PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1299743
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1299743
Automated Fare Collection Market size was valued at USD 11,807.6 Million in 2022, expanding at a CAGR of 16.7% from 2023 to 2030.
An automated fare collection (AFC) system is used to replace traditional ticketing systems with automated ticketing, contactless, and end-to-end solution for fare payment collection. Additionally, it consists of ticket-checking machines, recharging terminals, automatic gate machines, and ticket vending machines. Moreover, this system improves the overall transaction rate, facilitates efficiency in fare collection, and saves extensive amounts of time, thus reducing waiting time in queues and buying tickets by searching for cash. Furthermore, for revenue collection, it is an easy method and for all transit modes, it offers travelers to carry one card to use.
By centrally managing the fare collection process, automated fare collection minimizes infrastructural costs thus, maintaining key datasets & records and ensuring transparency. In addition, it also reduces fraud, and ease of payment to customers as well as offers increased operational efficiency. Moreover, operational expenditures are reduced by AFC by reducing manpower and other fare collection resources as well as ensuring a smooth flow of traffic during peak hours. Thereby, it is anticipated to drive the market growth of the AFC system. However, slow growth in developing and underdeveloped countries and the high installation cost are witnessing a slow growth for the market over the forecast period.
Furthermore, the rapid shift toward open road tolling and the requirement for public-private partnerships are anticipated to offer great opportunities for the AFC market. The COVID-19 pandemic significantly affected the AFC market due to the postponement and cancellation of several transportation projects in 2020 due to stringent rules and lockdowns imposed by several countries' governments. However, due to supportive government initiatives, the market witnessed exponential growth since early 2021 as the rapid development of transportation systems and public infrastructure globally as well as the rising awareness for fast and secure fare collection systems is driving the automated fare collection market growth.
The global automated fare collection market is segmented on the basis of component, technology, system, application, and region.
The market is divided into two categories based on components: software and hardware. The rising infrastructure and transportation development as well as the increasing government initiative to deploy automated and smart systems for fare collection is expected to drive the segment growth.
The market is divided into four categories based on technology: smart cards, magnetic stripes, near-field communication (NFC), and optical character recognition (OCR). The smart card sector is expected to dominate the market. It is a kind of integrated digital payment option that provides flexibility to users in terms of mode of payment, location, and platform.
The market is divided into four categories based on the system: ticket vending machines (TVM), ticket office machines (TOM), fare gates, and IC cards. The ticket vending machine (TVM) sector is expected to dominate the market. This ticket vending machine does not need any cash transactions. Additionally, it also receives payments via e-wallets or cards and provides to process hassle-free transactions for ticket purchases.
The market is divided into four categories based on application: railways & transportation, parking, entertainment, and others (government, retail). The railways & transportation are likely to maintain their dominance over the forecast period owing to their higher social distancing protocols, increasing number of travelers, and high demand for flexible & convenient payment options.
Market players are focusing to adopt various techniques and strategies such as mergers & acquisitions, research & development investment, product launches, partnerships, and collaborations to gain a foothold in the global market. Additionally, manufacturers are competing on various aspects such as performance, reputation, product making, and availability. Moreover, benefits such as development in the security system & transport infrastructure and flexible fare plans are witnessing growth in the automated fare collection market. For instance, in November 2022, Roaring Fork Transportation Authority (RFTA) and Masabi announced the launch of the RFTA Tickets Contactless Fare Payments System. It is a mobile app that will help riders to purchase tickets anywhere, anytime, and have them available at the click of a button.
This proposed research study on automated fare collection market provides market size (US$ million), compound annual growth rate (CAGR %) and forecast estimation (2023-2030), considering 2022 as the base year.
The research report elucidates potential growth opportunities across different segments/countries and explains attractive investment proposition matrix for automated fare collection market.
The overall report identifies new investment opportunities, challenges faced by established players, and growth factors to sustain in the automated fare collection market.
Impact of COVID-19 on automated fare collection market size, forecast, CAGR, and market dynamics are discussed in detail under the research scope. Detailed insight on automated fare collection market post-COVID will also be covered.
In order to give the users of this report a comprehensive view on the automated fare collection market, we have also included competitive landscape and key innovator analysis for the automated fare collection market.
The study encompasses a growth prospect mapping analysis, wherein all the industry segments are benchmarked based on their market size, growth rate and attractiveness.
The report offers detailed company profiling featuring major market participants which will help users to understand their financial information and strategic initiatives of players operating in the automated fare collection market.
In addition, the report also unveil the important acquisitions & mergers, collaborations & joint ventures, new launch, research & development, regional expansion of major participants involved in the market on global as well as regional level.
The global automated fare collection market report primarily caters to various stakeholders in this industry including suppliers, investors, new entrants, distributors, and financial analysts.
The scope of this report covers the market by its major segments, which include as follows: