India Electronic Toll Collection Market is anticipated
to grow at a high CAGR in the forecast period. The significant impacting
factors in the India electronic toll collection market include continuous
growth in demand for effective traffic management at toll collection centers,
cashless traveling facilities, and reduced environmental pollution. However,
the high initial installation cost and high operational costs of the electronic
toll collection system hamper the market growth to a certain extent. The market
has witnessed significant growth, owing to an increase in the adoption of
electronic toll collection (ETC) across the country and stringent government
regulations regarding toll collection.
According to new legislation announced by the Ministry
of Road Transport and Highways, all commercial vehicles in India with a
national permit must include both an RFID electronic tolling tag (FASTag) and
vehicle tracking (a national permit is a federal authorization, which enables
commercial vehicles to transport goods across all states). This follows a
previous announcement that mandates the sale of FASTags with all new 4- wheeled
vehicles, and this is expected to further accelerate the already rapidly
growing penetration of ETC in India. For instance, India saw a 46% rise in
electronic toll collection through FASTags in 2022, and the Indian government
aims to build 65,000 km of national highways by 2022 with a budget of USD 741.5
billion.
A sophisticated technology for automatic charge
collecting on roads is the electronic toll collection (ETC) system. Vehicles
are automatically charged by the ETC system without the need for a human to do
anything or for the driver to stop. By utilizing cutting-edge technical
solutions, such as GPS & GNSS toll collecting and tracking technologies,
electronic toll collection helps to manage traffic in very crowded locations
efficiently. The FASTag is a gadget that deducts toll payments directly from
the vehicle-linked prepaid account using radio frequency identification (RFID)
technology. It was created as a part of a scheme for electronic toll collection
at toll booths on national roads by the National Highway Authority of India
(NHAI). The success of the effort has been aided by the government's
enthusiastic support of new regulations and standards for the installation of
these systems and tolling.
India Electronic Toll Collection Market: Drivers &
Trends
Rising Demand for Effective Traffic Management at The
Toll Collection Center
Smooth traffic flow is guaranteed and time at the toll
booth is reduced with proper and efficient traffic management. The volume of
traffic traveling on national roads is rising, which leads to more traffic jams
at toll plazas and wasted time and fuel. The new electronic toll-collecting
system makes toll payments directly from the passenger's associated prepaid or
postpaid account using technologies like RFID and an onboard device called a "tag."
The tag contains a distinctive identifying number that allows the vehicle to be
located and the appropriate fee to be charged. Additionally, all of these
aspects of electronic toll collection have advantages, such as the convenience
of users not having to stop at toll booths to pay, which eases traffic and
helps the market expand.
Cashless Travelling
Electronic toll collection systems enable the central
management of toll operations through a single integrated solution. ETC ensures
that payment at the toll is made electronically. The facility of cashless
transactions offered by this system not only saves travel time but also avoids
traffic delays. This act as a key driving force behind the rise of the India
electronic toll collection market.
Reduced Environmental Pollution
The continuous growth of traffic and lack of a proper
tolling system account for maximum air pollution, owing to the release of
pollutants during vehicle operation. The heaviest congestion occurs near a toll
gate where a vehicle makes a brief stop to pay the toll amount, which increases
air pollution. The aim behind electronic toll collection is not only to
eliminate the delay occurring on toll roads, toll bridges, toll tunnels, and
more but also to improve fuel consumption and reduce pollution levels
(emissions). Electronic toll collection has a positive impact on the
environment as it allows the free flow of traffic at the toll plaza.
Mobile and Satellite-based GPS Systems Witnessing
Investment Rise
The commercialization of global positioning systems
(GPS or GNSS) has substantially broadened its scope of application in various
daily activities. For instance, the use of GPS systems installed onboard
vehicles could also be utilized for toll collection purposes thereby
effectively eliminating the need for any tolling infrastructure or system
requirements. Moreover, other benefits, such as low cost per transaction,
maintainability, accessibility to web-based accounts, and no infrastructure
required for integration of new routes, are expected to drive the demand for
GPS-based toll collection systems. In addition, the availability of the cost of
sharing the GPS technology owing to sharing of service also lowers the cost of
maintenance and operational costs of this system. Thus, providing a substantial
advantage over the existing toll collection systems. However, the recent
growing awareness of data privacy, data protection regulations, and its ability
to enforce violations are expected to restrict the penetration of this
technology to a wider audience. As a result, the post subsequent improvements
in data privacy and protection are achieved and regulated by the government,
the technology is expected to create lucrative opportunities for market
players.
India Electronic Toll Collection Market: Restraints
High Initial Installation and Operational Costs of
Electronic Toll Collection System
The most advanced and complicated technique of
collecting tolls is the electronic toll collection system. ETC is still
developing even after more than 20 years of usage. ETC system implementation is
challenging and expensive since costs vary greatly depending on the project's
scope. Whether the system is new or updated has an impact on the price as well.
Based on the degree of the customized software needed for the business rules,
the back-office operation, the project location, and the required signs, it is
predicted that the price range will fluctuate. ETC is costly as a result of the
high initial installation costs and significant operating expenses associated
with its adoption. This serves as a significant hurdle and slows the market's
expansion.
Insufficient Standardization Levels and Evaluation
Metrics for Electronic Toll Collection Systems
ETC systems generally vary as per the requirement of
the state or central agencies and their efficiency is greatly influenced by the
vehicle classification and interoperability of the system. Moreover, the toll
collection system deployed could utilize a range of technologies for providing
a seamless toll collection process. As a result, ETC systems lack fixed
evaluation metrics, guidelines, or regulations that govern system aspects, such
as interoperability, uniformity, and volume of traffic handled.
Moreover, the availability of other services, such as
reports & monitoring, gathering insights about traffic patterns, congestion
management, and pollution control, can also be tracked through the data
generated through ETC systems. Also, the improvement of ETC systems to
incorporate a greater region within the country along with its interoperability
across different states or administrative provinces generally varies from one
ETC solution to another. Thus, the streamlining of the basic characteristics
associated with RFID systems and other frequency-based systems is expected to
limit its reachability among small and moderate tolling gateways.
India Electronic Toll Collection Market: Opportunities
Stringent Government Regulations Regarding Toll
Collection
While giving toll collectors more responsibilities,
electronic toll collection offers a reliable traffic management solution. The
development of electronic toll collecting has been greatly aided by
technological breakthroughs, which have also inspired governments all over the
nation to make significant investments in toll lanes. The FASTag gadget has
been adopted by the National Roads Authority of India (NHAI) as a part of a
plan for electronic toll collection at toll plazas on national roads. The
prepaid account that is linked to the car is used by this gadget to deduct toll
payments immediately using radio frequency identification (RFID) technology.
The development of the business has been fuelled by the government's positive
assistance in formulating new rules and laws regulating the installation of
these systems and tolling. Additionally, FASTag is expected to offer the
convenience of cashless payments and is said to allow for almost continuous
vehicle movement through toll plazas. These favorable government policies for
electronic toll collecting provide attractive potential for business
development.
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Market Segments
The India electronic toll collection market is
segmented by type, technology, end user, and region. Based on type, the market
is segmented into automatic vehicle identification system, violation
enforcement system, automatic vehicle identification system, and others. Based
on technology, the market is segmented into radio frequency identification,
dedicated short range communication, global navigation satellite system, video
analytics, cell phone tolling, and others. Based on end user, the market is
segmented into highway and urban area. The market analysis also studies the
regional segmentation to devise regional market segmentation, divided among
North, East, West, and South.
Market Players
Key players in the India Electronic Toll Collection
market are Arya Omnital, KENT Intelligent Transportation Systems (India) Pvt.
Ltd., TollPlus, Tollman International Pvt Ltd, Thales India, Mitsubishi Heavy
Industries, Siemens India, Transcore Holdings Inc., Cubic Transportation System
India Private Limited, and Neology Inc.
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Attribute
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Details
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|
Base Year
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2023
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Historic Data
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2019 –
2022
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Estimated Year
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2024
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Forecast Period
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2025
– 2029
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Quantitative Units
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Revenue in USD Million, and CAGR for 2019-2023 and 2024-2029
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Report Coverage
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Revenue
forecast, company share, growth factors, and trends
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|
Segments Covered
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Type
Technology
End-User
Region
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Regional Scope
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North,
East, West, South
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|
Key Companies Profiled
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Arya Omnital, KENT Intelligent Transportation Systems (India)
Pvt. Ltd., TollPlus, Tollman International Pvt Ltd, Thales India, Mitsubishi
Heavy Industries, Siemens India, Transcore Holdings Inc., Cubic
Transportation System India Private Limited, Neology Inc.
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|
Customization Scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing and Purchase Options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
|
Delivery Format
|
PDF and Excel
through Email (We can also provide the editable version of the report in
PPT/Word format on special request)
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Report Scope:
In this report, the India electronic toll collection
market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
·
India Electronic Toll Collection Market, By Type:
o
Automatic Vehicle Identification System
o
Violation Enforcement System
o
Automatic Vehicle Identification System
o
Others
·
India Electronic Toll Collection Market, By
Technology:
o
Radio Frequency Identification
o
Dedicated Short Range Communication
o
Global Navigation Satellite System
o
Video Analytics
o
Cell Phone Tolling
o
Others
·
India Electronic Toll Collection Market, By End-User:
o
Highway
o
Urban Area
·
India Electronic Toll Collection Market, By Region:
o
North
o
East
o
West
o
South
Competitive Landscape
Company Profiles: Detailed analysis of the
major companies present in India Electronic Toll Collection Market
Available Customizations:
India Electronic Toll Collection market with the given
market data, TechSci Research offers customizations according to a company’s
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
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