Market Statistics for Automated Fare Collection Systems Until 2027
The global automated fare collection system market was worth $6,639.10 million in 2019 and is expected to grow at a CAGR of 11.6 percent to $12,753.75 million by 2027.
A primary driving driver for the automated price collecting system market is the changing payment outlook of customers, which eliminates the need for hard cash and reduces transit time, hence reducing long ticket lines. A contactless, end-to-end solution for collecting fare payments and replacing traditional ticketing systems with automated ticketing is the automated fare collection system. Automatic gate machines, ticket vending machines, recharging terminals, and ticket checking machines are all part of the system. This technology enhances fare collecting efficiency, increases overall transaction rate, and saves a significant amount of time, reducing queue time and the need to seek for cash to purchase tickets. It is also a simple technique of income collecting. It allows travellers to carry only one card that may be used on all kinds of transportation.
Top Influencing Factors
Contactless open payment, rising demand for smartphones, increased efficiency, low fraud rates, improved transportation infrastructure and security system, and customizable fare plans are all key influencing elements in the expansion of the automated fare collecting system market. Furthermore, variables such as an increase in public transportation’s high speed, the rise of technology payment, and global interoperability have a beneficial impact on the market. During the forecast period (2020–2027), each of these variables is expected to have a significant impact on the automated fare collection system market.
During the projection period, the training, support, and maintenance services sector is predicted to have the biggest market size.
The core themes that will help one comprehend the more complex principles of AFC technologies are covered in training, support, and maintenance services. It is recommended for business owners, application developers and operators, and other technical specialists who want to know everything there is to know about AFC. The installation of a proper maintenance schedule is critical to an AFC system’s efficient performance. Users may complete work without interruptions thanks to maintenance and assistance. It entails resolving operational faults or conducting frequent inspections in order to avoid any unplanned or unfocused events. These AFC training, support, and maintenance services help users grasp technology concepts and how to apply them efficiently.
From 2016 to 2021, the AFC market in APAC is predicted to develop at the fastest rate.
The transportation and logistics, government, and media and entertainment industries are the most common users of AFC products, owing to the huge number of fare collection systems found in these sectors. In most industries, including retail, media & entertainment, and government, APAC is the fastest-growing area for the AFC market.
Perspectives on Technology
The market has been divided into smart card, magnetic stripe, Near Field Communication (NFC), and Optical Character Recognition (OCR) segments based on technology (OCR). Due to its increased operating flexibility and higher processing speed than magnetic stripe cards, smart card technology was the market leader in 2018. This trend is projected to continue over the forecast period.
Smart cards enable service providers to handle differentiated distance- and time-based price structures and allow fare integration across many modes of transportation. In the 1970s and 1980s, magnetic stripe technology-based tickets were the predominant method of ticketing. Smart cards, on the other hand, have gradually superseded traditional technology.
Due to increased customer preference for cashless fee collection systems for all forms of public transportation, the NFC market is predicted to grow at the fastest rate from 2019 to 2025. Furthermore, prospective rail and road transport infrastructure development in growing markets such as Asia Pacific is expected to boost segment growth.
Observations on the System
The market is divided into Ticket Vending Machines (TVM), Ticket Office Machines (TOM), fare gates, and IC cards based on the system. Autonomous devices, such as TVM, TOM, fare gates, and IC cards, provide greater dependability and precision than traditional systems, reducing the risk of errors and improving transaction security. Various governments are investing in the deployment of TVMs, TOMs, and automated fare gates in high-traffic regions as a result of these causes. In 2018, the TVM sector had the biggest market share, and this is projected to continue over the projection period.
The category is predicted to be driven by an increase in the number of TVM deployments on railway and metro stations, subways, and local bus transit networks. Due to increased use of fare gates in monitoring fare evaders in railways, transit avenues, and metro stations, the fare gate segment is predicted to grow at the fastest rate of 14.7 percent during the forecast period. Because fare gates eliminate the need for manual operations, demand for them is expected to surge in quickly developing public transportation networks in emerging economies such as Asia Pacific.
