle ownership is projected to rise from 163 to 309 per 1,000 people, aligning with China’s current ownership rate as India’s GDP per capita rises to comparable levels.

More transportation authorities are adopting electronic toll collection systems to enable seamless, contactless toll payments, eliminating the need for vehicles to stop or slow down at toll booths.This improves traffic throughput while simultaneously reducing fuel consumption, vehicular emissions, and the operating costs associated with manual toll collection.

The shift toward automated tolling solutions is further supported by growing government initiatives focused on smart transportation infrastructure and sustainability goals. The rising demand for advanced electronic toll collection technologies is fueling market expansion.

Market Challenge

Lack of System Compatibility and Unified Standards

The lack of system compatibility and unified standards poses significant challenges to the growth of the electronic toll collection market, particularly in regions with multiple toll operators and cross-border transportation corridors. Variations in communication technologies such as RFID, DSRC, and GNSS, along with differences in vehicle identification protocols, payment methods, and backend systems, create fragmentation across tolling networks. 

Inconsistent standards hinder seamless interoperability, resulting in operational inefficiencies and requiring users to manage multiple tags or accounts. This lack of harmonization increases costs for both operators and end users, limits scalability, and slows the adoption of universal tolling solutions.

To address these challenges, industry stakeholders are adopting standardization, promoting international collaboration, and developing interoperable platforms that support multi-operator and multi-jurisdictional tolling. These initiatives aim to simplify system integration, enhance user convenience, and accelerate the adoption of electronic toll collection technologies across diverse transportation networks.

Market Trend

Expansion of Satellite-Based Toll Collection Solutions

The expansion of satellite-based toll collection solutions is influencing the electronic toll collection market by enabling flexible, scalable, and infrastructure light tolling systems. GNSS and GPS-based technologies eliminate the need for physical toll booths or gantries, allowing for distance-based and dynamic pricing models that optimize revenue collection while reducing operational complexity.

Unlike conventional tolling methods, satellite-based solutions offer significant advantages for long-distance freight corridors, cross-border travel, and regions with vast highway networks, where the cost and logistics of installing physical infrastructure can be prohibitive. These systems facilitate seamless interoperability across jurisdictions and simplify tolling for commercial fleets, private vehicles, and international operators. 

Moreover, advancements in satellite positioning accuracy, real-time data analytics, and interoperability standards are enhancing system reliability, accuracy, and compliance enforcement.

• In February 2025, T-Systems Road User Services and GEA secured an eight-and-a-half-year contract to deploy a satellite-based toll system for trucks over 3.5 tons in Alsace, France. Using European electronic toll service infrastructure, the kilometer-based system enables seamless electronic toll collection via on-board units or online e-tickets.

Electronic Toll Collection Market Report Snapshot

Segmentation	Details
By Component	Hardware and Software
By Technology	Radio-Frequency Identification (RFID), Dedicated Short-Range Communication (DSRC), Global Navigation Satellite System (GNSS) / GPS), and Video Analytics-Based Tolling (ANPR/ALPR)
By Application	Highways and Urban Toll Roads
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Component (Hardware and Software): The hardware segment earned USD 5.92 billion in 2024, largely due to the widespread deployment of physical tolling infrastructure, including transponders, sensors, cameras, and gantries essential for system operations.
• By Technology (Radio-Frequency Identification (RFID), Dedicated Short-Range Communication (DSRC), Global Navigation Satellite System (GNSS) / GPS, and Video Analytics-Based Tolling (ANPR/ALPR)): The radio-frequency identification (RFID) segment held a share of 42.32% in 2024, primarily attributed to its cost-effectiveness, ease of integration, and widespread adoption for reliable, contactless, and efficient toll collection operations.
• By Application (Highways and Urban Toll Roads): The highways segment is projected to reach USD 10.83 billion by 2032, owing to the continuous expansion of intercity road networks, increasing long-distance freight and passenger traffic, and the growing need for efficient tolling solutions to manage congestion and generate sustainable revenue.

Electronic Toll Collection Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America electronic toll collection market share stood at around 36.55% in 2024, valued at USD 3.77 billion. This dominance is reinforced by the widespread integration of advanced tolling technologies, robust transportation infrastructure, and strong government initiatives promoting intelligent transportation systems. 

The region’s early adoption of RFID, DSRC, and satellite-based tolling solutions, along with expanding interoperability agreements between states, is enhancing user convenience and enhancing system efficiency.

Additionally, increasing public-private partnerships are enabling substantial investments in modernizing tolling infrastructure and deploying multi-lane free-flow systems that improve traffic flow and reduce congestion. The growing emphasis on reducing vehicle emissions and adopting sustainable mobility solutions is further accelerating regional market growth. 

Moreover, advancements in connected vehicle technologies, real-time traffic management, and data analytics are fostering continuous innovation, enhancing toll collection accuracy, and supporting long-term market expansion.

• In February 2023, Cepton, Inc. announced a multi-million-dollar contract with a leading United States highway tolling operator to deploy its Sora series lidar sensors. The system enables free-flow electronic tolling with accurate 3D vehicle profiling to improve toll accuracy and reduce congestion.

The Asia-Pacific electronic toll collection industry is set to grow at a CAGR of 10.57% over the forecast period. This growth is attributed to increasing urbanization, rapid motorization, and rising demand for efficient traffic management solutions to address growing congestion challenges. 

The region's booming e-commerce sector, rising cross-border trade, and expanding logistics and freight movement are intensifying road usage, which in turn creates greater demand for modern tolling infrastructure.

Government initiatives promoting smart transportation systems, emission reduction, and digital payment integration are accelerating adoption. Additionally, collaborations among technology providers, infrastructure developers, and public agencies, along with advancements in satellite-based tolling and mobile payment platforms, are enhancing scalability and interoperability, supporting regional market expansion.

• In June 2024, the Ministry of Road Transport and Highways reported that Indian Highways Management Company Limited, under the National Highways Authority of India, invited global expressions of interest to implement a Global Navigation Satellite System (GNSS)-based electronic toll collection system in India. The proposed hybrid model will integrate existing radio frequency identification tolling with satellite-based lanes to enable barrier-free, distance-based tolling and improve transparency and efficiency on national highways.

Regulatory Frameworks

• In the European Union, Directive 2004/52/EC regulates the interoperability of electronic road toll systems. It establishes the legal framework for a single electronic tolling system, ensuring that road users can use one contract and one on-board unit across multiple member states, simplifying cross-border toll payments.
• In the U.S., the Moving Ahead for Progress in the 21st Century Act (MAP‑21, Public Law 112–141) regulates the interoperability of electronic toll collection on federal-aid highways. It requires all federal-aid toll facilities to implement technologies or business practices that ensure seamless electronic toll collection interoperability.
• In India, the National Highways Fee (Determination of Rates and Collection) Rules, 2008 regulate toll fee determination and collection, including electronic toll collection. They set out vehicle categories, base rates per kilometer, annual revision formulas, and approved electronic systems such as FASTag lanes for automatic tolling across national highways and expressways.
• In Australia, the Austroads AP‑51‑98 Electronic Toll Collection Standards regulate the standards and guidelines for electronic toll collection systems. It provides a comprehensive technical and operational framework covering transponders, roadside equipment, communications, data formats, and interoperability for deploying efficient, reliable automatic toll systems nationwide.

Competitive Landscape

Companies operating in the electronic toll collection industry are actively seeking to expand their market presence by leveraging technological innovation, diversifying their system offerings, and forming strategic partnerships. Key players are heavily investing in research and development to enhance system accuracy, interoperability, real-time data processing, and cybersecurity, with a focus on creating efficient, scalable, and cost-effective tolling solutions.

They are also developing advanced technologies such as multi-lane free-flow systems, GNSS-based tolling, and integrated vehicle-to-infrastructure communication platforms to address the growing complexity of modern transportation networks. 

Additionally, firms are forming collaborations with government agencies, transportation authorities, and mobility service providers to secure long-term contracts, expand deployment capabilities, and strengthen their positions in both mature and emerging markets.

• In February 2025, Kapsch TrafficCom secured a four-year, USD 8.1 million contract with Norway’s toll authority, Vegfinans AS, to deploy its autopass multi-lane free flow tolling system across six counties. The project includes upgrades and new installations, with a focus on high system quality and environmental sustainability.

List of Key Companies in Electronic Toll Collection Market:

• Kapsch TrafficCom AG
• Thales
• Conduent Incorporated.
• EFKON GmbH
• TransCore
• FEIG ELECTRONICS Inc.
• TOSHIBA CORPORATION
• The Revenue Markets Inc.
• MITSUBISHI HEAVY INDUSTRIES, LTD.
• International Road Dynamics Inc.
• STAR Systems International
• Neology, Inc.
• Siemens
• KENT ITS
• Watchdata

Recent Developments (Partnerships/Agreements)

• In January 2024, Toll4Europe GmbH signed an agreement with the Dutch toll authority RDW, becoming the first European Electronic Toll Service provider for the Netherlands' upcoming truck toll system, scheduled to launch in mid-2026. The system will levy charges on trucks over 3.5 tons based on distance travelled and emission levels, using on-board units for automated, cross-border toll processing.
• In April 2023, STAR Systems International partnered with TransCore to develop and market next-generation readers, antennas, and transponders for interoperable tolling. The partnership integrates advanced RFID technology with electronic tolling expertise to support the global expansion of open-road tolling and congestion pricing systems.