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.
Global Industry Analysts, Inc. 6150 Hellyer Ave., San Jose CA 95138, USA,
All Rights Reserved.
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