Global Automated Fare Collection Market By Component (Hardware and Software), By Technology (Smart Card, Magnetic Stripe, Near Field Communication (NFC), and (OCR)), By System (Ticket, Vending Machine (TVM), Ticket Office Machine (TOM), and IC Cards), By Application (Railways & Transportation, Others Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Automated Fare Collection Market Overview:

Global automated fare collection market was valued at USD 11,950 million in 2021. It is expected to grow at a CAGR of 13.2% between 2022 and 2032.

Automatic ticket vending machines and card recharge terminals are both parts of AFC systems. Gate, ticket-checking and ticket-checking machines are also included. Because of the growing demand for effective and hassle-free transportation methods, the market is predicted to expand.

Global Automated Fare Collection Market Scope:

Component Analysis

Based on components, this market can be split into two categories: software and hardware. In 2021, hardware accounted for the largest market segment as a result of governments’ growing global deployment of AFC systems for improved public transportation services. A Station Computer System, Station Equipment, and Central Computer System typically make up these systems.

The management center, also known as CCS, is in charge of collecting data from station computers and producing regular reports. Additionally, it manages computer systems with a single or several stations. Operators can submit fare-related settings to the Automated Fare Collection station hardware using SCS. Additionally, station equipment can be monitored and controlled remotely. The initial piece of equipment that commuters use is station equipment.

These include ticket vending machines and fare gates. AFC systems will be highly sought after because to the growing demand for automation on a global scale. These solutions enable transportation networks to provide much better customer service while also reducing their overall operational costs.

Technology Analysis

Based on technology, this market may be divided into smartcard, Near Field Communication, optical character recognition, and magnetic stripe segments. In 2021, smart card technology dominated the market. Throughout the projection period, it is anticipated that this tendency will continue. Compared to magnetic stripe cards, smart cards process information more quickly and offer more operational flexibility. Smart cards make it possible to integrate fares among several means of transportation. They also facilitate providers to handle various time and distance-based fee structures.

As a result of consumer preferences toward cashless fee collection solutions for all forms of transportation, NFC will experience the highest CAGR between 2023 and 2032. The prospective construction of road and rail transportation infrastructure in developing regions like APAC will further assist the segment’s growth.

System Analysis

Depending on the system, this market can be separated into fare gates, IC Cards, ticket vending machines, and ticket office machines (TOM). Traditional methods are outperformed by the enhanced accuracy and reliability of autonomous devices like TVM and TOM, IC cards, and fare gates which also provide superior transaction security. These elements encourage governments to spend money on automated fare gates, TVMs, and TOMs in high-transit zones.

Due to the growing deployment of TVMs at train and subway stations, the segment is anticipated to grow. The fare gates segment will experience the largest 14.7% CAGR, throughout the course of the projection period due to the growing use of this to detect fare evaders on trains, metro stations, and transit lanes. Since the necessity for manual operations reduced, fare gates are projected to see an increase in demand in public transit networks in regions like APAC.

Application Analysis

Based on its applications, the market can be classified into three categories: parking, entertainment, railroads & transportation, and others. The railways & transportation segment accounted for the largest market share in 2021 and are anticipated to expand quickly over the next coming years. This is a result of the rapid construction of expressways, freeway networks, and railway infrastructure.

Smart transportation initiatives must include Electronic Toll Collection systems, a specialized AFC system used to collect tolls on roadways. These systems aid governmental organizations and transit system administrators in easing traffic congestion, enhancing traffic flow, and enhancing the general effectiveness of transit routes. Due to their contactless transaction processing abilities and expanded deployments at highway tax collecting facilities, they are anticipated to be widely utilized.

Key Маrkеt Segments:

By Component

• Hardware
• Software

By Technology

• Smart Card
• Magnetic Stripe
• Near Field Communication (NFC)
• Optical Character Recognition (OCR)

By System

• Ticket Vending Machine (TVM)
• Ticket Office Machine (TOM)
• Fare Gates
• IC Cards

By Application

• Railways & Transportation
• Parking
• Entertainment
• Other Applications

Market Dynamics:

Increased use of plastic money, real-time payments, and digital payment gateways including debit cards, credit cards, and near-field communication payment apps are predicted to be the main drivers of market expansion. Because of their benefits, which include better process management, revenue creation, and financial fraud protection, they are quickly replacing conventional ticketing systems.

These technologies give operators the ability to speed up the entire fare collection process as well as boost transaction rates and processing effectiveness. As a result, there will be less waiting and no need for currency management. Automated fare collecting systems are common in high-transit locations such as parking lots, businesses, and governmental structures.

The industry offers a wide range of prospects as a result of the public infrastructure in developing nations throughout the world expanding quickly. Additionally, driving the industry is the growing regional integration of system providers and transit organizations like airports and railroads. Due to the increased usage of smartphones and other contactless technologies for digital transactions, as well as the adaptable fare schedules that these systems offer, the market is predicted to expand.

They boost transaction security and make it possible to effectively handle money taken in from transportation service providers. High installation and maintenance expenses, particularly in developing nations, may hamper market expansion. Additionally, AFC systems can serve as the framework for integrated ticketing solutions. With integrated ticketing, commuters can use a single ticket that is good for all forms of transportation, including trains, buses, and subways.

To make it simpler to transition between multiple forms of transportation and to encourage commuters to use public transportation more frequently, numerous governments have introduced integrated ticketing solutions. Transport for London (TFL) in the UK launched the Oyster card, an electronic ticket for London’s public transportation. It can be used on the Tramlink, London Overground, London Underground, and London Underground.

Regional Analysis:

Due to the region’s rapid adoption of new technologies, North America dominated the global market in 2021 and will do so in the future. AFC systems have been widely deployed and used throughout the region as a result of a number of factors, including an increasing number of smartphone users, better internet networks and communication infrastructures, and a growing population of tech-savvy people. The presence of Automated Fare Collection system manufacturers and integrators, who are always working to create and implement the most cutting-edge solutions, will be advantageous to this region.

AFC systems are in high demand in APAC. This is primarily due to rising investment from emerging economies in railway infrastructure, highway network expansion, etc., that enable inter-city and intracity travel. Key industry players will be able to reap the benefits of the higher smartphone penetration and the growing digital payments, in this region in the coming years. Asia Pacific will see a 17.1% CAGR between 2023 and 2032.

Key Regions and Countries covered in the report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

In APAC, AFC systems are in high demand. This is mainly because emerging economies are investing more money in metro projects that promote inter-city and intra-city mobility, the growth of the highway network, and railway infrastructure. In the upcoming years, major industry participants will be able to benefit from the expanding digital payment infrastructure and the increasing smartphone penetration in this area.

Маrkеt Key Players:

• Cubic Corporation
• Thales Group
• GMV
• ST Engineering
• Atos
• Longbow Solution Sdn. Bhd.
• Samsung SDS
• Nippon Signal Co. Ltd.
• Other Key Players

For the Automated Fare Collection Market research study, the following years have been considered to estimate the market size: