Kapsch TrafficCom is a system integrator producing both hardware and software in-house.
Business model:
Innovative traffic management
Kapsch TrafficCom develops intelligent transportation systems (ITS) for sustainable mobility. Our aim is to enable road users to arrive at their destination conveniently, on time, safely, efficiently, and with minimal environmental impact.
Everything from a single source
from individual components to the operation of turnkey systems.
Kapsch TrafficCom offers solutions for the entire value chain: from components to the design and installation of systems, to their operation.
Development, production, and procurement of:
- in-vehicle components
- roadside equipment
- traffic controllers
Implementation – from planning and design to the installation of systems and applications:
Kapsch TrafficCom acts as a system integrator. This means that Kapsch TrafficCom's own core technology is combined with services from subcontractors and partners as required.
Good to know: After completion, the installations are transferred to the customer.
Operation of systems:
- technical (monitoring, maintenance, and ongoing improvement)
- commercial (focus on the end customer, design and construction of sales offices and call center services, design of web portals, implementation of payment systems)
Compensation is not based on the traffic volume.
Provision of services:
In Europe:
- European Electronic Toll Service (EETS)
- tolling services for passenger cars
In the USA:
- app for the payment of tolls
In-house hardware and software production
The relevant market
The addressable market for Kapsch TrafficCom had a volume of EUR 4.6 billion in 2020. Until 2027, an average annual growth of 6.7 percent to EUR 7.2 billion is predicted.
The core regions are Europe, North and Latin America as well as Oceania (Australia and New Zealand).
Long-term goals
Kapsch TrafficCom plans to achieve the following goals by the end of 2027:
- Revenues should exceed EUR 1 billion.
- This means that the company plans to grow faster than the addressable market.
- This should primarily be achieved through organic growth.
- EBIT margin should improve steadily and reach a level well above 10 percent. The equity ratio should exceed 30 percent.
- As a company, Kapsch TrafficCom wants to be CO₂-neutral and contribute disproportionately to environmental protection through its products and solutions.
Kapsch TrafficCom's revenues already support the achievement of environmental goals:
- Route-based tolling is generally recognized as a fair and efficient instrument to achieve a sustainable traffic policy.
- Traffic management reduces congestion and, consequently, pollution and fuel consumption.