Global Statistics Representing Automatic Fare Collection System Market Scenario
Population explosion and the burgeoning number of commuters are driving the global transportation sector. This scenario has paved the way for a trailblazing automated technology that streamlines the fare collection process. Automated Fare Collection (AFC) systems are used in several urban public transport systems, which are shifting from paper tickets printed via a small machine with a keypad to digital tickets (smart cards). Although paper tickets and passes still occupy a significant share in urban and rural rail transit systems and commuter rail, over the past few years, these ticketing methods have moved to magnetic stripe cards and contactless smart cards – inexpensive technologies that render additional data collection options and security. Additionally, with the concept of smart cities growing around the globe, the proclivity toward AFC systems is evident. Cities are integrating advanced technologies into municipal operations, starting from transportation to infrastructure repair.
The automatic fare collection system market is segmented by component, application, and technology. The hardware segment includes ticket vending machines and fare gates, among others. Ticket vending machines and fare gates play a crucial role in the retailing of tickets and are complex systems interconnected with other systems and back-office software. Fare gates have potential growth prospects across the Middle-East as the region focuses on technological developments in the transport sector. For instance, in 2018, the Road Transport Authority of Dubai (United Arab Emirates) announced the opening of 13 extra fare gates, where commuters can pay via Apple Pay, Samsung Pay, or NoI cards at all Dubai metro ticket windows.
The transportation and logistics segment holds the most significant share among other application segments. In both developing as well as developed countries, cities are on a staggering pace of progression thereby relying on automated systems, which hastens the process of collection and verifying the transport fees. The fidelity of AFC systems sustains on factors such as efficiency, accessibility, and affordability that AFC systems serve to transport planners, operators, local governments, and consumers. Additionally, these systems are becoming compatible with an increasing number of payment methods beyond debit and credit cards; smart cards integrated with Near-Field Communication devices, and e-commerce platforms such as PayPal, PhonePe, AmazonPay, and others.
The wave of digitization and cashless trend has taken over the transport and logistics sector across the globe. The evolution of QR codes/barcodes has downplayed cash transactions. For instance, the Kochi Metro station in Kerala (India) implemented an open loop smart cards and QR code tickets payment system on a cloud-based AFC system by AGS Transact Technologies Limited (AGSTTL), a provider of end-to-end payment solutions. It uses a combination of Open Loop Smart Cards, Quick Response Codes (QR codes), and Radio Frequency Identification Devices (RFID) to collect cashless fares.
Geographically, the global automatic fare collection system market is classified into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
The public transportation in North America has been witnessing a drastic change in the wake of investments by federal and local bodies, aiming to revamp the transit modality in the region. Numerous upgradation programs by noteworthy companies have been implemented in urban areas such as Baltimore, New York, Boston, Washington D.C., Chicago, Atlanta, Los Angeles, Houston, and others, as their respective transit systems are acquiring 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 introducing Software-as-a-Service ticketing and payments to public transport, joined forces with the Regional Transit Service (RTS) in Rochester (New York) to deliver its next-generation AFC system by utilizing Justride – an innovative account-based automated fare collection system. This system would enable commuters without smartphones and bank accounts to purchase fares expeditiously with the help of Ticket Vending Machines (TVM’s) supplying smartcards or printed barcodes.
The automatic fare collection system and ticketing market are on the upward trajectory in Europe as the latest technology is focused more on reduced maintenance costs, reliable equipment, faster transactions, and security. For instance, in 2017, a city in Scotland called Dundee, welcomes the contactless payments on Xplore buses to make the ticketing process faster and secured. Such trends of adapting technologies encourages innovation and developments in automatic fare collection system would offer an array of opportunities for the AFC system market.
The growing trend of digitization is pushing several sectors across developing countries such as India and China have led to an increasing scope of development for the AFC system market in the Asia-Pacific region. Additionally, countries such as Japan which is technologically up front has the potential of adapting innovations and upgradation in the AFC systems offering growth prospects for the market. Rapid urbanization and evolving technology around mobility, ticketing and automated fare collection and integration of several multiple mode transit providers in the African region proves to be an imperative factor of growth for AFC system market.
Some of the noteworthy companies in the automatic fare collection system market are Advanced Card Systems Ltd., Cubic Transportation Systems, Atos SE, LG CNS, NXP Semiconductors, Samsung SDS, Omron Corp., Scheidt & Bachmann, Thales Group, and LECIP Group.
The aforementioned companies are concisely studied covering the recent developments, financial prospects, product portfolio, geographical strength, and their respective business strategies.
Automatic Fare Collection System Market Segmentation
- Ticket Vending Machine
- Fare Gates
- Others (Ticket Office Machine, Station Infrastructure)
- Retail (Parking)
- Transportation and Logistics
- Subway Station
- Train station/Metro railways
- Media and Entertainment
- Near-Field Communication
- Magnetic Strips & Tokens
- QR Code/Barcode
- Smart Cards
Why Buy this Report?
- The automated fare collection system market report covers a detailed analysis of the several benefits that automated fare collection systems would offer to the mentioned industrial verticals in a global scenario
- It primarily focuses on regions such as Asia-Pacific on account of their growing transportation sectors and adoption of digitization
- A brief study on the market’s segments is included in the report’s scope
- Several regulatory frameworks focusing on smartcard systems at a country level are also concisely discussed in the report