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Automated Fare Collection System Market

Market Overview

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

  1. Enhanced user experience offer by AFC system is expected to drive growth of the global automated fare collection system market during the forecast period

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.

  1. Proactive initiatives taken by transportation authorities, in order to support adoption of technology is expected to propel the global automated fare collection system market growth over the forecast period

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.

Automated Fare Collection System  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. High initial cost of installation of AFC system is expected to restrain the global automated fare collection system market growth over the forecast period

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.

  1. Lack of component integration is expected to hinder the global automated fare collection system market growth during the forecast period

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.

Market Opportunity

  1. Growing investment in transport infrastructure combined with new projects in emerging economies are expected pose lucrative business opportunity

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.

  1. Up gradation of existing transit projects is expected to pose lucrative business opportunity for key players

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.

Automated Fare Collection System  | Coherent Market Insights

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

Market Trends

  1. Improved user experience with mobile apps is expected to accelerate adoption of AFC system

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.

  1. Growing focus of public transport authorities towards development and deployment of advanced solutions

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

Automated Fare Collection System  | Coherent Market Insights

Competitive Section

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.

Key Developments

  1. Key players in the market are focused on product launches, in order to enhance their market presence. For instance, in February 2017, Cubic Transportation Systems (India), a subsidiary of Cubic Corporation, launched smartcard-based fare collection technology for buses in Delhi.
  2. Key companies in the market are involved product launches, in order to gain competitive edge in the market. For instance, in June 2017, Thales Group provided automated fare collection system for the first section of Delhi Metro’s Phase III in India.

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.

Market Dynamics

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.

Market Taxonomy

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

  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global automated fare collection system market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study includes 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. Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up-gradation, market expansion, and marketing tactics
  • The global automated fare collection system market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global automated fare collection system market

Detailed Segmentation:

  •  Global Automated Fare Collection System Market, By System Component:
    • Hardware
      • Central Computer System
      • Station Computer System
      • Station Equipment
    • Software
    • Services
  •  Global Automated Fare Collection System Market, By Application:
    • Bus Rapid Transit
    • Light Rail Transit
    • Train
    • Others
  • Global Automated Fare Collection System Market, By End-use Industry:
    • Public Transport Authority
    • Private Transport Authority
  • Company Profiles
    • Cubic Corporation*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • TSC Scheidt & Bachmann GmbH
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Thales Group
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Advantech Co. Ltd.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Omron Corporation
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Xerox Corporation
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Advanced Card Systems Holdings Limited
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Eurotech S.P.A.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • NEC Corporation
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Nippon Signal Co. Ltd. Corporation
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans

*Browse all the market data tables and figures on "Global Automated Fare Collection System Market - Forecast to 2027”

Table of Contents

  1. Research Objective and Assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By System Component
      • Market Snippet, By Application
      • Market Snippet, By End Use
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Merger and Acquisitions
      • New Product Launch/Approvals
      • Value Chain Analysis
      • Porter’s Analysis
      • PEST Analysis
  4. Global Automated Fare Collection System Market, By System Component, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Direct Hardware
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Software
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Services
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  5. Global Automated Fare Collection System Market, By Application, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Bus Rapid Transit
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Light Rail Transit
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Train
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  6. Global Automated Fare Collection System Market, By End-use Industry, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Public Transport Authority
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Private Transport Authority
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  7. Global Automated Fare Collection System Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By System Component, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By System Component, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By System Component, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By System Component, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By System Component, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Israel
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  8. Competitive Landscape
    • Company Profiles
      • Cubic Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • TSC Auto ID Technology Co., Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Toshiba TEC Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Honeywell International, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Bixolon Co., Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Citizen Holdings Co., Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Star Micronics Co., Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Seiko Epson Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • SATO Holdings Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Brother International Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
    • Analyst Views
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse XX market data tables and XX figures on "Automated Fare Collection System Market - Global forecast to 2027”.

Frequently Asked Questions

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.
Major players operating in the global automated fare collection system market include 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.
High initial cost of installation of automated fare collection (AFC) system, coupled with lack of component integration are some of the factors that are expected to hamper growth of the market over the forecast period.
Enhanced user experience offered by the AFC system is one of the major factors that is expected to propel growth of the market over the forecast period.
The global automated fare collection system market is estimated to exhibit a CAGR of 11.1% over the forecast period (2019-2027).
Among regions, North America is expected to hold a dominant position in the global automated fare collection system market in 2019, accounting for 31.7% share in terms of value, followed by Europe and APAC, respectively.
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