Smart Ticketing Market Size, Share & Trends Analysis Report By Product (Ticket Machine, E-Ticket, E-Kiosk, Others, Request Tracker, Smart Parking System, Ticket Validators), By Component (Software, Hardware, Service), By System (Smart Card, Open Payment System, Near-Field Communication), By Applications (Railways and Metros, Sports and Entertainment, Praking And Transportation, Airlines, Buses), By Size (SMEs, Large Enterprises) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global smart ticketing market size was valued at USD 9367.7 million in 2022. It is projected to reach USD 26975.15 million by 2031, growing at a CAGR of 12.47% during the forecast period (2023–2031).

Smart tickets are electronic ones stored on a microchip, typically within a smart card. Increased efficiency and safety for passengers and transportation providers alike is just one of the many benefits of smart ticketing, which has reshaped how we travel. Smart cards and smartphones allow travelers to avoid the hassle of carrying paper tickets by storing and using them digitally; all they have to do is tap their device or card on a validator at the entrance. Smart ticketing is growing not just in the transportation industry but also in the entertainment industry, banking and finance, and the healthcare industry. Increasing demand for smart tickets, widespread adoption of contactless payments, expansion of the intelligent transportation sector, and popularity of wearable tech are fueling the smart ticketing market.

Market Dynamics

What are the Primary Factors driving the Market for Smart Ticketing?

Growing Adoption of Advanced Technologies in Smart Ticketing Solutions

The public transportation system, concerts, stadiums, and other events of this type all use smart ticketing systems. Near-field communication (NFC) and other cutting-edge technologies are crucial to the success of the ticketing system. With NFC technology, two electronic devices (an NFC card and a card reader) can exchange data from a distance of up to 4 centimeters. In addition, NFC technology permits speedy ticket purchases and contactless payments through the wave of a card or the proximity of a card to a reader. Safe contactless transactions, digital content access, and ticket storage for transportation gates and parking garages are just a few examples of how NFC-enabled smartphones are used. There has also been an uptick in interest in mobile ticketing for public transportation systems, as this helps riders save time and money.

Rising Demand for Smart Ticketing from Sports, Entertainment, and Tourism

Increased digitization and better connectivity are driving the digital transformation of transportation networks. Cities worldwide are undergoing this change to better serve their residents, increase productivity, and delight their customers. Because of the convenience, speed, and safety of electronic ticketing systems are widely adopted by public transportation, sports, entertainment, and other related sectors. Its durability and compact size are just two of the many benefits it offers its passengers. In addition, the user can pre-fund their tickets with a specified amount of credit.

What are the Main Factors that will slow down the Market for Smart Ticketing?

High Installation Cost of Smart Ticketing Systems

Public transportation systems and sporting events both heavily utilize electronic ticketing systems. Component manufacturers, infrastructure providers, the public sector, service providers, and user groups must work together to bring this system's network online. Ticketing systems require complex infrastructure due to the number of parties involved in their implementation. Most public transportation providers cannot afford to implement such a system because of the high cost of the required battery-operated RFID passenger tags and the complexity involved in installing the necessary hardware. It is expected that the high initial investment price will slow the growth of the mobile ticketing market.

What are the Future Opportunities for Smart Ticketing?

Use of Blockchain Technology

Smart ticketing systems are commonly used at stadiums, concert halls, and other large venues. Ticketing has many problems, such as fraud, scalping, fake tickets, incomplete sales, and a lack of a standard refund system. It's also possible for security issues to arise because event organizers don't know who's going to be there. Tickets are being purchased in bulk by bot networks and resold on the secondary market for exorbitant prices. Different players have varying styles and strategies. Using blockchain technology, we can standardize the industry and increase openness in the ticketing process for all participants. Through smart ticketing, event organizers can determine the conditions under which crypto-tickets can be purchased, sold, refunded, or exchanged.

Regional Analysis

North America Dominates the Global Market

The global  market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant shareholder in the global smart ticketing market and growth is expected to during the forecast period. The increasing need for solutions that can streamline ticketing procedures, combined with many companies with expertise in smart ticketing solutions, suggests that North America will dominate the global market. The presence of key players in the region, such as Conduent, Inc., HID Global Corporation, Masabi Ltd., and others, as well as the rising popularity of new technologies, are expected to fuel the market's expansion. The proliferation of NFC-enabled smartphones has provided the foundation for smart ticketing in various sectors of the region.

Asia-Pacific is expected to grow during the forecast period. Rapid urbanization and the rising popularity of IoT gadgets like smartphones are the main drivers of the global market expansion in the Asia Pacific. In addition, leading Smart Ticketing Market participants are concentrating on growing their operations in emerging economies like India, China, and Indonesia, which should fuel the market. Ticketing apps optimized for mobile devices are in high demand due to the proliferation of smartphones in Asia-Pacific. The Japan Smart Community Alliance (JSCA) is also pushing to create smart technologies like smart ticketing to make Japanese communities more self-sufficient. Consequently, initiatives of this nature are anticipated to propel the market forward during the forecast period.

Rising government and public transportation sector investment in Europe has resulted in the region holding a disproportionately large market share. The European Union (EU) plans to encourage the transportation industry to adopt fast, simple, and secure electronic ticketing solutions, which will drive the market forward. Additionally, the European sports and entertainment industry heavily uses this system to streamline the sale of tickets and cut down on wait times for customers at events. Smart ticketing innovations have pushed German businesses to adopt technologies like RFID, NFC, QR codes, and barcode.

Recent substantial investments in public transportation have made LAMEA a critical region in the global market. Metros, buses, road taxis, and water taxis are all part of the public transportation network in the Middle East. With a total track length of 75 kilometers and no human intervention whatsoever, the fully automated metro system currently has two active lines and plans for three more. Through strategic alliances with smart ticket developers and operators, the leading payment solution providers in the region are also expanding their footprint in Smart Ticketing Market by offering integrated payment solutions.

Segmental Analysis

The global market is segmented by product, component, system, and application.

Based on product, the global market is bifurcated into ticket machines, e-tickets, e-kiosks, and others.

The e-ticket segment is the highest contributor to the market and is expected to grow during the forecast period. Electronic tickets are safer than paper tickets in many ways. The wide spread of smartphones has also contributed to the expansion of this market. Users can plan and manage their trips on public transportation more efficiently and affordably with the help of the Smart Ticketing system. In addition, customers can put money in the account to use toward future ticket purchases. The Smart Ticketing Market is anticipated to expand during the forecast period on the back of creating cutting-edge smart ticketing solutions for the tourism sector.

Based on components, the global  market is bifurcated into software and hardware.

The hardware segment is the highest contributor to the market and is expected to grow during the forecast period. Growing demand for e-ticketing in the transportation, parking and entertainment industries led to hardware's dominance in this market. Tickets, tap-off readers, compact tickets, handheld tickets, and cased tickets are just some of the hardware used in the e-ticketing system. The Smart Ticketing Market is expected to grow at a healthy rate over the next few years thanks to the fact that these devices are simple to operate, come in a variety of designs, and come fully equipped with facilities for both contactless and contact credit card devices.

Based on the system, the global market is bifurcated into smart cards, open payment systems, and near-field communication.

The smart card segment is the highest contributor to the Smart Ticketing Market and is expected to grow during the forecast period. Smart cards are gaining popularity among travelers in both large and small communities because they allow for the convenient use of contactless or traditional card payments to buy tickets, e-tolls, and other travel necessities at the best possible price. Smart cards have a memory chip or microprocessor embedded in them, and their compact size makes them ideal for use with a smart card reader to access a wide variety of online services. Since smart cards have so many potential benefits, they are instrumental in driving industry development.

Based on application, the market is bifurcated into railways and metros, sports and entertainment, airlines, and buses.

The railways and metros segment is the highest contributor to the Smart Ticketing Market and is expected to grow during the forecast period. The increasing use of electronic ticketing in public transportation, such as railways and metros, has helped the parking and transportation industry gain a commanding market share. The transportation industry in major cities is undergoing radical change in the digital age. Mobile ticketing systems are expected to grow rapidly over the forecast period as bus and train companies in smart cities around the world adopt them in place of traditional physical tokens or paper tickets to provide passengers with a faster, more convenient travel experience.

Impact of covid-19

The pandemic had caused a lockdown in almost all the countries across the world backed up by strict government regulations such as social distancing and quarantine. A severe effect of the lockdown was observed on the economy of various countries which further canceled certain construction projects temporarily or permanently.

Further, immediate long-term effects were seen in the supply chain and the deployment of smart solutions required in the smart buildings. However, the ease offered and the multiple benefits of the smart building solutions are anticipated to increase the deployments during the time.

Recent Developments

• June 2022- HID Global and the Hubert Curien Laboratory have launched a collaborative research project to develop secure citizen identity documents.
• November 2022- Infineon and Stellantis signed an MOU for the multi-year silicon carbide (SiC) chips supply.