Automatic Fare Collection System Market Size is projected to reach USD 21.81 billion by 2031, growing at a CAGR of 11.20%: Straits Research

Mar 09, 2023

New York, United States, June 06, 2023 (GLOBE NEWSWIRE) -- The global transportation industry is being driven by the population explosion and the rising number of commuters. A ground-breaking automated technology that streamlines the fare collection process has been made possible by this scenario. Several urban public transportation systems use automated fare collection (AFC) systems as they transition from paper tickets printed using a small machine with a keypad to digital tickets (smart cards). Although paper tickets and passes still account for a sizeable portion of commuter rail and urban and rural rail transit systems' ticketing methods, these have recently been replaced by inexpensive magnetic stripe cards and contactless smart cards, which offer more data collection options and security. Additionally, it is clear that AFC systems are preferred as the idea of smart cities gains popularity worldwide. Cities are incorporating cutting-edge technologies into municipal tasks, from infrastructure maintenance to transportation.

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Growing Smartphone Industry Drives the Market

The market for automated fare collection systems has accelerated as smartphones have developed into a necessary tool for online ticketing. Smartphones have made ticket purchasing easier and more convenient with the development of standalone applications for train and bus travel. This has helped the market expand. Customers can purchase any ticket type and pay with a cashless method. Using mobile applications for ticketing also has the advantage of accelerating boarding and streamlining cash-handling procedures. Customers today appreciate the ease of using preloaded cards when making purchases to enhance their travel experience. The automatic fare collection system in India has benefited greatly from the UPI payment method as well. The automatic fare collection system is anticipated to expand further over the course of the forecast period, thanks to recent developments in UPI and eWallet technology.

Rising Investments and the Development of Transit Projects give an Opportunity for Exponential Growth

Businesses that offer automated fare collection solutions may find new business opportunities as future transit infrastructure projects take place in both developing and developed economies. As more transit agencies use the technology, chances will present themselves to provide support services both during and after system installation. Driverless Metrino pods, LRT, BRT, Monorail, and Metro projects are just a few of the transportation options that the 100 Smart Cities Project in India plans to use. These projects are expected to include installed automated fare systems because it is anticipated that many commuters will use these services. In order to implement the locally created National Common Mobility Card (NCMC) throughout the entire Delhi Metro network, Delhi Metro has contracted with a consortium to upgrade the entire ecosystem, including the Automatic Fare Collection (AFC) system, in February 2022. Additionally, this upgrade will make it possible to travel using Near Field Communications (NFC) media, Account Based Tickets, and QR Tickets. The adoption of NCMC & QR tickets will enable hassle-free travel on metro rails and other public transportation systems across the country in addition to facilitating retail shopping and purchases. With mobile QR and NFC-based tickets, travelers will also be able to enter or exit a metro station through its hallways.

Report Scope

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Regional Analysis

North America region is the highest contributor to the market. The public transportation system in North America has undergone a significant transformation as a result of investments made by local and federal authorities to modernize the region's transit system. In urban areas like Baltimore, New York, Boston, Washington, D.C., Chicago, Atlanta, Los Angeles, Houston, and others, numerous upgrade programs have been implemented by reputable companies as their respective transit systems acquire new rolling stock, thereby expanding and modernizing the existing infrastructure to comply with the state-of-the-art AFC system. For instance, in 2018, Masabi, the company that pioneered Software-as-a-Service ticketing and payments for public transportation, partnered with the Regional Transit Service (RTS) in Rochester (New York) to deliver its cutting-edge automated fare collection (AFC) system using Justride. With the aid of Ticket Vending Machines (TVMs) that provide smart cards or printed barcodes, this system will allow commuters without smartphones and bank accounts to quickly pay for the fares.

During the anticipated period, the market for automatic fare collection systems is anticipated to expand rapidly in Europe. The market for automatic fare collection systems and ticketing is growing in Europe as new technology places a greater emphasis on low maintenance costs, dependable machinery, quick transactions, and security. Due to growing health and safety concerns in public transportation, including the higher risk of COVID-19 and other diseases transmission that cash presents, transit agencies now see contactless payments as an urgent matter. 35% of Americans and Germans who survived the pandemic said that, as a result, they spent less money. This number increases to 65% in the UK. Additionally, 55% of consumers said they intended to increase their use of contactless payments as a result of the pandemic, indicating that health issues may have had a long-lasting effect on their decision-making. In London, contactless transactions accounted for two-thirds of all non-cash transactions in 2019–20, with Oyster smart cards accounting for the remaining one-third. Innovation is encouraged by such technological adaptation trends, and advancements in the market for automatic fare collection systems will present a variety of opportunities.

During the anticipated period, the market for automatic fare collection systems is anticipated to expand significantly in Asia-Pacific. The Asia-Pacific region's AFC system market has a larger development window thanks to the growing trend of digitization that is pushing several sectors in developing nations like China and India. Additionally, technologically advanced nations like Japan have the potential to adopt advancements and innovations in AFC systems, providing growth opportunities for the market. The modernization and standardization of 1,350 AFC gates on Singapore's MRT will take place over a seven-year period, according to a contract the Singapore Land Transport Authority (LTA) awarded to the Thales Group in October 2021. Everyone will be able to commute without experiencing any delays thanks to the updated AFC gates, which use contactless technologies, increasing the effectiveness and accessibility of the public transportation system.

During the forecast period, the market for automatic fare collection systems worldwide is anticipated to grow moderately in the LAMEA region. Rapid urbanization, changing ticketing and automated fare collection technologies, and the integration of numerous multiple-mode transit providers in the African region prove to be crucial growth drivers for the AFC system market. Initiatives to create smart cities and the growing adoption of technology in the Middle Eastern region are continually creating new opportunities for transport operators. The pandemic has accelerated the digitization of transportation services and raised consumer demand for contactless payments, easy travel, and smart city technologies to be incorporated into commuters' daily routines. In the Middle East and Africa, governments, communities, public and private bus operators, transportation authorities, and numerous NGOs support automatic fare collection with an open-loop ecosystem.

Key Highlights

Competitive Analysis:

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Global Automatic Fare Collection System Market: Segmentation

By Component

By Application

By Technology

By Regions

TABLE OF CONTENT

Table of Content and Figure @ https://straitsresearch.com/report/automatic-fare-collection-system-market/toc

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