Coherent Market Insights

Automated Fare Collection System Market to Surpass US$ 27.94 Bn by 2030

Automated Fare Collection System Market to Surpass US$ 27.94 Bn by 2030 - Coherent Market Insights

Publish In: Jul 27, 2023

An automated fare collection (AFC) system market comprises essential station equipment such as automated gate machines, ticket vending machines, and ticket checking machines. This system automates the ticketing process primarily in public transportation, providing a more efficient alternative to traditional ticketing systems. The adoption of AFC systems enables transportation authorities to enhance services for consumers. Additionally, the integration of advanced technologies such as smart cards, contactless technology, and electronic payment with AFC systems has reduced the costs associated with manual ticketing in the transportation industry. To ensure smooth passenger flow during peak hours, stable and integrated platforms are crucial for AFC systems. Furthermore, all data collected by the system is transmitted to a central location.

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 2022, 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.

To know the latest trends and insights prevalent in this market, click the link below:

 Key Takeaways:

Global Automated Fare Collection System market was valued at US$ 10.81 Bn in 2022 and is estimated to reach a value of US$ 27.94 Bn by 2030 at a CAGR of 12.6% between 2023 and 2030.

Bus Rapid Transit held a dominant position in the global Automated Fare Collection System market in 2022, 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 2023, 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 2023, 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, 2021, 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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