Electronic Toll Collection Market Size to Surpass $24.37 Billion by 2035 | Research by SNS Insider

By 2035, the U.S. Electronic Toll Collection market is projected to grow from USD 2.95 billion in 2025E to USD 6.58 billion. This expansion is driven primarily by efforts to modernize aging transportation infrastructure and increasing demand to reduce congestion across major highways and urban corridors, improving traffic flow efficiency and supporting smarter mobility solutions nationwide.

Austin, Feb. 19, 2026 (GLOBE NEWSWIRE) — Electronic Toll Collection Market Size & Growth Insights:

According to the SNS Insider, “The Electronic Toll Collection Market Size was valued at USD 10.94 billion in 2025 and is expected to grow at 8.34% CAGR to reach USD 24.37 billion by 2035.”

Increasing as Traffic Congestion and Rising Costs are Propelling Market Growth Globally

The market for electronic toll collection (ETC) is also significantly influenced by the growing issue of traffic congestion on roads and in urban areas. The fact that cars using E-ZPass receive a USD 3 credit on the USD 9 toll under congestion pricing, for example, serves as a reminder of the necessity of a tolling solution that integrates seamlessly with all systems. According to a transportation analytics firm, drivers lose about $1,800 USD annually, nearly three weeks of work, due to sitting in traffic. The need for next-generation electronic toll collection systems that improve traffic flow, reduce wait times, and lessen congestion is being driven by rising costs and inefficiencies.

Market Size and Growth Projections:

• Market Size in 2025: USD 10.94 Billion
• Market Size by 2035: USD 24.37 Billion
• CAGR: 8.34% from 2026 to 2035
• By Type: Transponder/Tag-based Tolling Systems held the largest share of 70% in 2025
• In 2025, North America dominates the market with 40% revenue share

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Leading Market Players with their Product Listed in this Report are:

• Kapsch TrafficCom AG
• Conduent Business Services
• EFKON GmbH
• TransCore Holdings, Inc
• Thales Group
• Raytheon Technologies Corporation
• Cubic Corporation
• Siemens
• Neology, Inc.
• VINCI
• Feig Electronic GmbH
• Toshiba Corporation
• TRMI Systems Integration
• Magnetic AutoControl
• International Road Dynamics Inc
• Honeywell International, Inc
• Mitsubishi Heavy Industries, Ltd
• Perceptics
• Q-Free

Electronic Toll Collection Market Report Scope:

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Key Segmentation Analysis

By Type

The Electronic Toll Collection market is dominated by Transponder/Tag-based tolling systems with a market share of approximately 70% in 2025 as they are essential to modern tolling infrastructure due to their efficiency and convenience. Other Tolling Systems segment, which includes GPS, video-based, and ANPR technologies, will also see substantial growth as it requires hardly any field hardware and is highly scalable.

By Offering

In 2025, the Hardware segment dominated the Electronic Toll Collection Market, accounting for over 60% of the share, owing to the availability of transponders, tags, and readers. The Back-office and Other Services segment is projected to have the highest CAGR over the forecast period 2026-2035, due to growth for software solutions, data analytics, and system integration.

By Technology

The RFID segment was dominating the Electronic Toll Collection Market holding upwards of a 55% market share leveraging radio frequency identification for seamless tolling. The DSRC segment is projected to witness the fastest growth during the forecast period of 2026-2035, as it is useful in enabling rapid and low-latency communication facilitates data sharing in real time.

By Application

The Highways segment led the Electronic Toll Collection Market in 2025, accounting for 61% market share due to the requirement for efficient, contactless tolling solutions along with the development of smart highway infrastructure. Urban Areas segment is anticipated to witness the fastest growth between 2026 and 2035 due to the rising government initiatives and smart city investments.

Regional Insights:

With more than 40% of the market for electronic toll collection in 2025, North America held the biggest revenue share. One of the main factors contributing to the region’s dominance is the increasing use of innovative tolling technology, particularly in the United States and Canada. In the United States, there is already well-established infrastructure that improves toll collection efficiency over highway and metropolitan areas.

Throughout the 2026–2035 forecast period, the Asia-Pacific region is anticipated to grow at the quickest rate in the electronic toll collection market. Leading countries at the forefront of this market growing movement include China, India, Japan, and South Korea.

Excessive Dependence on Technology and Vulnerability to Technical Breakdown May Hinder Market Expansion Globally

The ETC market is severely constrained by its reliance on technology, which makes it vulnerable to technical malfunctions. In order to conduct these transactions, ETC (electronic toll collection) systems use radio frequency identification (RFID), LIDAR, dedicated short range communication (DSRC), and other communication systems. This leads to operational difficulties such as signal interference and malfunctioning systems, as well as the consequences of an information integrity deficiency.

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Recent Developments:

• May 03, 2024 – Neology’s 6C neoTag™ RFID transponders achieved IAG E-ZPass certification following 11,000 vehicle passes with 100% accuracy at Neology’s OmniAir Certified Test Track. That certification makes it interoperable with all agency tag types in the U.S., an economical, battery-free and green solution to tolling.
• February 21, 2024 – Toshiba introduced high-speed diodes for many types of DTMOSVI(HSD) power MOSFETs to enhance the efficiency of power supplies. The DTMOSVI Series enables 65% better reverse recovery in trr and x88% better in Qrr for 0.4% efficiency gain for data centers, photovoltaic power and electric toll collection.

Exclusive Sections of the Electronic Toll Collection Market Report (The USPs):

• TOLLING SYSTEM PERFORMANCE METRICS – helps you understand revenue share by system type and improvements in transaction accuracy, speed, and vehicle throughput enabled by transponder-based systems. Also highlights reduction in congestion and vehicle idling time at toll plazas.
• OFFERING-LEVEL EFFICIENCY ANALYSIS – helps you identify demand share by hardware, software, and services while measuring improvements in reliability, data processing, and revenue assurance through integrated platforms. Also outlines reduction in operational and maintenance costs via service-led tolling models.
• TECHNOLOGY ADOPTION & PERFORMANCE BENCHMARKS – helps you assess deployment share of RFID and DSRC technologies with improvements in read accuracy, interoperability, and latency. Also highlights reduction in toll evasion and transaction failures through advanced validation systems.
• APPLICATION-LEVEL IMPACT METRICS – helps you evaluate installation share across highways and urban corridors with measurable improvements in traffic flow and travel time reliability. Also outlines reduction in emissions and fuel consumption through free-flow tolling adoption.
• REVENUE ASSURANCE & OPERATIONAL OPTIMIZATION INDICATORS – helps you gauge improvements in toll revenue capture, billing accuracy, and centralized monitoring efficiency. Also measures reduction in financial leakages and enforcement gaps.
• SUSTAINABILITY & MOBILITY EFFICIENCY INDEX – helps you understand congestion mitigation, lower carbon emissions, and fuel efficiency improvements across toll networks. Also evaluates integration with smart mobility and intelligent transportation systems.

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