An automated fare collection (AFC) system is basic station equipment, consisting of automated gate machine, ticket vending machine, and ticket checking machine. This automated ticketing system is primarily used in public transportation, which is an efficient solution to conventional ticketing system. Adoption of automated fare collection system facilitates transport authorities to offer enhanced services to consumers. Moreover, incorporation of advanced technologies namely smart card, contactless technology, and electronic payment combined with automated fare collection system has decreased the cost related to manual ticketing systems in transportation industry. For AFC system, stable, and integrated platforms are essential to keep passenger flow run smoothly at peak hours. Furthermore, all the data will collected and transmitted into center.
The global automated fare collection system market is estimated to account for US$ 7,112.2 Mn in terms of value by the end of 2019
Market Dynamics- Drivers
Automated fare collection system eliminates the necessity for ticket counter, saves time for travelers, and increases convenience. Even for transport authorities, these solutions provide simplicity in operation in terms of ticket distribution and checking and supports in cost reduction. Therefore, these factors are expected to boost the adoption of automated fare collection system by various transit authorities and thereby driving the market growth over the forecast period. Furthermore, smartcard systems make fare payment quicker and easier for travelers. In fact, fare payment traction through AFC system is around 3-5 times faster than manual paying for the tickets.
Transport authorities worldwide are increasingly adopting AFC system, especially in mature markets, in order to achieve economies of scale. Moreover, this adoption is expected to increase in countries with large number of travelers commuting through public transport on daily basis such as India and China. Transport authorities are providing smartcard at a price that includes security deposit, which is refundable when commuters no longer wish to use it. For instance, emerging economies in South Asia including India, China, Malaysia, Thailand, Singapore, have adopted or are increasingly adopting AFC system. This adoption is supported by an increase in investment by governments on transport infrastructure projects. Thus, these factors are expected to boost the market growth over the forecast period.
North America region dominated the global automated fare collection system market in 2019, accounting for 31.7% share in terms of value, followed by Europe and APAC, respectively.
Source: Coherent Market Insights
Market Dynamics- Restraints
The initial implementation cost required for automated fare collection system is significantly high, which may discourage concerning government authority from implementing the technology. Moreover, it is economically unreasonable for the government to offer services to small portion of travelers. Hence, these aspects are expected to hamper the global automated fare collection system market growth over the forecast period. Furthermore, employing this technology includes numerous software and hardware constituents such as central computer systems, cards, integration software, handheld devices, station computer system, fare gates, mobile application software, and more.
Integration of various components such as close payment and open payment fare services is major challenging task. Moreover, unavailability of common platform for commuters to pay while commuting via different transport services including metro, buses, train, etc. is expected to hamper the global automated fare collection system market growth in the near future. Furthermore, common platform travelers suffer from complexities involved in integration of vast number of system components to work together.
Ongoing transit infrastructure projects in developed and emerging economies are expected to pose significant growth opportunity for market players. AFC system providers have opportunity to offer supportive services after installation and during installation of the system. For instance, the Government of India ‘Smart City’ project is expected to opt for different ways of transportation including Metrino driverless pods, Bus Rapid Transit (BRT), Monorail, Metro Projects, and Light Rail Transit (LRT). These projects are expected to incorporate automated fare collection system, thereby providing market opportunity for service providers in the near future.
Government authorities of various countries, especially in Europe, are focused on renovating the existing, old transit infrastructures. Since upgradation requires relatively lesser fund than installation of entirely new system, the chance of technology adoption is significantly higher. This, in turn, is expected to offer business opportunity for automated fare collection solutions provides over the forecast period.
Source: Coherent Market Insights
Global automated fare collection system market was valued at US$ 7112.26 MN in 2019 and is forecast to reach a value of US$ 14,800.2 by 2027 at a CAGR of 10.1% between 2019 and 2027
Transit authorities worldwide are focused on targeting smartphone users through mobile apps, so as to provide augmented user experience and improved transport services. For instance, in November 2015, Cubic Corporation introduced Ventra Mobile App for Chicago Transit Authority (CTA) commuter rail, a Metra and suburban bus operator, Pace. The app facilities travelers to book Chicago’s transit services via smartphones and has aided in automating its transit fare collection. Furthermore, in September 2011, Thales Group launched live ticketing app for android phones for online ticket booking.
Public transport authorities around the world are proactively developing and deploying advanced solutions such as automated fare collection solutions, networks, and mobile applications. For instance, in September 2016, Cubic Corporation entered into contract worth US$ 35.5 Mn with Land Transport Authority, Singapore, for deployment of fare collection solutions. Moreover, in March 2016, Thales Group received a contract from Taipei Rapid Transit Corporation, Taiwan, for upgradation of its metro network.
Value Chain Analysis
Major companies involved in the global automated fare collection system market are Cubic Corporation, Scheidt & Bachmann GmbH, Thales Group, Advantech Co. Ltd., Omron Corporation, Xerox Corporation, Advanced Card Systems Holdings Limited, Eurotech S.P.A., NEC Corporation, and Nippon Signal Co. Ltd.
The automated fare collection system is combination of multiple devices to automate the whole fare collection system in public transport such as bus station, railway station. The automated fare collection system contains ticket vending machine, automatic gate machine and ticket checking machine all connected to central unit. In automated fare collection system there is very few human interaction is required. Automated fare collection system keeps passenger flow smoothly at peak hours and also collects the various data about passenger which helps further decision making process. . In automated ticketing system different types of technologies are used such as electronic payment, smart card, and contactless ticket vending. However, there are some restrain about the automated fare collection system such as machine may fail to operate in very cold weather leading to a chaotic situation.
Growing population and penetration of internet of things (IoT) in day to day life is driving the growth of the Global Automated Fare Collection System Market in the forecast period. Growing population is creating stress on the public transport. It becomes harder day by day to do all the process like ticket distribution, checking and other related activities with human operates. For instance, in 2017, 4.3 million peoples rode New York’s subway making it one of the busiest subways in US. Adoption of automated fare collection system (AFC) will reduce significant amount of work load by making it automatic.
Moreover, adoption of Internet of things (IoT) in day to day making adoption of public transport apps related easier. For instance, according to coherent market insights study, instead of buying physical ticket consumers are prefers to us app or scan Quick Response (QR) code for buying tickets. The use of mobile app and other IoT technology will help the adoption of Global Automated Fare Collection System Market faster.
This report segments the global automated fare collection system market on the basis of system component, application, end use and region. On the basis of system component, the global automated fare collection system market is segmented into hardware, software and services. On basis of hardware, AFC market is further segmented into central computer system, station computer system and station equipment. On the basis of application, the market is segmented into bus rapid transit, light rail transit, train and others. On the basis of end-use industry, the market is segmented into public transport authority, private transport authority. On the basis of region, the market is segmented into North America, Latin America, Europe, Asia pacific and Middle East & Africa.
Key features of the study:
This report provides an in-depth analysis of the global automated fare collection system market and provides market size (US$ Million) and Compound Annual Growth Rate (CAGR %) for the forecast period (2019 – 2027), considering 2018 as the base year
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