Automated Fare Collection System Market Size & Share 2016 - 2023
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, Growth Potential, Competitive Market Share & Forecast.
Report ID: GMI406
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Published Date: April 2016
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Report Format: PDF
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Authors:
Suraj Gujar, Ankita Chavan
Automated Fare Collection System Market Size
Automated Fare Collection (AFC) System Market size estimated at USD 4 billion in 2015 and is predicted to register over 10% gains from 2016 to 2023.
The automated fare collection system market growth is attributed to favorable government initiatives worldwide for the development of sustainable & smart transport infrastructure coupled with rapid usage of advanced fare collection technologies including electronic payment systems and smartcards. Governments in the UK and the Netherlands have been introducing AFC systems to provide smart card technology to regional authorities. In December 2015, the UAE administration and Xerox transportation solutions introduced a smart fare collection system for buses by offering a single card for the usage on transit modes in Abu Dhabi, reducing passenger waiting time in queues and traffic congestion times. The growing usage of smartphones for accessing travel information applications will also support market growth. The major m-payment companies including Apple, Google, and Samsung are also playing an important role in the payment of transportation fees using AFC systems.
Smartphones help to integrate mobile application ticketing, on-board ticketing, and online ticketing into smart ticketing solutions, which allow transport authorities and operators to deliver better services to their clients and reduce fare evasion situations & fund leakage.
Automated Fare Collection System Market Analysis
The hardware market is expected to hold a market share of above 45% by 2023 due to the rising implementation of automatic fare collectors in public transit networks. The transport sector is witnessing a rise in the usage of hardware electronics, such as bus card processors, bus controller units, and portable ticketing devices, which are required for effective implementation of AFC systems. The massive proliferation of metro rails and bus rapid transit systems has resulted in passenger volumes, generating the need for smart fare collection systems.
The Optical Character Recognition (OCR) segment is estimated to hold an automated fare collection system market share of above 20% by 2023 due to the growing usage of the OCR technique for automatic ticket collection. The OCR software is widely used in various forms such as personal smartphone scanning devices, desktop applications, and server-based solutions that are capable of handling workflow without human interaction. By using OCR technique for automated data processing, the transport companies can minimize their dependency on traditional methods of data entry.
Asia Pacific AFC system market growth is attributed to the rising government support for the development of transit systems to improve public transportation in the region. For instance, in June 2015, the Kuala Lumpur government introduced Bus Rapid Transit (BRT) service in Sunway to minimize traffic congestion in the area. The market is gaining momentum due to the increasing adoption of these systems in public transportations, particularly in the metro. For instance, in June 2015, Delhi (India) metro authorities installed 210 new AFC gates in key stations including Huda City Center Station and Nehru Place stations to ensure the smooth flow of passengers. AFC systems provide an enhanced ticket booking facility to users/commuters and also help operators to resolve the overload booking issue of tickets during peak hours. Rapid digitization, growing infiltration of smartphones, and demand for digital payment method followed by strong administrative visions for intelligent transportation infrastructure are anticipated to drive the market.
Automated Fare Collection System Market Share
The companies present in the automated fare collection (AFC) system market are enhancing their product capabilities through partnerships with technology companies. For example, in October 2015, Transdev enhanced its fare collection system by using Parkeon’s Wayfarer6 driver consoles to operate on certain UK bus routes. In May 2015, QNX Software announced that its QNX Neutrino OS is powering dare collection system, which includes ticketing machines, automatic gates, and onboard bus equipment throughout the countries including the Philippines, Singapore, and Thailand. Companies operating in the market are focusing on product innovations to differentiate their offerings and gain a competitive edge over their competitors.
Some of the major companies operating in the market are:
Industry Background
The rising adoption of advanced fare collection technologies not only to collect payments but also to combine with data collection has become very important for the profitability of the public transit agency. The transportation sector has witnessed a rapid change from purchasing tickets to a wide variety of payment options, which are more secure and efficient. Advancements in technology have led to the expansion of several smart card technologies, providing consistency and nominal errors. Also, the rising need for smart transportation infrastructure has propelled the demand for advanced fare collection systems to drive service improvements and enable operators to ease passenger movement.
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →