SAN FRANCISCO, April 20, 2023 /PRNewswire/ -- The global automated fare collection market size is expected to reach USD 28.88 billion by 2030, expanding at a CAGR of 14.1% from 2023 to 2030, according to a new report by Grand View Research, Inc. The automated fare collection industry growth can be attributed to the increasing amount of investments to enhance transport system efficiency worldwide and the use of contactless payment systems. Automated fare collection (AFC) systems enable automated ticketing systems in public transportation, which enhances the operational efficiency of the overall system. These systems offer an integrated platform for the majority of fare-collection activities at various end-use locations such as ticket checking machines, gate machines, and ticket vending machines.
Key Industry Insights & Findings from the report:
- The software segment is expected to experience considerable growth with a CAGR of 14.6% over the forecast period. Automatic fare collection software involves advanced technologies, which offer better user experience, fast and more efficient data processing, time-saving, and in-built and error-free payment processing, automation in ticket generation, and error detection capabilities.
- The near-field communication (NFC) segment is expected to experience considerable growth with a CAGR of 15.7% over the forecast period. NFC helps establish communication between electronic devices and payment terminals, to share information and data related to payments and other transactions. NFC offers a fast payment solution, can be accessed with personal mobile devices, offers high security, and saves time.
- The IC card segment is expected to experience considerable growth with a CAGR of 16.0% over the forecast period. IC Card is a type of rechargeable card, which offers payment options for fares at various end-use facilities such as public transportation stations, vending machines, restaurants, and others by a simple touch or scan.
- The entertainment segment is expected to grow with the fastest CAGR of 16.3% from 2023 to 2030. The rapid growth of the entertainment industry requires a fast, automated, and reliable fare collection system to manage a large crowd in venues such as theaters, cricket stadiums, amusement parks, and public fares, among others.
- Asia Pacific region is expected to grow with the fastest CAGR of 16.1% from 2023 to 2030 owing to the rising adoption of modern public transportation infrastructure, growing government initiatives, rising public awareness related to cashless transactions, large tourism base are some key factors driving the automated fare collection industry growth in Asia Pacific region.
Read 150 page market research report, "Automated Fare Collection Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By Technology, By System, By Application, By Region, And Segment Forecasts, 2023 - 2030", published by Grand View Research.
Automated Fare Collection Market Growth & Trends
This is expected to create robust opportunities for players in the automated fare collection industry. These systems are primarily used in high transit areas such as public transport ports, large commercial workplaces, and government buildings. The growing traffic activity worldwide continues to force various governments to implement innovative systems for public transportation service management. This is accelerating the adoption of the automated fare collection system in various countries such as the U.K., India, Japan, and China as these governments are consistently investing in transport infrastructure development, supporting the AFC industry growth.
For instance, in January 2019, Aurionpro Solutions implemented the automated fare collection systems for the Noida Metro project in partnership with the State Bank of India, and the Noida Metro Rail Corporation (NMRC). The rising need for easy to use and automated fare-collection systems to maintain high-quality standards for customer service is driving the growth of the automated fare collection industry. The growing construction of mass rapid transportation systems such as metros, light rails, and highways has resulted in higher passenger volumes. The changing business scenario is generating the need for a smart automatic fare collection system.
These automatic fare collection systems not only provide a path toward easier operations but also minimize the risks and costs associated with managing cash, smooth traffic flow, and tracking data and records. These factors are expected to drive the demand in the AFC industry during the forecast period. Due to the growing technological advancement and higher adoption of online payment preferences, people need a variety of options such as cash, card, and e-wallets while in transit. Hence, flexibility remains an attractive feature to customers. Furthermore, AFC solutions provide a safe and reliable payment option that ensures data protection based on industry-standard encryption technology. Hence, these factors are expected to fuel the growth of the automated fare collection industry during the forecast period.
Automated Fare Collection Market Segmentation
Grand View Research has segmented the global automated fare collection market based on component, technology, system, application, and region:
Automated Fare Collection (AFC) Market - Component Outlook (Revenue, USD Million, 2018 - 2030)
- Hardware
- Software
Automated Fare Collection (AFC) Market - Technology Outlook (Revenue, USD Million, 2018 - 2030)
- Smart Card
- Magnetic Stripe
- Near Field Communication (NFC)
- Optical Character Recognition (OCR)
Automated Fare Collection (AFC) Market - System Outlook (Revenue, USD Million, 2018 - 2030)
- Ticket Vending Machine (TVM)
- Ticket Office Machine (TOM)
- Fare Gates
- IC Cards
Automated Fare Collection (AFC) Market - Application Outlook (Revenue, USD Million, 2018 - 2030)
- Railways & Transportation
- Parking
- Entertainment
- Others (Government, Retail)
Automated Fare Collection (AFC) Market - Regional Outlook (Revenue, USD Million, 2018 - 2030)
- North America
- The U.S.
- Canada
- Europe
- Germany
- The U.K.
- France
- Italy
- Spain
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East & Africa
- U.A.E
- Saudi Arabia
- South Africa
List of Key Players of the Automated Fare Collection Market
- Advanced Card Systems Ltd.
- Atos SE
- Cubic Transportation Systems
- GMV
- Indra Sistemas SA
- LECIP Holdings Corporation
- LG Corporation
- Siemens AG
- Thales Group
- Omron Corporation
- Masabi Ltd.
- Nippon Signal
- Scheidt & Bachmann GmbH
- Samsung SDS Co. Ltd.
Check out more market research studies published by Grand View Research:
- Automated Parking System Market - The global automated parking system market size is expected to reach USD 6.66 billion by 2030, registering a CAGR of 16.7% from 2022 to 2030, according to a new report by Grand View Research, Inc. The number of on-road vehicles has increased exponentially across major countries and has given rise to traffic congestion and parking space problems. This has resulted in the emergence of automated parking systems. Moreover, an automated solution improves convenience for vehicle owners or drivers by automatically parking the vehicles at a vacant spot available in the system. Additionally, increasing traffic congestion and inadequate parking space availability in the cities are driving the market growth.
- Intelligent Transportation System Market - The global intelligent transportation system market size is expected to reach USD 52.24 billion by 2030 and is expected to expand at a CAGR of 8.3% from 2023 to 2030, according to a new Grand View Research, Inc. The continuous advancements in technologies of transportation networks have accelerated the demand for highly efficient transportation systems.
- Automated Sortation Systems Market - The global automated sortation systems market size is expected to reach USD 7.05 billion by 2027, expanding at a CAGR of 5.2% from 2020 to 2027, according to a study conducted by Grand View Research, Inc. The rising demand for automated sortation systems in the retail and e-commerce sector is fueling market growth. Surging the adoption of online shopping has led to an increase in the number of orders. Retailers are opting for automated solutions in their warehouse and distribution facilities for error-free operations and on-time delivery of ordered products.
Browse through Grand View Research's Automotive & Transportation Industry Research Reports.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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