Electronic Toll Collection Market Trends 2025: AVIS Segment Dominates, VES Set to Surge

Electronic Toll Collection Market Size, Growth and Import & Export Analysis

The electronic toll collection market is expected to increase from USD 8.43 billion in 2025 to USD 25.05 billion by 2034, growing at a CAGR of 12.86% throughout the forecast period from 2025 to 2034. The growing use of advanced toll collection systems in highways for collecting toll taxes coupled with rapid investment by government for developing expressways in developed regions has boosted the market expansion.

Also, the rising consumer preference to adopt RFID based toll stickers in their cars along with research and development related to satellite-based toll system is playing a vital role in shaping the industry in a positive direction. The increasing use of automatic number plate recognition (ANPR) technology in developed nations is expected to create growth opportunities for the market players in the upcoming years.

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Introduction

The electronic toll collection market is a prominent segment of the automotive industry. This industry deals in manufacturing and distribution of electronic toll collection solutions across the world. There are several types of toll collection equipment developed in this sector comprising of automatic vehicle identification system (AVIS), automatic vehicle classification (AVC), violation enforcement system (VES) and some others. These equipment are operated using various technologies consisting of radio frequency identification (RFID), dedicated short range communication (DSRC), global navigation satellite system (GNSS) and GPS, cell phone tolling and some others. It finds application in highways and urban areas. This market is expected to rise significantly with the growth of the advanced equipment industry in different parts of the globe.

Highlights of the Electronic Toll Collection Market

• Asia Pacific generated highest revenue of the electronic toll collection market.
• North America is expected to rise with a significant CAGR during the forecast period.
• By type, the automatic vehicle identification system (AVIS) segment held the largest share of the market.
• By type, the violation enforcement system (VES) segment is expected to rise with the highest CAGR during the forecast period.
• By application, the highways segment led the market.
• By application, the urban areas segment is expected to grow with the fastest CAGR during the forecast period.

What are the Trends of the Electronic Toll Collection Market in 2025?

The major trends in this market consists of rapid urbanization, rising emphasis on road development and government initiatives.

Rapid Urbanization

• The rapid urbanization in several parts of the world has increased the demand for advanced tolling systems to calculate the use of vehicles.

Rising Emphasis on Road Development

• The growing emphasis of different organizations to develop high-quality roads for easing the driving experience and cut down destination reaching time has increased the application of tolling systems.

Government Initiatives

• Government of various countries such as the U.S., India, Japan, China and some others are launching several initiatives for integrating advanced toll systems in their highways.

Type Insights

How did the Automatic Vehicle Identification System (AVIS) Segment Led the Electronic Toll Collection Market in 2025?

The automatic vehicle identification system (AVIS) segment dominated the market. The growing use of automatic vehicle identification system in expressways for automatically identifying and tracking vehicles has boosted the market expansion. Additionally, numerous advantages of AVIS including enhanced security, improved traffic management, streamlined operations and some others is expected to drive the growth of the electronic toll collection market.

The violation enforcement system (VES) segment is expected to expand with the highest CAGR during the forecast period. The rapid deployment of violation enforcement system (VES) in highways and urban areas for detecting and addressing toll evasion has driven the market growth. Additionally, various advantages of VES such as reduced toll evasion, enhance safety, streamlined enforcement, improved traffic flow and some others is expected to propel the growth of the electronic toll collection market.

Application Insights

What made the Highways to be the Most dominant Segment of the Electronic Toll Collection Market in 2025?

The highways segment held the largest share of the market. The growing demand for high-quality in developed regions for transporting from one place to another has boosted the market expansion. Additionally, numerous government initiatives aimed at developing the highway infrastructure coupled with rising emphasis of public sector entities to construct highways in developing nations is playing a crucial role in shaping the industrial landscape. Moreover, partnerships among highway organizations and toll system providers to deploy advanced toll collection equipment is expected to foster the growth of the electronic toll collection market.

The urban areas segment is expected to rise with the fastest CAGR during the forecast period. The growing use of advanced toll systems in urban areas to mitigate traffic congestions has boosted the market expansion. Additionally, rising investment by government for constructing smart cities in developed regions coupled with rapid urbanization in different parts of the world is playing a prominent role in shaping the industry in a positive direction. Moreover, the deployment of violation enforcement system (VES) in urban areas to monitor illegal vehicles is expected to propel the growth of the electronic toll collection market.

Geographical Insights

Why Asia Pacific dominated the Electronic Toll Collection Market in 2025?

Asia Pacific dominated the electronic toll collection market. The growing sales of vehicles in several countries such as Japan, China, India, South Korea and some others has boosted the market expansion. Additionally, rapid investment by government for strengthening the expressways coupled with deployment of AI-integrated toll systems in modern roads is playing a prominent role in shaping the industrial landscape. Moreover, the presence of various market players such as Toshiba Infrastructure Systems & Solutions, VaaaN, Mitsubishi Heavy Industries Machinery Systems and some others is expected to boost the growth of the electronic toll collection market in this region.

• In March 2025, Mitsubishi Heavy Industries, Ltd launched Merging Support Information System in Japan. This system is designed to enhance the toll operations across this nation.(Source: Mitsubishi Heavy Industries)

North America is expected to rise with a significant CAGR during the forecast period. The rising adoption of electric vehicles in the U.S. and Canada with an aim to reduce vehicular emission has driven the market expansion. Additionally, rapid focus of government on deploying high-quality tolling systems coupled with growing investment by transport department for developing the highways is contributing to the industry in a positive manner. Moreover, the presence of several market players such as Transcore, Cubic Corporation, International Road Dynamics Inc. (IRD) and some others is expected to foster the growth of the electronic toll collection market in this region.

• In June 2025, TransCore announced to deploy its tolling solution in New Hope–Lambertville, U.S. Through this announcement, TransCore will allow travelers to pay cashless toll taxes in toll bridges of this region.(Source: TransCore)

Industry Leader Announcement

• In January 2025, Jeff Miller, the WVPA’s Executive Director made an announcement stating that, “This system upgrade was crucial for ensuring WVPA can efficiently operate and support our travelers well into the future. While E-ZPass is still the most efficient option for Turnpike drivers, now travelers can choose a toll-by-plate payment option as a convenient alternative to pay their tolls, we strive to provide an excellent experience for Turnpike drivers, and TransCore has been a long-time partner in this endeavor. They work with us to truly design and deliver industry-leading solutions that help us meet our objectives and better serve our customers. Many Turnpike drivers are already experiencing the benefits of the back-office system upgrade we partnered with TransCore to deploy a few months ago, but now that the lane technology is also live, I’m confident that our end-to-end systems are providing more efficient, streamlined travel for our motorists."

Competitive Landscape

The electronic toll collection market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of EFKON GmbH; Mitsubishi Heavy Industries, Ltd.; TransCore; Thales; Kapsch TrafficCom AG; Conduent Incorporated; Neology, Inc.; Toshiba Infrastructure Systems & Solutions Corporation; STAR Systems International; VaaaN and some others. These companies are constantly engaged in developing high-quality toll collection solutions and adopting numerous strategies such as business expansions, acquisitions, collaborations, joint ventures, launches, partnerships, and some others to maintain their dominance in this industry.

• According to the annual report of Kapsch TrafficCom, around 51.70% revenue of the company was generated from the EMEA region followed by other regions in 2024. (Source: Kapsch)

Recent Developments

• In January 2025, TransCore launched Infinity tolling technology. This tolling technology is designed for the transportation systems of West Virginia, U.S.(Source: GlobeNewswire)
• In September 2024, the government of India announced to launch a satellite-based toll collection system in India. This toll system is expected to be deployed in India by April 2025. (Source: Cittimagazine)
• In September 2024, STAR Systems International launched a new electronic toll system. This new toll system is designed for the Dominican Republic. (Source: GlobeNewswire)

Top Electronic Toll Collection Market Players

• Kapsch TrafficCom AG
• Toshiba Infrastructure Systems & Solutions Corporation
• STAR Systems International
• Conduent Incorporated
• EFKON GmbH
• TransCore
• Thales
• Mitsubishi Heavy Industries, Ltd.
• Neology, Inc.
• VaaaN

Electronic Toll Collection Market Segments Covered in the Report

By Type

• Automatic Vehicle Identification System (AVIS)
• Automatic Vehicle Classification (AVC)
• Violation Enforcement System (VES)
• Others

By Technology

• Radio Frequency Identification (RFID) 
• Dedicated Short Range Communication (DSRC)
• Global Navigation Satellite System (GNSS) and GPS
• Cell Phone Tolling
• Others

By Application

• Highways
• Urban Areas

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa