Automated Fare Collection (AFC) System Market Size By Component (Software, Hardware), By Technology (Magnetic Strip, Smart Cards, Optical Character Recognition (OCR), Near Field Communication (NFC)), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, China, India, Japan, Brazil, Mexico, Saudi Arabia, UAE), Application Potential, Competitive Market Share & Forecast, 2016 - 2023
Published Date: Apr 2016 | 87 Pages | Report ID: GMI406 | Authors: Ankita Bhutani, Pallavi Bhardwaj Report Format: PDF
Automated fare collection system market size was USD 4.51 billion in 2015 and is predicted to grow with 10.4% CAGR to hit USD 9.84 billion by 2023. A favorable regulatory landscape and growing initatives for a streamlined transportation infrastructure will be instrumental in driving growth.
UK automated fare collection system market size, by technology, 2012 - 2023 (USD Million)
Get more details on this report - Request Free Sample PDF
Modern systems are capable of calculating the best fare, based on parameters such as relevant discounts, travel length, as well as prior logs. This results in tangible benefits for transport authorities as well as customers.
Transparent transport fee collection methods are most crucial factor for customer satisfaction. The long term aim of these systems is to provide action free functions; on account of this the system can be distinguished as check-in/check-out, and be-in/be-out. Growing adoption of open bank cards payment for transit fare, which supports account-based architecture, has resulted in additional benefits to transit agencies for supporting fare policies and other payment media.
Availability of paper ticketing systems may restrain growth; however, poor revenue control is estimated to lower the threat of substitution over the next few years. Internal technological substitutes such as NFC-based mobile ticketing and contactless smart cards are poised to witness growth. Growing smartphones industry is likely to boost the global automated fare collection system market size, with shipments set to exceed 2.3 billion units by 2023.
AFC Market, By Component
AFC hardware market size was over USD 2.2 billion in 2015. The software segment is likely see 10.4% CAGR growth from 2016 to 2023.
Considerable support is provided by independent software companies and developers, this includes DBMS (database management systems), SDK (software development kits), server solutions, mobile platforms, middleware, etc. Together these constitute a key part of the overall system efficiency in addition to facilitating the running of devices across the entire network.
Since operating fare collection and payment systems is a technically complex activity, transportation agencies look for IT, operational, and maintenance services from system suppliers; these include card management, regional settlement, and customer support.
AFC Market, By Technology
Smart cards occupied over 30% of the automated fare collection system market share in 2015 and are predicted to witness growth. NFC technology is estimated to see 12.3% CAGR growth from 2016 to 2023. A step up from the traditional radio frequency identification (RFID), NFC helps achieve (short-range) communication between electronic devices. On account of high degree of compatibility, NFC can be coupled with the fare collection platform. In comparison to alternatives, NFC provides high degree of user experience since it is fast and also helps realize automated connections. Technology availability and integration in smartphones and the reader devices helps achieve the dual benefit of access control and ticketing. The ease of use with the existing infrastructure also prevents the need for further investments.
OCR implementation helps tickets, receipts, and other related documents to be captured using a camera and converted into easily searched data.
AFC Market, By Region
U.S. AFC system market share is forecast to gain at 9% CAGR from 2016 to 2023. Growing intelligent transportation sector is likely to boost the industry. Global ITS market size is predicted to exceed USD 45 billion by 2023.
Delay and lack of funding among public transport agencies may delay the implementation of these services.
Asia Pacific automated fare collection system market size is set to surpass USD 2.5 billion by 2023, driven by growing transit projects in China and India.
Competitive Market Share
Automated fare collection system market share is comprised of Thales Group, Cubic Systems, Omron Corporation, Atos, NXP Semiconductor, LG, Advance Card Systems, Samsung, etc.
Players in the industry practice high degree of innovation and customization to provide unique solutions to existing and potential customers. Due to the long life expectancy of these systems, there is fierce competition to win new contracts.
Key customers comprise notable transportation authorities, and the preferred mode of service is through intermediaries such as contractors. Companies enter into strategic partnerships and joint ventures for gaining market share and expanding on a global level. Support services and other ancillary services represent a major aspect of the business.
What Information does this report contain?
Our Market Research Reports Include:
- Market snapshot
- Market Segmentation
- Value Chain Analysis
- Growth Dynamics
- Potential Market Opportunities
- Regulatory Overview
- Technology Evolution
- Innovation & Sustainability
Why Global Market Insights?Comprehensive Research
- All-inclusive coverage
- In-depth and granular data (ex: information for 8 to 15 countries, with clients open to add to this list, in each report)
- Penetrative insights & latest trends
- Offers holistic understanding of the market
- Unique methodology
- Iterative in nature to eliminate errors
- Detailed methodology, scope, assumptions and data sources available for reference
- Committed to making a positive difference for our clients
- Given the nature of this industry, we are committed to ensure that our clients get maximum return on their investment in our services
- Every purchase comes with an option to obtain additional information:
- up to 10% of the original cost
- 45-minute analyst tele-call to obtain further clarity on the market.
- Global Market Insights, Inc. strictly adheres to PCI-DSS security norms.
- Only PCI-DSS compliant payment methods used for highest level of client data security
Connect with our sales team