The “Global Automated Fare Collection System Market, by System Component (Hardware (Central Computer System, Station Computer System, Station Equipment), Software and Services), by Application (Bus Rapid Transit, Light Rail Transit, Train, Others), by End Use (Public Transport Authority, and Private Transport Authority) and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Global Forecast to 2027”, is expected to exhibit a CAGR of 11.1% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights
The automated face collection (AFC) system is a computerized ticket dispensing, checking, and automated gate machine. The automated ticketing machine is typically employed in public transportation network. Generally, AFC system is the basis for integrated ticketing. Implementation of AFC system offers numerous facilities to commuters such as easy payment, saves time in peak hours, and reduces congestion at the station. Different types of technologies are used in automated ticketing system such as electronic payment, smart card, and contactless ticket vending. Moreover, major advantage of AFC system is to enable smooth passenger flow during rush hours. Moreover, all the data gathered and transmitted to central computer system.
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
Ease in installation and maintenance are expected to propel the global automated fare collection system market during the forecast period
Contactless cards act as key solution for commuters, especially in mass transit. These cards have information regarding an individual’s transit details, which is stored in central servers thereby simplifying the process of revenue generation among various operators. Moreover, contactless cards cheaper in terms of installation and maintenance than magnetic-stripe card systems. This, in turn, is expected to boost the demand for AFC systems and propel the global automated fare collection system market during the forecast period.
Renovation of older transit infrastructure is expected to offer lucrative business opportunity for market players in the near future
Several countries, especially European countries have relatively old transport infrastructure, which needs systematic overhaul in terms of technology. Up-gradation of these infrastructure requires lesser funds as compared to installing entirely new system, which in turn, is expected to increase chances for adoption of automated ticketing system. Moreover, growing demand for convenient commute from travelers is expected to offer significant growth opportunities for AFC system providers over the forecast period.
Significant cost of primary installation is expected to hinder the global automated fare collections system market growth over the forecast period
Although automated fare collection system is cost-effective and convenient in long-run, the initial installation cost for this system is substantial. Concerning authorities need to invest considerable large amount of funds, in order to establish the fully working infrastructure. Moreover, it becomes economically unfeasible for authorities to install this system for small number of passengers, which in turn is expected to restrict the demand for AFC system in the near future. AFC system installation requires various software and hardware components such as integration software, station computer system, central server system, smartcards, handheld devices, and automated fare gates.
Government authorities are focused on integrating different modes of transport such as bus, train, and, ships by providing a singular e-ticketing solution. This, in turn, will offer commuters several advantages such as singular payment system, convenience, and ease of transport. For instance, in 2008, Public Transport Victoria, an Australia-based transport company, introduced myki Ticketing system, integrated ticketing solution for buses, trains, and trams. This trend is expected to continue during the forecast period.
Fare collection in Europe is gradually shifting towards novel models that are self-oriented and have already moved from ticket-based payment systems. The initial transition began with shifting from paper-based ticket system to paper-less ticketing system and now shifting towards mobile app-based payment system and contactless bankcards. This, in turn, has made transit convenient and time-saving for passengers. The trend is expected to continue in Europe in the near future.
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.
Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.