Automatic Fare Collection System Market Size Is Projected To Reach USD 21.81 Billion By 2031, Growing At A CAGR Of 11.20%: Straits Research

(MENAFN- GlobeNewsWire - Nasdaq) New York, United States, June 06, 2023 (GLOBE NEWSWIRE) -- The global transportation industry is being driven by the population explosion and the rising number of commuters. A ground-breaking automated technology that streamlines the fare collection process has been made possible by this scenario. Several urban public transportation systems use automated fare collection (AFC) systems as they transition from paper tickets printed using a small machine with a keypad to digital tickets (smart cards). Although paper tickets and passes still account for a sizeable portion of commuter rail and urban and rural rail transit systems' ticketing methods, these have recently been replaced by inexpensive magnetic stripe cards and contactless smart cards, which offer more data collection options and security. Additionally, it is clear that AFC systems are preferred as the idea of smart cities gains popularity worldwide. Cities are incorporating cutting-edge technologies into municipal tasks, from infrastructure maintenance to transportation.

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Growing Smartphone Industry Drives the Market

The market for automated fare collection systems has accelerated as smartphones have developed into a necessary tool for online ticketing. Smartphones have made ticket purchasing easier and more convenient with the development of standalone applications for train and bus travel. This has helped the market expand. Customers can purchase any ticket type and pay with a cashless method. Using mobile applications for ticketing also has the advantage of accelerating boarding and streamlining cash-handling procedures. Customers today appreciate the ease of using preloaded cards when making purchases to enhance their travel experience. The automatic fare collection system in India has benefited greatly from the UPI payment method as well. The automatic fare collection system is anticipated to expand further over the course of the forecast period, thanks to recent developments in UPI and eWallet technology.

Rising Investments and the Development of Transit Projects give an Opportunity for Exponential Growth

Businesses that offer automated fare collection solutions may find new business opportunities as future transit infrastructure projects take place in both developing and developed economies. As more transit agencies use the technology, chances will present themselves to provide support services both during and after system installation. Driverless Metrino pods, LRT, BRT, Monorail, and Metro projects are just a few of the transportation options that the 100 Smart Cities Project in India plans to use. These projects are expected to include installed automated fare systems because it is anticipated that many commuters will use these services. In order to implement the locally created National Common Mobility Card (NCMC) throughout the entire Delhi Metro network, Delhi Metro has contracted with a consortium to upgrade the entire ecosystem, including the Automatic Fare Collection (AFC) system, in February 2022. Additionally, this upgrade will make it possible to travel using near field communications (nfc) media, Account Based Tickets, and QR Tickets. The adoption of NCMC & QR tickets will enable hassle-free travel on metro rails and other public transportation systems across the country in addition to facilitating retail shopping and purchases. With mobile QR and NFC-based tickets, travelers will also be able to enter or exit a metro station through its hallways.

Report Scope

Report Metric	Details
Market Size	USD 21.81 billion by 2031
CAGR	11.20%
Historical Data	2020-2021
Base Year	2022
Forecast Period	2023-2031
Forecast Units	Value (USD Billion)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Component, By Application, By Technology
Geographies Covered	North America, Europe, Asia-Pacific, LAME and Rest of the World
Key Companies Profiled/Vendors	Advanced Card Systems Ltd. ,Cubic Transportation Systems ,Atos SE ,LG CNS ,NXP Semiconductors ,Samsung SDS ,Omron Corp ,Scheidt & Bachmann ,Thales Group ,LECIP Group
Key Market Opportunities	Increasing Investments in Automated Transit Projects
Key Market Drivers	Increasing Smartphone Penetration

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Regional Analysis

North America region is the highest contributor to the market. The public transportation system in North America has undergone a significant transformation as a result of investments made by local and federal authorities to modernize the region's transit system. In urban areas like Baltimore, New York, Boston, Washington, D.C., Chicago, Atlanta, Los Angeles, Houston, and others, numerous upgrade programs have been implemented by reputable companies as their respective transit systems acquire new rolling stock, thereby expanding and modernizing the existing infrastructure to comply with the state-of-the-art AFC system. For instance, in 2018, Masabi, the company that pioneered Software-as-a-Service ticketing and payments for public transportation, partnered with the Regional Transit Service (RTS) in Rochester (New York) to deliver its cutting-edge automated fare collection (AFC) system using Justride. With the aid of Ticket Vending Machines (TVMs) that provide smart cards or printed barcodes, this system will allow commuters without smartphones and bank accounts to quickly pay for the fares.

During the anticipated period, the market for automatic fare collection systems is anticipated to expand rapidly in Europe. The market for automatic fare collection systems and ticketing is growing in Europe as new technology places a greater emphasis on low maintenance costs, dependable machinery, quick transactions, and security. Due to growing health and safety concerns in public transportation, including the higher risk of COVID-19 and other diseases transmission that cash presents, transit agencies now see contactless payments as an urgent matter. 35% of Americans and Germans who survived the pandemic said that, as a result, they spent less money. This number increases to 65% in the UK. Additionally, 55% of consumers said they intended to increase their use of contactless payments as a result of the pandemic, indicating that health issues may have had a long-lasting effect on their decision-making. In London, contactless transactions accounted for two-thirds of all non-cash transactions in 2019–20, with Oyster smart cards accounting for the remaining one-third. Innovation is encouraged by such technological adaptation trends, and advancements in the market for automatic fare collection systems will present a variety of opportunities.

During the anticipated period, the market for automatic fare collection systems is anticipated to expand significantly in Asia-Pacific. The Asia-Pacific region's AFC system market has a larger development window thanks to the growing trend of digitization that is pushing several sectors in developing nations like China and India. Additionally, technologically advanced nations like Japan have the potential to adopt advancements and innovations in AFC systems, providing growth opportunities for the market. The modernization and standardization of 1,350 AFC gates on Singapore's MRT will take place over a seven-year period, according to a contract the Singapore Land Transport Authority (LTA) awarded to the Thales Group in October 2021. Everyone will be able to commute without experiencing any delays thanks to the updated AFC gates, which use contactless technologies, increasing the effectiveness and accessibility of the public transportation system.

During the forecast period, the market for automatic fare collection systems worldwide is anticipated to grow moderately in the LAMEA region. Rapid urbanization, changing ticketing and automated fare collection technologies, and the integration of numerous multiple-mode transit providers in the African region prove to be crucial growth drivers for the AFC system market. Initiatives to create smart cities and the growing adoption of technology in the Middle Eastern region are continually creating new opportunities for transport operators. The pandemic has accelerated the digitization of transportation services and raised consumer demand for contactless payments, easy travel, and smart city technologies to be incorporated into commuters' daily routines. In the Middle East and Africa, governments, communities, public and private bus operators, transportation authorities, and numerous NGOs support automatic fare collection with an open-loop ecosystem.

Key Highlights

• The global automatic fare collection system market size is projected to reach USD 21.81 billion by 2031, growing at a CAGR of 11.20% during the forecast period (2023-2031).
• Based on components, the global automatic fare collection system market is bifurcated into hardware and software. The hardware segment is the highest contributor to the market.
• Based on the application, the global automatic fare collection system market is bifurcated into parking, transportation and logistics, and entertainment. The transportation & logistics segment is the highest contributor to the market.
• Based on technology, the global automatic fare collection system market is bifurcated into near-field communication, magnetic strips & tokens, and smartcards. The smartcard segment is the highest contributor to the market.
• North America is the highest contributor to the global Automatic Fare Collection System market.

Competitive Analysis:

• Card Systems Ltd
• Cubic Transportation Systems
• Atos SE
• LG CNS
• NXP Semiconductors
• Samsung SDS
• Omron Corp.
• Scheidt & Bachmann
• Thales Group
• LECIP Group

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Global Automatic Fare Collection System Market: Segmentation

By Component

• Hardware
• Software

By Application

• Parking
• Transportation and Logistics
• Entertainment

By Technology

• Near-Field Communication (NFC)
• Magnetic Strips & Tokens
• Smartcards

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA

TABLE OF CONTENT

EXECUTIVE SUMMARY

RESEARCH SCOPE & SEGMENTATION

Research Objectives

Market Definition

Limitations & Assumptions

Market Scope & Segmentation

Currency & Pricing Considered

MARKET OPPORTUNITY ASSESSMENT

Emerging Regions / Countries

Emerging Companies

Emerging Applications / End Use

Investment Landscape

New Business Models / Revenue Streams

TAM

MARKET TRENDS

Drivers

Market Warning Factors

Latest Macro Economic Indicators

Geopolitical Impact

Human Factors

Technology Factors

MARKET ASSESSMENT

Porters Five Forces Analysis

Value Chain Analysis

Sales And Distribution Channel Analysis

Case Study Analysis

Patent Analysis

M & A Agreements & Collabration Analysis

ESG TRENDS

GLOBAL AUTOMATIC FARE COLLECTION SYSTEM MARKET SIZE ANALYSIS

Global Automatic Fare Collection System Market Introduction

By Component

Introduction

Component By Value

Hardware

By Value

Software

By Value

By Application

Introduction

Application By Value

Parking

By Value

Transportation And Logistics

By Value

Entertainment

By Value

By Technology

Introduction

Technology By Value

Near-Field Communication (NFC)

By Value

Magnetic Strips & Tokens

By Value

Smartcards

By Value

NORTH AMERICA MARKET ANALYSIS

Introduction

By Component

Introduction

Component By Value

Hardware

By Value

Software

By Value

By Application

Introduction

Application By Value

Parking

By Value

Transportation And Logistics

By Value

Entertainment

By Value

By Technology

Introduction

Technology By Value

Near-Field Communication (NFC)

By Value

Magnetic Strips & Tokens

By Value

Smartcards

By Value

U.S.

By Component

Introduction

Component By Value

Hardware

By Value

Software

By Value

By Application

Introduction

Application By Value

Parking

By Value

Transportation And Logistics

By Value

Entertainment

By Value

By Technology

Introduction

Technology By Value

Near-Field Communication (NFC)

By Value

Magnetic Strips & Tokens

By Value

Smartcards

By Value

Canada

EUROPE MARKET ANALYSIS

Introduction

By Component

Introduction

Component By Value

Hardware

By Value

Software

By Value

By Application

Introduction

Application By Value

Parking

By Value

Transportation And Logistics

By Value

Entertainment

By Value

By Technology

Introduction

Technology By Value

Near-Field Communication (NFC)

By Value

Magnetic Strips & Tokens

By Value

Smartcards

By Value

U.K.

By Component

Introduction

Component By Value

Hardware

By Value

Software

By Value

By Application

Introduction

Application By Value

Parking

By Value

Transportation And Logistics

By Value

Entertainment

By Value

By Technology

Introduction

Technology By Value

Near-Field Communication (NFC)

By Value

Magnetic Strips & Tokens

By Value

Smartcards

By Value

Germany

France

Spain

Italy

Russia

Nordic

Benelux

Rest Of Europe

APAC MARKET ANALYSIS

Introduction

By Component

Introduction

Component By Value

Hardware

By Value

Software

By Value

By Application

Introduction

Application By Value

Parking

By Value

Transportation And Logistics

By Value

Entertainment

By Value

By Technology

Introduction

Technology By Value

Near-Field Communication (NFC)

By Value

Magnetic Strips & Tokens

By Value

Smartcards

By Value

China

By Component

Introduction

Component By Value

Hardware

By Value

Software

By Value

By Application

Introduction

Application By Value

Parking

By Value

Transportation And Logistics

By Value

Entertainment

By Value

By Technology

Introduction

Technology By Value

Near-Field Communication (NFC)

By Value

Magnetic Strips & Tokens

By Value

Smartcards

By Value

Korea

Japan

India

Australia

Taiwan

South East Asia

Rest Of Asia-Pacific

MIDDLE EAST AND AFRICA MARKET ANALYSIS

Introduction

By Component

Introduction

Component By Value

Hardware

By Value

Software

By Value

By Application

Introduction

Application By Value

Parking

By Value

Transportation And Logistics

By Value

Entertainment

By Value

By Technology

Introduction

Technology By Value

Near-Field Communication (NFC)

By Value

Magnetic Strips & Tokens

By Value

Smartcards

By Value

UAE

By Component

Introduction

Component By Value

Hardware

By Value

Software

By Value

By Application

Introduction

Application By Value

Parking

By Value

Transportation And Logistics

By Value

Entertainment

By Value

By Technology

Introduction

Technology By Value

Near-Field Communication (NFC)

By Value

Magnetic Strips & Tokens

By Value

Smartcards

By Value

Turkey

Saudi Arabia

South Africa

Egypt

Nigeria

Rest Of MEA

LATAM MARKET ANALYSIS

Introduction

By Component

Introduction

Component By Value

Hardware

By Value

Software

By Value

By Application

Introduction

Application By Value

Parking

By Value

Transportation And Logistics

By Value

Entertainment

By Value

By Technology

Introduction

Technology By Value

Near-Field Communication (NFC)

By Value

Magnetic Strips & Tokens

By Value

Smartcards

By Value

Brazil

By Component

Introduction

Component By Value

Hardware

By Value

Software

By Value

By Application

Introduction

Application By Value

Parking

By Value

Transportation And Logistics

By Value

Entertainment

By Value

By Technology

Introduction

Technology By Value

Near-Field Communication (NFC)

By Value

Magnetic Strips & Tokens

By Value

Smartcards

By Value

Mexico

Argentina

Chile

Colombia

Rest Of LATAM

COMPETITIVE ASSESSMENT

Adoption Matrix

Automatic Fare Collection System Market Share By Manufacturers

Automatic Fare Collection System Market Ranking By Revenue For Manufacturers

Average Price By Manufacturers

Vendor Footprint Analysis

MARKET PLAYERS ASSESSMENT

Advanced Card Systems Ltd.

Overview

Business Information

Revenue

ASP

Gross Margin

Swot Analysis

Recent Developmments

Cubic Transportation Systems

Atos SE

LG CNS

NXP Semiconductors

Samsung SDS

Omron Corp

Scheidt & Bachmann

Thales Group

LECIP Group

RESEARCH METHODOLOGY

Research Data

Secondary Data

Major Secondary Sources

Key Data From Secondary Sources

Primary Data

Key Data From Primary Sources

Breakdown Of Primaries

Secondary And Primary Research

Key Industry Insights

Market Size Estimation

Bottom-Up Approach

Top-Down Approach

Market Projection

Research Assumptions

Assumptions

Limitations

Risk Assessment

APPENDIX

Discussion Guide

Customization Options

Related Reports

DISCLAIMER

Table of Content and Figure @

Market News

• In March 2022, Thales Group and PAL Aerospace signed an agreement to develop the next-generation mission systems.
• In September 2022, Cubic Transportation systems partnered with New England Traffic Solutions to provide a single point of contact to all its customers, with combined customer service and broadening its footprint in the Northeast region.
• In September 2022, Omron and NTT communications joined hands to develop solutions for faster manufacturing.

News Media

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