The Global Market for Electronic Toll Collection (ETC) Systems is Forecast to Reach US$10.6 Billion by 2024

Need for Smart Financing of Road Infrastructure & Innovative Strategies to Relieve Traffic Congestion Drives Opportunities for Electronic Toll Collection (ETC) Systems, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Electronic Toll Collection (ETC) Systems market. The global market for Electronic Toll Collection (ETC) Systems is forecast to reach US$10.6 billion by 2024, driven by investment challenges involved in developing and maintaining road networks and the resulting focus on tolling as a revenue generation mechanism; and stringent road user charging measures taken by governments across the globe to battle traffic congestion in urban areas.

Road User Charging (RUC), also known as road pricing, has emerged into an important economic tool to fund road infrastructure, especially against the backdrop of the growing number of deficit ridden governments worldwide and the deteriorating state of road infrastructure in both developed and developing countries. In developed countries, road infrastructures are aging and are in immediate need of modernization and upgrades, while in developing countries rising vehicular population is necessitating expansion of roads and transport facilities. High wear and tear of road infrastructure due to increase in freight and passenger transport over the last few years in line with changing dynamics of commercial activity and logistics, has reduced the life of roads. Roads which were initially designed to last for over 50 to 60 years have today reached their end-of-life in less than half of its purported operational life. The need to establish new road networks or repair and maintain the existing ones has therefore become acute. The urgent need to restore vital infrastructure like bridges, roads, and tunnels not just in Europe and North America but in other regions worldwide, is throwing the focus on sustainable ways to raise funds for infrastructure development. Charging users directly for transport and use of roads is emerging as the most attractive and feasible way to finance road investments.       

RUC also doubles up as a tool to manage traffic congestion. With steadily growing people and vehicle population, average travel speeds in cities is rapidly decreasing, thus creating a need for curbing traffic congestion and for promoting environmentally sustainable transport and mobility habits. Tolling on congested metropolitan city areas is increasingly attracting attention for numerous reasons including escalation of the economic cost of congestion which runs into billions of dollars for each economy. Development of smart cities and implementation of smart transportation and mobility technologies are broad factors favoring the trend towards congestion pricing. Congestion pricing brings in numerous benefits by encouraging people to use public transit; reduce non-essential trips; reschedule their trips to other non-peak times; and utilize carpooling services. The most important among these benefits is RUC’s ability to encourage model-shifts or shift towards other modes of transportation such as railways for achieving equitable balance between road and rail transport systems.

Designed to transform traditional toll collection procedures, few of the major factors driving demand for electronic toll collection (ETC) systems include significant time/cost savings, better convenience for commuters, elimination of manual collection of toll payments and physical operation of toll barriers, reducing emissions caused by idling vehicles and their engines, and reduced risk of toll evasion and non-payment.

As stated by the new market research report on Electronic Toll Collection (ETC) Systems the United States represents the largest market worldwide. China ranks as the fastest growing market with a CAGR of 16.5% over the analysis period led by new regulations that favor tolling. The country currently flaunts over 175,000 kilometers of toll roads. The whopping figure accounts for less than 5% of the country’s total road network, highlighting the untapped potential in store for toll road conversions and for the use of ETC technology. The country's aggressive road network expansion policies therefore bode well for the growth of the ETC market in the country.

Major players in the market include Atlantia SpA, Cubic Corporation, DENSO CORPORATION, EFKON AG, Far Eastern Electronic Toll Collection Co. (FETC), G.E.A., GeoToll, International Road Dynamics, Inc., Kapsch TrafficCom AG, Neology, Inc., Perceptics LLC, Q-FREE ASA, Raytheon Company, Sanef,  Siemens AG, Star Systems International Limited, Thales Group, The Revenue Markets Inc. (TRMI), Toll Collect GmbH, TransCore Holdings, Inc., and Xerox Corporation, among others.

The research report titled “Electronic Toll Collection (ETC) Systems: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the USA, Canada, Japan, Europe (France, Italy, Spain, Austria, Portugal and Rest of Europe), China, South Korea and Rest of World.



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