Highways are expected to account for a major share of the ETC market, based on application, during the forecast period.
With technological developments, ETC systems have provided an efficient way to overcome all the problems related to toll collection on highways. Nowadays, ETC systems based on different technologies such as RFID, DSRC, video analytics, and GNSS/GPS are being used. ETC systems have been playing a crucial role in collecting a toll on highways, tunnels, and bridges wherein conventional or manual toll collection has been transitioning to all-electronic tolling (AET) and high-tech transportation systems.
Transponder-based tolling systems will witness a higher CAGR in the ETC market, based on type, during the forecast period.
Transponders have been widely used for vehicle identification. Infrared, DSRC and GNSS technology-based tolling systems require some or other kinds of tags or transponders. The transponder or tag responds to radio signals that are suspended from gantries build on high-traffic urban areas or highways. Vehicle owners can pay the toll through their credit/debit cards. TransCore (US), Q-Free (Norway), and Star Systems International (Hong Kong) are the major companies that offer transponders for electronic toll collection.
The ETC market in APAC is expected to grow at the highest rate during the forecast period. APAC is one of the most important potential markets for ETC systems. APAC is in the early stage of adopting ETC solutions. Rapid urbanization and industrialization have led to the increased use of vehicles. The increase in urban population has given rise to more traffic congestion, which has surged traffic accidents and deteriorated the environment. The deployment of ETC systems prevent accidents and improves the environment in this region. China, Japan, and India have installed ETC solutions at many toll plazas. In short, the implementation of ETC systems in these countries has helped in better traffic management and improved revenue accountability. Due to ETC systems, drivers can commute at high speed, thereby saving fuel.