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Evaluate Congestion Charging Technologies for Innovative Traffic Management

Transform traffic management with technology.

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  • Balancing the high cost of advanced technology with the need for cost-effective traffic management while being constrained by municipal budgets.
  • Coordinating efforts between multiple stakeholders, government agencies, and private sector partners.
  • Integrating diverse data sources into a unified system for real-time traffic management.
  • Implementing technologies that can handle growing populations and increasing vehicle numbers.
  • Ensuring the security of IoT devices and traffic management systems while preventing cyberattacks that could disrupt urban mobility.

Our Advice

Critical Insight

Managing traffic and reducing congestion will require a combination of advanced, scalable, and secure technologies working hand in hand with effective policymaking to ensure that the needs of all sections of the road-using populace are met.


Impact and Result

Info-Tech recognizes the role of CIOs in enabling innovative traffic management solutions. This research aims to empower CIOs with the knowledge and tools necessary to respond to the urgent need of urban centers looking to confront the challenges posed by continuously increasing congestion and traffic.

Info-Tech will provide:

  • A comprehensive guide outlining the advancements made in traffic management technologies.
  • A tool to help you assess the maturity of your requirements and recommend critical solution components.

Evaluate Congestion Charging Technologies for Innovative Traffic Management Research & Tools

1. Evaluate Congestion Charging Technologies for Innovative Traffic Management Deck – Transform traffic management with technology.

By examining the effectiveness of various technologies and their applications in real-world congestion scenarios, this research aims to provide insights into how cities can successfully implement and manage congestion charging systems. Through detailed analysis and case studies, this research will help answer critical technical questions, offering guidance on system design, data management, and operational challenges, ultimately paving the way for smarter, more sustainable urban environments.

2. Congestion Pricing Solution Recommendation Tool – Use this tool in conjunction with the component-level custom vendor landscape included in the storyboard.

The Congestion Pricing Solution Recommendation Tool is intended to help users identify the ideal components for their congestion pricing technology stack based on their specific needs and priorities.

Unlock a Free Sample

Evaluate Congestion Charging Technologies for Innovative Traffic Management

Transform traffic management with technology.

Analyst perspective

Transform traffic management with technology.

Urban centers around the world are grappling with the challenges posed by traffic congestion. This phenomenon hampers economic productivity and exacerbates environmental pollution. Congestion charging is a strategic solution to these challenges, using economic incentives to regulate the number of vehicles in high-density areas during peak times. By charging drivers a fee to access congested zones, cities aim to reduce traffic volume, encourage the use of public transportation, and decrease air pollution. This approach aligns with broader goals of sustainable urban development and improved quality of life for city dwellers.

Effective congestion management requires reliable and efficient technology systems capable of real-time data collection, traffic monitoring, and automated billing. These systems must ensure accuracy, security, and reliability to handle the dynamic nature of urban traffic. Furthermore, the technology must be scalable and flexible enough to adapt to changing patterns and expansions in urban infrastructure. The interplay between technical feasibility and public acceptance also presents a unique set of challenges, as resistance from the public can hinder the implementation of congestion charging systems.

By examining the effectiveness of various technologies and their applications in real-world congestion scenarios, this research aims to provide insights into how cities can successfully implement and manage congestion charging systems. Through detailed analysis and case studies, this research will help answer critical technical questions, offering guidance on system design, data management, and operational challenges, ultimately paving the way for smarter, more sustainable urban environments.

Shreyas Shukla, Principal Research Director, Industry

Shreyas Shukla
Principal Research Director, Industry
Info-Tech Research Group

Executive summary

Your Challenge Common Obstacles Info-Tech's Approach

Balancing the high cost of advanced technology with the need for cost-effective traffic management while being constrained by municipal budgets.

Coordinating efforts between multiple stakeholders, government agencies, and private sector partners.

Integrating diverse data sources into a unified system for real-time traffic management.

Implementing technologies that can handle growing populations and increasing vehicle numbers.

Ensuring the security of IoT devices and traffic management systems while preventing cyberattacks that could disrupt urban mobility.

Public resistance due to concerns about privacy, fairness, and the financial burden of congestion pricing systems.

Significant upfront investment required for infrastructure, sensors, cameras, and software.

Concerns over the collection and usage of personal and vehicle data for tracking movement.

Integrating new technologies, such as AI-driven traffic monitoring systems and real-time data analytics, with legacy infrastructure can be challenging.

Info-Tech recognizes the role of CIOs in enabling innovative traffic management solutions. This research aims to empower CIOs with the knowledge and tools necessary to respond to the urgent need of urban centers looking to confront the challenges posed by continuously increasing congestion and traffic.

Info-Tech will provide:

  • A comprehensive guide outlining the advancements made in traffic management technologies.
  • A tool to help you assess the maturity of your requirements and recommend critical solution components.

Managing traffic and reducing congestion will require a combination of advanced, scalable, and secure technologies working hand in hand with effective policymaking to ensure that the needs of all sections of the road-using populace are met.

Traffic congestion leads to a quantifiable loss in the economy

The economic impacts of congestion have been steadily overtaking the benefits of living in urban centers. Traffic and gridlock are making urban interactions too expensive and time-consuming to pursue. The negative impact of congestion on productivity will become a serious drain on the economy if left unchecked.

Congestion takes a toll on the economy, employment, and productivity.

Congestion cost the US more than $70.4 billion in 2023, a 15% increase from 2022.

Comparatively, UK drivers lost nearly £7.5 billion, up by 11%, while

German drivers saw €3.3 billion in time lost, up 14% from the prior year.

Source: INRIX, 2023

Polling shows that 53% of residents across all age ranges are considering moving away from the Greater Toronto and Hamilton Area due to traffic and congestion issues.

Source: Toronto Region Board of Trade, 2024

City dwellers lose hundreds of hours and thousands of dollars a year due to congestion.

Total hours per driver lost to congestion at peak travel times annually

Chart showing the total hours lost to congestion per driver

Source: INRIX, 2023

Congested Region Annual Average Lost Time Per Driver (hours) Annual Average Lost Time Per Driver (USD) Annual Average Lost Fuel Per Driver (USD)
USA 42
▲ vs. 2022
733
▲ vs. 2022
480
▼ vs. 2022
UK 61
▲ vs. 2022
706
▲ vs. 2022
756
▼ vs. 2022
Germany 40
▲ vs. 2022
457
▲ vs. 2022
886
▲ vs. 2022

Source: INRIX, 2023

Congestion pricing regulates traffic by applying market principles to reduce overcrowding

Congestion pricing dynamically regulates demand for road infrastructure by increasing prices without increasing supply. This strategy is derived from the economic theory of pricing and is commonly used in the transportation industry to decrease congestion and air pollution by charging more for entering or traveling through congested areas of metropolitan cities.

Congestion pricing is a transportation policy that reduces traffic congestion in urban areas by charging fees for using certain roads or areas during peak times. The goal is to discourage driving in congested periods and promote public transportation, carpooling, or alternate routes.

Source: Wall Street Mojo, 2024

  • Congestion pricing reduces traffic by charging drivers to enter certain areas during peak hours, effectively decreasing congestion and promoting alternative transportation modes.
  • Congestion pricing is based on supply and demand, where higher fees during busy times encourage fewer vehicle trips, reducing overall traffic volume.
  • Environmental benefits include improved air quality and reduced emissions, as congestion pricing incentivizes public transportation and carpooling.
  • Case studies from London, Stockholm, and Singapore demonstrate the effectiveness of congestion pricing in reducing traffic by 20%-30% while generating funds for urban improvements.

Modern congestion pricing strategies are based on principles proposed in 1952 by the Nobel laureate William Vickrey.

Efficient congestion pricing strategies should:

  • Reflect the marginal social cost of each trip in terms of the impacts on others.
  • Consider immediate conditions and the trip's ongoing impact on traffic until congestion eases.
  • Be priced based on the actual impact of a trip on the day's traffic rather than a preset schedule.
  • Charge all vehicles with special treatment for taxis and ambulances.
  • Charge based on travel between observation points.
Source: Columbia University, 1992

"The delusion still persists that the primary role of pricing should always be that of financing the service rather than that of promoting economy in its use."

– William Vickrey, 1963

The primary goal of congestion pricing is to manage traffic and not to generate revenue

Congestion pricing is often compared to toll roads and, in many cases, considered interchangeable with them. However, the only similarity congestion pricing has with toll roads is that both methods are used for traffic management. Both of these methods serve very different functions and operate under different principles.

Method Purpose Mechanism Scope Impact Revenue Utilization
Congestion Pricing
  • Reduce traffic congestion in urban areas during peak times through pricing disincentives
  • Discourage unnecessary trips, promote public transportation, and decrease pollution
  • Charges applied only in designated zones during specific times
  • Rates vary based on time of day, traffic conditions, and vehicle type
  • Implemented in densely populated urban centers, limited to specific areas within a city
  • Modifies driving behavior by incentivizing drivers to use alternative modes of transportation or to travel outside peak hours
  • Reinvestment in public transport to further discourage personal car use
Toll Roads
  • Generate revenue for road maintenance, construction, or infrastructure projects
  • Charges applied to all vehicles that use toll roads, regardless of time of day or traffic conditions.
  • Can be located on any section of road that serves as major transit corridor between cities or states
  • Not restricted to congested areas
  • Recoups invested capital and generates revenue for other projects
  • Used to maintain and improve roadways where the tolls are collected

Info-Tech Insight

Congestion pricing and tolling operate under different principles and fulfill different objectives.

While tolling is intended to recoup the capital invested in infrastructure, congestion pricing is used to promote optimal, economical use of infrastructure.

Cities are aiming for measurable reductions in congestion

Passenger cars are being used in a wasteful and unequal manner. To improve the quality of city life and reduce the impact of vehicles, specifically gas-powered passenger cars, cities are actively introducing a combination of measures aimed at reducing individual passenger vehicle use.

Congestion pricing remains the most effective method to curb vehicle use in most cities.

Interventions Actions Results *Benefits
Congestion pricing Pay to enter city center Revenues go to city's sustainable transport schemes 12%-33% reduction in cars in cities
Parking and traffic control Remove parking spaces; alter driving routes Replace parking spaces with bike lanes and walkways; add car-free streets 11%-19% reduction in cars in cities
Limited traffic zones Exclude cars from parts of the city Violation fines fund public transport 10%-20% reduction in cars in cities
Mobility service for commuters Enable sustainable last-mile solutions Give workers free public transport passes and private shuttles to workplace 37% reduction in car commuters
Workplace parking charge Pay to park at work Cash-out scheme for employees to use public transport; parking revenues fund public transport 8%-25% reduction in car commuters
Workplace travel planning Removal of parking spaces Discount public transport; improve bike infrastructure; provide advice to help commuters use public transport, walk, or cycle 3%-18% reduction in car use by commuters
University travel planning Reduced parking on campus 7%-27% reduction in car use by university commuters
Car sharing Provide accessibility and reduce road traffic Integrate car sharing in workplaces and neighborhoods 12-15 private cars replaced by each shared car

*Based on over 800 peer-reviewed reports and case studies from Europe published since 2010

Source: The Conversation, 2022

Modern passenger cars and driving behavior impose a high cost on society.

Passenger cars are:

  • The second-largest (and growing) source of climate pollution in Europe.
  • The leading killer of children in both the US and Europe.
  • A principal cause of stress-inducing noise pollution and life-shortening air pollution in European cities.
  • A leading driver of the widening gap between rich and poor urban residents.
"The emissions saved from electric cars have been more than cancelled out by the increase in gas-guzzling sport utility vehicles (SUVs). Around the world, SUVs alone emit more carbon pollution than Canada or Germany and are causing a bigger increase in climate pollution than heavy industry."

Source: The Conversation, 2022

Cities around the globe have adopted congestion pricing with varying models and outcomes

Cities around the world have implemented congestion pricing with notable success in reducing traffic congestion, improving air quality, and generating revenue for public transportation. However, challenges such as equity and public acceptance need to be addressed, as congestion pricing systems can disproportionately impact low-income communities if not managed properly. Many cities use the revenue to improve public transportation options, which helps mitigate these concerns.

Major urban centers have successfully implemented forms of congestion management that show benefits in terms of traffic reduction, public transport use, revenue, and environmental quality.

Map showing cities that have successfully implemented forms of congestion management

This diagram is meant to be illustrative and not exhaustive.

Sources: Asian Development Bank; Curbed Chicago

Traffic reduction is the primary motivation for implementing congestion charging.

Reasons to implement congestion charging:

  • Reduced traffic congestion: Congestion pricing lowers vehicle traffic by charging fees, discouraging nonessential trips during peak hours.
  • Increased use of public transportation: Higher driving costs push more commuters to public transportation, reducing road congestion.
  • Enhanced environmental quality: Fewer vehicles on the road lead to lower emissions, improving air quality and public health.
  • Revenue generation: Fees from congestion pricing generate revenue that can be reinvested in transportation.
  • Improved economic efficiency: Reduced congestion saves time and fuel, making travel times predictable and lowering delivery costs.
  • Improved equity and accessibility: Revenue from congestion pricing can subsidize public transit, making it more affordable.
  • Behavioral changes: Over time, people adjust their travel habits, opting for carpooling, telecommuting, or traveling outside peak hours.

Source: City Monitor, 2023

Calculating congestion charges can vary depending on the objectives and infrastructure

Each city tailors its congestion pricing strategy to its specific traffic, environmental, and social needs, often using a combination of these methodologies to achieve the desired outcomes.

Fixed Rate Time of Day Area Coverage Dynamic Vehicle Type Purpose and Exemptions Revenue Utilization
Some cities set a flat rate for entering a designated congestion zone during specific times. This approach is straightforward and easy for drivers to understand but doesn't adjust for real-time traffic conditions. Charges vary depending on the time of day to reflect peak and off-peak hours. This method encourages drivers to avoid traveling during the busiest times. In some cases, the charge varies depending on which zones within the city you enter or travel through. This can help to more finely manage traffic in particularly congested areas. Advanced systems use real-time data to adjust charges based on current traffic conditions. Singapore's electronic road pricing system is an example of toll rates that are frequently updated to maintain a target speed range on roads. Charges can also differ based on the type of vehicle, with higher fees for larger or more polluting vehicles. This encourages the use of smaller, cleaner cars and can help reduce emissions. Some systems include exemptions or discounts for residents, low-emission vehicles, or essential services like ambulances. The design of these exemptions reflects the broader goals of the charging system. The allocation of the revenue generated can also influence the charge. If the funds are used to improve public transport or infrastructure, this can be a motivating factor in setting the rates and structure of the charges.

Source: International Transport Forum, 2010

Introducing the congestion pricing playbook

Data is crucial Scalability matters Privacy is the priority Design is essential ROI is critical Partners are key
Ensure seamless integration of traffic, GPS, and IoT data for insights. Choose flexible technologies that can scale with urban growth. Implement robust cybersecurity measures and comply with data protection regulations. Create user-friendly systems that provide transparent, real-time information. Weigh upfront costs of technology solutions against long-term benefits. Establish partnerships between stakeholders to ensure successful implementation.

Three components of congestion pricing

Traffic monitoring

Vehicle identification

Toll collection

It is crucial for CIOs to evaluate options for a congestion pricing technology stack based on several strategic and technological criteria and ensure they enable the three critical components of a congestion pricing solution:

Monitor traffic in real-time

Identify vehicles

Electronically collect tolls

Other considerations:

  • Data collection
  • Billing
  • Communication
  • Security
  • Analytics
  • User interaction

Strategic criteria:

  • Traffic impact
  • Public acceptance
  • Environmental impact
  • Cost-effectiveness
  • Compliance
  • Scalability
  • Equity and fairness
  • Revenue utilization

Technology criteria:

  • Data accuracy
  • Real-time processing
  • Interoperability
  • Billing functionality
  • Security and privacy
  • Communication latency
  • System uptime
  • User interaction

Policy objectives

Advanced technology

Any congestion pricing solution requires three critical components

The three critical components of congestion pricing are real-time traffic monitoring, vehicle identification, and electronic toll collection. These capabilities enable dynamic toll adjustments based on current traffic conditions, ensure accurate billing through vehicle tracking, and streamline toll collection for efficient road management. Together, they optimize traffic flow, reduce congestion, and support automated, scalable billing mechanisms.

Operationalizing congestion pricing is dependent on policy, hardware, and software components working in tandem to enable the ability to detect traffic conditions, identify individual vehicles, and collect tolls based on predefined rules and tariff tables.

Traffic monitoring The ability to electronically collect tolls allows for seamless, automated transactions, reducing the need for physical toll booths that cause traffic delays. This also enables dynamic pricing based on traffic conditions for more efficient road management.
Vehicle identification The ability to monitor traffic in real-time is critical for congestion pricing. Dynamic pricing rules can be applied based on current road conditions. This helps optimize traffic flow by discouraging excessive road use during peak times.
Toll collection The ability to identify vehicles allows for real-time billing, enforcement of toll payments, and detection of noncompliant vehicles. It also supports dynamic pricing by recognizing specific vehicle types for exemptions or varied rates.
Congestion pricing has proven to be effective in changing the way people travel in major urban centers like London.

"The Congestion Charge was world leading when it was introduced 20 years ago, and it has been essential in changing the way people travel in the capital. It has resulted in a significant shift away from people using private cars to more environmentally friendly forms of transport."

- Intelligent Transport, 2023

A congestion pricing solution should address certain mandatory functional requirements

A best-in-class congestion pricing solution should have critical functional requirements enabled through policy and technology. The basic function of a congestion pricing solution is to apply, collect, and process tolls from drivers. High-performing congestion pricing solutions implemented internationally include elements of clear public notification of rules, accurate detection of vehicles and users, collection of tolls, enforcement of fines, and reliable and scalable technology use.

Technologies used for congestion pricing solutions should address requirements related to the three critical components: monitoring, identifying, and tolling.

Informing

Providing clear and transparent information to potential users should be part of the solution framework.

Detection

Clearly measuring individual instances of use should be enabled by the solution.

Identification

Identifying the vehicle, owner, and account user who will ultimately be charged is a critical requirement.

Classification

Identifying the class/category a vehicle belongs to is important when applying tariff tables for pricing.

Verification

Include the ability to verify and reconcile payments and implement enforcement measures.

Payment

Collection of payment from users must be based on verifiable use of congestion-enforced infrastructure.

Enforcement

Include the means to identify, warn, persecute, and pursue violators for fines and nonpayment.

Exemptions

The solution should be able to define, manage, and apply exemptions, discounts, and preferential pricing.

Reliability

Ensure the solution used to enable congestion pricing is cost-effective, efficient, reliable, and accurate.

Source: "Technologies That Enable Congestion Pricing," US Department of Transportation, 2008

Technology is key to operationalizing congestion charging.

"Technologies involved in congestion pricing have contributed to significant reductions in vehicle emissions in urban centers."

Source: C40 Cities, 2015

Implementing a best-fit congestion pricing solution will require consideration of key criteria

To choose the right congestion pricing system, you'll need to consider both strategic criteria and technology criteria together because they provide complementary insights. By aligning strategic objectives with the right technological features, the system can meet performance expectations while staying cost-effective and future-ready.

Strategic criteria

Strategic criteria assess the broad, system-wide goals and performance objectives for congestion pricing.

Traffic impact
Measures how well the system reduces congestion.

Public transit
Measures increases in public transit system usage.

Public acceptance
Evaluates how users perceive and accept the pricing system.

Environmental impact
Focuses on the system's contribution to reducing emissions.

System efficiency
Reflects the system's ability to function with minimal downtime.

Cost-effectiveness
Balances the cost of implementation with the system's benefits.

Compliance and enforcement
Monitors the system's ability to ensure compliance.

Scalability
Determines how easily the system can expand to new zones.

Equity and fairness
Ensures the system accounts for socioeconomic fairness.

Integration with other systems
Measures how well the system connects with other services.

Technology criteria

Technology criteria evaluate the specific technological capabilities required for the system.

Data collection accuracy
Evaluates precision of vehicle identification and traffic data.

Real-time processing
Assesses how quickly the system processes traffic and toll data.

Interoperability
Measures the system's ability to integrate with external platforms.

Security and privacy
Ensures the system complies with privacy laws.

Communication latency
Monitors the speed and reliability of data transmission.

Billing system reliability
Evaluates the accuracy and reliability of payment processing.

AI and predictive analytics
Assesses the system's use of AI to predict patterns and adjust tolls.

System uptime
Measures how consistently the system operates.

User interaction capabilities
Focuses on the ease and effectiveness of user interactions.

Congestion pricing solutions rely on advanced technologies

Continuous advancements in technology have contributed to the sustained success of congestion pricing systems. As technology matures, congestion pricing solutions gain more flexibility and implementation scalability, which helps achieve congestion pricing objectives. In the coming years, expect to see a deeper integration of cutting-edge technologies, making these systems more efficient, equitable, and widely accepted.

Technology Stack Description Hardware Enablers Software Enablers
Data collection layer Collects real-time traffic, vehicle, and location data using various sensors and tracking technologies Sensors, GPS devices, cameras, RFID* readers, ANPR** systems, transponders Data acquisition systems, sensor management software, traffic flow monitoring tools
Communication layer Ensures secure, real-time data transmission between vehicles, infrastructure, and the central system DSRC*** units, cellular modems, roadside communication units, wireless access points Secure communication protocols, vehicle-to-infrastructure (V2I) integration, real-time data transmission platforms
Processing and analytics layer Analyzes traffic data to calculate tolls dynamically and predict traffic patterns Central servers, edge computing devices Traffic analytics platforms, dynamic pricing algorithms, AI and machine learning tools for congestion forecasting
Billing and payments layer Manages automated toll collection, invoicing, and payment processing Payment terminals, mobile devices Payment gateways, toll management systems, invoicing software, user account platforms
Security and compliance layer Ensures data protection, transaction security, and regulatory compliance On-device encryption, unique IP addresses Data encryption, privacy protection frameworks, compliance management software (GDPR)
User interaction layer Provides user interfaces for drivers to manage accounts, view toll charges, and pay fees User devices (smartphones, onboard vehicle systems) Mobile apps, web portals, account management interfaces, notification systems

*RFID: Radio frequency identification

**ANPR: Automated number plate recognition

***DSRC: Dedicated short-range communication

A congestion pricing solution requires critical hardware and software components

Any congestion pricing solution should be able to handle three critical requirements: traffic monitoring, vehicle identification, and electronic toll collection. For such solutions to be practical, usable, and – more importantly – scalable, additional capabilities in the form of dynamic pricing, management of traffic infrastructure, and software for user account management will need to be supported at launch.

Technology Stack Hardware Components Software Components
Data collection layer Letter A
Communication layer Letter D
Processing and analytics layer Letter A Letter T
Billing and payments layer Letter B
Security and compliance layer Letter A Letter T
User interaction layer Letter B

Legend

Hardware is critical to enable congestion pricing scenarios

Leading Hardware Use Cases For Congestion Pricing Scenarios
(Order does not reflect importance)
Value Drivers
Ops. Efficiency Business Growth Customer Experience Employee Experience Risk and Resilience ESG
ANPR/ Automated License Plate Recognition (ALPR) Dynamic Tolling Enables variable tolls based on real-time traffic, managing flow during peak and off-peak hours
Simplified Payments Automates downstream toll collection, reducing delays by billing vehicle owners without physical booths
Enforcement Ensures compliance by identifying vehicles that enter restricted zones without paying tolls, enabling fines
Exemptions Enables recognition of exempt vehicles, such as electric or emergency vehicles, streamlining tailored pricing policies
Traffic Analysis Supports policy optimization by analyzing traffic patterns and vehicle types in congested zones
DSRC Congestion Pricing Operationalizes real-time toll collection based on traffic levels, enabling dynamic pricing to reduce road congestion
V2X Enables communication between vehicles and traffic signals for optimized traffic flow and safety
Electronic Toll Collection Allows automated, high-speed tolling without the need for toll booths, ensuring smooth traffic
Prioritization Allows emergency vehicles to communicate with traffic systems to prioritize signals for faster response times
Intersection Management Optimizes traffic-light timing based on real-time vehicle and pedestrian data

Software is critical to enable congestion pricing scenarios

Leading Software Use Cases For Congestion Pricing Scenarios
(Order does not reflect importance)
Value Drivers
Ops. Efficiency Business Growth Customer Experience Employee Experience Risk and Resilience ESG
TMS Monitoring Enables real-time traffic monitoring and control to optimize flow and reduce congestion
Dynamic Pricing Implements dynamic congestion pricing to manage road usage and reduce peak-hour traffic
Incident Detection Supports incident detection and response coordination to minimize disruptions caused by incidents
Operational Efficiency Integrates with public transportation and mobility services for improved urban transit efficiency
Planning Supports data analytics and forecasting for long-term traffic planning and infrastructure optimization
Billing and Payments Subscription Management Subscription and recurring billing management for ongoing services ensuring seamless automated invoicing and payments.
Usage-Based Billing Dynamic pricing and usage-based billing to handle variable charges, such as congestion pricing or utility usage, based on real-time data
Payment Processing Multichannel payment processing to offer flexibility, supporting credit cards, mobile wallets, and bank transfers
Security Fraud detection and security enforcement to safeguard payment transactions with advanced encryption and monitoring systems
Automation Automated invoicing and reconciliation to reduce manual efforts and ensure accurate, timely financial reporting

Congestion pricing solutions can be implemented in several different ways

Congestion pricing can be implemented using various combinations of technology components to create a flexible, scalable system tailored to a city's specific needs. Cities can customize their congestion pricing systems by selecting components that match their budget, goals, and technological infrastructure. From cost-effective ANPR systems with basic tolling to advanced AI-driven analytics, real-time dynamic pricing, and scalable cloud-based platforms, a variety of real-world options exist.

Hardware and software to help with congestion

This diagram is meant to be illustrative of existing techniques.

ANPR/ALPR technology

To operate effectively in a congestion pricing environment, ANPR technology should be able to:

  • Capture clear, high-resolution images of both the vehicle and its license plate.
  • Process captured images to enhance image quality.
  • Segment characters on the plate to prepare it for recognition.
  • Use AI-powered optical character recognition (OCR) technology to interpret characters, convert them into text, and accurately read the license plate number.
  • Compare the plate number to a database of registered vehicles and find a match.

ANPR is a crucial part of the congestion pricing solution stack. ANPR technology is based on advanced camera solutions that identify the letters, symbols, and colors of vehicle registration plates to collect insights like vehicle number, location, travel patterns, and more in real time.

Chart showing low suitability to high maturity

Compare important options in the ANPR hardware category based on your needs

There is a rich ecosystem of ANPR hardware options that possess the capabilities required for a congestion pricing solution. Choosing a best-fit option from this list involves a thorough evaluation of your specific needs and requirements.

Product Attributes Data Accuracy Real-Time Processing Integration Capabilities Billing and Payments Integration Security and Privacy Scalability Environmental Impact Tracking Cost-Effectiveness
Vendors
Adaptive Recognition (VIDAR) Blue circle Blue circle Blue circle Blue circle Blue circle Blue circle Orange circle Green circle
Axis Communications Green circle Blue circle Blue circle Green circle Blue circle Green circle Orange circle Green circle
FLIR Blue circle Blue circle Blue circle Orange circle Blue circle Blue circle Orange circle Orange circle
Hikvision Green circle Green circle Green circle Blue circle Green circle Green circle Orange circle Green circle
MAV Blue circle Blue circle Blue circle Orange circle Blue circle Blue circle Orange circle Orange circle
Selea Blue circle Green circle Green circle Orange circle Green circle Green circle Orange circle Green circle
TagMaster Green circle Green circle Green circle Orange circle Green circle Green circle Orange circle Green circle

Legend

This list is meant to be illustrative and not exhaustive. This analysis should not be treated as a recommendation.

Transform traffic management with technology.

About Info-Tech

Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.

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Author

Shreyas Shukla

Contributors

  • Subhash Challa, Founder & CEO, Sensen.ai
  • Rajnish A., Head of Urban Development, major European city
  • Vinayak Pareek, Planning, Effectiveness & Quality Lead, leading university in the Middle East
  • Anonymous, Manager, Business Development, infrastructure hardware manufacturer
  • Saikumaar Nagarajan, Product Manager, global technology conglomerate
  • Anonymous, Independent Expert, Urban Planning & Development, major Canadian city
  • Shashank P., Associate Director, global infrastructure consulting firm

Search Code: 106245
Last Revised: November 21, 2024

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