Bus Card Reader Market size is slated to grow considerably over the span of 2021-2027, driven by the increasing use of advancing technologies in transportation industry. Growing urbanization, rising focus toward offering a hassle-free experience to customers, and surging popularity of digital payment methods are as well likely to stimulate the growth curve of market through the coming years.
Besides, the rising implementation of smart card technology across public transport buses, aligned with increasing focus on development of the transportation infrastructure, would offer lucrative growth opportunities for the bus card reader market growth.
However, the industry growth is likely to be hindered by slow adoption and sluggish growth of bus reader card deployment across diverse economies.
Introduction to various initiatives for smart public transportation and ticketing services by various governmental bodies is anticipated to propel the market dynamics in years to come. For instance, the Lagos State government had in 2020 introduced a cashless payment, cowry card initiative to be implemented on all BRT buses in the state. According to government officials, the use of these cards is expected to enhance cashless payments in the regional transportation industry. Reportedly, the cards use Tap and Pay technologies.
Based on the technology, contactless bus card readers are gaining ground worldwide. The contactless feature of the card enables it to make a wireless connection with a reader. The technology comes out to be the fastest, easiest, and more convenient way of transportation payment. Contactless bus card readers, along with the fare payment network, deliver high levels of security for the population. Various companies and official bodies have been introducing innovative developments in space. Citing an example, Dallas Area Rapid Transit (DART) has recently announced expanding its contactless payment on all light rail, all buses, and Dallas Streetcar vehicles. The system would enable passengers to pay for their transit fare with a contactless credit, payment-enabled mobile phone, or debit card.
The need for bus car readers is being largely felt across the school buses. This can be ascribed to the rapid acceptance of readers in their transportation facilities. The device includes an RFID chip linked to a server, which offers automatic attendances and maintains the data of students after boarding the bus. The system also delivers optimum security for children by identifying when a student boards or leaves the school bus via a unique RFID number.
North America bus card reader market is touted to depict an impressive growth rate through 2027 mainly due to the thriving transportation sector across various economies including the U.S. and Canada. Governmental authorities across these countries have been implementing protocols and policies to enhance the transportation sector in the region, which has been influencing the market progression during the forecast period. For example, recently Madison has laid down reforms to support bus riders to tap a pre-paid card or their phones for trip instead of paying at the front of the bus in cash or swiping a pass.
Some of the prominent players operating in the global bus card reader market are Advanced Card Systems Ltd, MagTek Inc, Shenzhen HCC Technology Co., VeriFone Holdings, Inc (Francisco Partners), EP Intelligent Technology Co. Ltd, Shenzhen Rakinda Technology Co., Shenzhen Decard Smartcard Tech Co Ltd., and others.
These vendors have been laying immense focus on the development of novel products, while being engaged in different marketing strategies like mergers and acquisitions, partnerships, and more.
The novel coronavirus pandemic outbreak had a severe impact on the transportation sector during 2020, mainly owing to the movement restrictions and imposition of lockdown norms by various governmental bodies. This had significantly influenced the market, leading it to observe sluggish growth in the first half of 2020. Besides, the practice of social distancing further decreased the use of public transportation, producing a downfall in the market expansion.
The above information has been provided for the following regions and countries: