The Automated Fare Collection System Market, estimated at USD 15.43 Bn in 2025, is expected to exhibit a CAGR of 12.6% and reach USD 35.41 Bn by 2032.
Information and Communication Technology continues to be a key driver of global growth, as organizations accelerate digital transformation and invest in advanced solutions. Breakthroughs in automation, data analytics, and next-generation networks are reshaping industries, boosting competitiveness, and opening new avenues for innovation and collaboration.
Global Automated Fare Collection System Market: Drivers
Advancements in Contactless Payment Technologies
The widespread adoption of contactless payment technologies, such as NFC (Near Field Communication) and RFID (Radio Frequency Identification), has facilitated the integration of automated fare collection systems with smartphones and contactless cards, further enhancing convenience for passengers.
For instance, in June 2025, New Delhi: The NCRTC and Paytm Payments Bank Limited collaborated to create an automated fare collection (AFC) system for India's inaugural RRTS connecting Delhi and Meerut. The partnership will involve working with a technology company to develop this system.
Global Automated Fare Collection System Market: Opportunities
Integration of Biometric Authentication
Implementing biometric authentication methods, such as fingerprint or facial recognition, can enhance security and convenience for passengers, reducing the reliance on physical cards or tickets.
Global Automated Fare Collection System Market: Restraints
Component integration issues
The AFC market operates in diverse regional landscapes with varying regulatory frameworks, policies, and standards. Adapting AFC systems to comply with different regulations and interoperability requirements across different countries or regions can be complex and time-consuming.
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Key Takeaways:
Global Automated Fare Collection System market was valued at US$ 15.43 Bn in 2025 and is estimated to reach a value of US$ 35.41 Bn by 2032 at a CAGR of 12.6% between 2025 and 2032.
Bus Rapid Transit held a dominant position in the global Automated Fare Collection System market in 2025, accounting for a 37.9% share in terms of value, owing to increasing approvals and the launch of new products.
Global Automated Fare Collection System Market: Trends
Emphasis on Data Analytics and Insights
AFC systems generate a wealth of data related to passenger behavior, travel patterns, and revenue. There is a growing focus on leveraging this data through advanced analytics and machine learning techniques to gain valuable insights. This enables transport authorities to optimize operations, improve planning, and enhance the overall efficiency of public transportation systems.
Global Automated Fare Collection System Market: Competitive Landscape
Key market player includes Cubic Corporation, TSC Auto ID Technology Co., Ltd, TEC Corporation, Bixolon Co., Ltd, Citizen Holdings Co., Ltd., Star Micronics Co., Ltd, Seiko Epson Corporation, SATO Holdings Corporation, Brother International Corporation, and Others
Global Automated Fare Collection System Market: Recent Developments
For instance, in April 2025, Seiko Epson Corporation, electronics company and its subsidiary company Epson X Investment Corporation ("EXI") invested in startup company Neurable, Inc., through a joint fund, the EP-GB Investment Limited Partnership. Boston-based Neurable, a University of Michigan spinout founded by Dr. Ramses Alcaide and Adam Molnar, develops brain-computer interface1 (BCI) technology that uses brain wave ("electroencephalography / EEG") activity.
In June 2025, SATO Holdings Corporation, a worldwide provider of auto-ID solutions, has unveiled its commitment to achieving carbon neutrality (net zero) for its group companies by the fiscal year 2050. This goal will be accomplished through a twofold approach: first, by reducing greenhouse gas emissions resulting from its business operations, and second, by offsetting any remaining emissions through the use of carbon credits. SATO is dedicated to driving customer innovations that contribute to building a more sustainable world.
In Oct, 2025, All Phase 1 Metro stations operated by the Bangalore Metro Rail Corporation Limited (BMRCL) now have Automatic Fare Collection gates in place. These gates are equipped to accept both QR codes and the open-loop mobility card. The Phase 2 Metro stations are already equipped with AFC gates that are compatible with National Common Mobility Card (NCMC) and QR codes.
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