Automated Fare Collection System Market size with 10.4% CAGR expectations over the forecast period to reach USD 9.84 billion by 2023
Automated fare collection system market size was USD 4.51 billion in 2015 and is predicted to grow with 10.4% CAGR to hit USD 9.84 billion by 2023; as per a new research report by Global Market Insights, Inc.
Growing preference for integrated ticketing and electronic payments will drive AFC system market size in the coming years. A core component of the Intelligent Transportation System (ITS) market, this technology is expected to witness growth due to increased transport infrastructure developments globally.
Positive regulatory landscape is also forecast to impel automated fare collection system market growth. Fraud prevention, improved revenue management and transport service planning capabilities are among the key benefits of implementation. Considerable advancements in communications technology and proliferation of personal mobile devices such as smartphones and tablets will favorably impact the industry. This trend is particularly prevalent in Asia Pacific, with China AFC system market size forecast to surpass USD 700 million by 2023.
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The industry is technology-driven, with continued efforts for enhancing information safety. NFC automated fare collection system market share is set to grow at 12.3% CAGR estimations from 2016 to 2023. In addition to facilitating automated connections, the technology also provides an improved user experience. NFC can be used from point-to-point to pay-as-you-go schemes and offers multiple payment options.
Smart cards accounted for over 30% of the global revenue in 2015. These products are portable, more cost effective to manufacture than competing segments, and present low degree of complexity. It works on the premise of an embedded microchip that can write and process data in a protected environment, and can be contact-based or contactless in nature.
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Key insights from the report include:
- Major hardware includes booking office machines, Ticket Vending Machines (TVM), handheld and mobile terminals, fare gates, etc. The segment is expected to grow at 10.3% CAGR from 2016 to 2023.
- Based on the usage location, these products can be categorized into on-board and off-board equipment. Consumables include proximity cards, flash pass, ticket personalization equipment, etc.
- Intelligent AFC systems are capable of estimating the best fare on the basis of parameters such as relevant discounts, prior journey logs, and travel length. Transparent fee collection methods help significantly boost customer satisfaction and bring value to transport authorities and end users.
- automated fare collection system market share was over 85% of the North American revenue in 2015, and is forecast to remain the leading country over the forecast timeline.
- The availability of improved transport statistics for future infrastructure planning and service enhancements is a compelling growth driver for the industry.
- Major companies accounting for AFC system market share are Thales Group, Omron Corporation, Cubic Transportation, etc. Long life span and limited number of industry participants has led to intense competition. Companies enter into long term service contracts with buyers, leading to high entry barriers.
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Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.