Automatic Fare Collection System Global Market Report 2024

The automatic fare collection system market size has grown rapidly in recent years. It will grow from $9.47 billion in 2023 to $10.75 billion in 2024 at a compound annual growth rate (CAGR) of 13.5%. The growth observed in the historical period can be attributed to factors such as the efficiency and speed of boarding, efforts to reduce revenue leakage and fare evasion, enhancements in passenger convenience, integration with multi-modal transportation systems, and the utilization of data collection for operational insights.

The automatic fare collection system market size is expected to see rapid growth in the next few years. It will grow to $16.18 billion in 2028 at a compound annual growth rate (CAGR) of 10.8%. The anticipated growth in the forecast period can be attributed to various factors, including the implementation of smart cities initiatives and IoT connectivity, integration with Mobility as a Service (MaaS), government initiatives and regulations, an increased focus on passenger experience, and heightened attention to cybersecurity and fraud prevention. Key trends expected in the forecast period encompass the adoption of contactless and mobile payments, the integration of intermodal services for seamless mobility, the use of data analytics for optimization, integration with emerging technologies, and the adoption of biometric authentication and facial recognition.

The burgeoning smartphone penetration is poised to drive the expansion of the automatic fare collection system market in the foreseeable future. Smartphones, versatile mobile devices amalgamating traditional cell phone functionalities with computer capabilities, play a pivotal role in automatic fare collection (AFC) systems. They facilitate cashless and contactless transactions, elevating the efficiency, convenience, and user experience within public transportation networks. For example, in March 2023, as indicated by a report from Cybercrew, UK households' smartphone adoption surged to 91.43% in 2021, with projections indicating a further increase to 93.8% by 2026. Thus, the escalating smartphone penetration serves as a catalyst propelling the growth of the automatic fare collection system market.

Prominent entities within the automatic fare collection system market are directing their focus towards advancements such as automated fare collection systems to bolster operational efficiency, enrich passenger experiences, and unlock supplementary revenue channels. Automated Fare Collection (AFC) systems represent technological innovations deployed in public transportation infrastructures to streamline fare payment processes for passengers. For instance, in October 2023, the Metropolitan Atlanta Rapid Transit Authority (MARTA), a metro system headquartered in Georgia, unveiled its latest automated fare collection system. This system enables passengers to make payments via debit and credit cards, as well as mobile wallets, directly at the fare gate, eliminating reliance on traditional vending machines. Featuring an array of functionalities aimed at enhancing passenger experiences and optimizing operational workflows, including diverse payment options and seamless integration of contactless payment methods, the new system exemplifies a concerted effort to modernize fare collection mechanisms within public transit networks.

In December 2023, Aurionpro Solutions Limited, a prominent India-based software company, forged a partnership with Vix Technology for an undisclosed sum. This collaboration between Aurionpro Transit and Vix Technology aims to transform public transit by combining Aurionpro Transit's automatic fare collection products with Vix Technology's intelligent solutions. Vix Technology, headquartered in Australia, specializes in designing, supplying, and operating automated fare collection systems. Through this partnership, both companies seek to enhance the efficiency and convenience of public transportation systems, ultimately improving the travel experience for commuters worldwide.

Major companies operating in the automatic fare collection system market report are Sony Corporation, Siemens AG, Thales Group, NXP Semiconductors, Atos SE, Seiko Epson Corporation, Singapore Technologies Engineering Ltd, OMRON Corporation, Gaoxin Modern, KML Technology Group Ltd, Indra Sistemas, S.A, Chinasoft International Ltd, Cubic Corporation, SATO Holdings Corporation, NIPPON SIGNAL CO LTD, Dormakaba Holding AG, TSC Auto ID Technology Co., Ltd, Star Micronics Co., Ltd, Vix Technology, Scheidt & Bachmann GmbH, LECIP HOLDINGS CORPORATION, Trapeze Group, Leadway Tech, GRGBanking, Masabi Ltd, Advanced Card Systems Ltd.

Asia-Pacific was the largest region in the automatic fare collection (AFC) system market in 2023. The regions covered in the automatic fare collection system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automatic fare collection system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automatic fare collection (AFC) system comprises a comprehensive set of components utilized in public transportation networks to efficiently collect fares from passengers. These systems employ electronic payment methods such as smart cards, mobile payments, or contactless payment systems to automate fare collection, eliminating the need for cash transactions.

The primary components of an automatic fare collection system include hardware and software. Hardware refers to the tangible components of a computer system or electronic device, encompassing processors, memory, storage devices, and other physical parts. It incorporates various technologies such as smart cards, magnetic stripes, near-field communication (NFC), and optical character recognition (OCR). These technologies find applications in diverse sectors, including railways and transportation, parking, entertainment, and others.

The automatic fare collection system market research report is one of a series of new reports that provides automatic fare collection system market statistics, including automatic fare collection system industry global market size, regional shares, competitors with an automatic fare collection system market share, detailed automatic fare collection system market segments, market trends and opportunities, and any further data you may need to thrive in the automatic fare collection system industry. This automatic fare collection system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automatic fare collection (AFC) system market consists of revenues earned by entities by providing services such as contactless payments, automated entry and exit gates, real-time reporting and analytics, account management, custom fare programs, mobile ticketing, and customer support. The market value includes the value of related goods sold by the service provider or included within the service offering. The automatic fare collection (AFC) system market also includes sales of smart cards, ticket vending machines, central computer systems, and maintenance tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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